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‘‘(iv) the amount, in megawatts, of 
the project’s fuel cell energy generation. 
‘‘(5) CERTIFICATION
OF
USE
OF
TAX
BEN-
EFIT.—No later than 30 days after the completion 
of the project, each project must certify to the Sec-
retary that the net benefit of the tax-exempt financ-
ing was used for the purposes described in para-
graph (4). 
‘‘(6) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) RURAL
STATE.—The term ‘rural 
State’ means any State which has— 
‘‘(i) 
a 
population 
of 
less 
than 
4,500,000 according to the 2000 census, 
‘‘(ii) a population density of less than 
150 people per square mile according to 
the 2000 census, and 
‘‘(iii) increased in population by less 
than half the rate of the national increase 
between the 1990 and 2000 censuses. 
‘‘(B) LOCAL
GOVERNMENT.—The term 
‘local government’ has the meaning given such 
term by section 1393(a)(5). 
‘‘(C) NET BENEFIT OF TAX-EXEMPT FI-
NANCING.—The term ‘net benefit of tax-exempt
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financing’ means the present value of the inter-
est savings (determined by a calculation estab-
lished by the Secretary) which result from the 
tax-exempt status of the bonds. 
‘‘(7) AGGREGATE
FACE
AMOUNT
OF
TAX-EX-
EMPT FINANCING.— 
‘‘(A) IN GENERAL.—An issue shall not be 
treated as an issue described in subsection 
(a)(14) if the aggregate face amount of bonds 
issued by the State or local government pursu-
ant thereto for a project (when added to the ag-
gregate face amount of bonds previously so 
issued for such project) exceeds an amount des-
ignated by the Secretary as part of the designa-
tion. 
‘‘(B) 
LIMITATION
ON
AMOUNT
OF 
BONDS.—The Secretary may not allocate au-
thority to issue qualified green building and 
sustainable design project bonds in an aggre-
gate face amount exceeding $2,000,000,000. 
‘‘(8) TERMINATION.—Subsection (a)(14) shall 
not apply with respect to any bond issued after Sep-
tember 30, 2009. 
‘‘(9) TREATMENT
OF
CURRENT
REFUNDING 
BONDS.—Paragraphs (7)(B) and (8) shall not apply
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to any bond (or series of bonds) issued to refund a 
bond issued under subsection (a)(14) before October 
1, 2009, if— 
‘‘(A) the average maturity date of the issue 
of which the refunding bond is a part is not 
later than the average maturity date of the 
bonds to be refunded by such issue, 
‘‘(B) the amount of the refunding bond 
does not exceed the outstanding amount of the 
refunded bond, and 
‘‘(C) the net proceeds of the refunding 
bond are used to redeem the refunded bond not 
later than 90 days after the date of the 
issuance of the refunding bond. 
For purposes of subparagraph (A), average maturity shall 
be determined in accordance with section 147(b)(2)(A).’’. 
(c) EXEMPTION FROM GENERAL STATE VOLUME 
CAPS.—Paragraph (3) of section 146(g) (relating to ex-
ception for certain bonds) is amended— 
(1) by striking ‘‘or (13)’’ and inserting ‘‘(13), 
or (14)’’, and 
(2) by striking ‘‘and qualified public educational 
facilities’’ and inserting ‘‘qualified public educational 
facilities, and qualified green building and sustain-
able design projects’’.
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(d) SPECIAL RULE FOR ASSETS FINANCED UNDER 
THIS SECTION AND ACCOUNTABILITY.— 
(1) DENIAL OF DOUBLE BENEFIT.—Any asset 
financed with bonds issued pursuant to this section 
shall be ineligible for any credit or deduction estab-
lished under the Energy Tax Policy Act of 2004. 
(2) ACCOUNTABILITY.—Each issuer shall main-
tain, on behalf of each project, an interest bearing 
reserve account equal to 1 percent of the net pro-
ceeds of any bond issued under this section for such 
project. Not later than 5 years after the date of 
issuance, the Secretary of the Treasury, after con-
sultation with the Administrator of the Environ-
mental Protection Agency, shall determine whether 
the project financed with such bonds has substan-
tially complied with the terms and conditions de-
scribed in section 142(l)(4) of the Internal Revenue 
Code of 1986 (as added by this section). If the Sec-
retary, after such consultation, certifies that the 
project has substantially complied with such terms 
and conditions and meets the commitments set forth 
in the application for such project described in sec-
tion 142(l)(4) of such Code, amounts in the reserve 
account, including all interest, shall be released to 
the project. If the Secretary determines that the
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project has not substantially complied with such 
terms and conditions, amounts in the reserve ac-
count, including all interest, shall be paid to the 
United States Treasury. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issues after the date of 
the enactment of this Act. 
TITLE XIV—MISCELLANEOUS 
Subtitle A—Rural and Remote 
Electricity Construction 
SEC. 1401. DENALI COMMISSION PROGRAMS. 
(a) POWER COST EQUALIZATION PROGRAM.—There 
are authorized to be appropriated to the Denali Commis-
sion established by the Denali Commission Act of 1998 
(42 U.S.C. 3121 note) not more than $5,000,000 for each 
of fiscal years 2005 through 2011 for the purposes of 
funding the power cost equalization program established 
under section 42.45.100 of the Alaska Statutes. 
(b) AVAILABILITY OF FUNDS.— 
(1) PURPOSE.—Amounts described in para-
graph (2) shall be available to the Denali Commis-
sion to permit energy generation and development 
(including fuel cells, hydroelectric, solar, wind, wave, 
and tidal energy, and alternative energy sources), 
energy transmission (including interties), fuel tank
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replacement and clean-up, fuel transportation net-
works and related facilities, power cost equalization 
programs, and other energy programs, notwith-
standing any other provision of law. 
(2) AMOUNTS.—(A) Except as provided in sub-
paragraph (B), the amounts referred to in para-
graph (1) shall be any Federal royalties, rents, and 
bonuses derived from the Federal share of Federal 
oil and gas leases in the National Petroleum Reserve 
in Alaska, up to a maximum of $50,000,000, for 
each of the fiscal years 2004 through 2013. 
(B) If amounts available under subparagraph 
(A) for one of the fiscal years 2004 through 2013 
are less than $50,000,000, the Secretary of Energy 
shall make available an amount sufficient to ensure 
that the amount available under this subsection for 
that fiscal year equals $50,000,000, from amounts 
remaining after deposits are made under section 
949(a)(1), from the same source from which those 
deposits are made. 
SEC. 1402. RURAL AND REMOTE COMMUNITY ASSISTANCE. 
(a) PROGRAM.—Section 19 of the Rural Electrifica-
tion Act of 1936 (7 U.S.C 918a) is amended by striking 
all that precedes subsection (b) and inserting the fol-
lowing:
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‘‘SEC. 19. ELECTRIC GENERATION, TRANSMISSION, AND 
DISTRIBUTION 
FACILITIES 
EFFICIENCY 
GRANTS AND LOANS TO RURAL AND REMOTE 
COMMUNITIES WITH EXTREMELY HIGH ELEC-
TRICITY COSTS. 
‘‘(a) IN GENERAL.—The Secretary, acting through 
the Rural Utilities Service, may— 
‘‘(1) in coordination with State rural develop-
ment initiatives, make grants and loans to persons, 
States, political subdivisions of States, and other en-
tities organized under the laws of States, to acquire, 
construct, extend, upgrade, and otherwise improve 
electric generation, transmission, and distribution fa-
cilities serving communities in which the average 
revenue per kilowatt hour of electricity for all con-
sumers is greater than 150 percent of the average 
revenue per kilowatt hour of electricity for all con-
sumers in the United States (as determined by the 
Energy Information Administration using the most 
recent data available); 
‘‘(2) make grants and loans to the Denali Com-
mission established by the Denali Commission Act of 
1998 (42 U.S.C. 3121 note; Public 105–277) to be 
used for the purpose of providing funds to acquire, 
construct, extend, upgrade, finance, and otherwise 
improve electric generation, transmission, and dis-
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tribution facilities serving communities described in 
paragraph (1); and 
‘‘(3) make grants to State entities to establish 
and support a revolving fund to provide a more cost- 
effective means of purchasing fuel in areas where 
the fuel cannot be shipped by means of surface 
transportation.’’. 
(b) DEFINITION
OF PERSON.—Section 13 of the 
Rural Electrification Act of 1936 (7 U.S.C. 913) is 
amended by striking ‘‘or association’’ and inserting ‘‘asso-
ciation, or Indian tribe (as defined in section 4 of the In-
dian Self-Determination and Education Assistance Act)’’. 
Subtitle B—Coastal Programs 
SEC. 1411. ROYALTY PAYMENTS UNDER LEASES UNDER 
THE OUTER CONTINENTAL SHELF LANDS 
ACT. 
(a) ROYALTY RELIEF.— 
(1) IN GENERAL.—For purposes of providing 
compensation for lessees and a State for which 
amounts are authorized by section 6004(c) of the Oil 
Pollution Act of 1990 (Public Law 101–380), a les-
see may withhold from payment any royalty due and 
owing to the United States under any leases under 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1301 et seq.) for offshore oil or gas production from
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a covered lease tract if, on or before the date that 
the payment is due and payable to the United 
States, the lessee makes a payment to the Secretary 
of the Interior of 44 cents for every $1 of royalty 
withheld. 
(2) USE OF AMOUNTS PAID TO SECRETARY.— 
Within 30 days after the Secretary of the Interior 
receives payments under paragraph (1), the Sec-
retary of the Interior shall— 
(A) make 47.5 percent of such payments 
available to the State referred to in section 
6004(c) of the Oil Pollution Act of 1990; and 
(B) make 52.5 percent of such payments 
available equally, only for the programs and 
purposes identified as number 282 at page 
1389 of House Report number 108–10 and for 
a program described at page 1159 of that Re-
port in the State referred to in such section 
6004(c). 
(3) TREATMENT
OF
AMOUNTS.—Any royalty 
withheld by a lessee in accordance with this section 
(including any portion thereof that is paid to the 
Secretary of the Interior under paragraph (1)) shall 
be treated as paid for purposes of satisfaction of the 
royalty obligations of the lessee to the United States.
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(4) CERTIFICATION OF WITHHELD AMOUNTS.— 
The Secretary of the Treasury shall— 
(A) determine the amount of royalty with-
held by a lessee under this section; and 
(B) promptly publish a certification when 
the total amount of royalty withheld by the les-
see under this section is equal to— 
(i) the dollar amount stated at page 
47 of Senate Report number 101–534, 
which is designated therein as the total 
drainage claim for the West Delta field; 
plus 
(ii) interest as described at page 47 of 
that Report. 
(b) PERIOD OF ROYALTY RELIEF.—Subsection (a) 
shall apply to royalty amounts that are due and payable 
in the period beginning on January 1, 2004, and ending 
on the date on which the Secretary of the Treasury pub-
lishes a certification under subsection (a)(4)(B). 
(c) DEFINITIONS.—As used in this section: 
(1) COVERED LEASE TRACT.—The term ‘‘cov-
ered lease tract’’ means a leased tract (or portion of 
a leased tract)—
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(A) lying seaward of the zone defined and 
governed by section 8(g) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1337(g)); or 
(B) lying within such zone but to which 
such section does not apply. 
(2) LESSEE.—The term ‘‘lessee’’— 
(A) means a person or entity that, on the 
date of the enactment of the Oil Pollution Act 
of 1990, was a lessee referred to in section 
6004(c) of that Act (as in effect on that date 
of the enactment), but did not hold lease rights 
in Federal offshore lease OCS–G–5669; and 
(B) includes successors and affiliates of a 
person or entity described in subparagraph (A). 
SEC. 1412. DOMESTIC OFFSHORE ENERGY REINVESTMENT. 
