430 
(4) STATE IMPLEMENTATION PLANS.—A State shall be held harm-
less and shall not be required to revise its State implementation plan 
under section 211110 of this title to account for the emissions from 
blended gasoline authorized under paragraph (1). 
(5) PRESERVATION
OF
STATE
LAW.—Nothing in this subsection 
shall— 
(A) preempt existing State laws (including regulations) regu-
lating the blending of compliant gasolines; or 
(B) preclude a State from adopting such restrictions in the fu-
ture. 
(6) REGULATIONS.—The Administrator shall promulgate, after no-
tice and comment, regulations implementing this subsection. 
(7) APPLICABILITY.—This subsection shall apply to blended batches 
of reformulated gasoline regardless of whether the implementing regu-
lations required by paragraph (6) have been promulgated by the Ad-
ministrator. 
(8) LIABILITY.—No person other than the person responsible for 
blending under this subsection shall be subject to an enforcement ac-
tion or penalties under subsection (s) solely arising from the blending 
of compliant reformulated gasolines by the retailers. 
(9) FORMULATION OF GASOLINE.—This subsection does not grant 
authority to the Administrator or any State (or any subdivision there-
of) to require reformulation of gasoline at the refinery to adjust for po-
tential or actual emissions increases due to the blending authorized by 
this subsection. 
(s) STANDARD SPECIFICATIONS FOR BIODIESEL.— 
(1) DEFINITION OF BIODIESEL.—In this subsection, the term ‘‘bio-
diesel’’ has the meaning given the term in section 312(f) of Energy 
Policy Act of 1992 (42 U.S.C. 13220(f)). 
(2) ANNUAL INSPECTION AND ENFORCEMENT PROGRAM.— 
(A) IN GENERAL.—The Administrator shall establish an annual 
inspection and enforcement program to ensure that diesel fuel con-
taining biodiesel sold or distributed in commerce meets the stand-
ards established under regulations under this section, including 
testing and certification for compliance with applicable standards 
of the American Society for Testing and Materials. 
(B) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated to carry out the inspection and enforce-
ment program under this paragraph $3,000,000 for each of fiscal 
years 2008 to 2010. 
(t) PREVENTION OF AIR QUALITY DETERIORATION.— 
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(1) STUDY.— 
(A) IN GENERAL.—The Administrator shall complete a study to 
determine whether the renewable fuel volumes required by this sec-
tion will adversely affect air quality as a result of changes in 
motor vehicle and motor vehicle engine emissions of air pollutants 
regulated under this division. 
(B) CONSIDERATIONS.—The study shall include consideration 
of— 
(i) various blend levels, types of renewable fuels, and avail-
able vehicle technologies; and 
(ii) appropriate national, regional, and local air quality con-
trol measures. 
(2) REGULATIONS.—Not later than 3 years after December 18, 
2007, the Administrator shall— 
(A) promulgate regulations to implement appropriate measures 
to mitigate, to the greatest extent achievable, considering the re-
sults of the study under paragraph (1), any adverse impacts on 
air quality as the result of the renewable volumes required by this 
section; or 
(B) make a determination that no such measures are necessary. 
(u) PENALTIES AND INJUNCTIONS.— 
(1) CIVIL PENALTIES.—Any person that violates subsection (b), (f), 
(g), (k), (l), (m), or (n) or the regulations prescribed under subsection 
(d), (h), (i), (k), (l), (m), (n), or (o) or that fails to furnish any infor-
mation or conduct any tests required by the Administrator under sub-
section (c) shall be liable to the United States for a civil penalty of 
not more than $25,000 for each day of the violation or failure and the 
amount of economic benefit or savings resulting from the violation or 
failure. Any violation with respect to a regulation prescribed under sub-
section (d), (k), (l), (m), or (o) that establishes a regulatory standard 
based on a multiday averaging period shall constitute a separate day 
of violation for each day in the averaging period. Civil penalties shall 
be assessed in accordance with subsections (b) and (c) of section 
221105 of this title. 
(2) INJUNCTIVE AUTHORITY.— 
(A) JURISDICTION.—The district courts of the United States 
shall have jurisdiction to restrain violations of subsection (b), (f), 
(g), (k), (l), (m), (n) or (o) and of regulations prescribed under 
subsections (d), (h), (i), (k), (l), (m), (n), or (o), to award other 
appropriate relief, and to compel the furnishing of information and 
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the conduct of tests required by the Administrator under sub-
section (c). 
(B) ACTIONS BROUGHT BY AND IN NAME OF UNITED STATES.— 
An action to restrain a violation or compel action described in sub-
paragraph (A) shall be brought by and in the name of the United 
States. 
(C) SUBPOENAS.—In any such action, a subpoena for a wit-
nesses who is required to attend a district court in any judicial 
district may run into any other judicial district. 
§ 221112. Renewable fuel 
(a) DEFINITIONS.—In this section: 
(1) MUNICIPAL SOLID WASTE.—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). 
(2) RFG STATE.—The term ‘‘RFG State’’ means a State in which 
is located 1 or more covered areas (as defined in section 221111(k)(1) 
of this title). 
(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of En-
ergy. 
(b) 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 section 1516 of the Energy Policy Act 
of 2005 (42 U.S.C. 16503) to carry out commercial demonstration 
projects for cellulosic 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 com-
mercially demonstrate the feasibility and viability of producing cel-
lulosic biomass ethanol or sucrose-derived ethanol, including at 
least 1 project that uses cereal straw as a feedstock and 1 project 
that uses municipal solid waste as a feedstock. 
(B) DESIGN CAPACITY.—Each project shall have a design ca-
pacity 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 assurances, satisfactory to the Sec-
retary, that— 
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(A) the project design has been validated through the operation 
of a continuous process facility 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 repayment of the guaran-
teed loan. 
(4) LIMITATIONS.— 
(A) MAXIMUM GUARANTEE.—Except as provided in subpara-
graph (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. 
(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.—Subject to subparagraph 
(A), the Secretary shall guarantee 100 percent of the prin-
cipal and interest of a loan made under subparagraph (A). 
(5) EQUITY CONTRIBUTIONS.—To be eligible for a loan guarantee 
under this section, an applicant for the loan guarantee shall have bind-
ing 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 this subsection, the Secretary 
shall issue loan guarantees for 1 or more qualifying projects under this 
section in the order in which the applications for the projects are re-
ceived by the Secretary. 
(7) APPROVAL.—An application for a loan guarantee under this sec-
tion shall be approved or disapproved by the Secretary not later than 
90 days after the application is received by the Secretary. 
(c) RENEWABLE FUEL PRODUCTION RESEARCH
AND DEVELOPMENT 
GRANTS.— 
(1) IN GENERAL.—The Administrator shall provide grants for the re-
search into, and development and implementation of, renewable fuel 
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