372
gasoline and to provide for a renewable content 
requirement for motor fuel; and 
(7) 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 cre-
ated 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 the elimi-
nation of the oxygenate requirement for refor-
mulated gasoline. 
(b) PURPOSES.—The purpose of this section is to 
provide assistance to merchant producers of MTBE in 
making the transition from producing MTBE to producing 
other fuel additives. 
(c) MTBE MERCHANT PRODUCER CONVERSION AS-
SISTANCE.—Section 211(c) of the Clean Air Act (42 
U.S.C. 7545(c)) is amended by adding at the end the fol-
lowing: 
‘‘(5) MTBE MERCHANT
PRODUCER
CONVER-
SION ASSISTANCE.—
‘‘(A) IN GENERAL.—
‘‘(i) GRANTS.—The Secretary of En-
ergy, in consultation with the Adminis-
373
trator, may make grants to merchant pro-
ducers of methyl tertiary butyl ether in the 
United States to assist the producers in 
the conversion of eligible production facili-
ties described in subparagraph (C) to the 
production of iso-octane and alkylates. 
‘‘(ii) DETERMINATION.—The Admin-
istrator, in consultation with the Secretary 
of Energy, may determine that transition 
assistance for the production of iso-octane 
and alkylates is inconsistent with the pro-
visions of subparagraph (B) and, on that 
basis, may deny applications for grants au-
thorized by this provision. 
‘‘(B) FURTHER
GRANTS.—The Secretary 
of Energy, in consultation with the Adminis-
trator, may also further make grants to mer-
chant producers of MTBE in the United States 
to assist the producers in the conversion of eli-
gible production facilities described in subpara-
graph (C) to the production of such other fuel 
additives that, consistent with this subsection—
‘‘(i) unless the Administrator deter-
mines that such fuel additives may reason-
374
ably be anticipated to endanger public 
health or the environment; 
‘‘(ii) have been registered and have 
been tested or are being tested in accord-
ance 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
FACILI-
TIES.—A production facility shall be eligible to 
receive a grant under this paragraph if the pro-
duction facility—
‘‘(i) is located in the United States; 
and 
‘‘(ii) produced methyl tertiary butyl 
ether for consumption before April 1, 2003 
and ceased production at any time after 
the date of enactment. 
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
to carry out this paragraph $250,000,000 for 
each of fiscal years 2004 through 2006, to re-
main available until expended.’’.
375
(d) EFFECT
ON STATE LAW.—The amendments 
made to the Clean Air Act by this title have no effect re-
garding any available authority of States to limit the use 
of methyl tertiary butyl ether in motor vehicle fuel.
SEC. 9104. 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
376
(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 amend-
ments 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 No-
vember 15, 1991,’’; and 
(2) by adding at the end the following: 
‘‘(B) MAINTENANCE OF TOXIC AIR POL-
LUTANT EMISSIONS REDUCTIONS FROM REFOR-
MULATED GASOLINE.—
377
‘‘(i) DEFINITIONS.—In this subpara-
graph the term ‘PADD’ means a Petro-
leum Administration for Defense District. 
‘‘(ii) REGULATIONS REGARDING EMIS-
SIONS
OF
TOXIC
AIR
POLLUTANTS.—Not 
later than 270 days after the date of en-
actment of this subparagraph the Adminis-
trator shall establish, for each refinery or 
importer, standards for toxic air pollutants 
from use of the reformulated gasoline pro-
duced or distributed by the refinery or im-
porter that maintain the reduction of the 
average annual aggregate emissions of 
toxic air pollutants for reformulated gaso-
line 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 
SPECIFIC REFINERIES OR IMPORTERS.—
‘‘(I) APPLICABILITY
OF
STAND-
ARDS.—For any calendar year, the 
standards applicable to a refinery or 
importer under clause (ii) shall apply
378
to the quantity of gasoline produced 
or distributed by the refinery or im-
porter in the calendar year only to the 
extent that the quantity is less than 
or equal to the average annual quan-
tity of reformulated gasoline produced 
or distributed by the refinery or im-
porter 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 sub-
ject to subclause (I) shall be subject 
to standards for toxic air pollutants 
promulgated 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-
lutants in the same manner as provided in 
paragraph (7). 