(a) DOMESTIC OFFSHORE ENERGY REINVESTMENT 
PROGRAM.—The Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 32. DOMESTIC OFFSHORE ENERGY REINVESTMENT 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) APPROVED
PLAN.—The term ‘approved 
plan’ means a Secure Energy Reinvestment Plan ap-
proved by the Secretary under this section.
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‘‘(2) COASTAL
ENERGY
STATE.—The term 
‘Coastal Energy State’ means a Coastal State off 
the coastline of which, within the seaward lateral 
boundary as determined by the map referenced in 
subsection (c)(2)(A), outer Continental Shelf bonus 
bids or royalties are generated, other than bonus 
bids or royalties from a leased tract within any area 
of the outer Continental Shelf for which a morato-
rium on new leasing was in effect as of January 1, 
2002, unless the lease was issued before the estab-
lishment of the moratorium and was in production 
on such date. 
‘‘(3) COASTAL
POLITICAL
SUBDIVISION.—The 
term ‘coastal political subdivision’ means a county, 
parish, or other equivalent subdivision of a Coastal 
Energy State, all or part of which lies within the 
boundaries of the coastal zone of the State, as iden-
tified in the State’s approved coastal zone manage-
ment program under the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1451 et seq.) on the date 
of the enactment of this section. 
‘‘(4) COASTAL POPULATION.—The term ‘coastal 
population’ means the population of a coastal polit-
ical subdivision, as determined by the most recent 
official data of the Census Bureau.
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‘‘(5) COASTLINE.—The term ‘coastline’ has the 
same meaning as the term ‘coast line’ in subsection 
2(c) of the Submerged Lands Act (43 U.S.C. 
1301(c)). 
‘‘(6) FUND.—The term ‘Fund’ means the Se-
cure Energy Reinvestment Fund established by this 
section. 
‘‘(7) LEASED TRACT.—The term ‘leased tract’ 
means a tract maintained under section 6 or leased 
under section 8 for the purpose of drilling for, devel-
oping, and producing oil and natural gas resources. 
‘‘(8) QUALIFIED OUTER CONTINENTAL SHELF 
REVENUES.—(A) Except as provided in subpara-
graph (B), the term ‘qualified outer Continental 
Shelf revenues’ means all amounts received by the 
United States on or after October 1, 2003, from 
each leased tract or portion of a leased tract lying 
seaward of the zone defined and governed by section 
8(g), or lying within such zone but to which section 
8(g) does not apply, including bonus bids, rents, roy-
alties (including payments for royalties taken in kind 
and sold), net profit share payments, and related in-
terest. 
‘‘(B) Such term does not include any revenues 
from a leased tract or portion of a leased tract that
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is included within any area of the outer Continental 
Shelf for which a moratorium on new leasing was in 
effect as of January 1, 2002, unless the lease was 
issued before the establishment of the moratorium 
and was in production on such date. 
‘‘(9) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Interior. 
‘‘(b) SECURE ENERGY REINVESTMENT FUND.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a separate ac-
count which shall be known as the ‘Secure Energy 
Reinvestment Fund’. The Fund shall consist of 
amounts deposited under paragraph (2), and such 
other amounts as may be appropriated to the Fund. 
‘‘(2) DEPOSITS.—For each fiscal year after fis-
cal year 2003, the Secretary of the Treasury shall 
deposit into the Fund the following: 
‘‘(A) Notwithstanding section 9, all quali-
fied outer Continental Shelf revenues attrib-
utable to royalties received by the United States 
in the fiscal year that are in excess of the fol-
lowing amount: 
‘‘(i) $3,455,000,000 in the case of 
royalties received in fiscal year 2004.
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‘‘(ii) $3,726,000,000 in the case of 
royalties received in fiscal year 2005. 
‘‘(iii) $4,613,000,000 in the case of 
royalties received in fiscal year 2006. 
‘‘(iv) $5,226,000,000 in the case of 
royalties received in fiscal year 2007. 
‘‘(v) $5,841,000,000 in the case of 
royalties received in fiscal year 2008. 
‘‘(vi) $5,763,000,000 in the case of 
royalties received in fiscal year 2009. 
‘‘(vii) $6,276,000,000 in the case of 
royalties received in fiscal year 2010. 
‘‘(viii) $6,351,000,000 in the case of 
royalties received in fiscal year 2011. 
‘‘(ix) $6,551,000,000 in the case of 
royalties received in fiscal year 2012. 
‘‘(x) $5,120,000,000 in the case of 
royalties received in fiscal year 2013. 
‘‘(B) Notwithstanding section 9, all quali-
fied outer Continental shelf revenues attrib-
utable to bonus bids received by the United 
States in each of the fiscal years 2004 through 
2013 that are in excess of $1,000,000,000. 
‘‘(C) Notwithstanding section 9, in addi-
tion to amounts deposited under subparagraphs
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(A) and (B), $35,000,000 of amounts received 
by the United States each fiscal year as royal-
ties for oil or gas production on the outer Con-
tinental Shelf, except that no amounts shall be 
deposited under this subparagraph before fiscal 
year 2004 or after fiscal year 2013. 
‘‘(D) All interest earned under paragraph 
(4). 
‘‘(E) All repayments under subsection (f). 
‘‘(3) REDUCTION IN DEPOSIT.—(A) For each 
fiscal year after fiscal year 2013 in which amounts 
received by the United States as royalties for oil or 
gas production on the outer Continental Shelf are 
less than the sum of the amounts described in sub-
paragraph (B) (before the application of this sub-
paragraph), the Secretary of the Treasury shall re-
duce each of the amounts described in subparagraph 
(B) proportionately. 
‘‘(B) The amounts referred to in subparagraph 
(A) are the following: 
‘‘(i) The amount required to be covered 
into the Historic Preservation Fund under sec-
tion 108 of the National Historic Preservation 
Act (16 U.S.C. 470h) on the date of the enact-
ment of this paragraph.
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‘‘(ii) The amount required to be credited to 
the Land and Water Conservation Fund under 
section 2(c)(2) of the Land and Water Con-
servation Fund Act of 1965 (16 U.S.C. 4601– 
5(c)(2)) on the date of the enactment of this 
paragraph. 
‘‘(iii) The amount required to be deposited 
under subparagraph (C) of paragraph (2) of 
this subsection. 
‘‘(4) INVESTMENT.—The Secretary of the 
Treasury shall invest moneys in the Fund (including 
interest) in public debt securities with maturities 
suitable to the needs of the Fund, as determined by 
the Secretary of the Treasury, and bearing interest 
at rates determined by the Secretary of the Treas-
ury, taking into consideration current market yields 
on outstanding marketable obligations of the United 
States of comparable maturity. Such invested mon-
eys shall remain invested until needed to meet re-
quirements for disbursement under this section. 
‘‘(5) REVIEW
AND
REVISION
OF
BASELINE 
AMOUNTS.—Not later than December 31, 2008, the 
Secretary of the Interior, in consultation with the 
Secretary of the Treasury, shall—
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‘‘(A) determine the amount and composi-
tion of outer Continental Shelf revenues that 
were received by the United States in each of 
the fiscal years 2004 through 2008; 
‘‘(B) project the amount and composition 
of outer Continental Shelf revenues that will be 
received in the United States in each of the fis-
cal years 2009 through 2013; and 
‘‘(C) submit to the Congress a report re-
garding whether any of the dollar amounts set 
forth in clauses (v) though (x) of paragraph 
(2)(A) or paragraph (2)(B) should be modified 
to reflect those projections. 
‘‘(6) AUTHORIZATION
OF
APPROPRIATION
OF 
ADDITIONAL AMOUNTS.—In addition to the amounts 
deposited into the Fund under paragraph (2) there 
are authorized to be appropriated to the Fund— 
‘‘(A) for each of fiscal years 2004 through 
2013 up to $500,000,000; and 
‘‘(B) for each fiscal year after fiscal year 
2013 up to 25 percent of qualified outer Conti-
nental Shelf revenues received by the United 
States in the preceding fiscal year. 
‘‘(c) USE
OF
SECURE
ENERGY
REINVESTMENT 
FUND.—
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‘‘(1) IN GENERAL.—(A) The Secretary shall use 
amounts in the Fund remaining after the application 
of subsections (h) and (i) to pay to each Coastal En-
ergy State that has a Secure Energy Reinvestment 
Plan approved by the Secretary under this section, 
and to coastal political subdivisions of such State, 
the amount allocated to the State or coastal political 
subdivision, respectively, under this subsection. 
‘‘(B) The Secretary shall make payments under 
this paragraph in December of 2004, and of each 
year thereafter, from revenues received by the 
United States in the immediately preceding fiscal 
year. 
‘‘(2) ALLOCATION.—The Secretary shall allo-
cate amounts deposited into the Fund in a fiscal 
year, and other amounts determined by the Sec-
retary to be available, among Coastal Energy States 
that have an approved plan, and to coastal political 
subdivisions of such States, as follows: 
‘‘(A)(i) Of the amounts made available for 
each of the first 10 fiscal years for which 
amounts are available for allocation under this 
paragraph, the allocation for each Coastal En-
ergy State shall be calculated based on the ratio 
of qualified outer Continental Shelf revenues
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generated off the coastline of the Coastal En-
ergy State to the qualified outer Continental 
Shelf revenues generated off the coastlines of 
all Coastal Energy States for the period begin-
ning January 1, 1992, and ending December 
31, 2001. 
‘‘(ii) Of the amounts available for a fiscal 
year in a subsequent 10-fiscal-year period, the 
allocation for each Coastal Energy State shall 
be calculated based on such ratio determined by 
the Secretary with respect to qualified outer 
Continental Shelf revenues generated in each 
subsequent corresponding 10-year period. 
‘‘(iii) For purposes of this subparagraph, 
qualified outer Continental Shelf revenues shall 
be considered to be generated off the coastline 
of a Coastal Energy State if the geographic 
center of the lease tract from which the reve-
nues are generated is located within the area 
formed by the extension of the State’s seaward 
lateral boundaries, calculated using the strict 
and scientifically derived conventions estab-
lished to delimit international lateral boundaries 
under the Law of the Sea, as indicated on the 
map entitled ‘Calculated Seaward Lateral
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Boundaries’ and dated October 2003, on file in 
the Office of the Director, Minerals Manage-
ment Service. 
‘‘(B) 35 percent of each Coastal Energy 
State’s allocable share as determined under 
subparagraph (A) shall be allocated among and 
paid directly to the coastal political subdivisions 
of the State by the Secretary based on the fol-
lowing formula: 
‘‘(i) 25 percent shall be allocated 
based on the ratio of each coastal political 
subdivision’s coastal population to the 
coastal population of all coastal political 
subdivisions of the Coastal Energy State. 
‘‘(ii) 25 percent shall be allocated 
based on the ratio of each coastal political 
subdivision’s coastline miles to the coast-
line miles of all coastal political subdivi-
sions of the State. In the case of a coastal 
political subdivision without a coastline, 
the coastline of the political subdivision for 
purposes of this clause shall be one-third 
the average length of the coastline of the 
other coastal political subdivisions of the 
State.
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‘‘(iii) 50 percent shall be allocated 
based on a formula that allocates 75 per-
cent of the funds based on such coastal po-
litical subdivision’s relative distance from 
any leased tract used to calculate that 
State’s allocation and 25 percent of the 
funds based on the relative level of outer 
Continental Shelf oil and gas activities in 
a coastal political subdivision to the level of 
outer Continental Shelf oil and gas activi-
ties in all coastal political subdivisions in 
such State, as determined by the Sec-
retary, except that in the case of a coastal 
political subdivision in the State of Cali-
fornia that has a coastal shoreline, that is 
not within 200 miles of the geographic cen-
ter of a leased tract or portion of a leased 
tract, and in which there is located one or 
more oil refineries the allocation under this 
clause shall be determined as if that coast-
al political subdivision were located within 
a distance of 50 miles from the geographic 
center of the closest leased tract with 
qualified outer Continental Shelf revenues.
