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national quantity of renewable fuel required 
under paragraph (2)— 
‘‘(i) based on a determination by the 
Administrator, after public notice and op-
portunity for comment, that implementa-
tion of the requirement would severely harm 
the economy or environment of a State, a 
region, or the United States; or 
‘‘(ii) based on a determination by the 
Administrator, after public notice and op-
portunity for comment, that there is an in-
adequate domestic supply. 
‘‘(B) PETITIONS
FOR
WAIVERS.—The Ad-
ministrator, in consultation with the Secretary 
of Agriculture and the Secretary of Energy, shall 
approve or disapprove a State petition for a 
waiver of the requirements of paragraph (2) 
within 90 days after the date on which the peti-
tion is received by the Administrator. 
‘‘(C) TERMINATION OF WAIVERS.—A waiver 
granted under subparagraph (A) shall terminate 
after 1 year, but may be renewed by the Admin-
istrator after consultation with the Secretary of 
Agriculture and the Secretary of Energy.
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‘‘(8) STUDY AND WAIVER FOR INITIAL YEAR OF 
PROGRAM.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this para-
graph, the Secretary of Energy shall conduct for 
the Administrator a study assessing whether the 
renewable fuel requirement under paragraph (2) 
will likely result in significant adverse impacts 
on consumers in 2006, on a national, regional, 
or State basis. 
‘‘(B) REQUIRED EVALUATIONS.—The study 
shall evaluate renewable fuel— 
‘‘(i) supplies and prices; 
‘‘(ii) blendstock supplies; and 
‘‘(iii) supply and distribution system 
capabilities. 
‘‘(C) RECOMMENDATIONS
BY
THE
SEC-
RETARY.—Based on the results of the study, the 
Secretary of Energy shall make specific rec-
ommendations to the Administrator concerning 
waiver of the requirements of paragraph (2), in 
whole or in part, to prevent any adverse impacts 
described in subparagraph (A). 
‘‘(D) WAIVER.—
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‘‘(i) IN GENERAL.—Not later than 270 
days after the date of enactment of this 
paragraph, the Administrator shall, if and 
to the extent recommended by the Secretary 
of Energy under subparagraph (C), waive, 
in whole or in part, the renewable fuel re-
quirement under paragraph (2) by reducing 
the national quantity of renewable fuel re-
quired under paragraph (2) in calendar 
year 2006. 
‘‘(ii) NO EFFECT ON WAIVER AUTHOR-
ITY.—Clause (i) does not limit the author-
ity of the Administrator to waive the re-
quirements of paragraph (2) in whole, or in 
part, under paragraph (7). 
‘‘(9) SMALL REFINERIES.— 
‘‘(A) TEMPORARY EXEMPTION.— 
‘‘(i) IN
GENERAL.—The requirements 
of paragraph (2) shall not apply to small 
refineries until calendar year 2011. 
‘‘(ii) EXTENSION OF EXEMPTION.— 
‘‘(I) STUDY
BY SECRETARY
OF 
ENERGY.—Not later than December 31, 
2008, the Secretary of Energy shall 
conduct for the Administrator a study
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to determine whether compliance with 
the requirements of paragraph (2) 
would impose a disproportionate eco-
nomic hardship on small refineries. 
‘‘(II) 
EXTENSION
OF
EXEMP-
TION.—In the case of a small refinery 
that the Secretary of Energy deter-
mines under subclause (I) would be 
subject to a disproportionate economic 
hardship if required to comply with 
paragraph (2), the Administrator shall 
extend the exemption under clause (i) 
for the small refinery for a period of 
not less than 2 additional years. 
‘‘(B) PETITIONS
BASED
ON
DISPROPOR-
TIONATE ECONOMIC HARDSHIP.— 
‘‘(i) EXTENSION
OF
EXEMPTION.—A 
small refinery may at any time petition the 
Administrator for an extension of the ex-
emption under subparagraph (A) for the 
reason of disproportionate economic hard-
ship. 
