356
istrator a study assessing whether the renewable fuels 
requirement under paragraph (2) will likely result in 
significant adverse consumer impacts in 2005, on a 
national, regional or State basis. Such study shall 
evaluate renewable fuel supplies and prices, blendstock 
supplies, and supply and distribution system capa-
bilities. Based on such study, the Secretary shall 
make specific recommendations to the Administrator 
regarding waiver of the requirements of paragraph 
(2), in whole or in part, to avoid any such adverse 
impacts. Within 270 days from enactment, the Ad-
ministrator shall, consistent with the recommenda-
tions of the Secretary waive, in whole or in part, the 
renewable fuels requirement under paragraph (2) by 
reducing the national quantity of renewable fuel re-
quired under this subsection in 2005. This provision 
shall not be interpreted as limiting the Administra-
tor’s authority to waive the requirements of para-
graph (2) in whole, or in part, under paragraph (7) 
or paragraph (9), pertaining to waivers. 
‘‘(9) ASSESSMENT AND WAIVER.—The Secretary 
of Energy, in consultation with the Administrator of 
the Environmental Protection Agency and the Sec-
retary of Agriculture on his own motion, or upon pe-
tition of any State shall evaluate the requirement of
357
paragraph (2) and determine, prior to January 1, 
2007, or prior to January 1 of any subsequent year 
in which the applicable volume of renewable fuel is 
increased under paragraph (2)(B), whether the re-
quirement of paragraph (2), including the applicable 
volume of renewable fuel contained in paragraph 
(2)(B) should remain in effect, in whole or in part, 
during 2007 or any year or years subsequent to 2007. 
In evaluating the requirement of paragraph (2) and 
in making any determination under this section, the 
Secretary shall consider the best available informa-
tion and data collected by accepted methods or best 
available means regarding—
‘‘(A) the capacity of renewable fuel pro-
ducers to supply an adequate amount of renew-
able fuel at competitive prices to fulfill the re-
quirement in paragraph (2); 
‘‘(B) the potential of the requirement in 
paragraph (2) to significantly raise the price of 
gasoline, food or heating oil for consumers in 
any significant area or region of the country 
above the price that would otherwise apply to 
such commodities in the absence of the require-
ment;
358
‘‘(C) the potential of the requirement in 
paragraph (2) to interfere with the supply of fuel 
in any significant gasoline market or region of 
the country, including interference with the effi-
cient operation of refiners, blenders, importers, 
wholesale suppliers, and retail vendors of gaso-
line, and other motor fuels; and 
‘‘(D) the potential of the requirement to 
cause or promote exceedences of Federal, State, 
or local air quality standards. 
If the Secretary determines, after public notice and 
the opportunity for comment, that the requirement of 
paragraph (2) would have significant and meaningful 
adverse impact on the supply of fuel and related in-
frastructure or on the economy, environment, public 
health or environment of any significant area or re-
gion of the country, the Secretary may waive, in 
whole or in part, the requirement of paragraph (2) in 
any one year or period of years as well as reduce the 
applicable volume of renewable fuel contained in 
paragraph (2)(B) in any one year or period of years. 
‘‘(10) SMALL REFINERIES.—
‘‘(A) IN
GENERAL.—The requirement of 
paragraph (2) shall not apply to small refineries 
until the first calendar year beginning more
359
than 5 years after the first year set forth in the 
table in paragraph (2)(B)(i). Not later than De-
cember 31, 2006, the Secretary of Energy shall 
complete for the Administrator a study to deter-
mine whether the requirement of paragraph (2) 
would impose a disproportionate economic hard-
ship on small refineries. For any small refinery 
that the Secretary of Energy determines would 
experience a disproportionate economic hardship, 
the Administrator shall extend the small refinery 
exemption for such small refinery for no less 
than two additional years. 
‘‘(B) 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 requirement of paragraph 
(2) for the reason of disproportionate eco-
nomic hardship. 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. 
‘‘(ii) DEADLINE FOR ACTION ON PETI-
TIONS.—The Administrator shall act on
360
any petition submitted by a small refinery 
for a hardship exemption not later than 90 
days after the receipt of the petition. 
‘‘(C) CREDIT PROGRAM.—If a small refin-
ery notifies the Administrator that it waives the 
exemption provided by this Act, the regulations 
shall provide for the generation of credits by the 
small refinery beginning in the year following 
such notification. 
‘‘(D) OPT-IN
FOR
SMALL
REFINERS.—A 
small refinery shall be subject to the require-
ments of this section if it notifies the Adminis-
trator that it waives the exemption under sub-
paragraph (A).’’. 
(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)’’ each place it appears and inserting ‘‘(n) or 
(o)’’; 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)’’ each place it appears and insert-
ing ‘‘(n), and (o)’’.
