(A) designated by the President under sec-
tion 101(b), other than a closed military instal-
lation or portion thereof; or 
(B) on a closed military installation, or 
portion thereof, made available for the siting of 
a refinery in the manner provided by the base 
closure law applicable to the installation; 
(2) disposed of in the manner provided in para-
graph (1) of section 101(c) or, in the case of a 
closed military installation, or portion thereof, para-
graph (2) of such section; and 
(3) reserved for the exclusive purpose of manu-
facturing petroleum products for consumption by the 
Armed Forces. 
(b) SOLICITATION FOR DESIGN, CONSTRUCTION, AND 
OPERATION.—The President shall solicit proposals for the 
design, construction, and operation of a refinery (or any 
combination thereof) under this section. In selecting a pro-
posal or proposals under this subsection, the President 
shall consider—
(1) the ability of the applicant to undertake and 
complete the project; 
(2) the extent to which the applicant’s proposal 
serves the purposes of the project; and
(3) the ability of the applicant to best satisfy 
the criteria set forth in subsection (c). 
(c) REFINERY CRITERIA.—A refinery constructed 
under this section shall meet or exceed the industry aver-
age for—
(1) construction efficiencies; and 
(2) operational efficiencies, including cost effi-
ciencies. 
(d) USE
OF PRODUCTS.—All petroleum products 
manufactured at a refinery constructed under this section 
shall be sold to the Federal Government, at a price not 
to exceed the fair market value of the petroleum products, 
for use by the Armed Forces of the United States. 
(e) FUNDING.—A contract for the design or construc-
tion of a refinery may not be entered into under this sec-
tion in advance of the appropriation of funds sufficient 
for such purpose. Funds appropriated for the Department 
of Defense or for Department of Energy national security 
programs may not be used to enter into contracts under 
this section for the design, construction, or operation of 
a refinery. Funds appropriated for the Department of De-
fense may be used to purchase petroleum products manu-
factured at a refinery constructed under this section for 
use by the Armed Forces.
(f) DEFINITIONS.—For purposes of this section, the 
terms ‘‘base closure law’’ and ‘‘closed military installa-
tion’’ have the meanings given those terms in section 101. 
SEC. 106. WAIVER AUTHORITY FOR EXTREME FUEL SUPPLY 
EMERGENCIES. 
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 
7545) is amended—
(1) by redesignating the second clause (v) as 
clause (viii); 
(2) by redesignating clause (v) as clause (vii); 
(3) by inserting after clause (iv) the following: 
‘‘(v)(I) For the purpose of alleviating an extreme and 
unusual fuel or fuel additive supply emergency resulting 
from a natural disaster, the President, in consultation 
with the Administrator and the Secretary of Energy may 
temporarily waive any control or prohibition respecting the 
use of a fuel or fuel additive required by this subsection 
or by subsection (h), (i), (k), or (m); and may, with respect 
to a State implementation plan, temporarily waive any 
equivalent control or prohibition respecting the use of a 
fuel or fuel additive required by this subparagraph. Noth-
ing in this clause shall be construed to authorize the waiv-
er of, or to affect in any way, any Federal or State law 
or regulation pertaining to ethanol or methyl tertiary butyl 
ether.