‘‘(ii) EVALUATION OF PETITIONS.—In 
evaluating a petition under clause (i), the 
Administrator, in consultation with the
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Secretary of Energy, shall consider the find-
ings of the study under subparagraph 
(A)(ii) and other economic factors. 
‘‘(iii) DEADLINE FOR ACTION ON PETI-
TIONS.—The Administrator shall act on 
any petition submitted by a small refinery 
for a hardship exemption not later than 90 
days after the date of receipt of the petition. 
‘‘(C) CREDIT PROGRAM.—If a small refin-
ery notifies the Administrator that the small re-
finery waives the exemption under subparagraph 
(A), the regulations promulgated under para-
graph (2)(A) shall provide for the generation of 
credits by the small refinery under paragraph 
(5) beginning in the calendar year following the 
date of notification. 
‘‘(D) OPT-IN FOR SMALL REFINERIES.—A 
small refinery shall be subject to the require-
ments of paragraph (2) if the small refinery no-
tifies the Administrator that the small refinery 
waives the exemption under subparagraph (A). 
‘‘(10) ETHANOL MARKET CONCENTRATION ANAL-
YSIS.— 
‘‘(A) ANALYSIS.—
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‘‘(i) IN GENERAL.—Not later than 180 
days after the date of enactment of this 
paragraph, and annually thereafter, the 
Federal Trade Commission shall perform a 
market concentration analysis of the ethanol 
production industry using the Herfindahl- 
Hirschman Index to determine whether 
there is sufficient competition among indus-
try participants to avoid price-setting and 
other anticompetitive behavior. 
‘‘(ii) SCORING.—For the purpose of 
scoring 
under 
clause 
(i) 
using 
the 
Herfindahl-Hirschman Index, all marketing 
arrangements among industry participants 
shall be considered. 
‘‘(B) REPORT.—Not later than December 1, 
2005, and annually thereafter, the Federal Trade 
Commission shall submit to Congress and the 
Administrator a report on the results of the mar-
ket concentration analysis performed under sub-
paragraph (A)(i). 
‘‘(p) RENEWABLE FUEL SAFE HARBOR.— 
‘‘(1) IN GENERAL.— 
‘‘(A) SAFE HARBOR.—Notwithstanding any 
other provision of Federal or State law, no re-
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newable fuel (as defined in subsection (o)(1)) 
used or intended to be used as a motor vehicle 
fuel, nor any motor vehicle fuel containing re-
newable fuel, shall be deemed to be defective in 
design or manufacture by reason of the fact that 
the fuel is, or contains, renewable fuel, if— 
‘‘(i) the fuel does not violate a control 
or prohibition imposed by the Adminis-
trator under this section; and 
‘‘(ii) the manufacturer of the fuel is in 
compliance with all requests for information 
under subsection (b). 
‘‘(B) SAFE HARBOR NOT APPLICABLE.—In 
any case in which subparagraph (A) does not 
apply to a quantity of fuel, the existence of a de-
sign defect or manufacturing defect with respect 
to the fuel shall be determined under otherwise 
applicable law. 
‘‘(2) EXCEPTION.—This subsection does not 
apply to ethers. 
‘‘(3) APPLICABILITY.—This subsection applies 
with respect to all claims filed on or after the date 
of enactment of this subsection.’’. 
(b) PENALTIES AND ENFORCEMENT.—Section 211(d) 
of the Clean Air Act (42 U.S.C. 7545(d)) is amended—
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(1) in paragraph (1)— 
(A) in the first sentence, by striking ‘‘or 
(n)’’ each place it appears and inserting ‘‘(n), or 
(o)’’; and 
(B) in the second sentence, by striking ‘‘or 
(m)’’ and inserting ‘‘(m), or (o)’’; and 
(2) in the first sentence of paragraph (2), by 
striking ‘‘and (n)’’ each place it appears and insert-
ing ‘‘(n), and (o)’’. 