361
(c) SURVEY OF RENEWABLE FUEL MARKET.—
(1) SURVEY AND REPORT.—Not later than De-
cember 1, 2006, and annually thereafter, the Admin-
istrator of the Environmental Protection Agency (in 
consultation with the Secretary of Energy acting 
through the Administrator of the Energy Information 
Administration) shall—
(A) conduct, with respect to each conven-
tional gasoline use area and each reformulated 
gasoline use area in each State, a survey to de-
termine the market shares of—
(i) conventional gasoline containing 
ethanol; 
(ii) reformulated gasoline containing 
ethanol; 
(iii) conventional gasoline containing 
renewable fuel; and 
(iv) reformulated gasoline containing 
renewable fuel; and 
(B) submit to Congress, and make publicly 
available, a report on the results of the survey 
under subparagraph (A). 
(2) RECORDKEEPING AND REPORTING REQUIRE-
MENTS.—The Administrator may require any refiner, 
blender, or importer to keep such records and make
362
such reports as are necessary to ensure that the survey 
conducted under paragraph (1) is accurate. The Ad-
ministrator shall rely, to the extent practicable, on 
existing reporting and recordkeeping requirements to 
avoid duplicative requirements. 
(3) APPLICABLE
LAW.—Activities carried out 
under this subsection shall be conducted in a manner 
designed to protect confidentiality of individual re-
sponses. 
(4) CALCULATION OF MARKET SHARES.—Market 
shares for conventional gasoline and reformulated 
gasoline use areas will be calculated on a statewide 
basis using information collected under paragraph (2) 
and other information available to the Administrator. 
Market share information may be based upon gasoline 
distribution patterns that include multistate use 
areas. 
SEC. 9102. FUELS SAFE HARBOR. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of Federal or State law, no renewable fuel, as defined 
by section 211(o)(1) of the Clean Air Act, or fuel containing 
MTBE, used or intended to be used as a motor vehicle fuel, 
nor any motor vehicle fuel containing such renewable fuel 
or MTBE, shall be deemed defective in design or manufac-
ture by virtue of the fact that it is, or contains, such a
363
renewable fuel or MTBE, if it does not violate a control 
or prohibition imposed by the Administrator under section 
211 of such Act, and the manufacturer is in compliance 
with all requests for information under subsection (b) of 
such section 211(b) of the Clean Air Act. If the safe harbor 
provided by this section does not apply, the existence of a 
design defect or manufacturing defect shall be determined 
under otherwise applicable law. Nothing in this paragraph 
shall be construed to affect the liability of any person for 
environmental remediation costs, drinking water contami-
nation, negligence, public nuisance or any other liability 
other than liability for a defect in design or manufacture 
of a motor vehicle fuel. 
(b) EFFECTIVE DATE.—This section shall be effective 
as of the date of enactment and shall apply with respect 
to all claims filed on or after that date. 
SEC. 9103. FINDINGS AND MTBE TRANSITION ASSISTANCE. 
(a) FINDINGS.—Congress finds that—
(1) since 1979, methyl tertiary butyl ether (re-
ferred to in this section as ‘‘MTBE’’) has been used 
nationwide at low levels in gasoline to replace lead as 
an octane booster or anti-knocking agent; 
(2) Public Law 101–549 (commonly known as 
the ‘‘Clean Air Act Amendments of 1990’’) (42 U.S.C. 
7401 et seq.) established a fuel oxygenate standard
364
under which reformulated gasoline must contain at 
least 2 percent oxygen by weight; 
(3) at the time of the adoption of the fuel oxygen 
standard, Congress was aware that significant use of 
MTBE would result from the adoption of that stand-
ard, and that the use of MTBE would likely be im-
portant to the cost-effective implementation of that 
program; 
(4) Congress was aware that gasoline and its 
component additives can and do leak from storage 
tanks; 
(5) the fuel industry responded to the fuel oxy-
genate standard established by Public Law 101–549 
by making substantial investments in—
(A) MTBE production capacity; and 
(B) systems to deliver MTBE-containing 
gasoline to the marketplace; 
(6) Congress has—
(A) reconsidered the relative value of the ox-
ygenate requirement for reformulated gasoline; 
and 
(B) decided to provide for the elimination of 
the oxygenate requirement for reformulated gaso-
line and to provide for a renewable content re-
quirement for motor fuel; and
365
(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 created 
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 reformu-
lated gasoline. 
(b) PURPOSES.—The purpose of this section is to pro-
vide 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 following: 
‘‘(5) MTBE MERCHANT PRODUCER CONVERSION 
ASSISTANCE.—
‘‘(A) IN GENERAL.—
‘‘(i) GRANTS.—The Secretary of En-
ergy, in consultation with the Adminis-
trator, may make grants to merchant pro-
ducers of methyl tertiary butyl ether in the 
United States to assist the producers in the
366
conversion of eligible production facilities 
described in subparagraph (C) to the pro-
duction of iso-octane and alkylates. 