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‘‘(3) REALLOCATION.—Any amount allocated to 
a Coastal Energy State or coastal political subdivi-
sion of such a State but not disbursed because of a 
failure of a Coastal Energy State to have an ap-
proved plan shall be reallocated by the Secretary 
among all other Coastal Energy States in a manner 
consistent with this subsection, except that the Sec-
retary— 
‘‘(A) shall hold the amount in escrow with-
in the Fund until the earlier of the end of the 
next fiscal year in which the allocation is made 
or the final resolution of any appeal regarding 
the disapproval of a plan submitted by the 
State under this section; and 
‘‘(B) shall continue to hold such amount in 
escrow until the end of the subsequent fiscal 
year thereafter, if the Secretary determines that 
such State is making a good faith effort to de-
velop and submit, or update, a Secure Energy 
Reinvestment Plan under subsection (d). 
‘‘(4) MINIMUM
SHARE.—Notwithstanding any 
other provision of this subsection, the amount allo-
cated under this subsection to each Coastal Energy 
State each fiscal year shall be not less than 5 per-
cent of the total amount available for that fiscal year
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for allocation under this subsection to Coastal En-
ergy States, except that for any Coastal Energy 
State determined by the Secretary to have an area 
formed by the extension of the State’s seaward lat-
eral boundary, as designated by the map referenced 
in paragraph (2)(A)(iii), of less than 490 square 
statute miles, the amount allocated to such State 
shall not be less than 10 percent of the total amount 
available for that fiscal year for allocation under this 
subsection. 
‘‘(5) RECOMPUTATION.—If the allocation to one 
or more Coastal Energy States under paragraph (4) 
with respect to a fiscal year is greater than the 
amount that would be allocated to such States under 
this subsection if paragraph (4) did not apply, then 
the allocations under this subsection to all other 
Coastal Energy States shall be paid from the 
amount remaining after deduction of the amounts 
allocated under paragraph (4), but shall be reduced 
on a pro rata basis by the sum of the allocations 
under paragraph (4) so that not more than 100 per-
cent of the funds available in the Fund for allocation 
with respect to that fiscal year is allocated. 
‘‘(d) SECURE ENERGY REINVESTMENT PLAN.—
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‘‘(1) DEVELOPMENT
AND
SUBMISSION
OF 
STATE PLANS.—The Governor of each State seeking 
to receive funds under this section shall prepare, and 
submit to the Secretary, a Secure Energy Reinvest-
ment Plan describing planned expenditures of funds 
received under this section. The Governor shall in-
clude in the State plan submitted to the Secretary 
plans prepared by the coastal political subdivisions 
of the State. The Governor and the coastal political 
subdivision shall solicit local input and provide for 
public participation in the development of the State 
plan. In describing the planned expenditures, the 
State and coastal political subdivisions shall include 
only items that are uses authorized under subsection 
(e). 
‘‘(2) APPROVAL OR DISAPPROVAL.— 
‘‘(A) IN
GENERAL.—The Secretary may 
not disburse funds to a State or coastal political 
subdivision of a State under this section before 
the date the State has an approved plan. The 
Secretary shall approve a Secure Energy Rein-
vestment Plan submitted by a State under 
paragraph (1) if the Secretary determines that 
the expenditures provided for in the plan are
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uses authorized under subsection (e), and that 
the plan contains each of the following: 
‘‘(i) The name of the State agency 
that will have the authority to represent 
and act for the State in dealing with the 
Secretary for purposes of this section. 
‘‘(ii) A program for the implementa-
tion of the plan, that (I) has as a goal im-
proving the environment, (II) has as a goal 
addressing the impacts of oil and gas pro-
duction from the outer Continental Shelf, 
and (III) includes a description of how the 
State and coastal political subdivisions of 
the State will evaluate the effectiveness of 
the plan. 
‘‘(iii) Certification by the Governor 
that ample opportunity has been accorded 
for public participation in the development 
and revision of the plan. 
‘‘(iv) Measures for taking into account 
other relevant Federal resources and pro-
grams. The plan shall be correlated so far 
as practicable with other State, regional, 
and local plans.
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‘‘(v) For any State for which the ratio 
determined under subsection (c)(2)(A)(i) 
or (c)(2)(A)(ii), as appropriate, expressed 
as a percentage, exceeds 25 percent, a plan 
to spend not less than 30 percent of the 
total funds provided under this section 
each fiscal year to that State and appro-
priate coastal political subdivisions, to ad-
dress the socioeconomic or environmental 
impacts identified in the plan that remain 
significant or progressive after implemen-
tation of mitigation measures identified in 
the most current environmental impact 
statement (as of the date of the enactment 
of this clause) required under the National 
Environmental Protection Act of 1969 for 
lease sales under this Act. 
‘‘(vi) A plan to utilize at least one-half 
of the funds provided pursuant to sub-
section (c)(2)(B), and a portion of other 
funds provided to such State under this 
section, on programs or projects that are 
coordinated and conducted in partnership 
between the State and coastal political sub-
division.
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‘‘(B) PROCEDURE AND TIMING.—The Sec-
retary shall approve or disapprove each plan 
submitted in accordance with this subsection 
within 90 days after its submission. 
‘‘(3) AMENDMENT OR REVISION.—Any amend-
ment to or revision of an approved plan shall be pre-
pared and submitted in accordance with the require-
ments under this paragraph for the submittal of 
plans, and shall be approved or disapproved by the 
Secretary in accordance with paragraph (2)(B). 
‘‘(e) AUTHORIZED USES.—A Coastal Energy State, 
and a coastal political subdivision of such a State, shall 
use amounts paid under this section (including any such 
amounts deposited into a trust fund administered by the 
State or coastal political subdivision dedicated to uses con-
sistent with this subsection), in compliance with Federal 
and State law and the approved plan of the State, only 
for one or more of the following purposes: 
‘‘(1) Projects and activities, including edu-
cational activities, for the conservation, protection, 
or restoration of coastal areas including wetlands. 
‘‘(2) Mitigating damage to, or the protection of, 
fish, wildlife, or natural resources. 
‘‘(3) To the extent of such sums as are consid-
ered reasonable by the Secretary, planning assist-
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ance and administrative costs of complying with this 
section. 
‘‘(4) Implementation of federally approved 
plans or programs for marine, coastal, subsidence, 
or conservation management or for protection of re-
sources from natural disasters. 
‘‘(5) Mitigating impacts of outer Continental 
Shelf activities through funding onshore infrastruc-
ture and public service needs. 
‘‘(f) COMPLIANCE WITH AUTHORIZED USES.—If the 
Secretary determines that an expenditure of an amount 
made by a Coastal Energy State or coastal political sub-
division is not in accordance with the approved plan of 
the State (including the plans of coastal political subdivi-
sions included in such plan), the Secretary shall not dis-
burse any further amounts under this section to that 
Coastal Energy State or coastal political subdivision 
until— 
‘‘(1) the amount is repaid to the Secretary; or 
‘‘(2) the Secretary approves an amendment to 
the plan that authorizes the expenditure. 
‘‘(g) ARBITRATION
OF STATE
AND LOCAL DIS-
PUTES.—The Secretary may require, as a condition of any 
payment under this section, that a State or coastal polit-
ical subdivision in a State must submit to arbitration—
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‘‘(1) any dispute between the State or coastal 
political subdivision (or both) and the Secretary re-
garding implementation of this section; and 
‘‘(2) any dispute between the State and political 
subdivision regarding implementation of this section, 
including any failure to include, in the plan sub-
mitted by the State for purposes of subsection (d), 
any spending plan of the coastal political subdivi-
sion. 
‘‘(h) ADMINISTRATIVE EXPENSES.—Of amounts in 
the Fund each fiscal year, the Secretary may use up to 
one-half of one percent for the administrative costs of im-
plementing this section. 
‘‘(i) FUNDING FOR CONSORTIUM.— 
‘‘(1) IN GENERAL.—Of amounts deposited into 
the Fund in each fiscal year 2004 through 2013, 2 
percent shall be available to the Secretary of the In-
terior to provide funding for the Coastal Restoration 
and Enhancement through Science and Technology 
program. 
‘‘(2) 
TREATMENT.—Any 
amount 
available 
under this subsection for a fiscal year shall, for pur-
poses of determining the amount appropriated under 
any other provision of law that authorizes appropria-
tions to carry out the program referred to in para-
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graph (1), be treated as appropriated under that 
other provision. 
‘‘(j) DISPOSITION
OF FUNDS.—A Coastal Energy 
State or coastal political subdivision may use funds pro-
vided to such entity under this section, subject to sub-
section (e), for any payment that is eligible to be made 
with funds provided to States under section 35 of the Min-
eral Leasing Act (30 U.S.C. 191). 
‘‘(k) REPORTS.—Each fiscal year following a fiscal 
year in which a Coastal Energy State or coastal political 
subdivision of a Coastal Energy State receives funds under 
this section, the Governor of the Coastal Energy State, 
in coordination with such State’s coastal political subdivi-
sions, shall account for all funds so received for the pre-
vious fiscal year in a written report to the Secretary. The 
report shall include, in accordance with regulations pre-
scribed by the Secretary, a description of all projects and 
activities that received such funds. In order to avoid dupli-
cation, such report may incorporate, by reference, any 
other reports required to be submitted under other provi-
sions of law. 
‘‘(l) SIGNS.—The Secretary shall require, as a condi-
tion of any allocation of funds provided with amounts 
made available by this section, that each State and coastal 
political subdivision shall include on any sign otherwise in-
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stalled at any site at or near an entrance or public use 
focal point area for which such funds are used, a state-
ment that the existence or development of the site (or 
both), as appropriate, is a product of such funds.’’. 
(b) ADDITIONAL AMENDMENTS.—Section 31 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356a) is 
amended— 
(1) by striking subsection (a); 
(2) in subsection (c) by striking ‘‘For fiscal 
year 2001, $150,000,000 is’’ and inserting ‘‘Such 
sums as may be necessary to carry out this section 
are’’; 
(3) in subsection (d)(1)(B) by striking ‘‘, ex-
cept’’ and all that follows through the end of the 
sentence and inserting a period; 
(4) by redesignating subsections (b) though (g) 
in order as subsection (a) through (f); and 
(5) by striking ‘‘subsection (f)’’ each place it 
appears and inserting ‘‘subsection (e)’’. 
(c) UTILIZATION OF COASTAL RESTORATION AND 
ENHANCEMENT THROUGH SCIENCE AND TECHNOLOGY 
PROGRAM.— 
(1) AUTHORIZATION.—The Secretary of the In-
terior and the Secretary of Commerce may each use 
the Coastal Restoration and Enhancement through
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Science and Technology program for the purposes 
of— 
(A) assessing the effects of coastal habitat 
restoration techniques; 
(B) developing improved ecosystem mod-
eling capabilities for improved predictions of 
coastal conditions and habitat change and for 
developing new technologies for restoration ac-
tivities; and 
(C) identifying economic options to address 
socioeconomic consequences of coastal degrada-
tion. 
(2) CONDITION.—The Secretary of the Interior, 
in consultation with the Secretary of Commerce, 
shall ensure that the program— 
(A) establishes procedures designed to 
avoid duplicative activities among Federal agen-
cies and entities receiving Federal funds; 
(B) coordinates with persons involved in 
similar activities; and 
(C) establishes a mechanism to collect, or-
ganize, and make available information and 
findings on coastal restoration. 
(3) REPORT.—Not later than September 30, 
2008, the Secretary of the Interior, in consultation
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with the Secretary of Commerce, shall transmit a re-
port to the Congress on the effectiveness of any Fed-
eral and State restoration efforts conducted pursu-
ant to this subsection and make recommendations to 
improve coordinated coastal restoration efforts. 
(4) FUNDING.—For each of fiscal years 2004 
through 2013, there is authorized to be appropriated 
to the Secretary $10,000,000 to carry out activities 
under this subsection. 