(c) EXCLUSION FROM ETHANOL WAIVER.—Section 
211(h) of the Clean Air Act (42 U.S.C. 7545(h)) is amend-
ed— 
(1) by redesignating paragraph (5) as para-
graph (6); and 
(2) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) EXCLUSION FROM ETHANOL WAIVER.— 
‘‘(A) PROMULGATION
OF
REGULATIONS.— 
Upon notification, accompanied by supporting 
documentation, from the Governor of a State 
that the Reid vapor pressure limitation estab-
lished by paragraph (4) will increase emissions 
that contribute to air pollution in any area in 
the State, the Administrator shall, by regulation, 
apply, in lieu of the Reid vapor pressure limita-
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tion established by paragraph (4), the Reid 
vapor pressure limitation established by para-
graph (1) to all fuel blends containing gasoline 
and 10 percent denatured anhydrous ethanol 
that are sold, offered for sale, dispensed, sup-
plied, offered for supply, transported, or intro-
duced into commerce in the area during the high 
ozone season. 
‘‘(B) DEADLINE FOR PROMULGATION.—The 
Administrator 
shall 
promulgate 
regulations 
under subparagraph (A) not later than 90 days 
after the date of receipt of a notification from a 
Governor under that subparagraph. 
‘‘(C) EFFECTIVE DATE.— 
‘‘(i) IN GENERAL.—With respect to an 
area in a State for which the Governor sub-
mits a notification under subparagraph 
(A), the regulations under that subpara-
graph shall take effect on the later of— 
‘‘(I) the first day of the first high 
ozone season for the area that begins 
after the date of receipt of the notifica-
tion; or 
‘‘(II) 1 year after the date of re-
ceipt of the notification.
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‘‘(ii) EXTENSION OF EFFECTIVE DATE 
BASED
ON
DETERMINATION
OF
INSUFFI-
CIENT SUPPLY.— 
‘‘(I) IN
GENERAL.—If, after re-
ceipt of a notification with respect to 
an area from a Governor of a State 
under subparagraph (A), the Adminis-
trator determines, on the Administra-
tor’s own motion or on petition of any 
person and after consultation with the 
Secretary of Energy, that the promul-
gation of regulations described in sub-
paragraph (A) would result in an in-
sufficient supply of gasoline in the 
State, the Administrator, by regula-
tion— 
‘‘(aa) shall extend the effec-
tive date of the regulations under 
clause (i) with respect to the area 
for not more than 1 year; and 
‘‘(bb) may renew the exten-
sion under item (aa) for 2 addi-
tional periods, each of which shall 
not exceed 1 year.
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‘‘(II) DEADLINE FOR ACTION ON 
PETITIONS.—The Administrator shall 
act on any petition submitted under 
subclause (I) not later than 180 days 
after the date of receipt of the peti-
tion.’’. 
SEC. 212. RENEWABLE FUEL. 
(a) IN GENERAL.—The Clean Air Act is amended by 
inserting after section 211 (42 U.S.C. 7411) the following: 
‘‘SEC. 212. RENEWABLE FUEL. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) MUNICIPAL SOLID WASTE.—The term ‘mu-
nicipal solid waste’ has the meaning given the term 
‘solid waste’ in section 1004 of the Solid Waste Dis-
posal Act (42 U.S.C. 6903). 
‘‘(2) RFG STATE.—The term ‘RFG State’ means 
a State in which is located 1 or more covered areas 
(as defined in section 211(k)(10)(D)). 
‘‘(3) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Energy. 
‘‘(b) SURVEY OF RENEWABLE FUEL MARKET.— 
‘‘(1) SURVEY AND REPORT.—Not later than De-
cember 1, 2006, and annually thereafter, the Admin-
istrator shall—
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‘‘(A) conduct, with respect to each conven-
tional gasoline use area and each reformulated 
gasoline use area in each State, a survey to de-
termine the market shares of— 
‘‘(i) conventional gasoline containing 
ethanol; 
‘‘(ii) reformulated gasoline containing 
ethanol; 
‘‘(iii) conventional gasoline containing 
renewable fuel; and 
‘‘(iv) reformulated gasoline containing 
renewable fuel; and 
‘‘(B) submit to Congress, and make publicly 
available, a report on the results of the survey 
under subparagraph (A). 
