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rying out this section for the period encompassing fiscal
years 2003 through 2006.
(d) REPORTS TO CONGRESS.—Not later than 3 years
after the date of the enactment of this Act, and not later
than October 1, 2006, the Secretary shall transmit to the
appropriate congressional committees a report that—
(1) evaluates the process of converting natural
gas infrastructure to accommodate fuel cell-powered
school buses; and
(2) assesses the results of the development and
demonstration program under this section.
SEC. 816. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Sec-
retary of Energy for carrying out sections 814 and 815,
to remain available until expended—
(1) $50,000,000 for fiscal year 2003;
(2) $60,000,000 for fiscal year 2004;
(3) $70,000,000 for fiscal year 2005; and
(4) $80,000,000 for fiscal year 2006.
SEC. 817. TEMPORARY BIODIESEL CREDIT EXPANSION.
(a) BIODIESEL CREDIT EXPANSION.—Section 312(b)
of the Energy Policy Act of 1992 (42 U.S.C. 13220(b)) is
amended by striking paragraph (2) and inserting the fol-
lowing:
‘‘(2) USE.—
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‘‘(A) IN
GENERAL.—A fleet or covered
person—
‘‘(i) may use credits allocated under
subsection (a) to satisfy more than 50 per-
cent of the alternative fueled vehicle require-
ments of a fleet or covered person under this
title, title IV, and title V; but
‘‘(ii) may use credits allocated under
subsection (a) to satisfy 100 percent of the
alternative fueled vehicle requirements of a
fleet or covered person under title V for 1 or
more of model years 2002 through 2005.
‘‘(B) APPLICABILITY.—Subparagraph (A)
does not apply to a fleet or covered person that
is a biodiesel alternative fuel provider described
in section 501(a)(2)(A).’’.
(b) TREATMENT AS SECTION 508 CREDITS.—Section
312(c) of the Energy Policy Act of 1992 (42 U.S.C.
13220(c)) is amended—
(1) in the subsection heading, by striking
‘‘CREDIT NOT’’ and inserting ‘‘TREATMENT AS’’; and
(2) by striking ‘‘shall not be considered’’ and in-
serting ‘‘shall be treated as’’.
(c) ALTERNATIVE FUELED VEHICLE STUDY AND RE-
PORT.—
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(1) DEFINITIONS.—In this subsection:
(A) ALTERNATIVE FUEL.—The term ‘‘alter-
native fuel’’ has the meaning given the term in
section 301 of the Energy Policy Act of 1992 (42
U.S.C. 13211).
(B) ALTERNATIVE FUELED VEHICLE.—The
term ‘‘alternative fueled vehicle’’ has the mean-
ing given the term in section 301 of the Energy
Policy Act of 1992 (42 U.S.C. 13211).
(C) LIGHT
DUTY
MOTOR
VEHICLE.—The
term ‘‘light duty motor vehicle’’ has the meaning
given the term in section 301 of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211).
(D) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of Energy.
(2) BIODIESEL CREDIT EXTENSION STUDY.—As
soon as practicable after the date of enactment of this
Act, the Secretary shall conduct a study—
(A) to determine the availability and cost of
light duty motor vehicles that qualify as alter-
native fueled vehicles under title V of the Energy
Policy Act of 1992 (42 U.S.C. 13251 et seq.);
and
(B) to compare—
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(i) the availability and cost of bio-
diesel; with
(ii) the availability and cost of fuels
that qualify as alternative fuels under title
V of the Energy Policy Act of 1992 (42
U.S.C. 13251 et seq.).
(3) REPORT.—Not later than 1 year after the
date of enactment of this Act, the Secretary shall sub-
mit to Congress a report that—
(A) describes the results of the study con-
ducted under paragraph (2); and
(B) includes any recommendations of the
Secretary for legislation to extend the temporary
credit provided under subsection (a) beyond
model year 2005.
SEC. 818. NEIGHBORHOOD ELECTRIC VEHICLES.
Section 301 of the Energy Policy Act of 1992 (42
U.S.C. 13211) is amended—
(1) by striking ‘‘or a dual fueled vehicle’’ and in-
serting ‘‘, a dual fueled vehicle, or a neighborhood
electric vehicle’’;
(2) by striking ‘‘and’’ at the end of paragraph
(13);
(3) by striking the period at the end of subpara-
graph (14) and inserting ‘‘; and’’; and
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(4) by adding at the end the following:
‘‘(15) the term ‘neighborhood electric vehicle’
means a motor vehicle that qualifies as both—
‘‘(A) a low-speed vehicle, as such term is de-
fined in section 571.3(b) of title 49, Code of Fed-
eral Regulations; and
‘‘(B) a zero-emission vehicle, as such term is
defined in section 86.1703–99 of title 40, Code of
Federal Regulations.’’.
SEC. 819. CREDIT FOR HYBRID VEHICLES, DEDICATED AL-
TERNATIVE FUEL VEHICLES, AND INFRA-
STRUCTURE.
Section 507 of the Energy Policy Act of 1992 (42
U.S.C. 13258) is amended by adding at the end the fol-
lowing:
‘‘(p) CREDITS FOR NEW QUALIFIED HYBRID MOTOR
VEHICLES.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) 2000 MODEL YEAR CITY FUEL EFFI-
CIENCY.—The term ‘2000 model year city fuel ef-
ficiency’, with respect to a motor vehicle, means
fuel efficiency determined in accordance with the
following tables:
‘‘(i) In the case of a passenger auto-
mobile:
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ciency specified in table 1 in paragraph (2)(C)
over the average 2000 model year city fuel effi-
ciency of vehicles in the same weight class.
‘‘(E) MAXIMUM
AVAILABLE
POWER.—The
term ‘maximum available power’, with respect to
a new qualified hybrid motor vehicle that is a
passenger vehicle or light truck, means the
quotient obtained by dividing—
‘‘(i) the maximum power available
from the electrical storage device of the new
qualified hybrid motor vehicle, during a
standard 10-second pulse power or equiva-
lent test; by
‘‘(ii) the sum of—
‘‘(I) the maximum power de-
scribed in clause (i); and
‘‘(II) the net power of the internal
combustion or heat engine, as deter-
mined in accordance with standards
established by the Society of Auto-
mobile Engineers.
