541
determined in accordance with the fol-
lowing table:
Applicable volume of 
renewable fuel 
‘‘Calendar year 
(in billions of gallons) 
2005 ...................................................................................................
3.1
2006 ...................................................................................................
3.3
2007 ...................................................................................................
3.5
2008 ...................................................................................................
3.8
2009 ...................................................................................................
4.1
2010 ...................................................................................................
4.4
2011 ...................................................................................................
4.7
2012 ...................................................................................................
5.0
‘‘(ii) CALENDAR
YEAR
2013
AND 
THEREAFTER.—For the purpose of sub-
paragraph (A), the applicable volume for 
calendar year 2013 and each calendar year 
thereafter shall be equal to the product ob-
tained by multiplying—
‘‘(I) the number of gallons of 
gasoline that the Administrator esti-
mates will be sold or introduced into 
commerce 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 
2012.
542
‘‘(3) NON-CONTIGUOUS STATE OPT-IN.—Upon 
the petition of a non-contiguous State, the Adminis-
trator may allow the renewable fuel program estab-
lished by subtitle A of title XV of the Energy Policy 
Act of 2005 to apply in such non-contiguous State 
at the same time or any time after the Adminis-
trator promulgates regulations under paragraph (2). 
The Administrator may promulgate or revise regula-
tions under paragraph (2), establish applicable per-
centages under paragraph (4), provide for the gen-
eration of credits under paragraph (6), and take 
such other actions as may be necessary to allow for 
the application of the renewable fuels program in a 
non-contiguous State. 
‘‘(4) APPLICABLE PERCENTAGES.—
‘‘(A) PROVISION
OF
ESTIMATE
OF
VOL-
UMES OF GASOLINE SALES.—Not later than Oc-
tober 31 of each of calendar years 2005 
through 2011, the Administrator of the Energy 
Information Administration shall provide to the 
Administrator of the Environmental Protection 
Agency an estimate of the volumes of gasoline 
that will be sold or introduced into commerce in 
the United States during the following calendar 
year.
543
‘‘(B) DETERMINATION
OF
APPLICABLE 
PERCENTAGES.—
‘‘(i) IN
GENERAL.—Not later than 
November 30 of each of the calendar years 
2005 through 2011, based on the estimate 
provided under subparagraph (A), the Ad-
ministrator shall determine and publish in 
the Federal Register, with respect to the 
following calendar year, the renewable fuel 
obligation that ensures that the require-
ments of paragraph (2) are met. 
‘‘(ii) REQUIRED ELEMENTS.—The re-
newable fuel obligation determined for a 
calendar year under clause (i) shall—
‘‘(I) be applicable to refiners, 
blenders, and importers, as appro-
priate; 
‘‘(II) be expressed in terms of a 
volume percentage of gasoline sold or 
introduced into commerce; and 
‘‘(III) subject to subparagraph 
(C)(i), consist of a single applicable 
percentage that applies to all cat-
egories of persons specified in sub-
clause (I).
544
‘‘(C) ADJUSTMENTS.—In determining the 
applicable percentage for a calendar year, the 
Administrator shall make adjustments—
‘‘(i) to prevent the imposition of re-
dundant obligations to any person specified 
in subparagraph (B)(ii)(I); and 
‘‘(ii) to account for the use of renew-
able fuel during the previous calendar year 
by small refineries that are exempt under 
paragraph (11). 
‘‘(5) EQUIVALENCY.—For the purpose of para-
graph (2), 1 gallon of either cellulosic biomass eth-
anol or waste derived ethanol—
‘‘(A) shall be considered to be the equiva-
lent of 1.5 gallon of renewable fuel; or 
‘‘(B) if the cellulostic biomass ethanol or 
waste derived ethanol is derived from agricul-
tural residue or wood residue or is an agricul-
tural byproduct (as that term is used in section 
919 of the Energy Policy Act of 2005), shall be 
considered to be the equivalent of 2.5 gallons of 
renewable fuel. 
‘‘(6) CREDIT PROGRAM.—
‘‘(A) IN GENERAL.—The regulations pro-
mulgated to carry out this subsection shall pro-
545
vide for the generation of an appropriate 
amount of credits by any person that refines, 
blends, or imports gasoline that contains a 
quantity of renewable fuel that is greater than 
the quantity required under paragraph (2). 