‘‘(2) RECORDKEEPING AND REPORTING REQUIRE-
MENTS.— 
‘‘(A) IN
GENERAL.—The Administrator 
may require any refiner, blender, or importer to 
keep such records and make such reports as are 
necessary to ensure that the survey conducted 
under paragraph (1) is accurate. 
‘‘(B) RELIANCE
ON
EXISTING
REQUIRE-
MENTS.—To avoid duplicative requirements, in 
carrying out subparagraph (A), the Adminis-
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trator shall rely, to the maximum extent prac-
ticable, on reporting and recordkeeping require-
ments in effect on the date of enactment of this 
section. 
‘‘(3) CONFIDENTIALITY.—Activities carried out 
under this subsection shall be conducted in a manner 
designed to protect confidentiality of individual re-
sponses. 
‘‘(c) CELLULOSIC BIOMASS ETHANOL AND MUNICIPAL 
SOLID WASTE LOAN GUARANTEE PROGRAM.— 
‘‘(1) IN GENERAL.—Funds may be provided for 
the cost (as defined in the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661 et seq.)) of loan guarantees 
issued under title XIV of the Energy Policy Act of 
2005 to carry out commercial demonstration projects 
for celluosic biomass and sucrose-derived ethanol. 
‘‘(2) DEMONSTRATION PROJECTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
issue loan guarantees under this section to carry 
out not more than 4 projects to commercially 
demonstrate the feasibility and viability of pro-
ducing cellulosic biomass ethanol or sucrose-de-
rived ethanol, including at least 1 project that 
uses cereal straw as a feedstock and 1 project 
that uses municipal solid waste as a feedstock.
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‘‘(B) DESIGN CAPACITY.—Each project shall 
have a design capacity to produce at least 
30,000,000 gallons of cellulosic biomass ethanol 
each year. 
‘‘(3) APPLICANT ASSURANCES.—An applicant for 
a loan guarantee under this section shall provide as-
surances, satisfactory to the Secretary, that— 
‘‘(A) the project design has been validated 
through the operation of a continuous process fa-
cility with a cumulative output of at least 
50,000 gallons of ethanol; 
‘‘(B) the project has been subject to a full 
technical review; 
‘‘(C) the project is covered by adequate 
project performance guarantees; 
‘‘(D) the project, with the loan guarantee, is 
economically viable; and 
‘‘(E) there is a reasonable assurance of re-
payment of the guaranteed loan. 
‘‘(4) LIMITATIONS.— 
‘‘(A) MAXIMUM
GUARANTEE.—Except as 
provided in subparagraph (B), a loan guarantee 
under this section may be issued for up to 80 
percent of the estimated cost of a project, but 
may not exceed $250,000,000 for a project.
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‘‘(B) ADDITIONAL GUARANTEES.— 
‘‘(i) IN GENERAL.—The Secretary may 
issue additional loan guarantees for a 
project to cover up to 80 percent of the ex-
cess of actual project cost over estimated 
project cost but not to exceed 15 percent of 
the amount of the original guarantee. 
‘‘(ii) PRINCIPAL AND INTEREST.—Sub-
ject to subparagraph (A), the Secretary 
shall guarantee 100 percent of the principal 
and interest of a loan made under subpara-
graph (A). 
‘‘(5) EQUITY CONTRIBUTIONS.—To be eligible for 
a loan guarantee under this section, an applicant for 
the loan guarantee shall have binding commitments 
from equity investors to provide an initial equity con-
tribution of at least 20 percent of the total project 
cost. 
