725
In carrying out such study, the Administrator shall obtain 
comments from affected parties. The Administrator shall 
submit the results of such study to the Congress not later 
than 18 months after the date of enactment of this Act, 
together with any recommended legislative changes. 
SEC. 1510. FUEL SYSTEM REQUIREMENTS HARMONIZATION 
STUDY. 
(a) STUDY.—
(1) IN
GENERAL.—The Administrator of the 
Environmental Protection Agency (hereinafter in 
this section referred to as the ‘‘Administrator’’) and 
the Secretary of Energy shall jointly conduct a study 
of Federal, State, and local requirements concerning 
motor vehicle fuels, including—
(A) requirements relating to reformulated 
gasoline, volatility (measured in Reid vapor 
pressure), oxygenated fuel, and diesel fuel; and 
(B) other requirements that vary from 
State to State, region to region, or locality to 
locality. 
(2) REQUIRED ELEMENTS.—The study shall as-
sess—
(A) the effect of the variety of require-
ments described in paragraph (1) on the supply, 
quality, and price of motor vehicle fuels avail-
726
able to consumers in various States and local-
ities; 
(B) the effect of the requirements de-
scribed in paragraph (1) on achievement of—
(i) national, regional, and local air 
quality standards and goals; and 
(ii) related environmental and public 
health protection standards and goals; 
(C) the effect of Federal, State, and local 
motor vehicle fuel regulations, including mul-
tiple motor vehicle fuel requirements, on—
(i) domestic refineries; 
(ii) the fuel distribution system; and 
(iii) industry investment in new capac-
ity; 
(D) the effect of the requirements de-
scribed in paragraph (1) on emissions from ve-
hicles, refineries, and fuel handling facilities; 
(E) the feasibility of developing national or 
regional motor vehicle fuel slates for the 48 
contiguous States that, while improving air 
quality at the national, regional and local levels 
consistent with the attainment of national am-
bient air quality standards, could—
727
(i) enhance flexibility in the fuel dis-
tribution infrastructure and improve fuel 
fungibility; 
(ii) reduce price volatility and costs to 
consumers and producers; 
(iii) provide increased liquidity to the 
gasoline market; and 
(iv) enhance fuel quality, consistency, 
and supply; 
(F) the feasibility of providing incentives 
to promote cleaner burning motor vehicle fuel; 
and 
(G) the extent to which improvements in 
air quality and any increases or decreases in 
the price of motor fuel can be projected to re-
sult from the Environmental Protection Agen-
cy’s Tier II requirements for conventional gaso-
line and vehicle emission systems, the reformu-
lated gasoline program, the renewable content 
requirements established by this subtitle, State 
programs regarding gasoline volatility, and any 
other requirements imposed by States or local-
ities affecting the composition of motor fuel. 
(b) REPORT.—
728
(1) IN GENERAL.—Not later than December 31, 
2007, the Administrator and the Secretary of En-
ergy shall submit to Congress a report on the results 
of the study conducted under subsection (a). 
(2) RECOMMENDATIONS.—
(A) IN GENERAL.—The report under this 
subsection shall contain recommendations for 
legislative and administrative actions that may 
be taken—
(i) to improve air quality; 
(ii) to reduce costs to consumers and 
producers; and 
(iii) to increase supply liquidity. 
(B) 
REQUIRED
CONSIDERATIONS.—The 
recommendations under subparagraph (A) shall 
take into account the need to provide advance 
notice of required modifications to refinery and 
fuel distribution systems in order to ensure an 
adequate supply of motor vehicle fuel in all 
States. 
(3) CONSULTATION.—In developing the report 
under this subsection, the Administrator and the 
Secretary of Energy shall consult with—
(A) the Governors of the States; 
(B) automobile manufacturers;
729
(C) motor vehicle fuel producers and dis-
tributors; and 
(D) the public. 