Such regulations shall provide for the genera-
tion of an appropriate amount of credits for 
biodiesel fuel. If a small refinery notifies the 
Administrator that it waives the exemption pro-
vided paragraph (11), the regulations shall pro-
vide for the generation of credits by the small 
refinery beginning in the year following such 
notification. 
‘‘(B) USE
OF
CREDITS.—A person that 
generates credits under subparagraph (A) may 
use the credits, or transfer all or a portion of 
the credits to another person, for the purpose 
of complying with paragraph (2). 
‘‘(C) LIFE
OF
CREDITS.—A credit gen-
erated under this paragraph shall be valid to 
show compliance—
‘‘(i) in the calendar year in which the 
credit was generated or the next calendar 
year; or
546
‘‘(ii) in the calendar year in which the 
credit was generated or next two consecu-
tive calendar years if the Administrator 
promulgates regulations under paragraph 
(7). 
‘‘(D) INABILITY TO PURCHASE SUFFICIENT 
CREDITS.—The regulations promulgated to 
carry out this subsection shall include provi-
sions allowing any person that is unable to gen-
erate or purchase sufficient credits to meet the 
requirements under paragraph (2) to carry for-
ward a renewable fuel deficit provided that, in 
the calendar year following the year in which 
the renewable fuel deficit is created, such per-
son shall achieve compliance with the renewable 
fuel requirement under paragraph (2), and shall 
generate or purchase additional renewable fuel 
credits to offset the renewable fuel deficit of the 
previous year. 
‘‘(7) SEASONAL
VARIATIONS
IN
RENEWABLE 
FUEL USE.—
‘‘(A) STUDY.—For each of the calendar 
years 2005 through 2012, the Administrator of 
the Energy Information Administration shall 
conduct a study of renewable fuels blending to
547
determine whether there are excessive seasonal 
variations in the use of renewable fuels. 
‘‘(B) REGULATION
OF
EXCESSIVE
SEA-
SONAL VARIATIONS.—If, for any calendar year, 
the Administrator of the Energy Information 
Administration, based on the study under sub-
paragraph (A), makes the determinations speci-
fied in subparagraph (C), the Administrator 
shall promulgate 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 peri-
ods specified in subparagraph (D) of each sub-
sequent 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 
subparagraph (D) of the calendar year; 
‘‘(ii) a pattern of excessive seasonal 
variation described in clause (i) will con-
tinue in subsequent calendar years; and
548
‘‘(iii) promulgating regulations or 
other requirements to impose a 35 percent 
or more seasonal use of renewable fuels 
will not prevent or interfere with the at-
tainment 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 
‘‘(ii) January through March and Oc-
tober through December. 
‘‘(E) 
EXCLUSIONS.—Renewable 
fuels 
blended or consumed in 2005 in a State which 
has received a waiver under section 209(b) shall 
not be included in the study in subparagraph 
(A). 
‘‘(8) 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—
549
‘‘(i) based on a determination by the 
Administrator, after public notice and op-
portunity for comment, that implementa-
tion of the requirement would severely 
harm the economy or environment of a 
State, a region, or the United States; or 
‘‘(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) 
within 90 days after the date on which the peti-
tion is received by the Administrator. 
‘‘(C) TERMINATION OF WAIVERS.—A waiv-
er granted under subparagraph (A) shall termi-
nate after 1 year, but may be renewed by the 
Administrator after consultation with the Sec-
retary of Agriculture and the Secretary of En-
ergy.
550
‘‘(9) STUDY AND WAIVER FOR INITIAL YEAR OF 
PROGRAM.—Not later than 180 days after the enact-
ment of this subsection, the Secretary of Energy 
shall complete for the Administrator a study assess-
ing 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 capabilities. Based 
on such study, the Secretary shall make specific rec-
ommendations to the Administrator regarding waiv-
er of the requirements of paragraph (2), in whole or 
in part, to avoid any such adverse impacts. Within 
270 days after the enactment of this subsection, the 
Administrator 
shall, 
consistent 
with 
the 
rec-
ommendations of the Secretary, waive, in whole or in 
part, the renewable fuels requirement under para-
graph (2) by reducing the national quantity of re-
newable fuel required under this subsection in 2005. 
This paragraph shall not be interpreted as limiting 
the Administrator’s authority to waive the require-
ments of paragraph (2) in whole, or in part, under 
paragraph (8) or paragraph (10), pertaining to 
waivers.