Subtitle C—Reforms to the Board 
of Directors of the Tennessee 
Valley Authority 
SEC. 1431. CHANGE IN COMPOSITION, OPERATION, AND DU-
TIES OF THE BOARD OF DIRECTORS OF THE 
TENNESSEE VALLEY AUTHORITY. 
The Tennessee Valley Authority Act of 1933 (16 
U.S.C. 831 et seq.) is amended by striking section 2 and 
inserting the following: 
‘‘SEC. 2. MEMBERSHIP, OPERATION, AND DUTIES OF THE 
BOARD OF DIRECTORS. 
‘‘(a) MEMBERSHIP.— 
‘‘(1) APPOINTMENT.—The Board of Directors 
of the Corporation (referred to in this Act as the 
‘Board’) shall be composed of 9 members appointed 
by the President by and with the advice and consent
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of the Senate, at least 5 of whom shall be a legal 
resident of a State any part of which is in the serv-
ice area of the Corporation. 
‘‘(2) CHAIRMAN.—The members of the Board 
shall select 1 of the members to act as chairman of 
the Board. 
‘‘(b) QUALIFICATIONS.—To be eligible to be ap-
pointed as a member of the Board, an individual— 
‘‘(1) shall be a citizen of the United States; 
‘‘(2) shall have management expertise relative 
to a large for-profit or nonprofit corporate, govern-
ment, or academic structure; 
‘‘(3) shall not be an employee of the Corpora-
tion; and 
‘‘(4) shall make full disclosure to Congress of 
any investment or other financial interest that the 
individual holds in the energy industry. 
‘‘(c) RECOMMENDATIONS.—In appointing members 
of the Board, the President shall— 
‘‘(1) consider recommendations from such pub-
lic officials as— 
‘‘(A) the Governors of States in the service 
area; 
‘‘(B) individual citizens;
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‘‘(C) business, industrial, labor, electric 
power distribution, environmental, civic, and 
service organizations; and 
‘‘(D) the congressional delegations of the 
States in the service area; and 
‘‘(2) seek qualified members from among per-
sons who reflect the diversity, including the geo-
graphical diversity, and needs of the service area of 
the Corporation. 
‘‘(d) TERMS.— 
‘‘(1) IN GENERAL.—A member of the Board 
shall serve a term of 5 years. A member of the 
Board whose term has expired may continue to serve 
after the member’s term has expired until the date 
on which a successor takes office, except that the 
member shall not serve beyond the end of the ses-
sion of Congress in which the term of the member 
expires. 
‘‘(2) VACANCIES.—A member appointed to fill a 
vacancy on the Board occurring before the expira-
tion of the term for which the predecessor of the 
member was appointed shall be appointed for the re-
mainder of that term. 
‘‘(e) QUORUM.—
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‘‘(1) IN GENERAL.—Five of the members of the 
Board shall constitute a quorum for the transaction 
of business. 
‘‘(2) VACANCIES.—A vacancy on the Board 
shall not impair the power of the Board to act. 
‘‘(f) COMPENSATION.— 
‘‘(1) IN GENERAL.—A member of the Board 
shall be entitled to receive— 
‘‘(A) a stipend of— 
‘‘(i) $45,000 per year; or 
‘‘(ii)(I) in the case of the chairman of 
any committee of the Board created by the 
Board, $46,000 per year; or 
‘‘(II) in the case of the chairman of 
the Board, $50,000 per year; and 
‘‘(B) travel expenses, including per diem in 
lieu of subsistence, in the same manner as per-
sons employed intermittently in Government 
service under section 5703 of title 5, United 
States Code. 
‘‘(2) 
ADJUSTMENTS
IN
STIPENDS.—The 
amount of the stipend under paragraph (1)(A)(i) 
shall be adjusted by the same percentage, at the 
same time and manner, and subject to the same lim-
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itations as are applicable to adjustments under sec-
tion 5318 of title 5, United States Code. 
‘‘(g) DUTIES.— 
‘‘(1) IN GENERAL.—The Board shall— 
‘‘(A) establish the broad goals, objectives, 
and policies of the Corporation that are appro-
priate to carry out this Act; 
‘‘(B) develop long-range plans to guide the 
Corporation in achieving the goals, objectives, 
and policies of the Corporation and provide as-
sistance to the chief executive officer to achieve 
those goals, objectives, and policies; 
‘‘(C) ensure that those goals, objectives, 
and policies are achieved; 
‘‘(D) approve an annual budget for the 
Corporation; 
‘‘(E) adopt and submit to Congress a con-
flict-of-interest policy applicable to members of 
the Board and employees of the Corporation; 
‘‘(F) establish a compensation plan for em-
ployees of the Corporation in accordance with 
subsection (i); 
‘‘(G) approve all compensation (including 
salary or any other pay, bonuses, benefits, in-
centives, and any other form of remuneration)
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HR 4503 RDS 
of all managers and technical personnel that re-
port directly to the chief executive officer (in-
cluding any adjustment to compensation); 
‘‘(H) ensure that all activities of the Cor-
poration are carried out in compliance with ap-
plicable law; 
‘‘(I) create an audit committee, composed 
solely of Board members independent of the 
management of the Corporation, which shall— 
‘‘(i) in consultation with the inspector 
general of the Corporation, recommend to 
the Board an external auditor; 
‘‘(ii) receive and review reports from 
the external auditor of the Corporation and 
inspector general of the Corporation; and 
‘‘(iii) make such recommendations to 
the Board as the audit committee con-
siders necessary; 
‘‘(J) create such other committees of 
Board members as the Board considers to be 
appropriate; 
‘‘(K) conduct such public hearings as it 
deems appropriate on issues that could have a 
substantial effect on—
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HR 4503 RDS 
‘‘(i) the electric ratepayers in the serv-
ice area; or 
‘‘(ii) the economic, environmental, so-
cial, or physical well-being of the people of 
the service area; 
‘‘(L) establish the electricity rates charged 
by the Corporation; and 
‘‘(M) engage the services of an external 
auditor for the Corporation. 
‘‘(2) MEETINGS.—The Board shall meet at 
least 4 times each year. 
‘‘(h) CHIEF EXECUTIVE OFFICER.— 
‘‘(1) APPOINTMENT.—The Board shall appoint 
a person to serve as chief executive officer of the 
Corporation. 
‘‘(2) QUALIFICATIONS.— 
‘‘(A) IN GENERAL.—To serve as chief exec-
utive officer of the Corporation, a person— 
‘‘(i) shall have senior executive-level 
management experience in large, complex 
organizations; 
‘‘(ii) shall not be a current member of 
the Board or have served as a member of 
the Board within 2 years before being ap-
pointed chief executive officer; and
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‘‘(iii) shall comply with the conflict-of- 
interest policy adopted by the Board. 
‘‘(B) EXPERTISE.—In appointing a chief 
executive officer, the Board shall give particular 
consideration to appointing an individual with 
expertise in the electric industry and with 
strong financial skills. 
‘‘(3) TENURE.—The chief executive officer shall 
serve at the pleasure of the Board. 
‘‘(i) COMPENSATION PLAN.— 
‘‘(1) IN GENERAL.—The Board shall approve a 
compensation plan that specifies all compensation 
(including salary or any other pay, bonuses, benefits, 
incentives, and any other form of remuneration) for 
the chief executive officer and employees of the Cor-
poration. 
‘‘(2) ANNUAL SURVEY.—The compensation plan 
shall be based on an annual survey of the prevailing 
compensation for similar positions in private indus-
try, including engineering and electric utility compa-
nies, publicly owned electric utilities, and Federal, 
State, and local governments. 
‘‘(3) 
CONSIDERATIONS.—The 
compensation 
plan shall provide that education, experience, level of 
responsibility, geographic differences, and retention
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and recruitment needs will be taken into account in 
determining compensation of employees. 
‘‘(4) POSITIONS AT OR BELOW LEVEL IV.—The 
chief executive officer shall determine the salary and 
benefits of employees whose annual salary is not 
greater than the annual rate payable for positions at 
level IV of the Executive Schedule under section 
5315 of title 5, United States Code. 
‘‘(5) POSITIONS ABOVE LEVEL IV.—On the rec-
ommendation of the chief executive officer, the 
Board shall approve the salaries of employees whose 
annual salaries would be in excess of the annual rate 
payable for positions at level IV of the Executive 
Schedule under section 5315 of title 5, United 
States Code.’’. 
SEC. 1432. CHANGE IN MANNER OF APPOINTMENT OF 
STAFF. 
Section 3 of the Tennessee Valley Authority Act of 
1933 (16 U.S.C. 831b) is amended— 
(1) by striking the first undesignated paragraph 
and inserting the following: 
‘‘(a) APPOINTMENT BY THE CHIEF EXECUTIVE OF-
FICER.—The chief executive officer shall appoint, with the 
advice and consent of the Board, and without regard to 
the provisions of the civil service laws applicable to officers
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and employees of the United States, such managers, as-
sistant managers, officers, employees, attorneys, and 
agents as are necessary for the transaction of the business 
of the Corporation.’’; and 
(2) by striking ‘‘All contracts’’ and inserting 
the following: 
‘‘(b) WAGE RATES.—All contracts’’. 
SEC. 1433. CONFORMING AMENDMENTS. 
(a) The Tennessee Valley Authority Act of 1933 (16 
U.S.C. 831 et seq.) is amended— 
(1) by striking ‘‘board of directors’’ each place 
it appears and inserting ‘‘Board of Directors’’; and 
(2) by striking ‘‘board’’ each place it appears 
and inserting ‘‘Board’’. 
(b) Section 9 of the Tennessee Valley Authority Act 
of 1933 (16 U.S.C. 831h) is amended— 
(1) by striking ‘‘The Comptroller General of the 
United States shall audit’’ and inserting the fol-
lowing: 
‘‘(c) AUDITS.—The Comptroller General of the 
United States shall audit’’; and 
(2) by striking ‘‘The Corporation shall deter-
mine’’ and inserting the following: 
‘‘(d) ADMINISTRATIVE ACCOUNTS
AND BUSINESS 
DOCUMENTS.—The Corporation shall determine’’.
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(c) Title 5, United States Code, is amended— 
(1) in section 5314, by striking ‘‘Chairman, 
Board of Directors of the Tennessee Valley Author-
ity.’’; and 
(2) in section 5315, by striking ‘‘Members, 
Board of Directors of the Tennessee Valley Author-
ity.’’. 
SEC. 1434. APPOINTMENTS; EFFECTIVE DATE; TRANSITION. 
(a) APPOINTMENTS.— 
(1) IN GENERAL.—As soon as practicable after 
the date of enactment of this Act, the President 
shall submit to the Senate nominations of 6 persons 
to serve as members of the Board of Directors of the 
Tennessee Valley Authority in addition to the mem-
bers serving on the date of enactment of this Act. 
(2) INITIAL
TERMS.—Notwithstanding section 
2(d) of the Tennessee Valley Authority Act of 1933 
(as amended by this subtitle), in making the ap-
pointments under paragraph (1), the President shall 
appoint— 
(A) 2 members for a term to expire on 
May 18, 2006; 
(B) 2 members for a term to expire on 
May 18, 2008; and
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HR 4503 RDS 
(C) 2 members for a term to expire on 
May 18, 2010. 
(b) EFFECTIVE DATE.—The amendments made by 
this section and sections 1431, 1432, and 1433 take effect 
on the later of the date on which at least 3 persons nomi-
nated under subsection (a) take office or May 18, 2005. 
(c) SELECTION OF CHAIRMAN.—The Board of Direc-
tors of the Tennessee Valley Authority shall select 1 of 
the members to act as chairman of the Board not later 
than 30 days after the effective date of this section. 
(d) CONFLICT-OF-INTEREST POLICY.—The Board of 
Directors of the Tennessee Valley Authority shall adopt 
and submit to Congress a conflict-of-interest policy, as re-
quired by section 2(g)(1)(E) of the Tennessee Valley Au-
thority Act of 1933 (as amended by this subtitle), as soon 
as practicable after the effective date of this section. 