SEC. 1511. COMMERCIAL BYPRODUCTS FROM MUNICIPAL 
SOLID WASTE AND CELLULOSIC BIOMASS 
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 (hereinafter in this section referred to as the 
‘‘Secretary’’) shall establish a program to provide guaran-
tees of loans by private institutions for the construction 
of facilities for the processing and conversion of municipal 
solid waste and cellulosic biomass 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 
available to the applicant under reasonable terms or 
conditions sufficient to finance the construction of a 
facility described in subsection (b); 
(2) the prospective earning power of the appli-
cant and the character and value of the security
730
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 ac-
count the current average yield on outstanding obli-
gations of the United States with remaining periods 
of maturity comparable to the maturity of the loan. 
(d) CRITERIA.—In selecting recipients of loan guar-
antees from among applicants, the Secretary shall give 
preference 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; 
(B) the availability of sufficient quantities 
of cellulosic biomass; or 
(C) 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.
731
(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 
subsection (b) provide an assurance of repayment in the 
form of a performance bond, insurance, collateral, or other 
means 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 guar-
antee made by the Secretary shall be conclusive evidence 
of the eligibility of the loan for the guarantee with respect 
to principal and interest. The validity of the guarantee 
shall be incontestable in the hands of a holder of the guar-
anteed loan. 
(j) REPORTS.—Until each guaranteed loan under this 
section has been repaid in full, the Secretary shall annu-
732
ally submit to Congress a report on the activities of the 
Secretary under this section. 
(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
(l) TERMINATION OF AUTHORITY.—The authority of 
the Secretary to issue a loan guarantee under subsection 
(b) terminates on the date that is 10 years after the date 
of enactment of this Act. 
SEC. 1512. CELLULOSIC BIOMASS AND WASTE-DERIVED 
ETHANOL CONVERSION ASSISTANCE. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by adding at the end the following: 
‘‘(r) CELLULOSIC BIOMASS
AND WASTE-DERIVED 
ETHANOL CONVERSION ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary of Energy 
may provide grants to merchant producers of cel-
lulosic biomass ethanol and waste-derived ethanol in 
the United States to assist the producers in building 
eligible production facilities described in paragraph 
(2) for the production of ethanol. 
‘‘(2) ELIGIBLE
PRODUCTION
FACILITIES.—A 
production facility shall be eligible to receive a grant 
under this subsection if the production facility—
‘‘(A) is located in the United States; and
733
‘‘(B) uses cellulosic biomass or waste-de-
rived feedstocks derived from agricultural resi-
dues, wood residues, municipal solid waste, or 
agricultural byproducts as that term is used in 
section 919 of the Energy Policy Act of 2005. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated the fol-
lowing amounts to carry out this subsection: 
‘‘(A) $100,000,000 for fiscal year 2005. 
‘‘(B) $250,000,000 for fiscal year 2006. 
‘‘(C) $400,000,000 for fiscal year 2007.’’. 
SEC. 1513. BLENDING OF COMPLIANT REFORMULATED GAS-
OLINES. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by adding at the end the following: 
‘‘(s) BLENDING
OF COMPLIANT REFORMULATED 
GASOLINES.—
‘‘(1) 
IN
GENERAL.—Notwithstanding 
sub-
sections (h) and (k) and subject to the limitations in 
paragraph (2) of this subsection, it shall not be a 
violation of this subtitle for a gasoline retailer, dur-
ing any month of the year, to blend at a retail loca-
tion batches of ethanol-blended and non-ethanol-
blended reformulated gasoline, provided that—
734
‘‘(A) each batch of gasoline to be blended 
has been individually certified as in compliance 
with subsections (h) and (k) prior to being 
blended; 
‘‘(B) the retailer notifies the Administrator 
prior to such blending, and identifies the exact 
location of the retail station and the specific 
tank in which such blending will take place; 
‘‘(C) the retailer retains and, as requested 
by the Administrator or the Administrator’s 
designee, makes available for inspection such 
certifications accounting for all gasoline at the 
retail outlet; and 
‘‘(D) the retailer does not, between June 1 
and September 15 of each year, blend a batch 
of VOC-controlled, or ‘summer’, gasoline with a 
batch of non-VOC-controlled, or ‘winter’, gaso-
line (as these terms are defined under sub-
sections (h) and (k)). 