551
‘‘(10) ASSESSMENT AND WAIVER.—The Admin-
istrator, in consultation with the Secretary of En-
ergy and the Secretary of Agriculture, shall evaluate 
the requirement of paragraph (2) and determine, 
prior to January 1, 2007, and prior to January 1 
of any subsequent year in which the applicable vol-
ume of renewable fuel is increased under paragraph 
(2)(B), whether the requirement of paragraph (2), 
including the applicable volume of renewable fuel 
contained in paragraph (2)(B) should remain in ef-
fect, in whole or in part, during 2007 or any year 
or years subsequent to 2007. In evaluating the re-
quirement of paragraph (2) and in making any de-
termination under this section, the Administrator 
shall consider the best available information 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 of paragraph (2); 
‘‘(B) the potential of the requirement of 
paragraph (2) to significantly raise the price of 
gasoline, food (excluding the net price impact 
on the requirement in paragraph (2) on com-
552
modities used in the production of ethanol), 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 such requirement; 
‘‘(C) the potential of the requirement of 
paragraph (2) to interfere with the supply of 
fuel in any significant gasoline market or region 
of the country, including interference with the 
efficient operation of refiners, blenders, import-
ers, wholesale suppliers, and retail vendors of 
gasoline, and other motor fuels; and 
‘‘(D) the potential of the requirement of 
paragraph (2) to cause or promote exceedances 
of Federal, State, or local air quality standards. 
If the Administrator determines, by clear and con-
vincing information, after public notice and the op-
portunity for comment, that the requirement of 
paragraph (2) would have significant and meaning-
ful adverse impact on the supply of fuel and related 
infrastructure or on the economy, public health, or 
environment of any significant area or region of the 
country, the Administrator may waive, in whole or 
in part, the requirement of paragraph (2) in any one 
year for which the determination is made for that
553
area or region of the country, except that any such 
waiver shall not have the effect of reducing the ap-
plicable volume of renewable fuel specified in para-
graph (2)(B) with respect to any year for which the 
determination is made. In determining economic im-
pact under this paragraph, the Administrator shall 
not consider the reduced revenues available from the 
Highway Trust Fund (section 9503 of the Internal 
Revenue Code of 1986) as a result of the use of eth-
anol. 
‘‘(11) SMALL REFINERIES.—
‘‘(A) IN
GENERAL.—The requirement of 
paragraph (2) shall not apply to small refineries 
until the first calendar year beginning more 
than 5 years after the first year set forth in the 
table in paragraph (2)(B)(i). Not later than De-
cember 31, 2007, the Secretary of Energy shall 
complete for the Administrator a study to de-
termine whether the requirement of paragraph 
(2) would impose a disproportionate economic 
hardship on small refineries. For any small re-
finery that the Secretary of Energy determines 
would experience a disproportionate economic 
hardship, the Administrator shall extend the
554
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 para-
graph (2) for the reason of dispropor-
tionate economic 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 
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 fol-
lowing such notification.
555
‘‘(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). 
‘‘(12) 
ETHANOL
MARKET
CONCENTRATION 
ANALYSIS.—
‘‘(A) ANALYSIS.—
‘‘(i) IN
GENERAL.—Not later than 
180 days after the date of enactment of 
this subsection, and annually thereafter, 
the Federal Trade Commission shall per-
form a market concentration analysis of 
the ethanol production industry using the 
Herfindahl-Hirschman Index to determine 
whether there is sufficient competition 
among industry participants to avoid price 
setting and other anticompetitive behavior. 
‘‘(ii) SCORING.—For the purpose of 
scoring 
under 
clause 
(i) 
using 
the 
Herfindahl-Hirschman 
Index, 
all 
mar-
keting arrangements among industry par-
ticipants shall be considered. 
‘‘(B) REPORT.—Not later than December 
1, 2005, and annually thereafter, the Federal
556
Trade Commission shall submit to Congress 
and the Administrator a report on the results 
of the market concentration analysis performed 
under subparagraph (A)(i).’’. 
(b) 
PENALTIES
AND
ENFORCEMENT.—Section 
211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 
amended as follows: 
(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)’’. 
(2) In the first sentence of paragraph (2), by 
striking ‘‘and (n)’’ each place it appears and insert-
ing ‘‘(n), and (o)’’. 