‘‘(F) MOTOR
VEHICLE.—The term ‘motor
vehicle’ has the meaning given the term in sec-
tion 216 of the Clean Air Act (42 U.S.C. 7550).
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‘‘(G) NEW QUALIFIED HYBRID MOTOR VEHI-
CLE.—The term ‘new qualified hybrid motor ve-
hicle’ means a motor vehicle that—
‘‘(i) draws propulsion energy from
both—
‘‘(I) an internal combustion en-
gine (or heat engine that uses combus-
tible fuel); and
‘‘(II) an energy storage device;
‘‘(ii) in the case of a passenger auto-
mobile or light truck—
‘‘(I) in the case of a 2001 or later
model vehicle, receives a certificate of
conformity under the Clean Air Act
(42 U.S.C. 7401 et seq.) and produces
emissions at a level that is at or below
the applicable qualifying California
low emissions vehicle standards estab-
lished 
under 
authority 
of 
section
243(e)(2) of the Clean Air Act (42
U.S.C. 7583(e)(2)) for that make and
model year; and
‘‘(II) in the case of a 2004 or
later model vehicle, is certified by the
Administrator as producing emissions
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at a level that is at or below the level
established for Bin 5 vehicles in the
Tier 2 regulations promulgated by the
Administrator under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i))
for that make and model year vehicle;
and
‘‘(iii) employs a vehicle braking system
that recovers waste energy to charge an en-
ergy storage device.
‘‘(H) VEHICLE INERTIA WEIGHT CLASS.—
The term ‘vehicle inertia weight class’ has the
meaning given the term in regulations promul-
gated by the Administrator for purposes of the
administration of title II of the Clean Air Act
(42 U.S.C. 7521 et seq.).
‘‘(2) ALLOCATION.—
‘‘(A) IN GENERAL.—The Secretary shall al-
locate a partial credit to a fleet or covered person
under this title if the fleet or person acquires a
new qualified hybrid motor vehicle that is eligi-
ble to receive a credit under each of the tables in
subparagraph (C).
‘‘(B) AMOUNT.—The amount of a partial
credit allocated under subparagraph (A) for a
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vehicle described in that subparagraph shall be
equal to the sum of—
‘‘(i) the partial credits determined
under table 1 in subparagraph (C); and
‘‘(ii) the partial credits determined
under table 2 in subparagraph (C).
‘‘(C) TABLES.—The tables referred to in
subparagraphs (A) and (B) are as follows:
‘‘Table 1
Amount of
‘‘Partial credit for increased fuel efficiency:
credit:
At least 125% but less than 150% of 2000 model year city
fuel efficiency ......................................................................
0.14
At least 150% but less than 175% of 2000 model year city
fuel efficiency ......................................................................
0.21
At least 175% but less than 200% of 2000 model year city
fuel efficiency ......................................................................
0.28
At least 200% but less than 225% of 2000 model year city
fuel efficiency ......................................................................
0.35
At least 225% but less than 250% of 2000 model year city
fuel efficiency ......................................................................
0.50.
‘‘Table 2
Amount of
‘‘Partial credit for ‘Maximum Available Power’:
credit:
At least 5% but less than 10% ..............................................
0.125
At least 10% but less than 20% ............................................
0.250
At least 20% but less than 30% ............................................
0.375
At least 30% or more .............................................................
0.500.
‘‘(D) USE OF CREDITS.—At the request of a
fleet or covered person allocated a credit under
this subsection, the Secretary shall, for the year
in which the acquisition of the qualified hybrid
motor vehicle is made, treat that credit as the ac-
quisition of 1 alternative fueled vehicle that the
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fleet or covered person is required to acquire
under this title.
‘‘(3) REGULATIONS.—The Secretary shall pro-
mulgate regulations under which any Federal fleet
that acquires a new qualified hybrid motor vehicle
will receive partial credits determined under the ta-
bles contained in paragraph (2)(C) for purposes of
meeting the requirements of section 303.
‘‘(q) CREDIT FOR SUBSTANTIAL CONTRIBUTION TO-
WARDS USE OF DEDICATED VEHICLES IN NONCOVERED
FLEETS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) 
DEDICATED
VEHICLE.—The 
term
‘dedicated vehicle’ includes—
‘‘(i) a light, medium, or heavy duty ve-
hicle; and
‘‘(ii) a neighborhood electric vehicle.
‘‘(B) MEDIUM OR HEAVY DUTY VEHICLE.—
The term ‘medium or heavy duty vehicle’ in-
cludes a vehicle that—
‘‘(i) operates solely on alternative fuel;
and
‘‘(ii)(I) in the case of a medium duty
vehicle, has a gross vehicle weight rating of
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more than 8,500 pounds but not more than
14,000 pounds; or
‘‘(II) in the case of a heavy duty vehi-
cle, has a gross vehicle weight rating of
more than 14,000 pounds.
‘‘(C) 
SUBSTANTIAL
CONTRIBUTION.—The
term ‘substantial contribution’ (equal to 1 full
credit) means not less than $15,000 in cash or
in kind services, as determined by the Secretary.
‘‘(2) ISSUANCE
OF
CREDITS.—The Secretary
shall issue a credit to a fleet or covered person under
this title if the fleet or person makes a substantial
contribution toward the acquisition and use of dedi-
cated vehicles by a person that owns, operates, leases,
or otherwise controls a fleet that is not covered by this
title.
‘‘(3) MULTIPLE
CREDITS
FOR
MEDIUM
AND
HEAVY DUTY DEDICATED VEHICLES.—The Secretary
shall issue 2 full credits to a fleet or covered person
under this title if the fleet or person acquires a me-
dium or heavy duty dedicated vehicle.