‘‘(2) LIMITATIONS.—
‘‘(A) FREQUENCY LIMITATION.—A retailer shall 
only be permitted to blend batches of compliant re-
formulated gasoline under this subsection a max-
imum of two blending periods between May 1 and 
September 15 of each calendar year.
735
‘‘(B) DURATION OF BLENDING PERIOD.—Each 
blending period authorized under subparagraph (A) 
shall extend for a period of no more than 10 con-
secutive calendar days. 
‘‘(3) SURVEYS.—A sample of gasoline taken 
from a retail location that has blended gasoline with-
in the past 30 days and is in compliance with sub-
paragraphs (A), (B), (C), and (D) of paragraph (1) 
shall not be used in a VOC survey mandated by 40 
C.F.R. Part 80. 
‘‘(4) STATE IMPLEMENTATION PLANS.—A State 
shall be held harmless and shall not be required to 
revise its State implementation plan under section 
110 to account for the emissions from blended gaso-
line authorized under paragraph (1). 
‘‘(5) PRESERVATION OF STATE LAW.—Nothing 
in this subsection shall—
‘‘(A) preempt existing State laws or regu-
lations regulating the blending of compliant 
gasolines; or 
‘‘(B) prohibit a State from adopting such 
restrictions in the future. 
‘‘(6) REGULATIONS.—The Administrator shall 
promulgate, after notice and comment, regulations
736
implementing this subsection within one year after 
the date of enactment of this subsection. 
‘‘(7) EFFECTIVE DATE.—This subsection shall 
become effective 15 months after the date of its en-
actment and shall apply to blended batches of refor-
mulated gasoline on or after that date, regardless of 
whether the implementing regulations required by 
paragraph (6) have been promulgated by the Admin-
istrator by that date. 
‘‘(8) LIABILITY.—No person other than the 
person responsible for blending under this subsection 
shall be subject to an enforcement action or pen-
alties under subsection (d) solely arising from the 
blending of compliant reformulated gasolines by the 
retailers. 
‘‘(9) FORMULATION OF GASOLINE.—This sub-
section does not grant authority to the Adminis-
trator or any State (or any subdivision thereof) to 
require reformulation of gasoline at the refinery to 
adjust for potential or actual emissions increases due 
to the blending authorized by this subsection.’’.
737
Subtitle B—Underground Storage 
Tank Compliance 
SEC. 1521. SHORT TITLE. 
This subtitle may be cited as the ‘‘Underground Stor-
age Tank Compliance Act of 2005’’. 
SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS. 
(a) IN GENERAL.—Section 9004 of the Solid Waste 
Disposal Act (42 U.S.C. 6991c) is amended by adding at 
the end the following: 
‘‘(f) TRUST FUND DISTRIBUTION.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNT AND PERMITTED USES OF 
DISTRIBUTION.—The Administrator shall dis-
tribute to States not less than 80 percent of the 
funds from the Trust Fund that are made 
available to the Administrator under section 
9014(2)(A) for each fiscal year for use in pay-
ing the reasonable costs, incurred under a coop-
erative agreement with any State for—
‘‘(i) corrective actions taken by the 
State under section 9003(h)(7)(A); 
‘‘(ii) 
necessary 
administrative 
ex-
penses, as determined by the Adminis-
trator, that are directly related to State
738
fund or State assurance programs under 
subsection (c)(1); or 
‘‘(iii) enforcement, by a State or a 
local government, of State or local regula-
tions pertaining to underground storage 
tanks regulated under this subtitle. 