‘‘(6) INSUFFICIENT
AMOUNTS.—If the amount 
made available to carry out this section is insufficient 
to allow the Secretary to make loan guarantees for 3 
projects described in subsection (b), the Secretary 
shall issue loan guarantees for 1 or more qualifying 
projects under this section in the order in which the
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applications for the projects are received by the Sec-
retary. 
‘‘(7) APPROVAL.—An application for a loan 
guarantee under this section shall be approved or dis-
approved by the Secretary not later than 90 days 
after the application is received by the Secretary. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS FOR RE-
SOURCE CENTER.—There is authorized to be appropriated, 
for a resource center to further develop bioconversion tech-
nology using low-cost biomass for the production of ethanol 
at the Center for Biomass-Based Energy at the Mississippi 
State University and the Oklahoma State University, 
$4,000,000 for each of fiscal years 2005 through 2007. 
‘‘(e) RENEWABLE FUEL PRODUCTION RESEARCH AND 
DEVELOPMENT GRANTS.— 
‘‘(1) IN GENERAL.—The Administrator shall pro-
vide grants for the research into, and development 
and implementation of, renewable fuel production 
technologies in RFG States with low rates of ethanol 
production, including low rates of production of cel-
lulosic biomass ethanol. 
‘‘(2) ELIGIBILITY.— 
‘‘(A) IN GENERAL.—The entities eligible to 
receive a grant under this subsection are aca-
demic institutions in RFG States, and consortia
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made up of combinations of academic institu-
tions, industry, State government agencies, or 
local government agencies in RFG States, that 
have proven experience and capabilities with rel-
evant technologies. 
‘‘(B) APPLICATION.—To be eligible to re-
ceive a grant under this subsection, an eligible 
entity shall submit to the Administrator an ap-
plication in such manner and form, and accom-
panied by such information, as the Adminis-
trator may specify. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $25,000,000 for each of fiscal years 
2006 through 2010. 
‘‘(f) CELLULOSIC BIOMASS ETHANOL CONVERSION AS-
SISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary may provide 
grants to merchant producers of cellulosic biomass 
ethanol in the United States to assist the producers 
in building eligible production facilities described in 
paragraph (2) for the production of cellulosic biomass 
ethanol.
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‘‘(2) ELIGIBLE PRODUCTION FACILITIES.—A pro-
duction facility shall be eligible to receive a grant 
under this subsection if the production facility— 
‘‘(A) is located in the United States; and 
‘‘(B) uses cellulosic biomass feedstocks de-
rived from agricultural residues or municipal 
solid waste. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection— 
‘‘(A) $250,000,000 for fiscal year 2005; and 
‘‘(B) $400,000,000 for fiscal year 2006.’’. 
(b) CONFORMING AMENDMENT.—The table of contents 
for the Clean Air Act (42 U.S.C. 7401 prec.) is amended 
by inserting after the item relating to section 211 the fol-
lowing: 
‘‘Sec. 212. Renewable fuels’’. 
SEC. 213. SURVEY OF RENEWABLE FUELS CONSUMPTION. 
Section 205 of the Department of Energy Organization 
Act (42 U.S.C. 7135) is amended by adding at the end the 
following: 
‘‘(m) SURVEY
OF RENEWABLE FUELS CONSUMP-
TION.— 
‘‘(1) IN GENERAL.—In order to improve the abil-
ity to evaluate the effectiveness of the Nation’s renew-
able fuels mandate, the Administrator shall conduct
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and publish the results of a survey of renewable fuels 
consumption in the motor vehicle fuels market in the 
United States monthly, and in a manner designed to 
protect the confidentiality of individual responses. 
‘‘(2) ELEMENTS OF SURVEY.—In conducting the 
survey, the Administrator shall collect information 
retrospectively to 1998, on a national basis and a re-
gional basis, including— 
‘‘(A) the quantity of renewable fuels pro-
duced; 
‘‘(B) the cost of production; 
‘‘(C) the cost of blending and marketing; 
‘‘(D) the quantity of renewable fuels blend-
ed; 
‘‘(E) the quantity of renewable fuels im-
ported; and 
‘‘(F) market price data.’’. 