(e) TRANSITION.—A person who is serving as a mem-
ber of the board of directors of the Tennessee Valley Au-
thority on the date of enactment of this Act— 
(1) shall continue to serve until the end of the 
current term of the member; but 
(2) after the effective date specified in sub-
section (b), shall serve under the terms of the Ten-
nessee Valley Authority Act of 1933 (as amended by 
this subtitle); and
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(3) may not be reappointed. 
Subtitle D—Other Provisions 
SEC. 1441. CONTINUATION OF TRANSMISSION SECURITY 
ORDER. 
Department of Energy Order No. 202–03–2, issued 
by the Secretary of Energy on August 28, 2003, shall re-
main in effect unless rescinded by Federal statute. 
SEC. 1442. REVIEW OF AGENCY DETERMINATIONS. 
Section 7 of the Natural Gas Act (15 U.S.C. 717f) 
is amended by adding at the end the following: 
‘‘(i)(1) The United States Court of Appeals for the 
District of Columbia Circuit shall have original and exclu-
sive jurisdiction over any civil action— 
‘‘(A) for review of any order or action of any 
Federal or State administrative agency or officer to 
issue, condition, or deny any permit, license, concur-
rence, or approval issued under authority of any 
Federal law, other than the Coastal Zone Manage-
ment Act of 1972 (16 U.S.C. 1451 et seq.), required 
for the construction of a natural gas pipeline for 
which a certificate of public convenience and neces-
sity is issued by the Commission under this section; 
‘‘(B) alleging unreasonable delay by any Fed-
eral or State administrative agency or officer in en-
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HR 4503 RDS 
tering an order or taking other action described in 
subparagraph (A); or 
‘‘(C) challenging any decision made or action 
taken under this subsection. 
‘‘(2)(A) If the Court finds that the order, action, or 
failure to act is not consistent with the public convenience 
and necessity (as determined by the Commission under 
this section), or would prevent the construction and oper-
ation of natural gas facilities authorized by the certificate 
of public convenience and necessity, the permit, license, 
concurrence, or approval that is the subject of the order, 
action, or failure to act shall be deemed to have been 
issued subject to any conditions set forth in the reviewed 
order or action that the Court finds to be consistent with 
the public convenience and necessity. 
‘‘(B) For purposes of paragraph (1)(B), the failure 
of an agency or officer to issue any such permit, license, 
concurrence, or approval within the later of 1 year after 
the date of filing of an application for the permit, license, 
concurrence, or approval or 60 days after the date of 
issuance of the certificate of public convenience and neces-
sity under this section, shall be considered to be unreason-
able delay unless the Court, for good cause shown, deter-
mines otherwise.
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‘‘(C) The Court shall set any action brought under 
paragraph (1) for expedited consideration.’’. 
SEC. 1443. ATTAINMENT DATES FOR DOWNWIND OZONE 
NONATTAINMENT AREAS. 
Section 181 of the Clean Air Act (42 U.S.C.7511) 
is amended by adding the following new subsection at the 
end thereof: 
‘‘(d) EXTENDED ATTAINMENT DATE FOR CERTAIN 
DOWNWIND AREAS.— 
‘‘(1) DEFINITIONS.—(A) The term ‘upwind 
area’ means an area that— 
‘‘(i) significantly contributes to nonattain-
ment in another area, hereinafter referred to as 
a ‘downwind area’; and 
‘‘(ii) is either— 
‘‘(I) a nonattainment area with a later 
attainment date than the downwind area, 
or 
‘‘(II) an area in another State that 
the Administrator has found to be signifi-
cantly contributing to nonattainment in 
the downwind area in violation of section 
110(a)(2)(D) and for which the Adminis-
trator 
has 
established 
requirements 
through notice and comment rulemaking to
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eliminate the emissions causing such sig-
nificant contribution. 
‘‘(B) The term ‘current classification’ means 
the classification of a downwind area under this sec-
tion at the time of the determination under para-
graph (2). 
‘‘(2) EXTENSION.—If the Administrator— 
‘‘(A) determines that any area is a down-
wind area with respect to a particular national 
ambient air quality standard for ozone; and 
‘‘(B) approves a plan revision for such 
area as provided in paragraph (3) prior to a re-
classification under subsection (b)(2)(A), 
the Administrator, in lieu of such reclassification, 
shall extend the attainment date for such downwind 
area for such standard in accordance with paragraph 
(5). 
‘‘(3) REQUIRED APPROVAL.—In order to extend 
the attainment date for a downwind area under this 
subsection, the Administrator must approve a revi-
sion of the applicable implementation plan for the 
downwind area for such standard that— 
‘‘(A) complies with all requirements of this 
Act applicable under the current classification 
of the downwind area, including any require-
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ments applicable to the area under section 
172(c) for such standard; and 
‘‘(B) includes any additional measures 
needed to demonstrate attainment by the ex-
tended attainment date provided under this 
subsection. 
‘‘(4) PRIOR
RECLASSIFICATION
DETERMINA-
TION.—If, no more than 18 months prior to the date 
of enactment of this subsection, the Administrator 
made a reclassification determination under sub-
section (b)(2)(A) for any downwind area, and the 
Administrator approves the plan revision referred to 
in paragraph (3) for such area within 12 months 
after the date of enactment of this subsection, the 
reclassification shall be withdrawn and the attain-
ment date extended in accordance with paragraph 
(5) upon such approval. The Administrator shall 
also withdraw a reclassification determination under 
subsection (b)(2)(A) made after the date of enact-
ment of this subsection and extend the attainment 
date in accordance with paragraph (5) if the Admin-
istrator approves the plan revision referred to in 
paragraph (3) within 12 months of the date the re-
classification 
determination 
under 
subsection 
(b)(2)(A) is issued. In such instances the ‘current
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classification’ used for evaluating the revision of the 
applicable implementation plan under paragraph (3) 
shall be the classification of the downwind area 
under this section immediately prior to such reclassi-
fication. 
‘‘(5) EXTENDED DATE.—The attainment date 
extended under this subsection shall provide for at-
tainment of such national ambient air quality stand-
ard for ozone in the downwind area as expeditiously 
as practicable but no later than the date on which 
the last reductions in pollution transport necessary 
for attainment in the downwind area are required to 
be achieved by the upwind area or areas.’’. 
SEC. 1444. ENERGY PRODUCTION INCENTIVES. 
(a) IN GENERAL.—A State may provide to any enti-
ty— 
(1) a credit against any tax or fee owed to the 
State under a State law, or 
(2) any other tax incentive, 
determined by the State to be appropriate, in the amount 
calculated under and in accordance with a formula deter-
mined by the State, for production described in subsection 
(b) in the State by the entity that receives such credit or 
such incentive.
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(b) ELIGIBLE ENTITIES.—Subsection (a) shall apply 
with respect to the production in the State of— 
(1) electricity from coal mined in the State and 
used in a facility, if such production meets all appli-
cable Federal and State laws and if such facility 
uses scrubbers or other forms of clean coal tech-
nology, 
(2) electricity from a renewable source such as 
wind, solar, or biomass, or 
(3) ethanol. 
(c) EFFECT ON INTERSTATE COMMERCE.—Any ac-
tion taken by a State in accordance with this section with 
respect to a tax or fee payable, or incentive applicable, 
for any period beginning after the date of the enactment 
of this Act shall— 
(1) be considered to be a reasonable regulation 
of commerce; and 
(2) not be considered to impose an undue bur-
den on interstate commerce or to otherwise impair, 
restrain, or discriminate, against interstate com-
merce. 
SEC. 1445. USE OF GRANULAR MINE TAILINGS. 
(a) AMENDMENT.—Subtitle F of the Solid Waste 
Disposal Act (42 U.S.C. 6961 et seq.) is amended by add-
ing at the end the following:
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‘‘SEC. 6006. USE OF GRANULAR MINE TAILINGS. 
‘‘(a) MINE TAILINGS.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of this section, the Ad-
ministrator, in consultation with the Secretary of 
Transportation and heads of other Federal agencies, 
shall establish criteria (including an evaluation of 
whether to establish a numerical standard for con-
centration of lead and other hazardous substances) 
for the safe and environmentally protective use of 
granular mine tailings from the Tar Creek, Okla-
homa Mining District, known as ‘chat’, for— 
‘‘(A) cement or concrete projects; and 
‘‘(B) transportation construction projects 
(including transportation construction projects 
involving the use of asphalt) that are carried 
out, in whole or in part, using Federal funds. 
‘‘(2) REQUIREMENTS.—In establishing criteria 
under paragraph (1), the Administrator shall con-
sider— 
‘‘(A) the current and previous uses of 
granular mine tailings as an aggregate for as-
phalt; and 
‘‘(B) any environmental and public health 
risks and benefits derived from the removal,
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HR 4503 RDS 
transportation, 
and 
use 
in 
transportation 
projects of granular mine tailings. 
‘‘(3) PUBLIC PARTICIPATION.—In establishing 
the criteria under paragraph (1), the Administrator 
shall solicit and consider comments from the public. 
‘‘(4) APPLICABILITY OF CRITERIA.—On the es-
tablishment of the criteria under paragraph (1), any 
use of the granular mine tailings described in para-
graph (1) in a transportation project that is carried 
out, in whole or in part, using Federal funds, shall 
meet the criteria established under paragraph (1). 
‘‘(b) EFFECT OF SECTIONS.—Nothing in this section 
or section 6005 affects any requirement of any law (in-
cluding a regulation) in effect on the date of enactment 
of this section.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents of the Solid Waste Disposal Act (42 U.S.C. prec. 
6901) is amended by adding at the end of the items relat-
ing to subtitle F the following: 
‘‘Sec. 6006. Use of granular mine tailings.’’.
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HR 4503 RDS 
TITLE XV—ETHANOL AND 
MOTOR FUELS 
Subtitle A—General Provisions 
SEC. 1501. RENEWABLE CONTENT OF MOTOR VEHICLE 
FUEL. 
(a) IN GENERAL.—Section 211 of the Clean Air Act 
(42 U.S.C. 7545) is amended— 
(1) by redesignating subsection (o) as sub-
section (q); and 
(2) by inserting after subsection (n) the fol-
lowing: 
‘‘(o) RENEWABLE FUEL PROGRAM.— 
‘‘(1) DEFINITIONS.—In this section: 
‘‘(A) ETHANOL.—(i) The term ‘cellulosic 
biomass ethanol’ means ethanol derived from 
any lignocellulosic or hemicellulosic matter that 
is available on a renewable or recurring basis, 
including— 
‘‘(I) dedicated energy crops and trees; 
‘‘(II) wood and wood residues; 
‘‘(III) plants; 
‘‘(IV) grasses; 
‘‘(V) agricultural residues; and 
‘‘(VI) fibers.
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HR 4503 RDS 
‘‘(ii) The term ‘waste derived ethanol’ 
means ethanol derived from— 
‘‘(I) animal wastes, including poultry 
fats and poultry wastes, and other waste 
materials; or 
‘‘(II) municipal solid waste. 
‘‘(B) RENEWABLE FUEL.— 
‘‘(i) IN GENERAL.—The term ‘renew-
able fuel’ means motor vehicle fuel that— 
‘‘(I)(aa) is produced from grain, 
starch, oilseeds, or other biomass; or 
‘‘(bb) is natural gas produced 
from a biogas source, including a 
landfill, sewage waste treatment plant, 
feedlot, or other place where decaying 
organic material is found; and 
‘‘(II) is used to replace or reduce 
the quantity of fossil fuel present in a 
fuel mixture used to operate a motor 
vehicle. 
‘‘(ii) INCLUSION.—The term ‘renew-
able fuel’ includes cellulosic biomass eth-
anol, waste derived ethanol, and biodiesel 
(as defined in section 312(f) of the Energy 
Policy Act of 1992 (42 U.S.C. 13220(f))
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HR 4503 RDS 
and any blending components derived from 
renewable fuel (provided that only the re-
newable fuel portion of any such blending 
component shall be considered part of the 
applicable volume under the renewable fuel 
program established by this subsection). 
