†
180
HR 6 EAS
‘‘(5) RESTRICTIONS ON USE OF MTBE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (E), not later than 4 years after the date
of enactment of this paragraph, the use of methyl
tertiary butyl ether in motor vehicle fuel in any
State other than a State described in subpara-
graph (C) is prohibited.
‘‘(B) REGULATIONS.—The Administrator
shall promulgate regulations to effect the prohibi-
tion in subparagraph (A).
‘‘(C) STATES
THAT
AUTHORIZE
USE.—A
State described in this subparagraph is a State
that submits to the Administrator a notice that
the State authorizes use of methyl tertiary butyl
ether in motor vehicle fuel sold or used in the
State.
‘‘(D) PUBLICATION
OF
NOTICE.—The Ad-
ministrator shall publish in the Federal Register
each notice submitted by a State under subpara-
graph (C).
‘‘(E) TRACE QUANTITIES.—In carrying out
subparagraph (A), the Administrator may allow
trace quantities of methyl tertiary butyl ether,
not to exceed 0.5 percent by volume, to be present
†
181
HR 6 EAS
in motor vehicle fuel in cases that the Adminis-
trator determines to be appropriate.
‘‘(6) 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
conversion of eligible production facilities
described in subparagraph (C) to the pro-
duction of—
‘‘(I) iso-octane or alkylates, unless
the Administrator, in consultation
with the Secretary of Energy, deter-
mines that transition assistance for the
production of iso-octane or alkylates is
inconsistent with the criteria specified
in subparagraph (B); and
‘‘(II) any other fuel additive that
meets the criteria specified in subpara-
graph (B).
‘‘(B) CRITERIA.—The criteria referred to in
subparagraph (A) are that—
†
182
HR 6 EAS
‘‘(i) use of the fuel additive is con-
sistent with this subsection;
‘‘(ii) the Administrator has not deter-
mined that the fuel additive may reasonably
be anticipated to endanger public health or
the environment;
‘‘(iii) the fuel additive has been reg-
istered and tested, or is being tested, in ac-
cordance with the requirements of this sec-
tion; and
‘‘(iv) the fuel additive will contribute
to replacing quantities of motor vehicle fuel
rendered unavailable as a result of para-
graph (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 in nonattainment
areas during the period—
‘‘(I) beginning on the date of en-
actment of this paragraph; and
†
183
HR 6 EAS
‘‘(II) ending on the effective date
of the prohibition on the use of methyl
tertiary butyl ether under paragraph
(5).
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this paragraph $250,000,000 for
each of fiscal years 2005 through 2008.’’.
(d) NO EFFECT ON LAW CONCERNING STATE AUTHOR-
ITY.—The amendments made by subsection (c) have no ef-
fect on any law enacted or in effect before the date of enact-
ment of this Act concerning the authority of States to limit
the use of methyl tertiary butyl ether in motor vehicle fuel.
SEC. 224. 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
†
184
HR 6 EAS
(iii) by redesignating subparagraphs
(C) and (D) as subparagraphs (B) and (C),
respectively;
(B) in paragraph (3)(A), by striking clause
(v); and
(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).
(2) APPLICABILITY.—The amendments made by
paragraph (1) apply—
(A) in the case of a State that has received
a waiver under section 209(b) of the Clean Air
Act (42 U.S.C. 7543(b)), beginning on the date
of enactment of this Act; and
(B) in the case of any other State, begin-
ning 270 days after the date of enactment of this
Act.
†
185
HR 6 EAS
(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) DEFINITION OF PADD.—In this
subparagraph the term ‘PADD’ means a
Petroleum Administration for Defense Dis-
trict.
‘‘(ii) REGULATIONS CONCERNING EMIS-
SIONS
OF
TOXIC
AIR
POLLUTANTS.—Not
later than 270 days after the date of enact-
ment of this subparagraph, the Adminis-
trator shall establish by regulation, for each
refinery or importer (other than a refiner or
importer in a State that has received a
waiver under section 209(b) with respect to
gasoline produced for use in that State),
†
186
HR 6 EAS
standards for toxic air pollutants from use
of the reformulated gasoline produced or
distributed by the refiner or importer that
maintain the reduction of the average an-
nual aggregate emissions of toxic air pollut-
ants for reformulated gasoline produced or
distributed by the refiner or importer dur-
ing calendar years 2001 and 2002 (as deter-
mined on the basis of data collected by the
Administrator with respect to the refiner 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 refiner or
importer under clause (ii) shall apply
to the quantity of gasoline produced or
distributed by the refiner 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-
tributed by the refiner or importer
during calendar years 2001 and 2002.