‘‘(4) USE OF CREDITS.—At the request of a fleet
or covered person allocated a credit under this sub-
section, the Secretary shall, for the year in which the
acquisition of the dedicated vehicle is made, treat that
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credit as the acquisition of 1 alternative fueled vehicle
that the fleet or covered person is required to acquire
under this title.
‘‘(5) LIMITATION.—Per vehicle credits acquired
under this subsection shall not exceed the per vehicle
credits allowed under this section to a fleet for quali-
fying vehicles in each of the weight categories (light,
medium, or heavy duty).
‘‘(r) CREDIT FOR SUBSTANTIAL INVESTMENT IN AL-
TERNATIVE FUEL INFRASTRUCTURE.—
‘‘(1) DEFINITIONS.—In this section, the term
‘qualifying infrastructure’ means—
‘‘(A) equipment required to refuel or re-
charge alternative fueled vehicles;
‘‘(B) facilities or equipment required to
maintain, repair, or operate alternative fueled
vehicles;
‘‘(C) training programs, educational mate-
rials, or other activities necessary to provide in-
formation regarding the operation, maintenance,
or benefits associated with alternative fueled ve-
hicles; and
‘‘(D) such other activities the Secretary con-
siders to constitute an appropriate expenditure
in support of the operation, maintenance, or fur-
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ther widespread adoption of or utilization of al-
ternative fueled vehicles.
‘‘(2) ISSUANCE
OF
CREDITS.—The Secretary
shall issue a credit to a fleet or covered person under
this title for investment in qualifying infrastructure
if the qualifying infrastructure is open to the general
public during regular business hours.
‘‘(3) AMOUNT.—For the purposes of credits
under this subsection—
‘‘(A) 1 credit shall be equal to a minimum
investment of $25,000 in cash or in kind serv-
ices, as determined by the Secretary; and
‘‘(B) except in the case of a Federal or State
fleet, no part of the investment may be provided
by Federal or State funds.
‘‘(4) USE OF CREDITS.—At the request of a fleet
or covered person allocated a credit under this sub-
section, the Secretary shall, for the year in which the
investment is made, treat that credit as the acquisi-
tion of 1 alternative fueled vehicle that the fleet or
covered person is required to acquire under this
title.’’.
SEC. 820. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.
(a) IN GENERAL.—Section 211 of the Clean Air Act
(42 U.S.C. 7545) is amended—
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(1) by redesignating subsection (o) as subsection
(q); and
(2) by inserting after subsection (n) the fol-
lowing:
‘‘(o) RENEWABLE FUEL PPROGRAM.—
‘‘(1) DEFINITIONS.—In this section:
‘‘(A) CELLULOSIC BIOMASS ETHANOL.—The
term ‘cellulosic biomass ethanol’ means ethanol
derived from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recur-
ring basis, including—
‘‘(i) dedicated energy crops and trees;
‘‘(ii) wood and wood residues;
‘‘(iii) plants;
‘‘(iv) grasses;
‘‘(v) agricultural residues;
‘‘(vi) fibers;
‘‘(vii) animal wastes and other waste
materials; and
‘‘(viii) municipal solid waste.
‘‘(B) RENEWABLE FUEL.—
‘‘(i) IN GENERAL.—The term ‘renew-
able fuel’ means motor vehicle fuel that—
‘‘(I)(aa) is produced from grain,
starch, oilseeds, or other biomass; or
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‘‘(bb) is natural gas produced
from a biogas source, including a land-
fill, sewage waste treatment plant,
feedlot, or other place where decaying
organic material is found; and
‘‘(II) is used to replace or reduce
the quantity of fossil fuel present in a
fuel mixture used to operate a motor
vehicle.
‘‘(ii) INCLUSION.—The term ‘renewable
fuel’ includes cellulosic biomass ethanol and
biodiesel (as defined in section 312(f) of the
Energy Policy Act of 1992 (42 U.S.C.
13220(f)).
‘‘(C) SMALL
REFINERY.—The term ‘small
refinery’ means a refinery for which average ag-
gregate daily crude oil throughput for the cal-
endar year (as determined by dividing the aggre-
gate throughput for the calendar year by the
number of days in the calendar year) does not
exceed 75,000 barrels.
‘‘(2) RENEWABLE FUEL PROGRAM.—
‘‘(A) IN GENERAL.—Not later than 1 year
from enactment of this provision, the Adminis-
trator shall promulgate regulations ensuring that
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gasoline sold or dispensed to consumers in the
United States, on an annual average basis, con-
tains the applicable volume of renewable fuel as
specified in subparagraph (B). Regardless of the
date of promulgation, such regulations shall con-
tain compliance provisions for refiners, blenders,
and importers, as appropriate, to ensure that the
requirements of this section are met, but shall
not restrict where renewables can be used, or im-
pose any per-gallon obligation for the use of re-
newables. If the Administrator does not promul-
gate such regulations, the applicable percentage,
on a volume percentage of gasoline basis, shall be
1.62 in 2004.
‘‘(B) APPLICABLE VOLUME.—
(i) CALENDAR
YEARS
2004
THROUGH
2012.—For the purpose of subparagraph (A),
the applicable volume for any of calendar
years 2004 through 2012 shall be deter-
mined in accordance with the following
table:
Applicable volume of renewable fuel
‘‘Calendar year:
(In billions of gallons)
2004 ............................................................................................
2.3
2005 ............................................................................................
2.6
2006 ............................................................................................
2.9
2007 ............................................................................................
3.2
2008 ............................................................................................
3.5
2009 ............................................................................................
3.9
2010 ............................................................................................
4.3
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‘‘Calendar year:
(In billions of gallons)
2011 ............................................................................................
4.7
2012 ............................................................................................
5.0.
‘‘(ii) 
CALENDAR
YEAR
2013
AND
THEREAFTER.—For the purpose of subpara-
graph (A), the applicable volume for cal-
endar year 2013 and each calendar year
thereafter shall be equal to the product ob-
tained by multiplying—
‘‘(I) the number of gallons of gaso-
line that the Administrator estimates
will be sold or introduced into com-
merce in the calendar year; and
‘‘(II) the ratio that—
‘‘(aa) 5.0 billion gallons of
renewable fuels; bears to
‘‘(bb) the number of gallons
of gasoline sold or introduced into
commerce in calendar year 2012.