‘‘(C) SMALL REFINERY.—The term ‘small 
refinery’ means a refinery for which average ag-
gregate daily crude oil throughput for the cal-
endar year (as determined by dividing the ag-
gregate throughput for the calendar year by the 
number of days in the calendar year) does not 
exceed 75,000 barrels. 
‘‘(2) RENEWABLE FUEL PROGRAM.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the enactment of this subsection, the Ad-
ministrator shall promulgate regulations ensur-
ing that motor vehicle fuel sold or dispensed to 
consumers in the contiguous United States, on 
an annual average basis, contains the applicable 
volume of renewable fuel as specified in sub-
paragraph (B). Regardless of the date of pro-
mulgation, such regulations shall contain com-
pliance provisions for refiners, blenders, and 
importers, as appropriate, to ensure that the re-
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HR 4503 RDS 
quirements of this section are met, but shall not 
restrict where renewable fuel can be used, or 
impose any per-gallon obligation for the use of 
renewable fuel. If the Administrator does not 
promulgate such regulations, the applicable per-
centage referred to in paragraph (4), on a vol-
ume percentage of gasoline basis, shall be 2.2 
in 2005. 
‘‘(B) APPLICABLE VOLUME.— 
‘‘(i) CALENDAR YEARS 2005 THROUGH 
2012.—For the purpose of subparagraph 
(A), the applicable volume for any of cal-
endar years 2005 through 2012 shall be 
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
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HR 4503 RDS 
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. 
‘‘(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 2003 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
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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 2004 
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. 
‘‘(B) DETERMINATION
OF
APPLICABLE 
PERCENTAGES.— 
‘‘(i) IN
GENERAL.—Not later than 
November 30 of each of the calendar years 
2004 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.
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HR 4503 RDS 
‘‘(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). 
‘‘(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).
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HR 4503 RDS 
‘‘(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 is an agricultural byproduct (as 
that term is used in section 919 of the Energy 
Policy Act of 2003), 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-
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
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HR 4503 RDS 
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 
‘‘(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
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HR 4503 RDS 
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 
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-
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HR 4503 RDS 
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 
‘‘(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.
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‘‘(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— 
‘‘(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.
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‘‘(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. 
‘‘(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-
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HR 4503 RDS 
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. 
‘‘(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-
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HR 4503 RDS 
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-
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
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HR 4503 RDS 
‘‘(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 
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.—
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HR 4503 RDS 
‘‘(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 
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,
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HR 4503 RDS 
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. 
‘‘(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-
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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, 2004, and annually thereafter, the Federal 
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
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HR 4503 RDS 
(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 
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
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HR 4503 RDS 
(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 
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
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HR 4503 RDS 
‘‘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 
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—
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(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 
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;
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HR 4503 RDS 
(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— 
(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.
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(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-
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,
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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-
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 2003.
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‘‘(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 
through 2012, to remain available until ex-
pended.’’. 
(d) EFFECT
ON STATE LAW.—The amendments 
made to the Clean Air Act by this title have no effect re-
garding any available authority of States to limit the use 
of methyl tertiary butyl ether in motor vehicle fuel. 
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
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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. 
(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.
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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 
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
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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 
(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
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(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: 
(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.
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‘‘(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 
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
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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 
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
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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-
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
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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 
‘‘(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
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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, 2004, 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 
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
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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 
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
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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. 
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
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amendments made by subtitle A of title XV of 
the Energy Policy Act of 2003. 
‘‘(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 
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-
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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. 
‘‘(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
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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 
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).
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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 
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-
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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; 
(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—
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(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 
(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.—
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(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. 
(B) 
REQUIRED
CONSIDERATIONS.—The 
recommendations 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 
under this subsection, the Administrator and the 
Secretary of Energy shall consult with— 
(A) the Governors of the States; 
(B) automobile manufacturers;
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(C) motor vehicle fuel producers and dis-
tributors; and 
(D) the public. 
SEC. 1511. COMMERCIAL BYPRODUCTS FROM MUNICIPAL 
SOLID WASTE AND CELLULOSIC BIOMASS 
LOAN GUARANTEE PROGRAM. 
(a) DEFINITION OF MUNICIPAL SOLID WASTE.—In 
this section, the term ‘‘municipal solid waste’’ has the 
meaning given the term ‘‘solid waste’’ in section 1004 of 
the Solid Waste Disposal Act (42 U.S.C. 6903). 
(b) ESTABLISHMENT OF PROGRAM.—The Secretary 
of Energy (hereinafter in this section referred to as the 
‘‘Secretary’’) shall establish a program to provide guaran-
tees of loans by private institutions for the construction 
of facilities for the processing and conversion of municipal 
solid waste and cellulosic biomass into fuel ethanol and 
other commercial byproducts. 
(c) REQUIREMENTS.—The Secretary may provide a 
loan guarantee under subsection (b) to an applicant if— 
(1) without a loan guarantee, credit is not 
available to the applicant under reasonable terms or 
conditions sufficient to finance the construction of a 
facility described in subsection (b); 
(2) the prospective earning power of the appli-
cant and the character and value of the security
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pledged provide a reasonable assurance of repayment 
of the loan to be guaranteed in accordance with the 
terms of the loan; and 
(3) the loan bears interest at a rate determined 
by the Secretary to be reasonable, taking into ac-
count the current average yield on outstanding obli-
gations of the United States with remaining periods 
of maturity comparable to the maturity of the loan. 
(d) CRITERIA.—In selecting recipients of loan guar-
antees from among applicants, the Secretary shall give 
preference to proposals that— 
(1) meet all applicable Federal and State per-
mitting requirements; 
(2) are most likely to be successful; and 
(3) are located in local markets that have the 
greatest need for the facility because of— 
(A) the limited availability of land for 
waste disposal; 
(B) the availability of sufficient quantities 
of cellulosic biomass; or 
(C) a high level of demand for fuel ethanol 
or other commercial byproducts of the facility. 
(e) MATURITY.—A loan guaranteed under subsection 
(b) shall have a maturity of not more than 20 years.
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(f) TERMS AND CONDITIONS.—The loan agreement 
for a loan guaranteed under subsection (b) shall provide 
that no provision of the loan agreement may be amended 
or waived without the consent of the Secretary. 
(g) ASSURANCE
OF REPAYMENT.—The Secretary 
shall require that an applicant for a loan guarantee under 
subsection (b) provide an assurance of repayment in the 
form of a performance bond, insurance, collateral, or other 
means acceptable to the Secretary in an amount equal to 
not less than 20 percent of the amount of the loan. 
(h) GUARANTEE FEE.—The recipient of a loan guar-
antee under subsection (b) shall pay the Secretary an 
amount determined by the Secretary to be sufficient to 
cover the administrative costs of the Secretary relating to 
the loan guarantee. 
(i) FULL FAITH AND CREDIT.—The full faith and 
credit of the United States is pledged to the payment of 
all guarantees made under this section. Any such guar-
antee made by the Secretary shall be conclusive evidence 
of the eligibility of the loan for the guarantee with respect 
to principal and interest. The validity of the guarantee 
shall be incontestable in the hands of a holder of the guar-
anteed loan. 
(j) REPORTS.—Until each guaranteed loan under this 
section has been repaid in full, the Secretary shall annu-
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ally submit to Congress a report on the activities of the 
Secretary under this section. 
(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
(l) TERMINATION OF AUTHORITY.—The authority of 
the Secretary to issue a loan guarantee under subsection 
(b) terminates on the date that is 10 years after the date 
of enactment of this Act. 
SEC. 1512. RESOURCE CENTER. 
(a) DEFINITION.—In this section, the term ‘‘RFG 
State’’ means a State in which is located one or more cov-
ered areas (as defined in section 211(k)(10)(D) of the 
Clean Air Act (42 U.S.C. 7545(k)(10)(D)). 
(b) AUTHORIZATION OF APPROPRIATIONS FOR RE-
SOURCE CENTER.—There are authorized to be appro-
priated, for a resource center to further develop bioconver-
sion technology using low-cost biomass for the production 
of ethanol at the Center for Biomass-Based Energy at the 
University of Mississippi and the University of Oklahoma, 
$4,000,000 for each of fiscal years 2004 through 2006. 
(c) RENEWABLE FUEL PRODUCTION RESEARCH AND 
DEVELOPMENT GRANTS.— 
(1) IN
GENERAL.—The Administrator of the 
Environmental Protection Agency shall provide
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grants for the research into, and development and 
implementation of, renewable fuel production tech-
nologies in RFG States with low rates of ethanol 
production, including low rates of production of cel-
lulosic biomass ethanol. 
(2) ELIGIBILITY.— 
(A) IN GENERAL.—The entities eligible to 
receive a grant under this subsection are aca-
demic institutions in RFG States, and consortia 
made up of combinations of academic institu-
tions, industry, State government agencies, or 
local government agencies in RFG States, that 
have proven experience and capabilities with 
relevant technologies. 
(B) APPLICATION.—To be eligible to re-
ceive a grant under this subsection, an eligible 
entity shall submit to the Administrator an ap-
plication in such manner and form, and accom-
panied by such information, as the Adminis-
trator may specify. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to carry out 
this subsection $25,000,000 for each of fiscal years 
2004 through 2008.
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SEC. 1513. CELLULOSIC BIOMASS AND WASTE-DERIVED 
ETHANOL CONVERSION ASSISTANCE. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by adding at the end the following: 
‘‘(r) CELLULOSIC BIOMASS
AND WASTE-DERIVED 
ETHANOL CONVERSION ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary of Energy 
may provide grants to merchant producers of cel-
lulosic biomass ethanol and waste-derived ethanol in 
the United States to assist the producers in building 
eligible production facilities described in paragraph 
(2) for the production of ethanol. 
‘‘(2) ELIGIBLE
PRODUCTION
FACILITIES.—A 
production facility shall be eligible to receive a grant 
under this subsection if the production facility— 
‘‘(A) is located in the United States; and 
‘‘(B) uses cellulosic biomass or waste-de-
rived feedstocks derived from agricultural resi-
dues, municipal solid waste, or agricultural by-
products as that term is used in section 919 of 
the Energy Policy Act of 2003. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated the fol-
lowing amounts to carry out this subsection: 
‘‘(A) $100,000,000 for fiscal year 2004. 
‘‘(B) $250,000,000 for fiscal year 2005.
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‘‘(C) $400,000,000 for fiscal year 2006.’’. 
SEC. 1514. BLENDING OF COMPLIANT REFORMULATED GAS-
OLINES. 
Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended by adding at the end the following: 
‘‘(s) BLENDING
OF COMPLIANT REFORMULATED 
GASOLINES.— 
‘‘(1) 
IN
GENERAL.—Notwithstanding 
sub-
sections (h) and (k) and subject to the limitations in 
paragraph (2) of this subsection, it shall not be a 
violation of this subtitle for a gasoline retailer, dur-
ing any month of the year, to blend at a retail loca-
tion batches of ethanol-blended and non-ethanol- 
blended reformulated gasoline, provided that— 
‘‘(A) each batch of gasoline to be blended 
has been individually certified as in compliance 
with subsections (h) and (k) prior to being 
blended; 
‘‘(B) the retailer notifies the Administrator 
prior to such blending, and identifies the exact 
location of the retail station and the specific 
tank in which such blending will take place; 
‘‘(C) the retailer retains and, as requested 
by the Administrator or the Administrator’s 
designee, makes available for inspection such
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certifications accounting for all gasoline at the 
retail outlet; and 
‘‘(D) the retailer does not, between June 1 
and September 15 of each year, blend a batch 
of VOC-controlled, or ‘summer’, gasoline with a 
batch of non-VOC-controlled, or ‘winter’, gaso-
line (as these terms are defined under sub-
sections (h) and (k)). 