†
187
HR 6 EAS
‘‘(II) APPLICABILITY
OF
OTHER
STANDARDS.—For any calendar year,
the quantity of gasoline produced or
distributed by a refiner or importer
that is in excess of the quantity subject
to subclause (I) shall be subject to
standards for emissions of toxic air
pollutants promulgated under subpara-
graph (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,
with respect to the previous calendar
year—
†
188
HR 6 EAS
‘‘(aa) the quantity of refor-
mulated gasoline produced that is
in excess of the average annual
quantity of reformulated gasoline
produced in 2001 and 2002; 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 2001
and 2002, the Administrator, not later
than 90 days after the date of publica-
tion of the report for the calendar year
under subclause (I), shall—
†
189
HR 6 EAS
‘‘(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 refiner or
importer shall meet the standards
applicable under clause (iii)(I) be-
ginning not later than April 1 of
the calendar year following publi-
cation of the report under sub-
clause (I) and in each calendar
year thereafter.
‘‘(vi) Not later than July 1, 2007, the
Administrator shall promulgate final regu-
lations to control hazardous air pollutants
†
190
HR 6 EAS
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 subpara-
graph), and as authorized under section
202(1) of the Clean Air Act. If the Adminis-
trator promulgates by such date, final regu-
lations to control hazardous air pollutants
from motor vehicles and motor vehicle fuels
that achieve and maintain greater overall
reductions in emissions of air toxics from
reformulated gasoline than the reductions
that would be achieved under section
211(k)(1)(B) of the Clean Air Act as
amended by this clause, then sections
21l(k)(1)(i) through 211(k)(1)(v) shall be
null and void and regulations promulgated
thereunder shall be rescinded and have no
further effect.
(c) COMMINGLING.—
(1) IN GENERAL.—Section 211(k) of the Clean
Air Act (42 U.S.C. 7545(k)) is amended by adding at
the end the following:
‘‘(11) COMMINGLING.—The regulations under
paragraph (1) shall permit the commingling at a re-
†
191
HR 6 EAS
tail station of reformulated gasoline containing eth-
anol and reformulated gasoline that does not contain
ethanol if, each time such commingling occurs—
‘‘(A) the retailer notifies the Administrator
before the commingling, identifying the exact lo-
cation of the retail station and the specific tank
in which the commingling will take place; and
‘‘(B) the retailer certifies that the reformu-
lated gasoline resulting from the commingling
will meet all applicable requirements for refor-
mulated gasoline, including content and emis-
sion performance standards.’’.
(d) CONSOLIDATION
IN REFORMULATED GASOLINE
REGULATIONS.—Not later than 180 days after the date of
enactment of this Act, the Administrator of the Environ-
mental Protection Agency shall revise the reformulated gas-
oline 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 require-
ments applicable to gasoline designated for VOC-Control
Region 2 and instead applying the more stringent require-
ments applicable to gasoline designated for VOC-Control
Region 1.
(e) SAVINGS CLAUSE.—
†
192
HR 6 EAS
(1) IN GENERAL.—Nothing in this section or any
amendment made by this section affects or prejudices
any legal claim or action with respect to regulations
promulgated by the Administrator before the date of
enactment of this Act regarding—
(A) emissions of toxic air pollutants from
motor vehicles; or
(B) the adjustment of standards applicable
to a specific refinery or importer made under
those regulations.
