I 
109TH CONGRESS 
1ST SESSION H. R. 3081
To amend the Clean Air Act to increase the production and use of renewable 
fuel in the United States and to increase the energy independence of 
the United States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 28, 2005
Mr. GUTKNECHT (for himself, Ms. HERSETH, Mr. GOODLATTE, Mr. PETER-
SON of Minnesota, Mr. SCOTT of Georgia, Mr. LAHOOD, Mr. BOSWELL, 
Mr. OSBORNE, Mr. FORTENBERRY, Mr. SALAZAR, Mr. BUTTERFIELD, 
Ms. FOXX, Mr. MORAN of Kansas, Mr. KENNEDY of Minnesota, Mr. 
KING of Iowa, Mr. JOHNSON of Illinois, Mr. BURTON of Indiana, and Mr. 
LATHAM) introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committees on 
Agriculture and Government Reform, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Clean Air Act to increase the production 
and use of renewable fuel in the United States and 
to increase the energy independence of the United States, 
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Renewable Fuels Act of 2005’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows:
Sec. 1. Short title; table of contents. 
TITLE I—GENERAL PROVISIONS 
Sec. 101. Renewable content of motor vehicle fuel. 
Sec. 102. Federal agency ethanol-blended gasoline, and biodiesel, purchasing re-
quirement. 
Sec. 103. Monthly survey of renewable fuels demand in motor vehicle fuels mar-
ket. 
Sec. 104. Commodity credit corporation bioenergy program. 
TITLE II—FEDERAL REFORMULATED FUELS 
Sec. 201. Elimination of oxygen content requirement for reformulated gasoline. 
Sec. 202. Public health and environmental impacts of fuels and fuel additives. 
Sec. 203. Analyses of motor vehicle fuel changes. 
Sec. 204. Additional opt-in areas under reformulated gasoline program. 
Sec. 205. Federal enforcement of State fuels requirements. 
Sec. 206. Fuel system requirements harmonization study. 
Sec. 207. Review of Federal procurement initiatives relating to use of recycled 
products and fleet and transportation efficiency. 
Sec. 208. Report on renewable motor fuel.
TITLE I—GENERAL PROVISIONS 
SEC. 101. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL. 
(a) IN GENERAL.—Section 211 of the Clean Air Act 
(42 U.S.C. 7545) is amended—
(1) by redesignating subsection (o) as sub-
section (q); and 
(2) by inserting after subsection (n) the fol-
lowing: 
‘‘(o) RENEWABLE FUEL PROGRAM.—
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) ETHANOL.—
‘‘(i) 
CELLULOSIC
BIOMASS
ETH-
ANOL.—The term ‘cellulosic biomass eth-
anol’ means ethanol derived from any 
lignocellulosic or hemicellulosic matter that 
is available on a renewable or recurring 
basis. The term includes the material spec-
ified in clauses (i) through (vi) of section 
9001(3)(B) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 
(8101(3)(B)). 
‘‘(ii) WASTE
DERIVED
ETHANOL.—
The term ‘waste derived ethanol’ means 
ethanol derived from—
‘‘(I) material specified in clauses 
(vii) and (viii) of section 9001(3)(B) 
of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 
(8101(3)(B)); or 
‘‘(II) 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, wood fiber, or other 
biomass; or
‘‘(bb) is natural gas produced 
from a biogas source, including a 
landfill, sewage waste treatment plant, 
feedlot, paper mill, 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 ‘renew-
able fuel’ includes—
‘‘(I) cellulosic biomass ethanol; 
‘‘(II) waste derived ethanol; 
‘‘(III) biodiesel (as defined in 
section 312(f) of the Energy Policy 
Act of 1992 (42 U.S.C. 13220(f)); 
and 
‘‘(IV) any blending components 
derived from renewable fuel, except 
that only the renewable fuel portion of 
any such blending component shall be 
considered part of the applicable vol-
ume under the renewable fuel pro-
gram established by this subsection.
‘‘(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 ag-
gregate 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.—
‘‘(i) REGULATIONS.—Not later than 1 
year after the date of enactment of this 
subsection, the Administrator shall promul-
gate regulations ensuring that motor vehi-
cle fuel sold or dispensed to consumers in 
the contiguous United States, on an an-
nual average basis, contains the applicable 
volume of renewable fuel specified in sub-
paragraph (B). 
‘‘(ii) COMPLIANCE.—Regardless of the 
date of promulgation, the regulations shall 
contain compliance provisions for refiners, 
blenders, and importers, as appropriate, to 
ensure that the requirements of this sub-
section are met, but shall not restrict 
where renewable fuel can be used, or im-
pose any per-gallon obligation for the use 
of renewable fuel. 
‘‘(iii) NO REGULATIONS.—If the Ad-
ministrator does not promulgate the regu-
lations, the applicable percentage referred 
to in paragraph (3), on a volume percent-
age of gasoline basis, shall be 3.2 in 2006. 