‘‘(2) LIMITATIONS.— 
‘‘(A) FREQUENCY LIMITATION.—A retailer shall 
only be permitted to blend batches of compliant re-
formulated gasoline under this subsection a max-
imum of two blending periods between May 1 and 
September 15 of each calendar year. 
‘‘(B) DURATION OF BLENDING PERIOD.—Each 
blending period authorized under subparagraph (A) 
shall extend for a period of no more than 10 con-
secutive calendar days. 
‘‘(3) SURVEYS.—A sample of gasoline taken 
from a retail location that has blended gasoline with-
in the past 30 days and is in compliance with sub-
paragraphs (A), (B), (C), and (D) of paragraph (1) 
shall not be used in a VOC survey mandated by 40 
C.F.R. Part 80.
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‘‘(4) STATE IMPLEMENTATION PLANS.—A State 
shall be held harmless and shall not be required to 
revise its State implementation plan under section 
110 to account for the emissions from blended gaso-
line authorized under paragraph (1). 
‘‘(5) PRESERVATION OF STATE LAW.—Nothing 
in this subsection shall— 
‘‘(A) preempt existing State laws or regu-
lations regulating the blending of compliant 
gasolines; or 
‘‘(B) prohibit a State from adopting such 
restrictions in the future. 
‘‘(6) REGULATIONS.—The Administrator shall 
promulgate, after notice and comment, regulations 
implementing this subsection within one year after 
the date of enactment of this subsection. 
‘‘(7) EFFECTIVE DATE.—This subsection shall 
become effective 15 months after the date of its en-
actment and shall apply to blended batches of refor-
mulated gasoline on or after that date, regardless of 
whether the implementing regulations required by 
paragraph (6) have been promulgated by the Admin-
istrator by that date. 
‘‘(8) LIABILITY.—No person other than the 
person responsible for blending under this subsection
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shall be subject to an enforcement action or pen-
alties under subsection (d) solely arising from the 
blending of compliant reformulated gasolines by the 
retailers. 
‘‘(9) FORMULATION OF GASOLINE.—This sub-
section does not grant authority to the Adminis-
trator or any State (or any subdivision thereof) to 
require reformulation of gasoline at the refinery to 
adjust for potential or actual emissions increases due 
to the blending authorized by this subsection.’’. 
Subtitle B—Underground Storage 
Tank Compliance 
SEC. 1521. SHORT TITLE. 
This subtitle may be cited as the ‘‘Underground Stor-
age Tank Compliance Act of 2004’’. 
SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS. 
(a) IN GENERAL.—Section 9004 of the Solid Waste 
Disposal Act (42 U.S.C. 6991c) is amended by adding at 
the end the following: 
‘‘(f) TRUST FUND DISTRIBUTION.— 
‘‘(1) IN GENERAL.— 
‘‘(A) AMOUNT AND PERMITTED USES OF 
DISTRIBUTION.—The Administrator shall dis-
tribute to States not less than 80 percent of the 
funds from the Trust Fund that are made
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available to the Administrator under section 
9014(2)(A) for each fiscal year for use in pay-
ing the reasonable costs, incurred under a coop-
erative agreement with any State for— 
‘‘(i) actions taken by the State under 
section 9003(h)(7)(A); 
‘‘(ii) 
necessary 
administrative 
ex-
penses, as determined by the Adminis-
trator, that are directly related to State 
fund or State assurance programs under 
subsection (c)(1); 
‘‘(iii) any State fund or State assur-
ance program carried out under subsection 
(c)(1) for a release from an underground 
storage tank regulated under this subtitle 
to the extent that, as determined by the 
State in accordance with guidelines devel-
oped jointly by the Administrator and the 
States, the financial resources of the owner 
and operator of the underground storage 
tank (including resources provided by a 
program in accordance with subsection 
(c)(1)) are not adequate to pay the cost of 
a corrective action without significantly im-
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pairing the ability of the owner or operator 
to continue in business; or 
‘‘(iv) enforcement, by a State or a 
local government, of State or local regula-
tions pertaining to underground storage 
tanks regulated under this subtitle. 
‘‘(B) USE
OF
FUNDS
FOR
ENFORCE-
MENT.—In addition to the uses of funds au-
thorized under subparagraph (A), the Adminis-
trator may use funds from the Trust Fund that 
are not distributed to States under subpara-
graph (A) for enforcement of any regulation 
promulgated by the Administrator under this 
subtitle. 
‘‘(C) PROHIBITED USES.—Funds provided 
to a State by the Administrator under subpara-
graph (A) shall not be used by the State to pro-
vide financial assistance to an owner or oper-
ator to meet any requirement relating to under-
ground storage tanks under subparts B, C, D, 
H, and G of part 280 of title 40, Code of Fed-
eral Regulations (as in effect on the date of en-
actment of this subsection). 
‘‘(2) ALLOCATION.—
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‘‘(A) PROCESS.—Subject to subparagraphs 
(B) and (C), in the case of a State with which 
the Administrator has entered into a coopera-
tive agreement under section 9003(h)(7)(A), 
the Administrator shall distribute funds from 
the Trust Fund to the State using an allocation 
process developed by the Administrator. 
‘‘(B) DIVERSION OF STATE FUNDS.—The 
Administrator shall not distribute funds under 
subparagraph (A)(iii) of subsection (f)(1) to 
any State that has diverted funds from a State 
fund or State assurance program for purposes 
other than those related to the regulation of un-
derground storage tanks covered by this sub-
title, with the exception of those transfers that 
had been completed earlier than the date of en-
actment of this subsection. 
‘‘(C) REVISIONS
TO
PROCESS.—The Ad-
ministrator may revise the allocation process re-
ferred to in subparagraph (A) after— 
‘‘(i) consulting with State agencies re-
sponsible for overseeing corrective action 
for releases from underground storage 
tanks; and
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‘‘(ii) taking into consideration, at a 
minimum, each of the following: 
‘‘(I) The number of confirmed re-
leases from federally regulated leaking 
underground storage tanks in the 
States. 
‘‘(II) The number of federally 
regulated underground storage tanks 
in the States. 
‘‘(III) The performance of the 
States in implementing and enforcing 
the program. 
‘‘(IV) The financial needs of the 
States. 
‘‘(V) The ability of the States to 
use the funds referred to in subpara-
graph (A) in any year. 
‘‘(3) DISTRIBUTIONS
TO
STATE
AGENCIES.— 
Distributions from the Trust Fund under this sub-
section shall be made directly to a State agency 
that— 
‘‘(A) enters into a cooperative agreement 
referred to in paragraph (2)(A); or 
‘‘(B) is enforcing a State program ap-
proved under this section.
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‘‘(4) COST
RECOVERY
PROHIBITION.—Funds 
from the Trust Fund provided by States to owners 
or operators under paragraph (1)(A)(iii) shall not be 
subject to cost recovery by the Administrator under 
section 9003(h)(6).’’. 
(b) 
WITHDRAWAL
OF
APPROVAL
OF
STATE 
FUNDS.—Section 9004(c) of the Solid Waste Disposal Act 
(42 U.S.C. 6991c(c)) is amended by inserting the fol-
lowing new paragraph at the end thereof: 
‘‘(6) WITHDRAWAL
OF
APPROVAL.—After an 
opportunity for good faith, collaborative efforts to 
correct financial deficiencies with a State fund, the 
Administrator may withdraw approval of any State 
fund or State assurance program to be used as a fi-
nancial responsibility mechanism without with-
drawing approval of a State underground storage 
tank program under section 9004(a).’’. 
SEC. 
1523. 
INSPECTION 
OF 
UNDERGROUND 
STORAGE 
TANKS. 
(a) INSPECTION REQUIREMENTS.—Section 9005 of 
the Solid Waste Disposal Act (42 U.S.C. 6991d) is amend-
ed by inserting the following new subsection at the end 
thereof: 
‘‘(c) INSPECTION REQUIREMENTS.—
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‘‘(1) UNINSPECTED TANKS.—In the case of un-
derground storage tanks regulated under this sub-
title that have not undergone an inspection since De-
cember 22, 1998, not later than 2 years after the 
date of enactment of this subsection, the Adminis-
trator or a State that receives funding under this 
subtitle, as appropriate, shall conduct on-site inspec-
tions of all such tanks to determine compliance with 
this subtitle and the regulations under this subtitle 
(40 C.F.R. 280) or a requirement or standard of a 
State program developed under section 9004. 
‘‘(2) PERIODIC INSPECTIONS.—After completion 
of all inspections required under paragraph (1), the 
Administrator or a State that receives funding under 
this subtitle, as appropriate, shall conduct on-site in-
spections of each underground storage tank regu-
lated under this subtitle at least once every 3 years 
to determine compliance with this subtitle and the 
regulations under this subtitle (40 C.F.R. 280) or a 
requirement or standard of a State program devel-
oped under section 9004. The Administrator may ex-
tend for up to one additional year the first 3-year 
inspection interval under this paragraph if the State 
demonstrates that it has insufficient resources to
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complete all such inspections within the first 3-year 
period. 
‘‘(3) INSPECTION AUTHORITY.—Nothing in this 
section shall be construed to diminish the Adminis-
trator’s or a State’s authorities under section 
9005(a).’’. 
(b) STUDY
OF ALTERNATIVE INSPECTION PRO-
GRAMS.—The Administrator of the Environmental Protec-
tion Agency, in coordination with a State, shall gather in-
formation on compliance assurance programs that could 
serve as an alternative to the inspection programs under 
section 9005(c) of the Solid Waste Disposal Act (42 
U.S.C. 6991d(c)) and shall, within 4 years after the date 
of enactment of this Act, submit a report to the Congress 
containing the results of such study. 
SEC. 1524. OPERATOR TRAINING. 
(a) IN GENERAL.—Section 9010 of the Solid Waste 
Disposal Act (42 U.S.C. 6991i) is amended to read as fol-
lows: 
‘‘SEC. 9010. OPERATOR TRAINING. 
‘‘(a) GUIDELINES.— 
‘‘(1) IN
GENERAL.—Not later than 2 years 
after the date of enactment of the Underground 
Storage Tank Compliance Act of 2004, in consulta-
tion and cooperation with States and after public no-
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tice and opportunity for comment, the Administrator 
shall publish guidelines that specify training require-
ments for persons having primary daily on-site man-
agement responsibility for the operation and mainte-
nance of underground storage tanks. 
‘‘(2) CONSIDERATIONS.—The guidelines de-
scribed in paragraph (1) shall take into account— 
‘‘(A) State training programs in existence 
as of the date of publication of the guidelines; 
‘‘(B) training programs that are being em-
ployed by tank owners and tank operators as of 
the date of enactment of the Underground Stor-
age Tank Compliance Act of 2004; 
‘‘(C) the high turnover rate of tank opera-
tors and other personnel; 
‘‘(D) the frequency of improvement in un-
derground storage tank equipment technology; 
‘‘(E) the nature of the businesses in which 
the tank operators are engaged; and 
‘‘(F) such other factors as the Adminis-
trator determines to be necessary to carry out 
this section. 
‘‘(b) STATE PROGRAMS.— 
‘‘(1) IN
GENERAL.—Not later than 2 years 
after the date on which the Administrator publishes
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the guidelines under subsection (a)(1), each State 
that receives funding under this subtitle shall de-
velop State-specific training requirements that are 
consistent with the guidelines developed under sub-
section (a)(1). 
‘‘(2) REQUIREMENTS.—State requirements de-
scribed in paragraph (1) shall— 
‘‘(A) be consistent with subsection (a); 
‘‘(B) be developed in cooperation with tank 
owners and tank operators; 
‘‘(C) take into consideration training pro-
grams implemented by tank owners and tank 
operators as of the date of enactment of this 
section; and 
‘‘(D) be appropriately communicated to 
tank owners and operators. 