Subtitle C—Federal Reformulated 
Fuels 
SEC. 221. SHORT TITLE. 
This subtitle may be cited as the ‘‘Federal Reformu-
lated Fuels Act of 2005’’. 
SEC. 222. LEAKING UNDERGROUND STORAGE TANKS. 
(a) USE OF LUST FUNDS FOR REMEDIATION OF CON-
TAMINATION FROM ETHER FUEL ADDITIVES.—Section
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9003(h) of the Solid Waste Disposal Act (42 U.S.C. 
6991b(h)) is amended— 
(1) in paragraph (7)(A)— 
(A) by striking ‘‘paragraphs (1) and (2) of 
this subsection’’ and inserting ‘‘paragraphs (1), 
(2), and (12)’’; and 
(B) by inserting ‘‘and section 9010’’ before 
‘‘if’’; and 
(2) by adding at the end the following: 
‘‘(12) REMEDIATION
OF
CONTAMINATION
FROM 
ETHER FUEL ADDITIVES.— 
‘‘(A) IN GENERAL.—The Administrator and 
the States may use funds made available under 
section 9013(1) to carry out corrective actions 
with respect to a release of methyl tertiary butyl 
ether or other ether fuel additive that presents a 
threat to human health, welfare, or the environ-
ment. 
‘‘(B) APPLICABLE
AUTHORITY.—Subpara-
graph (A) shall be carried out— 
‘‘(i) in accordance with paragraph (2), 
except that a release with respect to which 
a corrective action is carried out under sub-
paragraph (A) shall not be required to be 
from an underground storage tank; and
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‘‘(ii) in the case of a State, in accord-
ance with a cooperative agreement entered 
into by the Administrator and the State 
under paragraph (7).’’. 
(b) RELEASE PREVENTION AND COMPLIANCE.—Sub-
title I of the Solid Waste Disposal Act (42 U.S.C. 6991 et 
seq.) is amended by striking section 9010 and inserting the 
following: 
‘‘SEC. 9010. RELEASE PREVENTION AND COMPLIANCE. 
‘‘Funds made available under section 9013(2) from the 
Leaking Underground Storage Tank Trust Fund may be 
used for conducting inspections, or for issuing orders or 
bringing actions under this subtitle— 
‘‘(1) by a State (pursuant to section 9003(h)(7)) 
acting under— 
‘‘(A) a program approved under section 
9004; or 
‘‘(B) State requirements regulating under-
ground storage tanks that are similar or iden-
tical to this subtitle, as determined by the Ad-
ministrator; and 
‘‘(2) by the Administrator, acting under this 
subtitle or a State program approved under section 
9004.
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‘‘SEC. 9011. AUTHORIZATION OF APPROPRIATIONS. 
‘‘In addition to amounts made available under section 
2007(f), there are authorized to be appropriated from the 
Leaking Underground Storage Tank Trust Fund, notwith-
standing section 9508(c)(1) of the Internal Revenue Code 
of 1986— 
‘‘(1) 
to 
carry 
out 
section 
9003(h)(12), 
$200,000,000 for fiscal year 2005, to remain available 
until expended; and 
‘‘(2) to carry out section 9010— 
‘‘(A) $50,000,000 for fiscal year 2005; and 
‘‘(B) $30,000,000 for fiscal years 2006 
through 2010.’’. 
(c) TECHNICAL AMENDMENTS.— 
(1) Section 1001 of the Solid Waste Disposal Act 
(42 U.S.C. prec. 6901) is amended by striking the 
item relating to section 9010 and inserting the fol-
lowing: 
‘‘Sec. 9010. Release prevention and compliance. 
‘‘Sec. 9011. Authorization of appropriations.’’. 