(2) ADJUSTMENT OF STANDARDS.—
(A) 
APPLICABILITY.—The 
Administrator
may apply any adjustments to the standards ap-
plicable to a refinery or importer under subpara-
graph (B)(iii)(I) of section 211(k)(1) of the
Clean Air Act (as added by subsection (b)(2)),
except that—
(i) the Administrator shall revise the
adjustments to be based only on calendar
years 2001 and 2002;
(ii) any such adjustment shall not be
made at a level below the average percent-
age of reductions of emissions of toxic air
pollutants for reformulated gasoline sup-
†
193
HR 6 EAS
plied to PADD I during calendar years
2001 and 2002; and
(iii) in the case of an adjustment based
on toxic air pollutant emissions from refor-
mulated gasoline significantly below the na-
tional annual average emissions of toxic air
pollutants from all reformulated gasoline—
(I) the Administrator may revise
the adjustment to take account of the
scope of the prohibition on methyl ter-
tiary butyl ether imposed by para-
graph (5) of section 211(c) of the Clean
Air Act (as added by section 211(c));
and
(II) any such adjustment shall re-
quire the refiner or importer, to the
maximum extent practicable, to main-
tain the reduction achieved during cal-
endar years 2001 and 2002 in the av-
erage annual aggregate emissions of
toxic air pollutants from reformulated
gasoline produced or distributed by the
refiner or importer.
†
194
HR 6 EAS
SEC. 225. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS
OF FUELS AND FUEL ADDITIVES.
Section 211(b) of the Clean Air Act (42 U.S.C.
7545(b)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘may also’’ and inserting
‘‘shall, on a regular basis,’’; and
(B) by striking subparagraph (A) and in-
serting the following:
‘‘(A) to conduct tests to determine potential
public health and environmental effects of the
fuel 
or 
additive 
(including 
carcinogenic,
teratogenic, or mutagenic effects); and’’; and
(2) by adding at the end the following:
‘‘(4) STUDY ON CERTAIN FUEL ADDITIVES AND
BLENDSTOCKS.—
‘‘(A) IN GENERAL.—Not later than 2 years
after the date of enactment of this paragraph, the
Administrator shall—
‘‘(i) conduct a study on the effects on
public health (including the effects on chil-
dren, pregnant women, minority or low-in-
come communities, and other sensitive pop-
ulations), air quality, and water resources
of increased use of, and the feasibility of
†
195
HR 6 EAS
using as substitutes for methyl tertiary
butyl ether in gasoline—
‘‘(I) ethyl tertiary butyl ether;
‘‘(II) tertiary amyl methyl ether;
‘‘(III) di-isopropyl ether;
‘‘(IV) tertiary butyl alcohol;
‘‘(V) other ethers and heavy alco-
hols, as determined by then Adminis-
trator;
‘‘(VI) ethanol;
‘‘(VII) iso-octane; and
‘‘(VIII) alkylates; and
‘‘(ii) conduct a study on the effects on
public health (including the effects on chil-
dren, pregnant women, minority or low-in-
come communities, and other sensitive pop-
ulations), air quality, and water resources
of the adjustment for ethanol-blended refor-
mulated gasoline to the volatile organic
compounds performance requirements that
are applicable under paragraphs (1) and
(3) of section 211(k); and
‘‘(iii) submit to the Committee on En-
vironment and Public Works of the Senate
and the Committee on Energy and Com-
†
196
HR 6 EAS
merce of the House of Representatives a re-
port describing the results of the studies
under clauses (i) and (ii).
‘‘(B) CONTRACTS FOR STUDY.—In carrying
out this paragraph, the Administrator may enter
into 1 or more contracts with nongovernmental
entities such as—
‘‘(i) the national energy laboratories;
and
‘‘(ii) institutions of higher education
(as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)).’’.
SEC. 226. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) (as
amended by section 205(a)) is amended by inserting after
subsection (p) the following:
‘‘(q) 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-
†
197
HR 6 EAS
sulting from implementation of the amendments
made by the Federal Reformulated Fuels Act of
2005.
‘‘(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 section, not later than 4 years after the date of
enactment of this paragraph, the Administrator shall
develop and finalize an emissions model that reflects,
to the maximum extent practicable, the effects of gaso-
line characteristics or components on emissions from
vehicles in the motor vehicle fleet during calendar
year 2007.
‘‘(3) PERMEATION EFFECTS STUDY.—
‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of this paragraph, the
Administrator shall conduct a study, and report
to Congress the results of the study, on the effects
of ethanol content in gasoline on permeation, the
process by which fuel molecules migrate through
the elastomeric materials (rubber and plastic
†
198
HR 6 EAS
parts) that make up the fuel and fuel vapor sys-
tems of a motor vehicle.
‘‘(B) EVAPORATIVE EMISSIONS.—The study
shall include estimates of the increase in total
evaporative emissions likely to result from the
use of gasoline with ethanol content in a motor
vehicle, and the fleet of motor vehicles, due to
permeation.’’.