‘‘(3) 
APPLICABLE
PERCENTAGES.—Not 
later
than October 31 of each calendar year, through 2011,
the Administrator of the Energy Information Admin-
istration shall provide the Administrator an estimate
of the volumes of gasoline sales in the United States
for the coming calendar year. Based on such esti-
mates, the Administrator shall by November 30 of
each calendar year, through 2011, determine and pub-
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lish in the Federal Register, the renewable fuel obliga-
tion, on a volume percentage of gasoline basis, appli-
cable to refiners, blenders, distributors and importers,
as appropriate, for the coming calendar year, to en-
sure that the requirements of paragraph (2) are met.
For each calendar year, the Administrator shall es-
tablish a single applicable percentage that applies to
all parties, and make provision to avoid redundant
obligations. In determining the applicable percent-
ages, the Administrator shall make adjustments to ac-
count for the use of renewable fuels by exempt small
refineries during the previous year.
‘‘(4) CELLULOSIC BIOMASS ETHANOL.—For the
purpose of paragraph (2), 1 gallon of cellulosic bio-
mass ethanol shall be considered to be the equivalent
of 1.5 gallon of renewable fuel.
‘‘(5) CREDIT PROGRAM.—
‘‘(A) IN
GENERAL.—The regulations pro-
mulgated to carry out this subsection shall pro-
vide for the generation of an appropriate
amount of credits by any person that refines,
blends, or imports gasoline that contains a quan-
tity of renewable fuel that is greater than the
quantity required under paragraph (2). Such
regulations shall provide for the generation of an
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appropriate amount of credits for biodiesel fuel.
If a small refinery notifies the Administrator
that it waives the exemption provided by this
Act, the regulations shall provide for the genera-
tion of credits by the small refinery beginning in
the year following such notification.
‘‘(B) USE OF CREDITS.—A person that gen-
erates credits under subparagraph (A) may use
the credits, or transfer all or a portion of the
credits to another person, for the purpose of com-
plying with paragraph (2).
‘‘(C) LIFE OF CREDITS.—A credit generated
under this paragraph shall be valid to show com-
pliance:
(i) in the calendar year in which the
credit was generated or the next calendar
year, or
(ii) in the calendar year in which the
credit was generated or next two consecutive
calendar years if the Administrator promul-
gates regulations under paragraph (6).
‘‘(D) INABILITY TO PURCHASE SUFFICIENT
CREDITS.—The regulations promulgated to carry
out this subsection shall include provisions al-
lowing any person that is unable to generate or
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purchase sufficient credits to meet the require-
ments under paragraph (2) to carry forward a
renewables deficit provided that, in the calendar
year following the year in which the renewables
deficit is created, such person shall achieve com-
pliance with the renewables requirement under
paragraph (2), and shall generate or purchase
additional renewables credits to offset the renew-
ables deficit of the previous year.
‘‘(6) SEASONAL
VARIATIONS
IN
RENEWABLE
FUEL USE.—
‘‘(A) STUDY.—For each of calendar years
2004 through 2012, the Administrator of the En-
ergy Information Administration, shall conduct
a study of renewable fuels blending to determine
whether there are excessive seasonal variations in
the use of renewable fuels.
‘‘(B) REGULATION OF EXCESSIVE SEASONAL
VARIATIONS.—If, for any calendar year, the Ad-
ministrator of the Energy Information Adminis-
tration, based on the study under subparagraph
(A), makes the determinations specified in sub-
paragraph (C), the Administrator shall promul-
gate regulations to ensure that 35 percent or
more of the quantity of renewable fuels necessary
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to meet the requirement of paragraph (2) is used
during each of the periods specified in subpara-
graph (D) of each subsequent calendar year.
‘‘(C) DETERMINATIONS.—The determina-
tions referred to in subparagraph (B) are that—
‘‘(i) less than 35 percent of the quan-
tity of renewable fuels necessary to meet the
requirement of paragraph (2) has been used
during one of the periods specified in sub-
paragraph (D) of the calendar year; and
‘‘(ii) a pattern of excessive seasonal
variation described in clause (i) will con-
tinue in subsequent calendar years.
‘‘(D) PERIODS.—The two periods referred to
in this paragraph are—
‘‘(i) April through September; and
‘‘(ii) January through March and Oc-
tober through December.
‘‘(E) EXCLUSIONS.—Renewable fuels blend-
ed or consumed in 2004 in a state which has re-
ceived a waiver under section 209(b) shall not be
included in the study in subparagraph (A).
‘‘(7) WAIVERS.—
‘‘(A) IN GENERAL.—The Administrator, in
consultation with the Secretary of Agriculture
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and the Secretary of Energy, may waive the re-
quirement of paragraph (2) in whole or in part
on petition by one or more States by reducing
the national quantity of renewable fuel required
under this subsection—
‘‘(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 or distribution
capacity to meet the requirement.
‘‘(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 requirement of paragraph (2) with-
in 90 days after the date on which the petition
is received by the Administrator.
‘‘(C) TERMINATION OF WAIVERS.—A waiver
granted under subparagraph (A) shall terminate
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after 1 year, but may be renewed by the Admin-
istrator after consultation with the Secretary of
Agriculture and the Secretary of Energy.
‘‘(8) STUDY AND WAIVER FOR INITIAL YEAR OF
PROGRAM.—Not later than 180 days from enactment,
the Secretary of Energy shall complete for the Admin-
istrator a study assessing whether the renewable fuels
requirement under paragraph (2) will likely result in
significant adverse consumer impacts in 2004, on a
national, regional or state basis. Such study shall
evaluate renewable fuel supplies and prices, blendstock
supplies, and supply and distribution system capa-
bilities. Based on such study, the Secretary shall
make specific recommendations to the Administrator
regarding waiver of the requirements of paragraph
(2), in whole or in part, to avoid any such adverse
impacts. Within 270 days from enactment, the Ad-
ministrator shall, consistent with the recommenda-
tions of the Secretary waive, in whole or in part, the
renewable fuels requirement under paragraph (2) by
reducing the national quantity of renewable fuel re-
quired under this subsection in 2004. This provision
shall not be interpreted as limiting the Administra-
tor’s authority to waive the requirements of para-
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graph (2) in whole, or in part, under paragraph (7),
pertaining to waivers.