(2) Section 9001(3)(A) of the Solid Waste Dis-
posal Act (42 U.S.C. 6991(3)(A)) is amended by 
striking ‘‘sustances’’ and inserting ‘‘substances’’. 
(3) Section 9003(f)(1) of the Solid Waste Dis-
posal Act (42 U.S.C. 6991b(f)(1)) is amended by 
striking ‘‘subsection (c) and (d) of this section’’ and 
inserting ‘‘subsections (c) and (d)’’.
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(4) Section 9004(a) of the Solid Waste Disposal 
Act (42 U.S.C. 6991c(a)) is amended in the second 
sentence by striking ‘‘referred to’’ and all that follows 
and inserting ‘‘referred to in subparagraph (A) or 
(B), or both, of section 9001(2).’’. 
(5) Section 9005 of the Solid Waste Disposal Act 
(42 U.S.C. 6991d) is amended— 
(A) in subsection (a), by striking ‘‘study 
taking’’ and inserting ‘‘study, taking’’; 
(B) in subsection (b)(1), by striking 
‘‘relevent’’ and inserting ‘‘relevant’’; and 
(C) in subsection (b)(4), by striking 
‘‘Evironmental’’ and inserting ‘‘Environmental’’. 
SEC. 223. RESTRICTIONS ON THE USE OF MTBE. 
(a) FINDINGS.—Congress finds that— 
(1) since 1979, methyl tertiary butyl ether (re-
ferred to in this section as ‘‘MTBE’’) has been used 
nationwide at low levels in gasoline to replace lead as 
an octane booster or anti-knocking agent; 
(2) Public Law 101–549 (commonly known as 
the ‘‘Clean Air Act Amendments of 1990’’) (42 U.S.C. 
7401 et seq.) established a fuel oxygenate standard 
under which reformulated gasoline must contain at 
least 2 percent oxygen by weight;
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(3) at the time of the adoption of the fuel oxygen-
ate standard, Congress was aware that— 
(A) increased use of MTBE could result 
from the adoption of that standard; and 
(B) the use of MTBE would likely be needed 
to implement that standard; 
(4) Congress is aware that gasoline and its com-
ponent additives have leaked from storage tanks, with 
consequences for water quality; 
(5) the fuel industry responded to the fuel oxy-
genate standard established by Public Law 101–549 
by making substantial investments in— 
(A) MTBE production capacity; and 
(B) systems to deliver MTBE-containing 
gasoline to the marketplace; 
(6) when leaked or spilled into the environment, 
MTBE may cause serious problems of drinking water 
quality; 
(7) in recent years, MTBE has been detected in 
water sources throughout the United States; 
(8) MTBE can be detected by smell and taste at 
low concentrations; 
(9) while small quantities of MTBE can render 
water supplies unpalatable, the precise human health
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effects of MTBE consumption at low levels are yet un-
known as of the date of enactment of this Act; 
(10) in the report entitled ‘‘Achieving Clean Air 
and Clean Water: The Report of the Blue Ribbon 
Panel on Oxygenates in Gasoline’’ and dated Sep-
tember 1999, Congress was urged— 
(A) to eliminate the fuel oxygenate stand-
ard; 
(B) to greatly reduce use of MTBE; and 
(C) to maintain the environmental perform-
ance of reformulated gasoline; 
(11) Congress has— 
(A) reconsidered the relative value of MTBE 
in gasoline; and 
(B) decided to eliminate use of MTBE as a 
fuel additive; 
(12) the timeline for elimination of use of MTBE 
as a fuel additive must be established in a manner 
that achieves an appropriate balance among the goals 
of— 
(A) environmental protection; 
(B) adequate energy supply; and 
(C) reasonable fuel prices; and 
(13) it is appropriate for Congress to provide 
some limited transition assistance—
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(A) to merchant producers of MTBE who 
produced MTBE in response to a market created 
by the oxygenate requirement contained in the 
Clean Air Act (42 U.S.C. 7401 et seq.); and 
(B) for the purpose of mitigating any fuel 
supply problems that may result from elimi-
nation of a widely-used fuel additive. 