SEC. 227. ADDITIONAL OPT-IN AREAS UNDER REFORMU-
LATED GASOLINE PROGRAM.
Section 211(k)(6) of the Clean Air Act (42 U.S.C.
7545(k)(6)) is amended—
(1) by striking ‘‘(6) OPT-IN AREAS.—(A) Upon’’
and inserting the following:
‘‘(6) OPT-IN AREAS.—
‘‘(A) CLASSIFIED AREAS.—
‘‘(i) IN GENERAL.—Upon’’;
(2) in subparagraph (B), by striking ‘‘(B) If’’
and inserting the following:
‘‘(ii) EFFECT
OF
INSUFFICIENT
DO-
MESTIC CAPACITY TO PRODUCE REFORMU-
LATED GASOLINE.—If’’;
(3) in subparagraph (A)(ii) (as redesignated by
paragraph (2))—
†
199
HR 6 EAS
(A) in the first sentence, by striking ‘‘sub-
paragraph (A)’’ and inserting ‘‘clause (i)’’; and
(B) in the second sentence, by striking ‘‘this
paragraph’’ and inserting ‘‘this subparagraph’’;
and
(4) by adding at the end the following:
‘‘(B) OZONE TRANSPORT REGION.—
‘‘(i) APPLICATION OF PROHIBITION.—
‘‘(I) IN
GENERAL.—On applica-
tion of the Governor of a State in the
ozone transport region established by
section 184(a), the Administrator, not
later than 180 days after the date of
receipt of the application, shall apply
the prohibition specified in paragraph
(5) to any area in the State (other
than an area classified as a marginal,
moderate, serious, or severe ozone non-
attainment area under subpart 2 of
part D of title I) unless the Adminis-
trator determines under clause (iii)
that there is insufficient capacity to
supply reformulated gasoline.
‘‘(II) PUBLICATION
OF
APPLICA-
TION.—As soon as practicable after the
†
200
HR 6 EAS
date of receipt of an application under
subclause (I), the Administrator shall
publish the application in the Federal
Register.
‘‘(ii) PERIOD
OF
APPLICABILITY.—
Under clause (i), the prohibition specified
in paragraph (5) shall apply in a State—
‘‘(I) commencing as soon as prac-
ticable but not later than 2 years after
the date of approval by the Adminis-
trator of the application of the Gov-
ernor of the State; and
‘‘(II) ending not earlier than 4
years after the commencement date de-
termined under subclause (I).
‘‘(iii) EXTENSION OF COMMENCEMENT
DATE BASED ON INSUFFICIENT CAPACITY.—
‘‘(I) IN
GENERAL.—If, after re-
ceipt of an application from a Gov-
ernor of a State under clause (i), the
Administrator determines, on the Ad-
ministrator’s own motion or on peti-
tion of any person, after consultation
with the Secretary of Energy, that
there is insufficient capacity to supply
†
201
HR 6 EAS
reformulated gasoline, the Adminis-
trator, by regulation—
‘‘(aa) shall extend the com-
mencement date with respect to
the State under clause (ii)(I) for
not more than 1 year; and
‘‘(bb) may renew the exten-
sion under item (aa) for 2 addi-
tional periods, each of which shall
not exceed 1 year.
‘‘(II) DEADLINE FOR ACTION ON
PETITIONS.—The Administrator shall
act on any petition submitted under
subclause (I) not later than 180 days
after the date of receipt of the peti-
tion.’’.
SEC. 228. FEDERAL ENFORCEMENT OF STATE FUELS RE-
QUIREMENTS.
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C.
7545(c)(4)(C)) is amended—
(1) by striking ‘‘(C) A State’’ and inserting the
following:
‘‘(C) AUTHORITY
OF STATE
TO
CONTROL
FUELS AND FUEL ADDITIVES FOR REASONS OF
NECESSITY.—
†
202
HR 6 EAS
‘‘(i) IN GENERAL.—A State’’; and
(2) by adding at the end the following:
‘‘(ii) ENFORCEMENT BY THE ADMINIS-
TRATOR.—In any case in which a State
prescribes and enforces a control or prohibi-
tion under clause (i), the Administrator, at
the request of the State, shall enforce the
control or prohibition as if the control or
prohibition had been adopted under the
other provisions of this section.’’.