(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 Informa-
tion Administration) shall—
(A) conduct, with respect to each conven-
tional gasoline use area and each reformulated
557
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
RE-
QUIREMENTS.—The Administrator of the Environ-
mental Protection Agency (hereinafter in this sub-
section referred to as the ‘‘Administrator’’) may re-
quire any refiner, blender, or importer to keep such 
records and make such reports as are necessary to 
ensure that the survey conducted under paragraph 
(1) is accurate. The Administrator, to avoid duplica-
tive requirements, shall rely, to the extent prac-
ticable, on existing reporting and recordkeeping re-
quirements and other information available to the
558
Administrator including gasoline distribution pat-
terns that include multistate use areas. 
(3) APPLICABLE
LAW.—Activities carried out 
under this subsection shall be conducted in a man-
ner designed to protect confidentiality of individual 
responses. 
SEC. 1502. 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 methyl ter-
tiary butyl ether (hereinafterin this section referred to as 
‘‘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 a defective product by vir-
tue of the fact that it is, or contains, such a renewable 
fuel or MTBE, if it does not violate a control or prohibi-
tion imposed by the Administrator of the Environmental 
Protection Agency (hereinafter in this section referred to 
as 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 
of such Act. If the safe harbor provided by this section 
does not apply, the existence of a claim of defective prod-
uct shall be determined under otherwise applicable law. 
Nothing in this subsection shall be construed to affect the
559
liability of any person for environmental remediation costs, 
drinking water contamination, negligence for spills or 
other reasonably foreseeable events, public or private nui-
sance, trespass, breach of warranty, breach of contract, 
or any other liability other than liability based upon a 
claim of defective product. 
(b) EFFECTIVE DATE.—This section shall be effec-
tive as of September 5, 2003, and shall apply with respect 
to all claims filed on or after that date. 
SEC. 1503. FINDINGS AND MTBE TRANSITION ASSISTANCE. 
(a) FINDINGS.—Congress finds that—
(1) since 1979, methyl tertiary butyl ether 
(hereinafter in this section referred to 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 under which reformulated gasoline must 
contain at least 2 percent oxygen by weight; 
(3) at the time of the adoption of the fuel oxy-
gen standard, Congress was aware that significant 
use of MTBE would result from the adoption of that 
standard, and that the use of MTBE would likely be
560
important 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) having previously required oxygenates like 
MTBE for air quality purposes, Congress has—
(A) reconsidered the relative value of 
MTBE in gasoline; 
(B) decided to establish a date certain for 
action by the Environmental Protection Agency 
to prohibit the use of MTBE in gasoline; and 
(C) decided to provide for the elimination 
of the oxygenate requirement for reformulated 
gasoline and to provide for a renewable fuels 
content requirement for motor fuel; and 
(7) it is appropriate for Congress to provide 
some limited transition assistance—
561
(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 and from the decision to es-
tablish a date certain for action by the Environ-
mental Protection Agency to prohibit the use of 
MTBE in 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-
trator, may make grants to merchant pro-
562
ducers of methyl tertiary butyl ether (here-
inafter in this subsection referred to as 
‘MTBE’) in the United States to assist the 
producers in the conversion of eligible pro-
duction facilities described in subpara-
graph (C) to the production of iso-octane, 
iso-octene, alkylates, or renewable fuels. 
‘‘(ii) DETERMINATION.—The Admin-
istrator, in consultation with the Secretary 
of Energy, may determine that transition 
assistance for the production of iso-octane, 
iso-octene, alkylates, or renewable fuels is 
inconsistent with the provisions of sub-
paragraph (B) and, on that basis, may 
deny applications for grants authorized by 
this paragraph. 
‘‘(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 (unless the Administrator determines 
that such fuel additives may reasonably be an-
563
ticipated to endanger public health or the envi-
ronment) that, consistent with this subsection—
‘‘(i) have been registered and have 
been tested or are being tested in accord-
ance with the requirements of this section; 
and 
‘‘(ii) will contribute to replacing gaso-
line volumes lost as a result of amend-
ments made to subsection (k) of this sec-
tion by section 1504(a) and 1506 of the 
Energy Policy Act of 2005. 
‘‘(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 MTBE for consump-
tion before April 1, 2003 and ceased pro-
duction at any time after the date of en-
actment of this paragraph. 
