‘‘(ii) CALENDAR
YEAR
2026
AND 
THEREAFTER.—Subject to clause (iii), the 
applicable volume for calendar year 2026 
and each calendar year thereafter shall be 
determined by the Administrator, in co-
ordination with the Secretary of Agri-
culture and the Secretary of Energy, based 
on a review of the implementation of the 
program under this subsection during the 
period of calendar years 2012 through 
2025, including a review of— 
‘‘(I) the impact of the use of Cat-
egory I ultra-low carbon fuel and Cat-
egory II ultra-low carbon fuel on— 
‘‘(aa) environmental sustain-
ability 
standards 
established 
under subsection (t)(2)(B); 
‘‘(bb) energy security; and 
‘‘(cc) job creation; and 
‘‘(II) the expected annual rate of 
future production of those fuels for 
use as blending components or re-
placements for a certain quantity of 
conventional fuel in the United States. 
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‘‘(iii) MINIMUM
APPLICABLE
VOL-
UME.—For the purpose of subparagraph 
(A), the applicable volume for calendar 
year 2026 and each calendar year there-
after shall be equal to the product obtained 
by multiplying— 
‘‘(I) the number of gallons of 
conventional transportation fuel that 
the Administrator estimates will be 
sold or introduced into commerce dur-
ing the calendar year; and 
‘‘(II) the ratio that— 
‘‘(aa) for the applicable vol-
ume of Category I ultra-low car-
bon fuel, 13,000,000,000 gallons 
of that fuel bears to the total 
number of gallons of conventional 
transportation fuel sold or intro-
duced into commerce in the 
United States in calendar year 
2025; and 
‘‘(bb) for the applicable vol-
ume of Category II ultra-low car-
bon fuel, 8,000,000,000 gallons 
of that fuel bears to the total 
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number of gallons of conventional 
transportation fuel sold or intro-
duced into commerce in the 
United States in calendar year 
2025. 
‘‘(3) APPLICABLE PERCENTAGES.— 
‘‘(A) PROVISION
OF
ESTIMATE
OF
VOL-
UMES OF CONVENTIONAL FUELS SALES.—Not 
later than October 31 of each of calendar years 
2011 through 2025, the Administrator of the 
Energy Information Administration shall pro-
vide to the Administrator an estimate, with re-
spect to the following calendar year, of the vol-
umes of conventional fuels projected to be sold 
or introduced into commerce in the United 
States. 
‘‘(B) DETERMINATION
OF
APPLICABLE 
PERCENTAGES.— 
‘‘(i) IN
GENERAL.—Not later than 
November 30 of each of calendar years 
2012 through 2025, 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 fuel obligations 
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that would meet the requirements of para-
graph (2). 
‘‘(ii) REQUIRED ELEMENTS.—The fuel 
obligations determined for a calendar year 
under clause (i) shall— 
‘‘(I) subject to subparagraph (C), 
be applicable to obligated parties, as 
appropriate; and 
‘‘(II) be expressed in terms of a 
volume percentage of conventional 
fuels sold or introduced into com-
merce in the United States. 
‘‘(C) ADJUSTMENTS.—In determining the 
applicable percentage for a calendar year, the 
Administrator shall make adjustments to pre-
vent the imposition of redundant obligations on 
any obligated party. 
‘‘(4) CREDIT PROGRAM.— 
‘‘(A) IN GENERAL.—The regulations pro-
mulgated pursuant to paragraph (2)(A) shall 
provide for the generation of an appropriate 
quantity of credits by obligated parties that in-
cludes a quantity of Category I ultra-low carbon 
fuel or Category II ultra-low carbon fuel that is 
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greater than the applicable quantity required 
under paragraph (2). 
‘‘(B) USE
OF
CREDITS.—A person that 
generates a credit under subparagraph (A) may 
use the credit, or transfer all or a portion of the 
credit to another person, for the purpose of 
complying with regulations promulgated pursu-
ant to paragraph (2)(A). 
‘‘(C) DURATION
OF
CREDITS.—A credit 
generated under this paragraph shall be valid— 
‘‘(i) during the calendar year in which 
the credit was generated; and 
‘‘(ii) for the 2-year period following 
that calendar year. 
‘‘(D) INABILITY
TO
GENERATE
OR
PUR-
CHASE SUFFICIENT CREDITS.—The regulations 
promulgated pursuant to paragraph (2)(A) 
shall include provisions allowing any person 
that is unable to generate or purchase sufficient 
credits under subparagraph (A) to meet the re-
quirements of paragraph (2) by carrying for-
ward a credit generated during a previous year 
on the condition that the person, during the cal-
endar year following the year in which the 
ultra-low carbon fuel deficit is created— 
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‘‘(i) achieves compliance with the fuel 
requirements under paragraph (2); and 
‘‘(ii) generates or purchases additional 
credits under subparagraph (A) to offset 
the deficit of the previous year. 
‘‘(5) WAIVERS.— 
‘‘(A) IN GENERAL.—The Administrator, in 
consultation with the Secretary of Agriculture 
and the Secretary of Energy, may waive the re-
quirements of paragraph (2), in whole or in 
part, on receipt of a petition of 1 or more 
States by reducing the national quantity of Cat-
egory I ultra-low carbon fuel or Category II 
ultra-low carbon fuel in the conventional trans-
portation fuel pool required under paragraph 
(2) based on a determination by the Adminis-
trator, after public notice and opportunity for 
comment, that— 
‘‘(i) implementation of the require-
ment would severely harm the economy or 
environment of a State, a region, or the 
United States; or 
‘‘(ii) there is an inadequate domestic 
supply of the applicable ultra-low carbon 
fuel. 
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