SEC. 229. 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
assess—
†
203
HR 6 EAS
(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
the consumer;
(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 (in-
cluding the protection of children, pregnant
women, minority or low-income commu-
nities, and other sensitive populations);
(C) the effect of Federal, State, and local
motor vehicle fuel regulations, including multiple
motor vehicle fuel requirements, on—
(i) domestic refiners;
(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-
finers, and fuel handling facilities;
(E) the feasibility of developing national or
regional motor vehicle fuel slates for the 48 con-
†
204
HR 6 EAS
tiguous States that, while protecting and im-
proving air quality at the national, regional,
and local levels, 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; and
(F) the feasibility of providing incentives,
and the need for the development of national
standards necessary, to promote cleaner burning
motor vehicle fuel.
(b) REPORT.—
(1) IN GENERAL.—Not later than June 1, 2008,
the Administrator of the Environmental Protection
Agency and the Secretary of Energy shall submit to
Congress a report on the results of the study con-
ducted under subsection (a).
(2) RECOMMENDATIONS.—
†
205
HR 6 EAS
(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) State and local air pollution control
regulators;
(D) public health experts;
(E) motor vehicle fuel producers and dis-
tributors; and
†
206
HR 6 EAS
(F) the public.
SEC. 230. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM.
(a) IN GENERAL.—Subject to the availability of appro-
priations under subsection (d), the Administrator of the En-
vironmental Protection Agency shall, in consultation with
the Secretary of Agriculture and the Biomass Research and
Development Technical Advisory Committee established
under section 306 of the Biomass Research and Develop-
ment Act of 2000 (Public Law 106–224; 7 U.S.C. 8101
note), establish a program, to be known as the ‘‘Advanced
Biofuel Technologies Program’’, to demonstrate advanced
technologies for the production of alternative transportation
fuels.
(b) PRIORITY.—In carrying out the program under
subsection (a), the Administrator shall give priority to
projects that enhance the geographical diversity of alter-
native fuels production and utilize feedstocks that represent
10 percent or less of ethanol or biodiesel fuel production
in the United States during the previous fiscal year.
(c) DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—As part of the program under
subsection (a), the Administrator shall fund dem-
onstration projects—
†
207
HR 6 EAS
(A) to develop not less than 4 different con-
version technologies for producing cellulosic bio-
mass ethanol; and
(B) to develop not less than 5 technologies
for coproducing value-added bioproducts (such as
fertilizers, herbicides, and pesticides) resulting
from the production of biodiesel fuel.
(2) ADMINISTRATION.—Demonstration projects
under this subsection shall be—
(A) conducted based on a merit-reviewed,
competitive process; and
(B) subject to the cost-sharing requirements
of section 1002.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section
$110,000,000 for each of fiscal years 2005 through 2009.
SEC. 231. SUGAR CANE ETHANOL PROGRAM.
(a) DEFINITION OF PROGRAM.—In this section, the
term ‘‘program’’ means the Sugar Cane Ethanol Program
established by subsection (b).
(b) ESTABLISHMENT.—There is established within the
Environmental Protection Agency a program to be known
as the ‘‘Sugar Cane Ethanol Program’’.
(c) PROJECT.—
†
208
HR 6 EAS
(1) IN GENERAL.—Subject to the availability of
appropriations under subsection (d), in carrying out
the program, the Administrator of the Environmental
Protection Agency shall establish a project that is—
(A) carried out in multiple States—
(i) in each of which is produced cane
sugar that is eligible for loans under section
156 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7272), or
a similar subsequent authority; and
(ii) at the option of each such State,
that have an incentive program that re-
quires the use of ethanol in the State; and
(B) designed to study the production of eth-
anol from cane sugar, sugarcane, and sugarcane
byproducts.
(2) REQUIREMENTS.—A project described in
paragraph (1) shall—
(A) be limited to the production of ethanol
in the States of Florida, Louisiana, Texas, and
Hawaii in a way similar to the existing pro-
gram for the processing of corn for ethanol to
demonstrate that the process may be applicable
to cane sugar, sugarcane, and sugarcane byprod-
ucts;
†
209
HR 6 EAS
(B) include information on the ways in
which the scale of production may be replicated
once the sugar cane industry has located sites
for, and constructed, ethanol production facili-
ties; and
(C) not last more than 3 years.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$36,000,000, to remain available until expended.