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated 
to 
carry 
out 
this 
paragraph 
$250,000,000 for each of fiscal years 2005
564
through 2012, to remain available until ex-
pended.’’. 
SEC. 1504. USE OF MTBE. 
(a) IN GENERAL.—Subject to subsections (e) and (f), 
not later than December 31, 2014, the use of methyl ter-
tiary butyl ether (hereinafter in this section referred to 
as ‘‘MTBE’’) in motor vehicle fuel in any State other than 
a State described in subsection (c) is prohibited. 
(b) REGULATIONS.—The Administrator of the Envi-
ronmental Protection Agency (hereafter referred to in this 
section as the ‘‘Administrator’’) shall promulgate regula-
tions to effect the prohibition in subsection (a). 
(c) STATES THAT AUTHORIZE USE.—A State de-
scribed in this subsection is a State in which the Governor 
of the State submits a notification to the Administrator 
authorizing the use of MTBE in motor vehicle fuel sold 
or used in the State. 
(d) PUBLICATION OF NOTICE.—The Administrator 
shall publish in the Federal Register each notice submitted 
by a State under subsection (c). 
(e) TRACE QUANTITIES.—In carrying out subsection 
(a), the Administrator may allow trace quantities of 
MTBE, not to exceed 0.5 percent by volume, to be present 
in motor vehicle fuel in cases that the Administrator deter-
mines to be appropriate.
565
(f) LIMITATION.—The Administrator, under author-
ity of subsection (a), shall not prohibit or control the pro-
duction of MTBE for export from the United States or 
for any other use other than for use in motor vehicle fuel. 
(g) EFFECT
ON STATE LAW.—The amendments 
made 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. 
SEC. 1505. NATIONAL ACADEMY OF SCIENCES REVIEW AND 
PRESIDENTIAL DETERMINATION. 
(a) NAS REVIEW.—Not later than May 31, 2013, the 
Secretary shall enter into an arrangement with the Na-
tional Academy of Sciences to review the use of methyl 
tertiary butyl ether (hereafter referred to in this section 
as ‘‘MTBE’’) in fuel and fuel additives. The review shall 
only use the best available scientific information and data 
collected by accepted methods or the best available means. 
The review shall examine the use of MTBE in fuel and 
fuel additives, significant beneficial and detrimental ef-
fects of this use on environmental quality or public health 
or welfare including the costs and benefits of such effects, 
likely effects of controls or prohibitions on MTBE regard-
ing fuel availability and price, and other appropriate and 
reasonable actions that are available to protect the envi-
ronment or public health or welfare from any detrimental
566
effects of the use of MTBE in fuel or fuel additives. The 
review shall be peer-reviewed prior to publication and all 
supporting data and analytical models shall be available 
to the public. The review shall be completed no later than 
May 31, 2014. 
(b) PRESIDENTIAL DETERMINATION.—No later than 
June 30, 2014, the President may make a determination 
that restrictions on the use of MTBE to be implemented 
pursuant to section 1504 shall not take place and that 
the legal authority contained in section 1504 to prohibit 
the use of MTBE in motor vehicle fuel shall become null 
and void. 
SEC. 1506. 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 as follows: 
(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
567
(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). 
(II) by redesignating clause (iii) 
as clause (ii). 
(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 such date of enactment 
in any State that has received a waiver under sec-
tion 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 as follows:
568
(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,’’. 
(2) By adding at the end the following: 
‘‘(B) MAINTENANCE OF TOXIC AIR POL-
LUTANT EMISSIONS REDUCTIONS FROM REFOR-
MULATED GASOLINE.—
‘‘(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
569
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 
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
570
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.—
‘‘(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-
571
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-
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
572
‘‘(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 
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, 2005, 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
573
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 of the Envi-
ronmental Protection Agency shall revise the reformulated 
gasoline regulations under subpart D of part 80 of title 
40, Code of Federal Regulations, to consolidate the regula-
tions 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 stringent 
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 of the Environmental Protection Agency 
(hereinafter in this subsection referred to as the ‘‘Admin-
istrator’’) prior to the date of enactment of this Act re-
garding emissions of toxic air pollutants from motor vehi-
cles 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 
standards applicable to such refinery or importer under
574
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 
Administrator may revise such adjustments to take 
account of the scope of Federal or State prohibitions 
on the use of methyl tertiary butyl ether imposed 
after the date of the enactment of this paragraph, 
except that any such adjustment shall require such 
refiner or importer, to the greatest extent prac-
ticable, to maintain the reduction achieved during 
calendar years 1999–2000 in the average annual ag-
gregate emissions of toxic air pollutants from refor-
mulated gasoline produced or distributed by the re-
finery or importer; Provided, that any such adjust-
ment shall not be made at a level below the average 
percentage of reductions of emissions of toxic air 
pollutants for reformulated gasoline supplied to 
PADD I during calendar years 1999–2000.