(b) PURPOSES.—The purposes of this section are— 
(1) to eliminate use of MTBE as a fuel oxygen-
ate; and 
(2) to provide assistance to merchant producers 
of MTBE in making the transition from producing 
MTBE to producing other fuel additives. 
(c) AUTHORITY FOR WATER QUALITY PROTECTION 
FROM FUELS.—Section 211(c) of the Clean Air Act (42 
U.S.C. 7545(c)) is amended— 
(1) in paragraph (1)(A)— 
(A) by inserting ‘‘fuel or fuel additive or’’ 
after ‘‘Administrator any’’; and 
(B) by striking ‘‘air pollution which’’ and 
inserting ‘‘air pollution, or water pollution, 
that’’; 
(2) in paragraph (4)(B), by inserting ‘‘or water 
quality protection,’’ after ‘‘emission control,’’; and 
(3) by adding at the end the following:
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‘‘(5) RESTRICTIONS ON USE OF MTBE.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (E), not later than 4 years after the date 
of enactment of this paragraph, the use of methyl 
tertiary butyl ether in motor vehicle fuel in any 
State other than a State described in subpara-
graph (C) is prohibited. 
‘‘(B) REGULATIONS.—The Administrator 
shall promulgate regulations to effect the prohibi-
tion in subparagraph (A). 
‘‘(C) STATES
THAT
AUTHORIZE
USE.—A 
State described in this subparagraph is a State 
that submits to the Administrator a notice that 
the State authorizes use of methyl tertiary butyl 
ether in motor vehicle fuel sold or used in the 
State. 
‘‘(D) PUBLICATION
OF
NOTICE.—The Ad-
ministrator shall publish in the Federal Register 
each notice submitted by a State under subpara-
graph (C). 
‘‘(E) TRACE QUANTITIES.—In carrying out 
subparagraph (A), the Administrator may allow 
trace quantities of methyl tertiary butyl ether, 
not to exceed 0.5 percent by volume, to be present
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HR 6 PAP 
in motor vehicle fuel in cases that the Adminis-
trator determines to be appropriate. 
‘‘(6) MTBE MERCHANT PRODUCER CONVERSION 
ASSISTANCE.— 
‘‘(A) IN GENERAL.— 
‘‘(i) GRANTS.—The Secretary of En-
ergy, in consultation with the Adminis-
trator, may make grants to merchant pro-
ducers of methyl tertiary butyl ether in the 
United States to assist the producers in the 
conversion of eligible production facilities 
described in subparagraph (C) to the pro-
duction of— 
‘‘(I) iso-octane or alkylates, unless 
the Administrator, in consultation 
with the Secretary of Energy, deter-
mines that transition assistance for the 
production of iso-octane or alkylates is 
inconsistent with the criteria specified 
in subparagraph (B); and 
‘‘(II) any other fuel additive that 
meets the criteria specified in subpara-
graph (B). 
‘‘(B) CRITERIA.—The criteria referred to in 
subparagraph (A) are that—
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‘‘(i) use of the fuel additive is con-
sistent with this subsection; 
‘‘(ii) the Administrator has not deter-
mined that the fuel additive may reasonably 
be anticipated to endanger public health or 
the environment; 
‘‘(iii) the fuel additive has been reg-
istered and tested, or is being tested, in ac-
cordance with the requirements of this sec-
tion; and 
‘‘(iv) the fuel additive will contribute 
to replacing quantities of motor vehicle fuel 
rendered unavailable as a result of para-
graph (5). 
‘‘(C) ELIGIBLE PRODUCTION FACILITIES.— 
A production facility shall be eligible to receive 
a grant under this paragraph if the production 
facility— 
‘‘(i) is located in the United States; 
and 
‘‘(ii) produced methyl tertiary butyl 
ether for consumption in nonattainment 
areas during the period— 
‘‘(I) beginning on the date of en-
actment of this paragraph; and