‘‘(9) SMALL REFINERIES.—
‘‘(A) IN
GENERAL.—The requirement of
paragraph (2) shall not apply to small refineries
until January 1, 2008. Not later than December
31, 2006, the Secretary of Energy shall complete
for the Administrator a study to determine
whether the requirement of paragraph (2) would
impose a disproportionate economic hardship on
small refineries. For any small refinery that the
Secretary of Energy determines would experience
a disproportionate economic hardship, the Ad-
ministrator shall extend the small refinery ex-
emption for such small refinery for no less than
two additional years.
‘‘(B) ECONOMIC HARDSHIP.—
‘‘(i) EXTENSION
OF
EXEMPTION.—A
small refinery may at any time petition the
Administrator for an extension of the ex-
emption from the requirement of paragraph
(2) for the reason of disproportionate eco-
nomic hardship. In evaluating a hardship
petition, the Administrator, in consultation
with the Secretary of Energy, shall consider
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the findings of the study in addition to
other economic factors.
‘‘(ii) 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 receipt of the petition.
‘‘(C) CREDIT PROGRAM.—If a small refin-
ery notifies the Administrator that it waives the
exemption provided by this Act, the regulations
shall provide for the generation of credits by the
small refinery beginning in the year following
such notification.
‘‘(D) OPT-IN
FOR
SMALL
REFINERS.—A
small refinery shall be subject to the require-
ments of this section if it notifies the Adminis-
trator that it waives the exemption under sub-
paragraph (A).
(b) PENALTIES AND ENFORCEMENT.—Section 211(d)
of the Clean Air Act (42 U.S.C. 7545(d)) is amended—
(1) in paragraph (1)—
(A) in the first sentence, by striking ‘‘or
(n)’’ each place it appears and inserting ‘‘(n) or
(o)’’; and
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(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
amended—
(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-
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
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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.
‘‘(ii) EXTENSION OF EFFECTIVE DATE
BASED
ON
DETERMINATION
OF
INSUFFI-
CIENT SUPPLY.—
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‘‘(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
regulation—
‘‘(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 two ad-
ditional periods, each of which
shall not exceed 1 year.
‘‘(II) DEADLINE FOR ACTION ON
PETITIONS.—The Administrator shall
act on any petition submitted under
subclause (I) not later than 180 days
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after the date of receipt of the peti-
tion.’’.
(d) SURVEY OF RENEWABLE FUEL MARKET.—
(1) SURVEY AND REPORT.—Not later than De-
cember 1, 2005, and annually thereafter, the Admin-
istrator shall—
(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.—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
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conducted under paragraph (1) is accurate. The Ad-
ministrator shall rely, to the extent practicable, on ex-
isting reporting and recordkeeping requirements to
avoid duplicative requirements.
(3) APPLICABLE
LAW.—Activities carried out
under this subsection shall be conducted in a manner
designed to protect confidentiality of individual re-
sponses.
(e) RENEWABLE FUELS SAFE HARBOR.—
(1) IN
GENERAL.—Notwithstanding any other
provision of federal or state law, no renewable fuel, as
defined by this Act, used or intended to be used as a
motor vehicle fuel, nor any motor vehicle fuel con-
taining such renewable fuel, shall be deemed defective
in design or manufacture by virtue of the fact that it
is, or contains, such a renewable fuel, if it does not
violate a control or prohibition imposed by the Ad-
ministrator under section 211 of the Clean Air Act,
as amended by this Act, and the manufacturer is in
compliance with all requests for information under
section 211(b) of the Clean Air Act, as amended by
this Act. In the event that the safe harbor under this
section does not apply, the existence of a design defect
or manufacturing defect shall be determined under
otherwise applicable law.
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(2) EXCEPTIONS.—This subsection shall not
apply to ethers.
(3) EFFECTIVE DATE.—This subsection shall be
effective as of the date of enactment and shall apply
with respect to all claims filed on or after that date.
SEC. 820A. FEDERAL AGENCY ETHANOL-BLENDED GASO-
LINE AND BIODIESEL PURCHASING REQUIRE-
MENT.
Title III of the Energy Policy Act of 1992 is amended
by striking section 306 (42 U.S.C. 13215) and inserting the
following:
‘‘SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE
AND BIODIESEL PURCHASING REQUIREMENT.
‘‘(a) ETHANOL-BLENDED GASOLINE.—The head of
each Federal agency shall ensure that, in areas in which
ethanol-blended gasoline is reasonably available at a gen-
erally competitive price, the Federal agency purchases eth-
anol-blended gasoline containing at least 10 percent ethanol
rather than nonethanol-blended gasoline, for use in vehicles
used by the agency that use gasoline.
‘‘(b) BIODIESEL.—
‘‘(1) DEFINITION OF BIODIESEL.—In this sub-
section, the term ‘biodiesel’ has the meaning given the
term in section 312(f).
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‘‘(2) REQUIREMENT.—The head of each Federal
agency shall ensure that the Federal agency pur-
chases, for use in fueling fleet vehicles that use diesel
fuel used by the Federal agency at the location at
which fleet vehicles of the Federal agency are centrally
fueled, in areas in which the biodiesel-blended diesel
fuel described in paragraphs (A) and (B) is available
at a generally competitive price—
‘‘(A) as of the date that is 5 years after the
date of enactment of this paragraph, biodiesel-
blended diesel fuel that contains at least 2 per-
cent biodiesel, rather than nonbiodiesel-blended
diesel fuel; and
‘‘(B) as of the date that is 10 years after the
date of enactment of this paragraph, biodiesel-
blended diesel fuel that contains at least 20 per-
cent biodiesel, rather than nonbiodiesel-blended
diesel fuel.