575
SEC. 1507. 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 sub-
section, 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 
amendments made by subtitle A of title XV of 
the Energy Policy 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 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
576
emissions from vehicles in the motor vehicle fleet 
during calendar year 2005.’’. 
SEC. 1508. 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-
ducting the survey, the Administrator shall collect infor-
mation both on a national and regional basis, including 
each of the following: 
‘‘(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 de-
manded. 
‘‘(E) Market price data. 
‘‘(F) Such other analyses or evaluations as the 
Administrator finds is necessary to achieve the pur-
poses of this section.
577
‘‘(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 5 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. 1509. REDUCING THE PROLIFERATION OF STATE FUEL 
CONTROLS. 
(a) EPA APPROVAL OF STATE PLANS WITH FUEL 
CONTROLS.—Section 211(c)(4)(C) of the Clean Air Act 
(42 U.S.C. 7545(c)(4)(C)) is amended by adding at the 
end the following: ‘‘The Administrator shall not approve 
a control or prohibition respecting the use of a fuel or fuel 
additive under this subparagraph unless the Adminis-
trator, after consultation with the Secretary of Energy, 
publishes in the Federal Register a finding that, in the 
Administrator’s judgment, such control or prohibition will 
not cause fuel supply or distribution interruptions or have 
a significant adverse impact on fuel producibility in the 
affected area or contiguous areas.’’. 
(b) STUDY.—The Administrator of the Environ-
mental Protection Agency (hereinafter in this subsection 
referred to as the ‘‘Administrator’’), in cooperation with
578
the Secretary of Energy, shall undertake a study of the 
projected effects on air quality, the proliferation of fuel 
blends, fuel availability, and fuel costs of providing a pref-
erence for each of the following: 
(A) Reformulated gasoline referred to in sub-
section (k) of section 211 of the Clean Air Act. 
(B) A low RVP gasoline blend that has been 
certified by the Administrator as having a Reid 
Vapor Pressure of 7.0 pounds per square inch (psi). 
(C) A low RVP gasoline blend that has been 
certified by the Administrator as having a Reid 
Vapor Pressure of 7.8 pounds per square inch (psi). 
In carrying out such study, the Administrator shall obtain 
comments from affected parties. The Administrator shall 
submit the results of such study to the Congress not later 
than 18 months after the date of enactment of this Act, 
together with any recommended legislative changes. 
SEC. 1510. FUEL SYSTEM REQUIREMENTS HARMONIZATION 
STUDY. 
(a) STUDY.—
(1) IN
GENERAL.—The Administrator of the 
Environmental Protection Agency (hereinafter in 
this section referred to as the ‘‘Administrator’’) and 
the Secretary of Energy shall jointly conduct a study
579
of Federal, State, and local requirements concerning 
motor vehicle fuels, including—
(A) requirements relating to reformulated 
gasoline, volatility (measured in Reid vapor 
pressure), oxygenated fuel, and diesel fuel; and 
(B) other requirements that vary from 
State to State, region to region, or locality to 
locality. 
(2) REQUIRED ELEMENTS.—The study shall as-
sess—
(A) the effect of the variety of require-
ments described in paragraph (1) on the supply, 
quality, and price of motor vehicle fuels avail-
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;
580
(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
581
(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, 
2007, the Administrator and the Secretary of En-
ergy shall submit to Congress a report on the results 
of the study conducted under subsection (a). 
(2) RECOMMENDATIONS.—
(A) IN GENERAL.—The report under this 
subsection shall contain recommendations for 
legislative and administrative actions that may 
be taken—
(i) to improve air quality; 
(ii) to reduce costs to consumers and 
producers; and 
(iii) to increase supply liquidity.