533 
credits to another person, for the purpose of com-
plying with paragraph (2). 
‘‘(C) LIFE OF CREDITS.—A credit generated 
under this paragraph shall be valid to show com-
pliance— 
‘‘(i) in the calendar year in which the 
credit was generated or the next calendar 
year; or 
‘‘(ii) in the calendar year in which the 
credit was generated or next two consecutive 
calendar years if the Administrator promul-
gates regulations under paragraph (7). 
‘‘(D) INABILITY TO PURCHASE SUFFICIENT 
CREDITS.—The regulations promulgated to carry 
out this subsection shall include provisions al-
lowing any person that is unable to generate or 
purchase sufficient credits to meet the require-
ments under paragraph (2) to carry forward a 
renewable fuel deficit provided that, in the cal-
endar year following the year in which the re-
newable fuel deficit is created, such person shall 
achieve compliance with the renewable fuel re-
quirement under paragraph (2), and shall gen-
erate or purchase additional renewable fuel cred-
534 
its to offset the renewable fuel deficit of the pre-
vious 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 
determine whether there are excessive seasonal 
variations in the use of renewable fuels. 
‘‘(B) REGULATION OF EXCESSIVE SEASONAL 
VARIATIONS.—If, for any calendar year, the Ad-
ministrator of the Energy Information Adminis-
tration, based on the study under subparagraph 
(A), makes the determinations specified in sub-
paragraph (C), the Administrator shall promul-
gate regulations to ensure that 35 percent or 
more of the quantity of renewable fuels necessary 
to meet the requirement of paragraph (2) is used 
during each of the periods specified in subpara-
graph (D) of each subsequent calendar year. 
‘‘(C) DETERMINATIONS.—The determina-
tions referred to in subparagraph (B) are that— 
‘‘(i) less than 35 percent of the quan-
tity of renewable fuels necessary to meet the
535 
requirement of paragraph (2) has been used 
during one of the periods specified in sub-
paragraph (D) of the calendar year; 
‘‘(ii) a pattern of excessive seasonal 
variation described in clause (i) will con-
tinue in subsequent calendar years; and 
‘‘(iii) promulgating regulations or 
other requirements to impose a 35 percent 
or more seasonal use of renewable fuels will 
not prevent or interfere with the attainment 
of national ambient air quality standards 
or significantly increase the price of motor 
fuels to the consumer. 
‘‘(D) PERIODS.—The two periods referred to 
in this paragraph are— 
‘‘(i) April through September; and 
‘‘(ii) January through March and Oc-
tober through December. 
‘‘(E) EXCLUSIONS.—Renewable fuels blend-
ed or consumed in 2005 in a State which has re-
ceived a waiver under section 209(b) shall not be 
included in the study in subparagraph (A). 
‘‘(8) WAIVERS.— 
‘‘(A) IN GENERAL.—The Administrator, in 
consultation with the Secretary of Agriculture
536 
and the Secretary of Energy, may waive the re-
quirement of paragraph (2) in whole or in part 
on petition by one or more States by reducing 
the national quantity of renewable fuel required 
under this subsection— 
‘‘(i) based on a determination by the 
Administrator, after public notice and op-
portunity for comment, that implementa-
tion of the requirement would 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) with-
in 90 days after the date on which the petition 
is received by the Administrator. 
‘‘(C) TERMINATION OF WAIVERS.—A waiver 
granted under subparagraph (A) shall terminate
537 
after 1 year, but may be renewed by the Admin-
istrator after consultation with the Secretary of 
Agriculture and the Secretary of Energy. 
‘‘(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 assessing 
whether the renewable fuels requirement under para-
graph (2) will likely result in significant adverse con-
sumer 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 recommenda-
tions to the Administrator regarding waiver of the re-
quirements of paragraph (2), in whole or in part, to 
avoid any such adverse impacts. Within 270 days 
after the enactment of this subsection, the Adminis-
trator shall, consistent with the recommendations of 
the Secretary, waive, in whole or in part, the renew-
able fuels requirement under paragraph (2) by reduc-
ing the national quantity of renewable fuel required 
under this subsection in 2005. This paragraph shall 
not be interpreted as limiting the Administrator’s au-
thority to waive the requirements of paragraph (2) in
538 
whole, or in part, under paragraph (8) or paragraph 
(10), pertaining to waivers. 
‘‘(10) ASSESSMENT AND WAIVER.—The Adminis-
trator, in consultation with the Secretary of Energy 
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 sub-
sequent year in which the applicable volume of renew-
able fuel is increased under paragraph (2)(B), wheth-
er the requirement 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 sec-
tion, the Administrator shall consider the best avail-
able information and data collected by accepted meth-
ods 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