SEC. 232. NATIONAL PRIORITY PROJECT DESIGNATION.
(a) 
DESIGNATION
OF
NATIONAL
PRIORITY
PROJECTS.—
(1) IN GENERAL.—There is established the Na-
tional Priority Project Designation (referred to in
this section as the ‘‘Designation’’), which shall be evi-
denced by a medal bearing the inscription ‘‘National
Priority Project’’.
(2) DESIGN AND MATERIALS.—The medal shall
be of such design and materials and bear such addi-
tional inscriptions as the President may prescribe.
(b) MAKING AND PRESENTATION OF DESIGNATION.—
(1) IN GENERAL.—The President, on the basis of
recommendations made by the Secretary, shall annu-
ally designate organizations that have—
†
210
HR 6 EAS
(A) advanced the field of renewable energy
technology and contributed to North American
energy independence; and
(B) been certified by the Secretary under
subsection (e).
(2) PRESENTATION.—The President shall des-
ignate projects with such ceremonies as the President
may prescribe.
(3) USE
OF
DESIGNATION.—An organization
that receives a Designation under this section may
publicize the Designation of the organization as a Na-
tional Priority Project in advertising.
(4) CATEGORIES IN WHICH THE DESIGNATION
MAY BE GIVEN.—Separate Designations shall be made
to qualifying projects in each of the following cat-
egories:
(A) Wind and biomass energy generation
projects.
(B) Photovoltaic and fuel cell energy gen-
eration projects.
(C) Energy efficient building and renewable
energy projects.
(D) First-in-Class projects.
(c) SELECTION CRITERIA.—
†
211
HR 6 EAS
(1) IN GENERAL.—Certification and selection of
the projects to receive the Designation shall be based
on criteria established under this subsection.
(2) WIND, BIOMASS, AND BUILDING PROJECTS.—
In the case of a wind, biomass, or building project,
the project shall demonstrate that the project will in-
stall not less than 30 megawatts of renewable energy
generation capacity.
(3) SOLAR
PHOTOVOLTAIC
AND
FUEL
CELL
PROJECTS.—In the case of a solar photovoltaic or fuel
cell project, the project shall demonstrate that the
project will install not less than 3 megawatts of re-
newable energy generation capacity.
(4) ENERGY EFFICIENT BUILDING AND RENEW-
ABLE ENERGY PROJECTS.—In the case of an energy
efficient building or renewable energy project, in ad-
dition to meeting the criteria established under para-
graph (2), each building project shall demonstrate
that the project will—
(A) comply with third-party certification
standards 
for 
high-performance, 
sustainable
buildings;
(B) use whole-building integration of energy
efficiency and environmental performance design
†
212
HR 6 EAS
and technology, including advanced building
controls;
(C) use renewable energy for at least 50 per-
cent of the energy consumption of the project;
(D) comply with applicable Energy Star
standards; and
(E) include at least 5,000,000 square feet of
enclosed space.
(5) 
FIRST-IN-CLASS
USE.—Notwithstanding
paragraphs (2) through (4), a new building project
may qualify under this section if the Secretary deter-
mines that the project—
(A) represents a First-In-Class use of re-
newable energy; or
(B) otherwise establishes a new paradigm of
building integrated renewable energy use or en-
ergy efficiency.
(d) APPLICATION.—
(1) INITIAL APPLICATIONS.—No later than 120
days after the date of enactment of this Act, and an-
nually thereafter, the Secretary shall publish in the
Federal Register an invitation and guidelines for sub-
mitting applications, consistent with this section.
†
213
HR 6 EAS
(2) CONTENTS.—The application shall describe
the project, or planned project, and the plans to meet
the criteria established under subsection (c).
(e) CERTIFICATION.—
(1) IN GENERAL.—Not later than 60 days after
the application period described in subsection (d),
and annually thereafter, the Secretary shall certify
projects that are reasonably expected to meet the cri-
teria established under subsection (c).