‘‘(B) USE
OF
FUNDS
FOR
ENFORCE-
MENT.—In addition to the uses of funds au-
thorized under subparagraph (A), the Adminis-
trator may use funds from the Trust Fund that 
are not distributed to States under subpara-
graph (A) for enforcement of any regulation 
promulgated by the Administrator under this 
subtitle. 
‘‘(C) PROHIBITED USES.—Funds provided 
to a State by the Administrator under subpara-
graph (A) shall not be used by the State to pro-
vide financial assistance to an owner or oper-
ator to meet any requirement relating to under-
ground storage tanks under subparts B, C, D, 
H, and G of part 280 of title 40, Code of Fed-
eral Regulations (as in effect on the date of en-
actment of this subsection). 
‘‘(2) ALLOCATION.—
739
‘‘(A) PROCESS.—Subject to subparagraphs 
(B) and (C), in the case of a State with which 
the Administrator has entered into a coopera-
tive agreement under section 9003(h)(7)(A), 
the Administrator shall distribute funds from 
the Trust Fund to the State using an allocation 
process developed by the Administrator. 
‘‘(B) DIVERSION OF STATE FUNDS.—The 
Administrator shall not distribute funds under 
subparagraph (A)(iii) of subsection (f)(1) to 
any State that has diverted funds from a State 
fund or State assurance program for purposes 
other than those related to the regulation of un-
derground storage tanks covered by this sub-
title, with the exception of those transfers that 
had been completed earlier than the date of en-
actment of this subsection. 
‘‘(C) REVISIONS
TO
PROCESS.—The Ad-
ministrator may revise the allocation process re-
ferred to in subparagraph (A) after—
‘‘(i) consulting with State agencies re-
sponsible for overseeing corrective action 
for releases from underground storage 
tanks; and
740
‘‘(ii) taking into consideration, at a 
minimum, each of the following: 
‘‘(I) The number of confirmed re-
leases from federally regulated leaking 
underground storage tanks in the 
States. 
‘‘(II) The number of federally 
regulated underground storage tanks 
in the States. 
‘‘(III) The performance of the 
States in implementing and enforcing 
the program. 
‘‘(IV) The financial needs of the 
States. 
‘‘(V) The ability of the States to 
use the funds referred to in subpara-
graph (A) in any year. 
‘‘(3) DISTRIBUTIONS
TO
STATE
AGENCIES.—
Distributions from the Trust Fund under this sub-
section shall be made directly to a State agency 
that—
‘‘(A) enters into a cooperative agreement 
referred to in paragraph (2)(A); or 
‘‘(B) is enforcing a State program ap-
proved under this section.’’.
741
(b) 
WITHDRAWAL
OF
APPROVAL
OF
STATE 
FUNDS.—Section 9004(c) of the Solid Waste Disposal Act 
(42 U.S.C. 6991c(c)) is amended by inserting the fol-
lowing new paragraph at the end thereof: 
‘‘(6) WITHDRAWAL
OF
APPROVAL.—After an 
opportunity for good faith, collaborative efforts to 
correct financial deficiencies with a State fund, the 
Administrator may withdraw approval of any State 
fund or State assurance program to be used as a fi-
nancial responsibility mechanism without with-
drawing approval of a State underground storage 
tank program under section 9004(a).’’. 
(c) ABILITY
TO PAY.—Section 9003(h)(6) of the 
Solid Waste Disposal Act (42 U.S.C. 6591a(h)(6)) is 
amended by adding the following new subparagraph at the 
end thereof: 
‘‘(E) INABILITY OR LIMITED ABILITY TO 
PAY.—
‘‘(i) IN
GENERAL.—In determining 
the level of recovery effort, or amount that 
should be recovered, the Administrator (or 
the State pursuant to paragraph (7)) shall 
consider the owner or operator’s ability to 
pay. An inability or limited ability to pay 
corrective action costs must be dem-