‘‘(B) APPLICABLE VOLUME.—
‘‘(i) For the purpose of subparagraph 
(A), the applicable volume for any of cal-
endar years 2006 through 2012 shall be 
determined in accordance with the fol-
lowing table:
Applicable 
volume of 
renewable fuel 
(in billions 
‘‘Calendar year: 
of gallons): 
2006 .........................................................................................
4.0
2007 .........................................................................................
4.7
2008 .........................................................................................
5.4
2009 .........................................................................................
6.1
2010 .........................................................................................
6.8
2011 .........................................................................................
7.4
2012 .........................................................................................
8.0.
‘‘(ii) CALENDAR
YEARS
2013
AND 
THEREAFTER.—For the purpose of sub-
paragraph (A), the applicable volume for 
calendar year 2013 and each calendar year 
thereafter shall be determined by the Ad-
ministrator, in coordination with the Sec-
retary of Energy and the Secretary of Ag-
riculture. In determining the applicable 
volume for a calendar year, the Adminis-
trator shall take into consideration the fol-
lowing reviews: 
‘‘(I) The Administrator shall re-
view the implementation of the pro-
gram since calendar year 2006 and 
the impact of the use of renewable 
fuels on the environment, air quality, 
energy security, and job creation. 
‘‘(II) The Secretary of Agri-
culture shall review the rate of pro-
duction of cellulosic ethanol and waste 
derived ethanol (other than municipal 
solid waste) since calendar year 2006, 
the anticipated future production of 
such cellulosic ethanol and waste de-
rived ethanol, and the impact of the 
use of renewable fuels on rural eco-
nomic development. 
‘‘(iii) LIMITATION.—An increase in 
the applicable volume for a calendar year 
under clause (ii) shall be not less than the 
product obtained by multiplying—
‘‘(I) the number of gallons of 
gasoline that the Administrator esti-
mates will be sold or introduced into 
commerce during the calendar year; 
and 
‘‘(II) the quotient obtained by di-
viding—
‘‘(aa) 8,000,000,000; by 
‘‘(bb) the number of gallons 
of gasoline sold or introduced 
into commerce during calendar 
year 2012. 
‘‘(3) APPLICABLE PERCENTAGES.—
‘‘(A) PROVISION
OF
ESTIMATE
OF
VOL-
UMES OF GASOLINE SALES.—Not later than Oc-
tober 31 of each of calendar years 2006 
through 2011, the Administrator of the Energy 
Information Administration shall provide to the 
Administrator of the Environmental Protection 
Agency an estimate of the volumes of gasoline 
that will be sold or introduced into commerce in 
the United States during the following calendar 
year. 
‘‘(B) DETERMINATION
OF
APPLICABLE 
PERCENTAGES.—
‘‘(i) IN
GENERAL.—Not later than 
November 30 of each of calendar years 
2006 through 2011, based on the estimate 
provided under subparagraph (A), the Ad-
ministrator shall determine and publish in 
the Federal Register, with respect to the 
following calendar year, the renewable fuel 
obligation that ensures that the require-
ments under paragraph (2) are met. 
‘‘(ii) REQUIRED ELEMENTS.—The re-
newable fuel obligation determined for a 
calendar year under clause (i) shall—
‘‘(I) be applicable to refiners, 
blenders, and importers, as appro-
priate; 
‘‘(II) be expressed in terms of a 
volume percentage of gasoline sold or 
introduced into commerce; and 
‘‘(III) subject to subparagraph 
(C)(i), consist of a single applicable 
percentage that applies to all cat-
egories of persons specified in sub-
clause (I).
‘‘(C) ADJUSTMENTS.—In determining the 
applicable percentage for a calendar year, the 
Administrator shall make adjustments—
‘‘(i) to prevent the imposition of re-
dundant obligations to any person specified 
in subparagraph (B)(ii)(I); and 
‘‘(ii) to account for the use of renew-
able fuel during the previous calendar year 
by small refineries that are exempt under 
paragraph (11). 
‘‘(4) EQUIVALENCY.—For the purpose of para-
graph (2), 1 gallon of either cellulosic biomass eth-
anol or waste derived ethanol shall be considered to 
be the equivalent of 2.5 gallons of renewable fuel. 
‘‘(5) CREDIT PROGRAM.—
‘‘(A) REGULATIONS.—The regulations pro-
mulgated to carry out this subsection shall pro-
vide for—
‘‘(i) the generation of an appropriate 
amount of credits by any person that re-
fines, blends, or imports gasoline that con-
tains a quantity of renewable fuel that is 
greater than the quantity required under 
paragraph (2);
‘‘(ii) the generation of an appropriate 
amount of credits for biodiesel fuel; and 
‘‘(iii) if a small refinery notifies the 
Administrator that the small refinery 
waives the exemption provided by this sub-
section, the generation of credits by the 
small refinery beginning in the year fol-
lowing the notification. 