‘‘(3) REQUIREMENT
OF FEDERAL LAW.—The
provisions of this subsection shall not be considered a
requirement of Federal law for the purposes of section
312.
‘‘(c) EXEMPTION.—This section does not apply to fuel
used in vehicles excluded from the definition of ‘fleet’ by
subparagraphs (A) through (H) of section 301(9).’’.
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SEC. 820B. COMMERCIAL BYPRODUCTS FROM MUNICIPAL
SOLID WASTE LOAN GUARANTEE PROGRAM.
(a) DEFINITION OF MUNICIPAL SOLID WASTE.—In
this section, the term ‘‘municipal solid waste’’ has the
meaning given the term ‘‘solid waste’’ in section 1004 of
the Solid Waste Disposal Act (42 U.S.C. 6903).
(b) ESTABLISHMENT OF PROGRAM.—The Secretary of
Energy shall establish a program to provide guarantees of
loans by private institutions for the construction of facili-
ties for the processing and conversion of municipal solid
waste into fuel ethanol and other commercial byproducts.
(c) REQUIREMENTS.—The Secretary may provide a
loan guarantee under subsection (b) to an applicant if—
(1) without a loan guarantee, credit is not avail-
able to the applicant under reasonable terms or condi-
tions sufficient to finance the construction of a facil-
ity described in subsection (b);
(2) the prospective earning power of the appli-
cant and the character and value of the security
pledged provide a reasonable assurance of repayment
of the loan to be guaranteed in accordance with the
terms of the loan; and
(3) the loan bears interest at a rate determined
by the Secretary to be reasonable, taking into account
the current average yield on outstanding obligations
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of the United States with remaining periods of matu-
rity comparable to the maturity of the loan.
(d) CRITERIA.—In selecting recipients of loan guaran-
tees from among applicants, the Secretary shall give pref-
erence to proposals that—
(1) meet all applicable Federal and State per-
mitting requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the
greatest need for the facility because of—
(A) the limited availability of land for
waste disposal; or
(B) a high level of demand for fuel ethanol
or other commercial byproducts of the facility.
(e) MATURITY.—A loan guaranteed under subsection
(b) shall have a maturity of not more than 20 years.
(f) TERMS AND CONDITIONS.—The loan agreement for
a loan guaranteed under subsection (b) shall provide that
no provision of the loan agreement may be amended or
waived without the consent of the Secretary.
(g) ASSURANCE OF REPAYMENT.—The Secretary shall
require that an applicant for a loan guarantee under sub-
section (b) provide an assurance of repayment in the form
of a performance bond, insurance, collateral, or other means
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acceptable to the Secretary in an amount equal to not less
than 20 percent of the amount of the loan.
(h) GUARANTEE FEE.—The recipient of a loan guar-
antee under subsection (b) shall pay the Secretary an
amount determined by the Secretary to be sufficient to cover
the administrative costs of the Secretary relating to the loan
guarantee.
(i) FULL FAITH AND CREDIT.—The full faith and
credit of the United States is pledged to the payment of
all guarantees made under this section. Any such guarantee
made by the Secretary shall be conclusive evidence of the
eligibility of the loan for the guarantee with respect to prin-
cipal and interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed
loan.
(j) REPORTS.—Until each guaranteed loan under this
section has been repaid in full, the Secretary shall annually
submit to Congress an report on the activities of the Sec-
retary under this section.
(k) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section.
(l) TERMINATION OF AUTHORITY.—The authority of
the Secretary to issue a loan guarantee under subsection
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(b) terminates on the date that is 10 years after the date
of enactment of this Act.
Subtitle B—Additional Fuel
Efficiency Measures
SEC. 821. FUEL EFFICIENCY OF THE FEDERAL FLEET OF
AUTOMOBILES.
Section 32917 of title 49, United States Code, is
amended to read as follows:
‘‘§ 32917. Standards for executive agency automobiles
‘‘(a) BASELINE AVERAGE FUEL ECONOMY.—The head
of each executive agency shall determine, for all automobiles
in the agency’s fleet of automobiles that were leased or
bought as a new vehicle in fiscal year 1999, the average
fuel economy for such automobiles. For the purposes of this
section, the average fuel economy so determined shall be the
baseline average fuel economy for the agency’s fleet of auto-
mobiles.
‘‘(b) INCREASE OF AVERAGE FUEL ECONOMY.—The
head of an executive agency shall manage the procurement
of automobiles for that agency in such a manner that—
‘‘(1) not later than September 30, 2003, the aver-
age fuel economy of the new automobiles in the agen-
cy’s fleet of automobiles is not less than 1 mile per
gallon higher than the baseline average fuel economy
determined under subsection (a) for that fleet; and
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‘‘(2) not later than September 30, 2005, the aver-
age fuel economy of the new automobiles in the agen-
cy’s fleet of automobiles is not less than 3 miles per
gallon higher than the baseline average fuel economy
determined under subsection (a) for that fleet.
‘‘(c) CALCULATION OF AVERAGE FUEL ECONOMY.—
Average fuel economy shall be calculated for the purposes
of this section in accordance with guidance which the Sec-
retary of Transportation shall prescribe for the implementa-
tion of this section.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) The term ‘automobile’ does not include any
vehicle designed for combat-related missions, law en-
forcement work, or emergency rescue work.
‘‘(2) The term ‘executive agency’ has the mean-
ing given that term in section 105 of title 5.
‘‘(3) The term ‘new automobile’, with respect to
the fleet of automobiles of an executive agency, means
an automobile that is leased for at least 60 consecu-
tive days or bought, by or for the agency, after Sep-
tember 30, 1999.’’.
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SEC. 822. IDLING REDUCTION SYSTEMS IN HEAVY DUTY VE-
HICLES.
Title III of the Energy Policy and Conservation Act
(42 U.S.C. 6291 et seq.) is amended by adding at the end
the following:
‘‘PART K—REDUCING TRUCK IDLING
‘‘SEC. 400AAA. REDUCING TRUCK IDLING.
