344
sity of fuel choices in the United States to meet elec-
tricity generation requirements; and 
(3) demonstrate methods and equipment that are 
applicable to 25 percent of the electricity generating 
facilities, utilizing different types of coal, that use 
coal as the primary feedstock as of the date of the en-
actment of this Act. 
(e) FEDERAL SHARE.—The Federal share of the cost 
of a project funded by the Secretary under this title shall 
not exceed 50 percent. 
(f) APPLICABILITY.—No technology, or level of emis-
sion reduction, shall be treated as adequately demonstrated 
for purposes of section 111 of the Clean Air Act, achievable 
for purposes of section 169 of that Act, or achievable in 
practice for purposes of section 171 of that Act solely by 
reason of the use of such technology, or the achievement of 
such emission reduction, by one or more facilities receiving 
assistance under this title. 
SEC. 8003. REPORT. 
Not later than 1 year after the date of the enactment 
of this Act, and once every 2 years thereafter for the fol-
lowing 8 years, the Secretary, in consultation with other 
appropriate Federal agencies, shall transmit to the Congress 
a report describing—
345
(1) the technical milestones set forth in section 
8002 and how those milestones ensure progress toward 
meeting the requirements of subsections (b)(1)(B) and 
(b)(2) of section 8002; and 
(2) the status of projects funded under this title. 
SEC. 8004. CLEAN COAL CENTERS OF EXCELLENCE. 
As part of the program authorized in section 8001, the 
Secretary shall award competitive, merit-based grants to 
universities for the establishment of Centers of Excellence 
for Energy Systems of the Future. The Secretary shall pro-
vide grants to universities that can show the greatest poten-
tial for advancing new clean coal technologies.
TITLE IX—MOTOR FUELS 
Subtitle A—General Provisions 
SEC. 9101. 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 subsection 
(q); and 
(2) by inserting after subsection (n) the fol-
lowing: 
‘‘(o) RENEWABLE FUEL PROGRAM.—
‘‘(1) DEFINITIONS.—In this section:
346
‘‘(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 
‘‘(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
347
‘‘(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)) and any blending components de-
rived from renewable fuel (provided that 
only the renewable fuel portion of any such 
blending component shall be considered part 
of the applicable volume under the renew-
able fuel program established by this sub-
section). 
‘‘(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-
348
trator shall promulgate regulations ensuring that 
gasoline sold or dispensed to consumers in the 
contiguous United States, on an annual average 
basis, contains the applicable volume of renew-
able fuel as specified in subparagraph (B). Re-
gardless of the date of promulgation, such regula-
tions shall contain compliance provisions for re-
finers, 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 impose any per-gallon obligation 
for the use of renewables. If the Administrator 
does not promulgate such regulations, the appli-
cable percentage, on a volume percentage of gaso-
line basis, shall be 1.62 in 2005. 
‘‘(B) APPLICABLE VOLUME.—
‘‘(i) CALENDAR YEARS 2005 THROUGH 
2015.—For the purpose of subparagraph (A), 
the applicable volume for any of calendar 
years 2005 through 2015 shall be deter-
mined in accordance with the following 
table:
Applicable volume of renewable fuel 
‘‘Calendar year: 
(In billions of gallons) 
2005 ............................................................................................
2.7
2006 ............................................................................................
2.7
2007 ............................................................................................
2.9
2008 ............................................................................................
2.9
2009 ............................................................................................
3.4
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‘‘Calendar year: 
(In billions of gallons) 
2010 ............................................................................................
3.4
2011 ............................................................................................
3.4
2012 ............................................................................................
4.2
2013 ............................................................................................
4.2
2014 ............................................................................................
4.2
2015 ............................................................................................
5.0.
‘‘(ii) 
CALENDAR
YEAR
2016
AND 
THEREAFTER.—For the purpose of subpara-
graph (A), the applicable volume for cal-
endar year 2016 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 2015. 
‘‘(3) 
APPLICABLE
PERCENTAGES.—Not 
later 
than October 31 of each calendar year after 2002, the 
Administrator of the Energy Information Adminis-
tration shall provide the Administrator an estimate of 
the volumes of gasoline sales in the United States for 
the coming calendar year. Based on such estimates,
350
the Administrator shall, by November 30 of each cal-
endar year after 2003, determine and publish in the 
Federal Register, the renewable fuel obligation, on a 
volume percentage of gasoline basis, applicable to re-
finers, blenders, and importers, as appropriate, for 
the coming calendar year, to ensure that the require-
ments of paragraph (2) are met. For each calendar 
year, the Administrator shall establish a single appli-
cable percentage that applies to all parties, and make 
provision to avoid redundant obligations. In deter-
mining the applicable percentages, the Administrator 
shall make adjustments to account for the use of re-
newable 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
351
quantity required under paragraph (2). Such 
regulations shall provide for the generation of an 
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
352
out this subsection shall include provisions al-
lowing any person that is unable to generate or 
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 
2005 through 2015, 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-
353
gate regulations to ensure that 35 percent or 
more of the quantity of renewable fuels necessary 
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; 
‘‘(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% or 
more seasonal use of renewable fuels will 
not prevent or interfere with the attainment 
of national ambient air quality standards 
or significantly increase the price of motor 
fuels to the consumer. 
‘‘(D) PERIODS.—The two periods referred to 
in this paragraph are—
‘‘(i) April through September; and
354
‘‘(ii) January through March and Oc-
tober through December. 
‘‘(E) EXCLUSIONS.—Renewable fuels blend-
ed or consumed in 2005 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 
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 have a sig-
nificant and meaningful adverse impact on 
the economy or environment of a State, a 
region, or the United States, or will prevent 
or interfere with the attainment of a na-
tional ambient air quality standard in any 
area of a State; or
355
‘‘(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. If the Adminis-
trator does not act to approve or disapprove a 
State petition for a waiver within 90 days, the 
Administrator shall publish a notice setting forth 
the reasons for not acting within the required 
90-day period. 
‘‘(C) TERMINATION OF WAIVERS.—A waiver 
granted under subparagraph (A) shall terminate 
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-