‘‘(B) USE
OF
CREDITS..—A person that 
generates credits under subparagraph (A) may 
use the credits, or transfer all or a portion of 
the credits to another person, for the purpose 
of complying with paragraph (2). 
‘‘(C) LIFE
OF
CREDITS.—A credit gen-
erated under this paragraph shall be valid to 
demonstrate compliance for the calendar year in 
which the credit was generated. 
‘‘(D) INABILITY TO PURCHASE SUFFICIENT 
CREDITS.—The regulations promulgated to 
carry out this subsection shall include provi-
sions permitting any person that is unable to 
generate or purchase sufficient credits to meet 
the requirement under paragraph (2) to carry 
forward a renewables deficit if, for the calendar
year following the year in which the renewables 
deficit is created—
‘‘(i) the person achieves compliance 
with the renewables requirement under 
paragraph (2); and 
‘‘(ii) generates or purchases additional 
renewables credits to offset the renewables 
deficit of the preceding year. 
‘‘(6) SEASONAL
VARIATIONS
IN
RENEWABLE 
FUEL USE.—
‘‘(A) STUDY.—For each of calendar years 
2006 through 2012, the Administrator of the 
Energy Information Administration, in con-
sultation with the Secretary of Agriculture, 
shall conduct a study of renewable fuels blend-
ing to determine whether there are excessive 
seasonal variations in the use of renewable 
fuels. 
‘‘(B) REGULATION
OF
EXCESSIVE
SEA-
SONAL VARIATION.—If, for any calendar year, 
the Administrator of the Energy Information 
Administration, based on the study under sub-
paragraph (A), makes the determinations speci-
fied in subparagraph (C), the Administrator 
shall promulgate regulations to ensure that 35
percent or more of the quantity of renewable 
fuels necessary to meet the requirements under 
paragraph (2) is used during each of the peri-
ods specified in subparagraph (D) of each sub-
sequent 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 requirements under paragraph (2) has 
been used during 1 of the periods specified 
in subparagraph (D) of the calendar year; 
‘‘(ii) a pattern of excessive seasonal 
variation described in clause (i) will con-
tinue in subsequent calendar years; and 
‘‘(iii) promulgating regulations or 
other requirements to impose a 35 percent 
or more seasonal use of renewable fuels 
will not prevent or interfere with the at-
tainment of national ambient air quality 
standards or significantly increase the 
price of motor fuels to the consumer. 
‘‘(D) PERIODS.—The 2 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 
blended or consumed in 2006 in a State that 
has received a waiver under section 209(b) shall 
not be included in the study under subpara-
graph (A). 
‘‘(7) WAIVERS.—
‘‘(A) IN GENERAL.—The Administrator, in 
consultation with the Secretary of Agriculture 
and the Secretary of Energy, may waive the re-
quirements under paragraph (2), in whole or in 
part, on a petition by 1 or more States by re-
ducing 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 and the Secretary of Agri-
culture, after public notice and opportunity
for comment, that there is an inadequate 
domestic supply to meet the requirement. 
‘‘(B) PETITIONS FOR WAIVERS..—Not later 
than 90 days after the date on which a petition 
is received by the Administrator under subpara-
graph (A), the Administrator, in consultation 
with the Secretary of Agriculture and the Sec-
retary of Energy, shall approve or disapprove 
the petition. 
‘‘(C) TERMINATION OF WAIVERS.—A waiv-
er granted under subparagraph (A) shall termi-
nate on the date that is 1 year after the date 
on which the waiver was granted, but may be 
renewed by the Administrator, after consulta-
tion with the Secretary of Agriculture and the 
Secretary of Energy. 
‘‘(8) SMALL REFINERIES.—
‘‘(A) IN
GENERAL.—Paragraph (2) shall 
not apply to small refineries until the first cal-
endar year beginning more than 5 years after 
the first year set forth in the table in paragraph 
(2)(B)(i). 
‘‘(B) STUDY.—Not later than December 
31, 2008, the Secretary of Energy shall com-
plete for the Administrator a study to deter-
mine whether the requirements under para-
graph (2) would impose a disproportionate eco-
nomic hardship on small refineries. 
‘‘(C) SMALL REFINERIES AND ECONOMIC 
HARDSHIP.—For any small refinery that the 
Secretary of Energy determines would experi-
ence a disproportionate economic hardship, the 
Administrator shall extend the small refinery 
exemption for the small refinery for not less 
than 2 additional years. 
‘‘(D) 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 requirements under 
paragraph (2) for the reason of dispropor-
tionate economic hardship. 