‘‘(a) STUDY.—Not later than 18 months after the date
of enactment of this section, the Secretary shall, in consulta-
tion with the Secretary of Transportation, commence a
study to analyze the potential fuel savings resulting from
long duration idling of main drive engines in heavy-duty
vehicles.
‘‘(b) REGULATIONS.—Upon completion of the study
under subsection (a), the Secretary may issue regulations
requiring the installation of idling reduction systems on all
newly manufactured heavy-duty vehicles.
‘‘(c) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘heavy-duty vehicle’ means a vehi-
cle that has a gross vehicle weight rating greater than
8,500 pounds and is powered by a diesel engine.
‘‘(2) The term ‘idling reduction system’ means a
device or system of devices used to reduce long dura-
tion idling of a diesel engine in a vehicle.
‘‘(3) The term ‘long duration idling’ means the
operation of a main drive engine of a heavy-duty ve-
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hicle for a period of more than 15 consecutive minutes
when the main drive engine is not engaged in gear,
except that such term does not include idling as a re-
sult of traffic congestion or other impediments to the
movement of a heavy-duty vehicle.
‘‘(4) The term ‘vehicle’ has the meaning given
such term in section 4 of title 1, United States
Code.’’.
SEC. 823. CONSERVE BY BICYCLING PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a Conserve By Bicycling pilot pro-
gram that shall provide for up to 10 geographically dis-
persed projects to encourage the use of bicycles in place of
motor vehicles. Such projects shall use education and mar-
keting to convert motor vehicle trips to bike trips, document
project results and energy savings, and facilitate partner-
ships among entities in the fields of transportation, law en-
forcement, education, public health, environment, or energy.
At least 20 percent of the cost of each project shall be pro-
vided from State or local sources. Not later than 2 years
after implementation of the projects, the Secretary of Trans-
portation shall submit a report to Congress on the results
of the pilot program.
(b) NATIONAL ACADEMY STUDY.—The Secretary of
Transportation shall contract with the National Academy
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of Sciences to conduct a study on the feasibility and benefits
of converting motor vehicle trips to bicycle trips and to
issue a report, not later than 2 years after enactment of
this Act, on the findings of such study.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary of’ Transpor-
tation $5,500,000, to remain available until expended, to
carry out the pilot program and study pursuant to this sec-
tion.
SEC. 824. FUEL CELL VEHICLE PROGRAM.
Not later than 1 year from date of enactment of this
section, the Secretary shall develop a program with time-
tables for developing technologies to enable at least 100,000
hydrogen-fueled fuel cell vehicles to be available for sale in
the United States by 2010 and at least 2.5 million of such
vehicles to be available by 2020 and annually thereafter.
The program shall also include timetables for development
of technologies to provide 50 million gasoline equivalent
gallons of hydrogen for sale in fueling stations in the United
States by 2010 and at least 2.5 billion gasoline equivalent
gallons by 2020 and annually thereafter. The Secretary
shall annually include a review of the progress toward meet-
ing the vehicle sales of Energy budget.
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Subtitle C—Federal Reformulated
Fuels
SEC. 831. SHORT TITLE.
This subtitle may be cited as the ‘‘Federal Reformu-
lated Fuels Act of 2002’’.
SEC. 832. LEAKING UNDERGROUND STORAGE TANKS.
(a) USE OF LUST FUNDS FOR REMEDIATION OF CON-
TAMINATION FROM ETHER FUEL ADDITIVES.—Section
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
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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
‘‘(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—
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‘‘(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.
‘‘SEC. 9011. BEDROCK BIOREMEDIATION.
‘‘The Administrator shall establish, at an institution
of higher education (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)) with established
expertise in bioremediation of contaminated bedrock
aquifers, a resource center—
‘‘(1) to conduct research concerning bioremedi-
ation of methyl tertiary butyl ether in contaminated
underground aquifers, including contaminated bed-
rock; and
‘‘(2) to provide for States a technical assistance
clearinghouse for information concerning innovative
technologies for bioremediation described in para-
graph (1).
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‘‘SEC. 9012. SOIL REMEDIATION.
‘‘The Administrator may establish a program to con-
duct research concerning remediation of methyl tertiary
butyl ether contamination of soil, including granitic or vol-
canic soil.
‘‘SEC. 9013. 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 2003, to remain available
until expended;
‘‘(2) to carry out section 9010—
‘‘(A) $50,000,000 for fiscal year 2003; and
‘‘(B) $30,000,000 for each of fiscal years
2004 through 2008;
‘‘(3) to carry out section 9011—
‘‘(A) $500,000 for fiscal year 2003; and
‘‘(B) $300,000 for each of fiscal years 2004
through 2008; and
‘‘(4) to carry out section 9012—
‘‘(A) $100,000 for fiscal year 2003; and
‘‘(B) $50,000 for each of fiscal years 2004
through 2008.
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(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 following:
‘‘Sec. 9010. Release prevention and compliance.
‘‘Sec. 9011. Bedrock bioremediation.
‘‘Sec. 9012. Soil remediation.
‘‘Sec. 9013. Authorization of appropriations.’’.
(2) Section 9001(3)(A) of the Solid Waste Disposal 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 Disposal 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)’’.
(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 ‘‘re-
ferred 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
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(C) 
in 
subsection 
(b)(4), 
by 
striking
‘‘Evironmental’’ and inserting ‘‘Environmental’’.
SEC. 833. AUTHORITY FOR WATER QUALITY PROTECTION
FROM FUELS.
(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;
(3) at the time of the adoption of the fuel oxygen
standard, Congress was aware that significant use of
MTBE could result from the adoption of that stand-
ard, and that the use of MTBE would likely be im-
portant to the cost-effective implementation of that
program;
(4) Congress is aware that gasoline and its com-
ponent additives have leaked from storage tanks, with
consequences for water quality;
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(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
effects of MTBE consumption at low levels are yet un-
known;
(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
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(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—
(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; 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—
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(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:
‘‘(5) PROHIBITION 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.