‘‘(ii) DETERMINATION.—The Adminis-
trator, in consultation with the Secretary of 
Energy, may determine that transition as-
sistance for the production of iso-octane and 
alkylates is inconsistent with the provisions 
of subparagraph (B) and, on that basis, 
may deny applications for grants author-
ized by this provision. 
‘‘(B) FURTHER GRANTS.—The Secretary of 
Energy, in consultation with the Administrator, 
may also further make grants to merchant pro-
ducers of MTBE in the United States to assist 
the producers in the conversion of eligible pro-
duction facilities described in subparagraph (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-
ably be anticipated to endanger public 
health or the environment;
367
‘‘(ii) have been registered and have 
been tested or are being tested in accordance 
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 FACILITIES.—
A production facility shall be eligible to receive 
a grant under this paragraph if the production 
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.’’.
(d) EFFECT ON STATE LAW.—The amendments made 
to the Clean Air Act by this title have no effect regarding 
any available authority of States to limit the use of methyl 
tertiary butyl ether in motor vehicle fuel.
368
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 
(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
369
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) take effect 270 days after the date 
of enactment of this Act, except that such amendments 
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 Novem-
ber 15, 1991,’’; and 
(2) by adding at the end the following: 
‘‘(B) MAINTENANCE OF TOXIC AIR POLLUT-
ANT
EMISSIONS
REDUCTIONS
FROM
REFORMU-
LATED GASOLINE.—
‘‘(i) DEFINITIONS.—In this subpara-
graph the term ‘PADD’ means a Petroleum 
Administration for Defense District. 
‘‘(ii) REGULATIONS REGARDING EMIS-
SIONS
OF
TOXIC
AIR
POLLUTANTS.—Not 
later than 270 days after the date of enact-
ment of this subparagraph the Adminis-
370
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 gasoline pro-
duced or distributed by the refinery or im-
porter during calendar years 1999 and 
2000, determined on the basis of data col-
lected by the Administrator with respect to 
the refinery or importer. 
‘‘(iii) STANDARDS APPLICABLE TO SPE-
CIFIC 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 
to the quantity of gasoline produced or 
distributed by the refinery or importer 
in the calendar year only to the extent 
that the quantity is less than or equal 
to the average annual quantity of re-
formulated gasoline produced or dis-
371
tributed by the refinery or importer 
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 subject 
to subclause (I) shall be subject to 
standards for toxic air pollutants pro-
mulgated 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.—
‘‘(I) IN GENERAL.—Not later than 
60 days after the date of enactment of 
this subparagraph, and not later than 
April 1 of each calendar year that be-
gins after that date of enactment, the 
Administrator shall publish in the 
Federal Register a report that specifies,
372
with respect to the previous 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 av-
erage annual aggregate emissions 
of toxic air pollutants in each 
PADD, based on retail survey 
data or data from other appro-
priate sources. 
‘‘(II) EFFECT
OF
FAILURE
TO 
MAINTAIN AGGREGATE TOXICS REDUC-
TIONS.—If, in any calendar year, the 
reduction of the average annual aggre-
gate emissions of toxic air pollutants 
in a PADD fails to meet or exceed the 
reduction of the average annual aggre-
gate emissions of toxic air pollutants 
in the PADD in calendar years 1999 
and 2000, the Administrator, not later 
than 90 days after the date of publica-
373
tion of the report for the calendar year 
under subclause (I), shall—
‘‘(aa) identify, to the max-
imum extent practicable, the rea-
sons for the failure, including the 
sources, volumes, and characteris-
tics of reformulated gasoline that 
contributed to the failure; and 
‘‘(bb) promulgate revisions to 
the regulations promulgated under 
clause (ii), to take effect not ear-
lier 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 refinery or 
importer shall meet the standards 
applicable under clause (ii) not 
later than April 1 of the year fol-
lowing the report in subclause (II) 
and for subsequent years. 