‘‘(v) 
REGIONAL
PROTECTION
OF 
TOXICS REDUCTION BASELINES.—
379
‘‘(I) IN
GENERAL.—Not later 
than 60 days after the date of enact-
ment of this subparagraph, and not 
later than April 1 of each calendar 
year that begins after that date of en-
actment, the Administrator shall pub-
lish in the Federal Register a report 
that specifies, with respect to the pre-
vious 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 
average annual aggregate emis-
sions of toxic air pollutants in 
each PADD, based on retail sur-
vey data or data from other ap-
propriate sources. 
‘‘(II) EFFECT
OF
FAILURE
TO 
MAINTAIN
AGGREGATE
TOXICS
RE-
DUCTIONS.—If, in any calendar year, 
the reduction of the average annual 
aggregate emissions of toxic air pol-
380
lutants in a PADD fails to meet or 
exceed the reduction of the average 
annual aggregate emissions of toxic 
air pollutants in the PADD in cal-
endar years 1999 and 2000, the Ad-
ministrator, not later than 90 days 
after the date of publication of the re-
port for the calendar year under sub-
clause (I), shall—
‘‘(aa) identify, to the max-
imum extent practicable, the rea-
sons for the failure, including the 
sources, volumes, and character-
istics of reformulated gasoline 
that contributed to the failure; 
and 
‘‘(bb) promulgate revisions 
to the regulations promulgated 
under clause (ii), to take effect 
not earlier than 180 days but not 
later than 270 days after the 
date of promulgation, to provide 
that, 
notwithstanding 
clause 
(iii)(II), all reformulated gasoline 
produced or distributed at each
381
refinery or importer shall meet 
the standards applicable under 
clause (ii) not later than April 1 
of the year following the report 
in subclause (II) and for subse-
quent years. 
‘‘(vi) 
REGULATIONS
TO
CONTROL 
HAZARDOUS
AIR
POLLUTANTS
FROM 
MOTOR
VEHICLES
AND
MOTOR
VEHICLE 
FUELS.—Not later than July 1, 2004, the 
Administrator shall promulgate final regu-
lations to control hazardous air pollutants 
from motor vehicles and motor vehicle 
fuels, as provided for in section 80.1045 of 
title 40, Code of Federal Regulations (as 
in effect on the date of enactment of this 
subparagraph).’’. 
(c) CONSOLIDATION IN REFORMULATED GASOLINE 
REGULATIONS.—Not later than 180 days after the date 
of enactment of this Act, the Administrator shall revise 
the reformulated gasoline regulations under subpart D of 
part 80 of title 40, Code of Federal Regulations, to con-
solidate the regulations applicable to VOC-Control Re-
gions 1 and 2 under section 80.41 of that title by elimi-
nating the less stringent requirements applicable to gaso-
382
line designated for VOC-Control Region 2 and instead ap-
plying the more stringent requirements applicable to gaso-
line designated for VOC-Control Region 1. 
(d) SAVINGS CLAUSE.—Nothing in this section is in-
tended to affect or prejudice either any legal claims or ac-
tions with respect to regulations promulgated by the Ad-
ministrator prior to enactment of this Act regarding emis-
sions of toxic air pollutants from motor vehicles or the 
adjustment of standards applicable to a specific refinery 
or importer made under such prior regulations and the 
Administrator may apply such adjustments to the stand-
ards applicable to such refinery or importer under clause 
(iii)(I) of section 211(k)(1)(B) of the Clean Air Act, ex-
cept that— 
(1) the Administrator shall revise such adjust-
ments to be based only on calendar years 1999–
2000, and 
(2) for adjustments based on toxic air pollutant 
emissions from reformulated gasoline significantly 
below the national annual average emissions of toxic 
air pollutants from all reformulated gasoline, the 
Administrator may revise such adjustments to take 
account of the scope of any lawful and enforceable 
Federal or State prohibition on methyl tertiary butyl 
ether imposed after the effective date of the enact-
383
ment of this paragraph, except that any such adjust-
ment shall require such refiner or importer, to the 
greatest extent practicable, to maintain the reduc-
tion achieved during calendar year 1999–2000 in the 
average annual aggregate emissions of toxic air pol-
lutants from reformulated gasoline produced or dis-
tributed by the refinery or importer. Any such ad-
justment shall not be made at a level below the aver-
age percentage of reductions of emissions of toxic air 
pollutants for reformulated gasoline supplied to 
PADD I during calendar years 1999–2000. 