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‘‘(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
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-
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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 iso-octane and alkylates.
‘‘(ii) DETERMINATION.—The Adminis-
trator, in consultation with the Secretary of
Energy, may determine that transition as-
sistance for the production of iso-octane and
alkylates is inconsistent with the provisions
of subparagraph (B) and, on that basis,
may deny applications for grants author-
ized by this provision.
‘‘(B) FURTHER GRANTS.—The Secretary of
Energy, in consultation with the Administrator,
may also further make grants to merchant pro-
ducers of MTBE in the United States to assist
the producers in the conversion of eligible pro-
duction facilities described in subparagraph (C)
to the production of such other fuel additives
that, consistent with 211(c)—
‘‘(i) unless the Administrator deter-
mines that such fuel additives may reason-
ably be anticipated to endanger public
health or the environment;
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‘‘(ii) have been registered and have
been tested or are being tested in accordance
with the requirements of this section; and
‘‘(iii) will contribute to replacing gaso-
line volumes lost as a result of paragraph
(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
‘‘(II) ending on the effective date
of the prohibition on the use of methyl
tertiary butyl ether under paragraph
(5).
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this paragraph $250,000,000 for
each of fiscal years 2003 through 2005.’’.
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(d) NO EFFECT ON LAW CONCERNING STATE AUTHOR-
ITY.—The amendments made by subsection (c) have no ef-
fect on the law in effect on the day before the date of enact-
ment of this Act regarding the authority of States to limit
the use of methyl tertiary butyl ether in motor vehicle fuel.
SEC. 834. ELIMINATION OF OXYGEN CONTENT REQUIRE-
MENT FOR REFORMULATED GASOLINE.
(a) ELIMINATION.—
(1) IN GENERAL.—Section 211(k) of the Clean
Air Act (42 U.S.C. 7545(k)) is amended—
(A) in paragraph (2)—
(i) in the second sentence of subpara-
graph (A), by striking ‘‘(including the oxy-
gen content requirement contained in sub-
paragraph (B))’’;
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraphs
(C) and (D) as subparagraphs (B) and (C),
respectively;
(B) in paragraph (3)(A), by striking clause
(v);
(C) in paragraph (7)—
(i) in subparagraph (A)—
(I) by striking clause (i); and
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(II) by redesignating clauses (ii)
and (iii) as clauses (i) and (ii), respec-
tively; and
(ii) in subparagraph (C)—
(I) by striking clause (ii); and
(II) by redesignating clause (iii)
as clause (ii); and
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) take effect 270 days after the date
of enactment of this Act, except that such amendments
shall take effect upon enactment in any State that has
received a waiver under section 209(b) of the Clean
Air Act.
(b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS-
SION REDUCTIONS.—Section 211(k)(1) of the Clean Air Act
(42 U.S.C. 7545(k)(1)) is amended—
(1) by striking ‘‘Within 1 year after the enact-
ment of the Clean Air Act Amendments of 1990,’’ and
inserting the following:
‘‘(A) IN GENERAL.—Not later than Novem-
ber 15, 1991,’’; and
(2) by adding at the end the following:
‘‘(B) MAINTENANCE OF TOXIC AIR POLLUT-
ANT
EMISSIONS
REDUCTIONS
FROM
REFORMU-
LATED GASOLINE.—
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‘‘(i) DEFINITIONS.—In this subpara-
graph the term ‘PADD’ means a Petroleum
Administration for Defense District.
‘‘(ii) REGULATIONS REGARDING EMIS-
SIONS
OF
TOXIC
AIR
POLLUTANTS.—Not
later than 270 days after the date of enact-
ment of this subparagraph, the Adminis-
trator shall establish, for each refinery or
importer (other than a refinery or importer
in a State that has received a waiver under
section 209(b) with regard to gasoline pro-
duced for use in that state), standards for
toxic air pollutants from use of the reformu-
lated gasoline produced or distributed by
the refinery or importer that maintain the
reduction of the average annual aggregate
emissions of toxic air pollutants for refor-
mulated gasoline produced or distributed by
the refinery or importer during calendar
years 1999 and 2000, determined on the
basis of data collected by the Administrator
with respect to the refinery or importer.
(iii) STANDARDS APPLICABLE TO SPE-
CIFIC REFINERIES OR IMPORTERS.—
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‘‘(I) APPLICABILITY
OF
STAND-
ARDS.—For any calendar year, the
standards applicable to a refinery or
importer under clause (ii) shall apply
to the quantity of gasoline produced or
distributed by the refinery or importer
in the calendar year only to the extent
that the quantity is less than or equal
to the average annual quantity of re-
formulated gasoline produced or dis-
tributed by the refinery or importer
during calendar years 1999 and 2000.
‘‘(II) APPLICABILITY
OF
OTHER
STANDARDS.—For any calendar year,
the quantity of gasoline produced or
distributed by a refinery or importer
that is in excess of the quantity subject
to subclause (I) shall be subject to
standards for toxic air pollutants pro-
mulgated under subparagraph (A) and
paragraph (3)(B).
‘‘(iv) CREDIT PROGRAM.—The Admin-
istrator shall provide for the granting and
use of credits for emissions of toxic air pol-
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lutants in the same manner as provided in
paragraph (7).
‘‘(v) REGIONAL PROTECTION OF TOXICS
REDUCTION BASELINES.—
‘‘(I) IN GENERAL.—Not later than
60 days after the date of enactment of
this subparagraph, and not later than
April 1 of each calendar year that be-
gins after that date of enactment, the
Administrator shall publish in the
Federal Register a report that specifies,
with respect to the previous calendar
year—
‘‘(aa) the quantity of refor-
mulated gasoline produced that is
in excess of the average annual
quantity of reformulated gasoline
produced in 1999 and 2000; and
‘‘(bb) the reduction of the av-
erage annual aggregate emissions
of toxic air pollutants in each
PADD, based on retail survey
data or data from other appro-
priate sources.