‘‘(vi) REGULATIONS TO CONTROL HAZ-
ARDOUS AIR POLLUTANTS FROM MOTOR VE-
HICLES AND MOTOR VEHICLE FUELS.—Not
374
later than July 1, 2004, the Administrator 
shall promulgate final regulations to control 
hazardous air pollutants from motor vehi-
cles and motor vehicle fuels, as provided for 
in section 80.1045 of title 40, Code of Fed-
eral 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 consolidate 
the regulations applicable to VOC-Control Regions 1 and 
2 under section 80.41 of that title by eliminating the less 
stringent requirements applicable to gasoline designated for 
VOC-Control Region 2 and instead applying the more strin-
gent requirements applicable to gasoline 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 ad-
justment of standards applicable to a specific refinery or 
importer made under such prior regulations and the Ad-
375
ministrator may apply such adjustments to the standards 
applicable to such refinery or importer under clause (iii)(I) 
of section 211(k)(1)(B) of the Clean Air Act, except 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 Ad-
ministrator may revise such adjustments to take ac-
count of the scope of any lawful and enforceable Fed-
eral or State prohibition on methyl tertiary butyl 
ether imposed after the effective date of the enactment 
of this paragraph, except that any such adjustment 
shall require such refiner or importer, to the greatest 
extent practicable, to maintain the reduction achieved 
during calendar year 1999–2000 in the average an-
nual aggregate emissions of toxic air pollutants from 
reformulated gasoline produced or distributed by the 
refinery or importer. Any such adjustment shall not 
be made at a level below the average percentage of re-
ductions of emissions of toxic air pollutants for refor-
mulated gasoline supplied to PADD I during cal-
endar years 1999–2000.
376
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 public 
comment a draft analysis of the changes in emis-
sions of air pollutants and air quality due to the 
use of motor vehicle fuel and fuel additives re-
sulting from implementation of the 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 publish 
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 ef-
fects of gasoline characteristics or components on
377
emissions from vehicles in the motor vehicle fleet dur-
ing calendar year 2005.’’. 
SEC. 9106. DATA COLLECTION. 
Section 205 of the Department of Energy Organization 
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 con-
duct 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 protect the 
confidentiality of individual responses. In conducting the 
survey, the Administrator shall collect information 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-
378
ant to subparagraphs (A) through (F) of paragraph (1), 
for the five years prior to implementation of this subsection. 
‘‘(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 En-
vironmental Protection Agency and the Secretary of 
Energy shall jointly conduct a study of Federal, 
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 requirements 
described in paragraph (1) on the supply, qual-
ity, and price of motor vehicle fuels available to 
consumers in various States and localities;
379
(B) the effect of the requirements described 
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 multiple 
motor vehicle fuel requirements, on—
(i) domestic refineries; 
(ii) the fuel distribution system; and 
(iii) industry investment in new ca-
pacity; 
(D) the effect of the requirements described 
in paragraph (1) on emissions from vehicles, re-
fineries, and fuel handling facilities; 
(E) the feasibility of developing national or 
regional motor vehicle fuel slates for the 48 con-
tiguous States that, while improving air quality 
at the national, regional and local levels con-
sistent with the attainment of national ambient 
air quality standards, could—
(i) enhance flexibility in the fuel dis-
tribution infrastructure and improve fuel 
fungibility;
380
(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 result 
from the Environmental Protection Agency’s 
Tier II requirements for conventional gasoline 
and vehicle emission systems, the reformulated 
gasoline program, the renewable content require-
ments established by this subtitle, State pro-
grams 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 Protec-
tion Agency and the Secretary of Energy shall submit 
to Congress a report on the results of the study con-
ducted under subsection (a).
381
(2) RECOMMENDATIONS.—
(A) IN GENERAL.—The report shall contain 
recommendations for legislative and administra-
tive 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 rec-
ommendations 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.
382
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 limited 
to site assessment (including exposure assessment), correc-
tive action, inspection of underground storage tank systems, 
and groundwater monitoring as the Administrator deems 
necessary to protect human health, welfare, and the environ-
ment from underground storage tank releases of fuel con-
taining 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.
383
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—
(1) examination of, and recommendation of al-
ternatives to, the policy under current Federal law of 
establishing average fuel economy standards for auto-
mobiles and requiring each automobile manufacturer 
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 tech-
nology in motor vehicles in order to determine the ex-
tent to which such technology may contribute to 
achieving the reduction referred to in subsection (a); 
and 
(4) examination of the effects of the reduction re-
ferred to in subsection (a) on—
384
(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-
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 adding 
at the end the following new section: 
‘‘SEC. 170D. PREVENTING THE MISUSE OF NUCLEAR 
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, substances, tech-
385
nical information, or related goods or services from being 
misused or diverted from peaceful nuclear energy 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 au-
thorization for the export or reexport, or the transfer or re-
transfer, either directly or indirectly, to any country whose 
government has been identified by the Secretary of State 
as engaged in state sponsorship of terrorist activities (spe-
cifically including any country the government of which, 
as of September 11, 2001, had been determined by the Sec-
retary of State under section 620A(a) of the Foreign Assist-
ance Act of 1961, section 6(j)(1) of the Export Administra-
tion Act of 1979, or section 40(d) of the Arms Export Con-
trol Act to have repeatedly provided support 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 production 
or utilization facility.
386
‘‘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.’’.
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 trans-
mission technologies that utilize real time monitoring and 
analytical software to increase and maximize the capacity 
and efficiency of transmission networks and to reduce line 
losses.