(2) CERTIFIED PROJECTS.—The Secretary shall
designate personnel of the Department to work with
persons carrying out each certified project and ensure
that the personnel—
(A) provide each certified project with guid-
ance in meeting the criteria established under
subsection (c);
(B) identify programs of the Department,
including National Laboratories and Technology
Centers, that will assist each project in meeting
the criteria established under subsection (c); and
(C) ensure that knowledge and transfer of
the most current technology between the applica-
ble resources of the Federal Government (includ-
ing the National Laboratories and Technology
Centers, the Department, and the Environmental
†
214
HR 6 EAS
Protection Agency) and the certified projects is
being facilitated to accelerate commercialization
of work developed through those resources.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section for each of fiscal years 2006
through 2010.
SEC. 233. RURAL AND REMOTE COMMUNITY ELECTRIFICA-
TION GRANTS.
The Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2601 et seq.) is amended in title VI by adding at
the end the following:
‘‘SEC. 609. RURAL AND REMOTE COMMUNITIES ELEC-
TRIFICATION GRANTS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) The term ‘eligible grantee’ means a local
government or municipality, peoples’ utility district,
irrigation district, and cooperative, nonprofit, or lim-
ited-dividend association in a rural area.
‘‘(2) The term ‘incremental hydropower’ means
additional generation achieved from increased effi-
ciency after January 1, 2005, at a hydroelectric dam
that was placed in service before January 1, 2005.
‘‘(3) The term ‘renewable energy’ means elec-
tricity generated from—
†
215
HR 6 EAS
‘‘(A) a renewable energy source; or
‘‘(B) hydrogen, other than hydrogen pro-
duced from a fossil fuel, that is produced from
a renewable energy source.
‘‘(4) The term ‘renewable energy source’ means—
‘‘(A) wind;
‘‘(B) ocean waves;
‘‘(C) biomass;
‘‘(D) solar
‘‘(E) landfill gas;
‘‘(F) incremental hydropower;
‘‘(G) livestock methane; or
‘‘(H) geothermal energy.
‘‘(5) The term ‘rural area’ means a city, town,
or unincorporated area that has a population of not
more than 10,000 inhabitants.
‘‘(b) GRANTS.—The Secretary, in consultation with the
Secretary of Agriculture and the Secretary of the Interior,
may provide grants under this section to eligible grantees
for the purpose of—
‘‘(1) increasing energy efficiency, siting or up-
grading transmission and distribution lines serving
rural areas,; or
‘‘(2) providing or modernizing electric genera-
tion facilities that serve rural areas.
†
216
HR 6 EAS
‘‘(c) GRANT ADMINISTRATION.—(1) The Secretary
shall make grants under this section based on a determina-
tion of cost-effectiveness and the most effective use of the
funds to achieve the purposes described in subsection (b).
‘‘(2) For each fiscal year, the Secretary shall allocate
grant funds under this section equally between the purposes
described in paragraphs (1) and (2) of subsection (b).
‘‘(3) In making grants for the purposes described in
subsection (b)(2), the Secretary shall give preference to re-
newable energy facilities.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary to carry out
this section $20,000,000 for each of fiscal years 2006
through 2012.’’.
SEC. 234. WASTE-DERIVED ETHANOL AND BIODIESEL.
Section 312(f)(1) of the Energy Policy Act of 1992 (42
U.S.C. 13220(f)(1)) is amended—
(1) by striking ‘‘‘biodiesel’ means’’ and inserting
the following: ‘‘‘biodiesel’—
‘‘(A) means’’; and
(2) in subparagraph (A) (as designated by para-
graph (1)) by striking ‘‘and’’ at the end and inserting
the following:
‘‘(B) includes biodiesel derived from—
†
217
HR 6 EAS
‘‘(i) animal wastes, including poultry
fats and poultry wastes, and other waste
materials; or
‘‘(ii) 
municipal 
solid 
waste 
and
sludges and oils derived from wastewater
and the treatment of wastewater; and’’.’’
Subtitle D—Insular Energy
SEC. 241. DEFINITIONS.
In this subtitle:
(1) DISTRIBUTED GENERATION.—The term ‘‘dis-
tributed generation’’ means energy supplied in a
rural or off-grid area.
(2) INSULAR AREA.—The term ‘‘insular area’’
means—
(A) Guam;
(B) American Samoa;
(C) the Commonwealth of the Northern
Mariana Islands;
(D) the Federated States of Micronesia;
(E) the Republic of the Marshall Islands;
(F) the Republic of Palau;
(G) the United States Virgin Islands; and
(H) the Commonwealth of Puerto Rico.