‘‘(ii) EVALUATION.—In evaluating a 
hardship petition, the Administrator, in 
consultation with the Secretary of Energy, 
shall consider the findings of the study in 
addition to other economic factors. 
‘‘(iii) DEADLINE FOR ACTION ON PE-
TITIONS.—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. 
‘‘(E) 
CREDIT
PROGRAM.—Paragraph 
(6)(A)(iii) shall apply to each small refinery 
that waives an exemption under this paragraph. 
‘‘(F) OPT-IN
FOR
SMALL
REFINERS.—A 
small refinery shall be subject to paragraph (2) 
if the small refinery notifies the Administrator 
that the small refinery waives the exemption 
under subparagraph (C). 
‘‘(p) RENEWABLE FUEL SAFE HARBOR.—
‘‘(1) SAFE
HARBOR.—Notwithstanding any 
other provision of Federal or State law, a renewable 
fuel (as defined in subsection (o)(1)) that is used or 
intended to be used as a motor vehicle fuel and any 
motor vehicle fuel containing renewable fuel (as so 
defined) shall not be considered or determined to be 
defective in design or manufacture by reason of the 
fact that the fuel is, or contains, renewable fuel, if—
‘‘(A) the fuel does not violate a control or 
prohibition imposed by the Administrator under 
this section; and 
‘‘(B) the manufacturer of the fuel is in 
compliance with all requests for information 
under subsection (b).
‘‘(2) WHEN SAFE HARBOR NOT APPLICABLE.—
In any case in which paragraph (1) does not apply 
to a quantity of fuel, the existence of a design defect 
or manufacturing defect with respect to the fuel 
shall be determined under otherwise applicable law. 
‘‘(3) EXCEPTION
TO
SAFE
HARBOR.—Para-
graph (1) does not apply to ethers. 
‘‘(4) EFFECTIVE DATE.—Paragraph (1) applies 
with respect to any claim filed on or after the date 
of the enactment of the Renewable Fuels Act of 
2005.’’. 
(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)’’ and inserting ‘‘(n), or (o)’’ each place it 
appears; 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)’’ and inserting ‘‘(n), and (o)’’ each 
place it appears.
SEC. 102. FEDERAL AGENCY ETHANOL-BLENDED GASO-
LINE, 
AND 
BIODIESEL, 
PURCHASING 
RE-
QUIREMENT. 
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 GASO-
LINE AND BIODIESEL PURCHASING REQUIRE-
MENT. 
‘‘(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 eth-
anol 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). 
‘‘(2) REQUIREMENT.—The head of each Fed-
eral agency shall ensure that the Federal agency 
purchases, for use in fueling fleet vehicles that use 
diesel fuel used by the Federal agency at the loca-
tion at which fleet vehicles of the Federal agency are 
centrally fueled, in areas in which the biodiesel-
blended diesel fuel described in subparagraphs (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, bio-
diesel-blended diesel fuel that contains at least 
2 percent 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, bio-
diesel-blended diesel fuel that contains at least 
20 percent 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).’’. 
SEC. 103. MONTHLY SURVEY OF RENEWABLE FUELS DE-
MAND IN MOTOR VEHICLE FUELS MARKET. 
(a) SURVEY REQUIRED.—The Secretary of Agri-
culture, with the assistance of the Administrator of the 
Energy Information Administration, shall conduct and
publish the results of a monthly survey of renewable fuels 
demand in the motor vehicle fuels market in the United 
States monthly, and in a manner designed to protect the 
confidentiality of individual responses. 
(b) CONTENT
OF
SURVEY.—In conducting the 
monthly survey required by subsection (a), the Secretary 
of Agriculture shall collect information, both on a national 
and regional basis, regarding—
(1) the quantity of renewable fuels produced; 
(2) the quantity of renewable fuels blended; 
(3) the quantity of renewable fuels imported; 
(4) the quantity of renewable fuels demanded; 
and 
(5) the market price of renewable fuels. 
(c) ROLE OF OFFICE OF ENERGY POLICY AND NEW 
USES.—The Office of Energy Policy and New Uses of the 
Department of Agriculture shall assist the Secretary of 
Agriculture in evaluating the effectiveness of the renew-
able fuels mandate of the United States. 
(d) RENEWABLE FUELS DEFINED.—In this section, 
the term ‘‘renewable fuel’’ has the meaning given that 
term in section 211(o)(1) of the Clean Air Act (42 U.S.C. 
7545(o)(1)).
SEC. 104. COMMODITY CREDIT CORPORATION BIOENERGY 
PROGRAM. 
In order to assist with the implementation of the na-
tional renewable fuels standard, funds made available 
under section 9010(c) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8108) for the bioenergy 
program of the Department of Agriculture for a fiscal year 
and unobligated by the end of that fiscal year shall remain 
available for obligation until expended. 
TITLE II—FEDERAL 
REFORMULATED FUELS 
SEC. 201. 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;