SEC. 9105. ANALYSES OF MOTOR VEHICLE FUEL CHANGES. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by inserting after subsection (o) the following: 
‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES 
AND EMISSIONS MODEL.—
‘‘(1) ANTI-BACKSLIDING ANALYSIS.—
‘‘(A) DRAFT ANALYSIS.—Not later than 4 
years after the date of enactment of this para-
graph, the Administrator shall publish for pub-
lic comment a draft analysis of the changes in 
emissions of air pollutants and air quality due 
to the use of motor vehicle fuel and fuel addi-
tives resulting from implementation of the
384
amendments made by title IX of the Energy 
Policy Act of 2003. 
‘‘(B) FINAL ANALYSIS.—After providing a 
reasonable opportunity for comment but not 
later than 5 years after the date of enactment 
of this paragraph, the Administrator shall pub-
lish the analysis in final form. 
‘‘(2) EMISSIONS MODEL.—For the purposes of 
this subsection, as soon as the necessary data are 
available, the Administrator shall develop and final-
ize an emissions model that reasonably reflects the 
effects of gasoline characteristics or components on 
emissions from vehicles in the motor vehicle fleet 
during calendar year 2005.’’. 
SEC. 9106. DATA COLLECTION. 
Section 205 of the Department of Energy Organiza-
tion Act (42 U.S.C. 7135) is amended by adding at the 
end the following: 
‘‘(m) RENEWABLE FUELS SURVEY.—(1) In order to 
improve the ability to evaluate the effectiveness of the Na-
tion’s renewable fuels mandate, the Administrator shall 
conduct and publish the results of a survey of renewable 
fuels demand in the motor vehicle fuels market in the 
United States monthly, and in a manner designed to pro-
tect the confidentiality of individual responses. In con-
385
ducting the survey, the Administrator shall collect infor-
mation both on a national and regional basis, including—
‘‘(A) the quantity of renewable fuels produced; 
‘‘(B) the quantity of renewable fuels blended; 
‘‘(C) the quantity of renewable fuels imported; 
‘‘(D) the quantity of renewable fuels demanded; 
‘‘(E) market price data; and 
‘‘(F) such other analyses or evaluations as the 
Administrator finds is necessary to achieve the pur-
poses of this section. 
‘‘(2) The Administrator shall also collect or estimate 
information both on a national and regional basis, pursu-
ant to subparagraphs (A) through (F) of paragraph (1), 
for the five years prior to implementation of this sub-
section. 
‘‘(3) This subsection does not affect the authority of 
the Administrator to collect data under section 52 of the 
Federal Energy Administration Act of 1974 (15 U.S.C. 
790a).’’. 
SEC. 9107. FUEL SYSTEM REQUIREMENTS HARMONIZATION 
STUDY. 
(a) STUDY.—
(1) IN
GENERAL.—The Administrator of the 
Environmental Protection Agency and the Secretary 
of Energy shall jointly conduct a study of Federal,
386
State, and local requirements concerning motor vehi-
cle 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-
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;
387
(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—
(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
388
(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.—
(1) IN GENERAL.—Not later than December 31, 
2006, the Administrator of the Environmental Pro-
tection Agency and the Secretary of Energy shall 
submit to Congress a report on the results of the 
study conducted under subsection (a). 
(2) RECOMMENDATIONS.—
(A) IN GENERAL.—The report shall con-
tain recommendations for legislative and admin-
istrative actions that may be taken—
(i) to improve air quality; 
(ii) to reduce costs to consumers and 
producers; and 
(iii) to increase supply liquidity.
389
(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, 
the Administrator of the Environmental Protection 
Agency and the Secretary of Energy shall consult 
with—
(A) the Governors of the States; 
(B) automobile manufacturers; 
(C) motor vehicle fuel producers and dis-
tributors; and 
(D) the public.
Subtitle B—MTBE Cleanup 
SEC. 9201. FUNDING FOR MTBE CONTAMINATION. 
Notwithstanding any other provision of law, there is 
authorized to be appropriated to the Administrator of the 
United States Environmental Protection Agency from the 
Leaking Underground Storage Tank Trust Fund not more 
than $850,000,000 to be used for taking such action lim-
ited to site assessment (including exposure assessment), 
corrective action, inspection of underground storage tank
390
systems, and groundwater monitoring as the Adminis-
trator deems necessary to protect human health, welfare, 
and the environment from underground storage tank re-
leases of fuel containing fuel oxygenates.
TITLE X—AUTOMOBILE 
EFFICIENCY 
SEC. 10001. AUTHORIZATION OF APPROPRIATIONS FOR IM-
PLEMENTATION 
AND 
ENFORCEMENT 
OF 
FUEL ECONOMY STANDARDS. 
In addition to any other funds authorized by law, 
there are authorized to be appropriated to the National 
Highway Traffic Safety Administration to implement and 
enforce average fuel economy standards $5,000,000 for 
fiscal years 2004 through 2006. 
SEC. 10002. STUDY OF FEASIBILITY AND EFFECTS OF RE-
DUCING USE OF FUEL FOR AUTOMOBILES. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, the Administrator of 
the National Highway Traffic Safety Administration shall 
study the feasibility and effects of reducing by model year 
2012, by a significant percentage, the use of fuel for auto-
mobiles. 
(b) SUBJECTS OF STUDY.—The study under this sec-
tion shall include—
391
(1) examination of, and recommendation of al-
ternatives to, the policy under current Federal law 
of establishing average fuel economy standards for 
automobiles and requiring each automobile manufac-
turer to comply with average fuel economy standards 
that apply to the automobiles it manufactures; 
(2) examination of how automobile manufactur-
ers could contribute toward achieving the reduction 
referred to in subsection (a); 
(3) examination of the potential of fuel cell 
technology in motor vehicles in order to determine 
the extent to which such technology may contribute 
to achieving the reduction referred to in subsection 
(a); and 
(4) examination of the effects of the reduction 
referred to in subsection (a) on—
(A) gasoline supplies; 
(B) the automobile industry, including 
sales of automobiles manufactured in the 
United States; 
(C) motor vehicle safety; and 
(D) air quality. 
(c) REPORT.—The Administrator shall submit to the 
Congress a report on the findings, conclusion, and rec-
392
ommendations of the study under this section by not later 
than 1 year after the date of the enactment of this Act.
TITLE 
XI—PREVENTING 
THE 
MISUSE OF NUCLEAR MATE-
RIALS AND TECHNOLOGY 
SEC. 11001. PREVENTING THE MISUSE OF NUCLEAR MATE-
RIALS AND TECHNOLOGY. 
(a) AMENDMENT.—Chapter 14 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2201 et seq.) is amended by add-
ing at the end the following new section: 
‘‘SEC. 170D. PREVENTING
THE MISUSE
OF NU-
CLEAR MATERIALS AND TECHNOLOGY.—
‘‘a. In order to successfully promote the development 
of nuclear energy as a safe and reliable source of electrical 
energy, it is the policy of the United States to prevent 
any nuclear materials, technology, components, sub-
stances, technical information, or related goods or services 
from being misused or diverted from peaceful nuclear en-
ergy purposes. 
‘‘b. In order to further advance the policy set forth 
in subsection a., notwithstanding any other provision of 
law, no Federal agency shall issue any license, approval, 
or authorization for the export or reexport, or the transfer 
or retransfer, either directly or indirectly, to any country 
whose government has been identified by the Secretary of
393
State as engaged in state sponsorship of terrorist activities 
(specifically including any country the government of 
which, as of September 11, 2001, had been determined 
by the Secretary of State under section 620A(a) of the 
Foreign Assistance Act of 1961, section 6(j)(1) of the Ex-
port Administration Act of 1979, or section 40(d) of the 
Arms Export Control Act to have repeatedly provided sup-
port for acts of international terrorism) of—
‘‘(1) any special nuclear material or byproduct 
material; 
‘‘(2) any nuclear production or utilization facili-
ties; or 
‘‘(3) any components, technologies, substances, 
technical information, or related goods or services 
used (or which could be used) in a nuclear produc-
tion or utilization facility. 
‘‘c. Any license, approval, or authorization described 
in subsection b. made prior to the date of enactment of 
this section is hereby revoked.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents of such chapter 14 is amended by adding at 
the end the following item:
‘‘Sec. 170D. Preventing the misuse of nuclear materials and technology.’’.
394
TITLE XII—ADDITIONAL 
PROVISIONS 
SEC. 12001. TRANSMISSION TECHNOLOGIES. 
The Federal Energy Regulatory Commission shall 
take affirmative steps in the exercise of its authorities 
under the Federal Power Act to encourage the deployment 
of transmission technologies that utilize real time moni-
toring and analytical software to increase and maximize 
the capacity and efficiency of transmission networks and 
to reduce line losses.
Æ