‘‘(3) FINANCIAL
INCENTIVE.—The Adminis-
trator may award to a State that develops and im-
plements requirements described in paragraph (1), 
in addition to any funds that the State is entitled to 
receive under this subtitle, not more than $200,000, 
to be used to carry out the requirements. 
‘‘(c) OPERATORS.—All persons having primary daily 
on-site management responsibility for the operation and 
maintenance of any underground storage tank shall—
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‘‘(1) meet the training requirements developed 
under subsection (b); and 
‘‘(2) repeat the applicable requirements devel-
oped under subsection (b), if the tank for which they 
have primary daily on-site management responsibil-
ities is determined to be out of compliance with— 
‘‘(A) a requirement or standard promul-
gated by the Administrator under section 9003; 
or 
‘‘(B) a requirement or standard of a State 
program approved under section 9004.’’. 
(b) 
STATE
PROGRAM
REQUIREMENT.—Section 
9004(a) of the Solid Waste Disposal Act (42 U.S.C. 
6991c(a)) is amended by striking ‘‘and’’ at the end of 
paragraph (7), by striking the period at the end of para-
graph (8) and inserting ‘‘; and’’, and by adding the fol-
lowing new paragraph at the end thereof: 
‘‘(9) State-specific training requirements as re-
quired by section 9010.’’. 
(c) ENFORCEMENT.—Section 9006(d)(2) of such Act 
(42 U.S.C. 6991e) is amended as follows: 
(1) By striking ‘‘or’’ at the end of subpara-
graph (B). 
(2) By adding the following new subparagraph 
after subparagraph (C):
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‘‘(D) the training requirements established by 
States pursuant to section 9010 (relating to oper-
ator training); or’’. 
(d) TABLE OF CONTENTS.—The item relating to sec-
tion 9010 in table of contents for the Solid Waste Disposal 
Act is amended to read as follows: 
‘‘Sec. 9010. Operator training.’’. 
SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDI-
TIVES. 
Section 9003(h) of the Solid Waste Disposal Act (42 
U.S.C. 6991b(h)) is amended as follows: 
(1) In paragraph (7)(A)— 
(A) by striking ‘‘paragraphs (1) and (2) of 
this subsection’’ and inserting ‘‘paragraphs (1), 
(2), and (12)’’ ; and 
(B) by striking ‘‘and including the authori-
ties of paragraphs (4), (6), and (8) of this sub-
section’’ and inserting ‘‘and the authority under 
sections 9011 and 9012 and paragraphs (4), 
(6), and (8),’’. 
(2) By adding at the end the following: 
‘‘(12) REMEDIATION
OF
OXYGENATED
FUEL 
CONTAMINATION.— 
‘‘(A) IN
GENERAL.—The Administrator 
and the States may use funds made available 
under section 9014(2)(B) to carry out correc-
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tive actions with respect to a release of a fuel 
containing an oxygenated fuel additive that pre-
sents a threat to human health or welfare or 
the environment. 
‘‘(B) APPLICABLE AUTHORITY.—The Ad-
ministrator or a State shall carry out subpara-
graph (A) in accordance with paragraph (2), 
and in the case of a State, in accordance with 
a cooperative agreement entered into by the Ad-
ministrator and the State under paragraph 
(7).’’. 
SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND EN-
FORCEMENT. 
(a) RELEASE PREVENTION AND COMPLIANCE.—Sub-
title I of the Solid Waste Disposal Act (42 U.S.C. 6991 
et seq.) is amended by adding at the end the following: 
‘‘SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND 
COMPLIANCE. 
‘‘Funds made available under section 9014(2)(D) 
from the Trust Fund may be used to conduct inspections, 
issue orders, or bring actions under this subtitle— 
‘‘(1) by a State, in accordance with a grant or 
cooperative agreement with the Administrator, of 
State regulations pertaining to underground storage 
tanks regulated under this subtitle; and
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‘‘(2) by the Administrator, for tanks regulated 
under this subtitle (including under a State program 
approved under section 9004).’’. 
(b) GOVERNMENT-OWNED TANKS.—Section 9003 of 
the Solid Waste Disposal Act (42 U.S.C. 6991b) is amend-
ed by adding at the end the following: 
‘‘(i) GOVERNMENT-OWNED TANKS.— 
‘‘(1) STATE
COMPLIANCE
REPORT.—(A) Not 
later than 2 years after the date of enactment of 
this subsection, each State that receives funding 
under this subtitle shall submit to the Administrator 
a State compliance report that— 
‘‘(i) lists the location and owner of each 
underground storage tank described in subpara-
graph (B) in the State that, as of the date of 
submission of the report, is not in compliance 
with section 9003; and 
‘‘(ii) specifies the date of the last inspec-
tion and describes the actions that have been 
and will be taken to ensure compliance of the 
underground storage tank listed under clause 
(i) with this subtitle. 
‘‘(B) An underground storage tank described in 
this subparagraph is an underground storage tank 
that is—
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‘‘(i) regulated under this subtitle; and 
‘‘(ii) owned or operated by the Federal, 
State, or local government. 
‘‘(C) The Administrator shall make each report, 
received under subparagraph (A), available to the 
public through an appropriate media. 
‘‘(2) FINANCIAL
INCENTIVE.—The Adminis-
trator may award to a State that develops a report 
described in paragraph (1), in addition to any other 
funds that the State is entitled to receive under this 
subtitle, not more than $50,000, to be used to carry 
out the report. 
‘‘(3) NOT A SAFE HARBOR.—This subsection 
does not relieve any person from any obligation or 
requirement under this subtitle.’’. 
(c) PUBLIC RECORD.—Section 9002 of the Solid 
Waste Disposal Act (42 U.S.C. 6991a) is amended by add-
ing at the end the following: 
‘‘(d) PUBLIC RECORD.— 
‘‘(1) IN GENERAL.—The Administrator shall re-
quire each State that receives Federal funds to carry 
out this subtitle to maintain, update at least annu-
ally, and make available to the public, in such man-
ner and form as the Administrator shall prescribe
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(after consultation with States), a record of under-
ground storage tanks regulated under this subtitle. 
‘‘(2) CONSIDERATIONS.—To the maximum ex-
tent practicable, the public record of a State, respec-
tively, shall include, for each year— 
‘‘(A) the number, sources, and causes of 
underground storage tank releases in the State; 
‘‘(B) the record of compliance by under-
ground storage tanks in the State with— 
‘‘(i) this subtitle; or 
‘‘(ii) an applicable State program ap-
proved under section 9004; and 
‘‘(C) data on the number of underground 
storage tank equipment failures in the State.’’. 
(d) INCENTIVE FOR PERFORMANCE.—Section 9006 
of the Solid Waste Disposal Act (42 U.S.C. 6991e) is 
amended by adding at the end the following: 
‘‘(e) INCENTIVE FOR PERFORMANCE.—Both of the 
following may be taken into account in determining the 
terms of a civil penalty under subsection (d): 
‘‘(1) The compliance history of an owner or op-
erator in accordance with this subtitle or a program 
approved under section 9004. 
‘‘(2) Any other factor the Administrator con-
siders appropriate.’’.
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(e) TABLE OF CONTENTS.—The table of contents for 
such subtitle I is amended by adding the following new 
item at the end thereof: 
‘‘Sec. 9011. Use of funds for release prevention and compliance.’’. 
SEC. 1527. DELIVERY PROHIBITION. 
(a) IN GENERAL.—Subtitle I of the Solid Waste Dis-
posal Act (42 U.S.C. 6991 et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 9012. DELIVERY PROHIBITION. 
‘‘(a) REQUIREMENTS.— 
‘‘(1) PROHIBITION
OF
DELIVERY
OR
DE-
POSIT.—Beginning 2 years after the date of enact-
ment of this section, it shall be unlawful to deliver 
to, deposit into, or accept a regulated substance into 
an underground storage tank at a facility which has 
been identified by the Administrator or a State im-
plementing agency to be ineligible for fuel delivery or 
deposit. 
‘‘(2) GUIDANCE.—Within 1 year after the date 
of enactment of this section, the Administrator and 
States that receive funding under this subtitle shall, 
in consultation with the underground storage tank 
owner and product delivery industries, for territory 
for which they are the primary implementing agen-
cies, publish guidelines detailing the specific proc-
esses and procedures they will use to implement the
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provisions of this section. The processes and proce-
dures include, at a minimum— 
‘‘(A) the criteria for determining which un-
derground storage tank facilities are ineligible 
for delivery or deposit; 
‘‘(B) the mechanisms for identifying which 
facilities are ineligible for delivery or deposit to 
the underground storage tank owning and fuel 
delivery industries; 
‘‘(C) the process for reclassifying ineligible 
facilities as eligible for delivery or deposit; and 
‘‘(D) a delineation of, or a process for de-
termining, the specified geographic areas sub-
ject to paragraph (4). 
‘‘(3) DELIVERY PROHIBITION NOTICE.— 
‘‘(A) ROSTER.—The Administrator and 
each State implementing agency that receives 
funding under this subtitle shall establish with-
in 24 months after the date of enactment of 
this section a Delivery Prohibition Roster list-
ing underground storage tanks under the Ad-
ministrator’s or the State’s jurisdiction that are 
determined to be ineligible for delivery or de-
posit pursuant to paragraph (2).
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‘‘(B) NOTIFICATION.—The Administrator 
and each State, as appropriate, shall make 
readily known, to underground storage tank 
owners and operators and to product delivery 
industries, the underground storage tanks listed 
on a Delivery Prohibition Roster by: 
‘‘(i) posting such Rosters, including 
the physical location and street address of 
each listed underground storage tank, on 
official web sites and, if the Administrator 
or the State so chooses, other electronic 
means; 
‘‘(ii) updating these Rosters periodi-
cally; and 
‘‘(iii) installing a tamper-proof tag, 
seal, or other device blocking the fill pipes 
of such underground storage tanks to pre-
vent the delivery of product into such un-
derground storage tanks. 
‘‘(C) ROSTER
UPDATES.—The Adminis-
trator and the State shall update the Delivery 
Prohibition Rosters as appropriate, but not less 
than once a month on the first day of the 
month. 
‘‘(D) TAMPERING WITH DEVICE.—
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‘‘(i) PROHIBITION.—It shall be unlaw-
ful for any person, other than an author-
ized representative of the Administrator or 
a State, as appropriate, to remove, tamper 
with, destroy, or damage a device installed 
by the Administrator or a State, as appro-
priate, under subparagraph (B)(iii) of this 
subsection. 
‘‘(ii) CIVIL PENALTIES.—Any person 
violating clause (i) of this subparagraph 
shall be subject to a civil penalty not to ex-
ceed $10,000 for each violation. 
‘‘(4) LIMITATION.— 
‘‘(A) RURAL AND REMOTE AREAS.—Sub-
ject to subparagraph (B), the Administrator or 
a State shall not include an underground stor-
age tank on a Delivery Prohibition Roster 
under paragraph (3) if an urgent threat to pub-
lic health, as determined by the Administrator, 
does not exist and if such a delivery prohibition 
would jeopardize the availability of, or access 
to, fuel in any rural and remote areas. 
‘‘(B) APPLICABILITY
OF
LIMITATION.— 
The limitation under subparagraph (A) shall 
apply only during the 180-day period following
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the date of a determination by the Adminis-
trator or the appropriate State that exercising 
the authority of paragraph (3) is limited by 
subparagraph (A). 
‘‘(b) EFFECT ON STATE AUTHORITY.—Nothing in 
this section shall affect the authority of a State to prohibit 
the delivery of a regulated substance to an underground 
storage tank. 
‘‘(c) DEFENSE TO VIOLATION.—A person shall not 
be in violation of subsection (a)(1) if the underground 
storage tank into which a regulated substance is delivered 
is not listed on the Administrator’s or the appropriate 
State’s Prohibited Delivery Roster 7 calendar days prior 
to the delivery being made.’’. 
(b) ENFORCEMENT.—Section 9006(d)(2) of such Act 
(42 U.S.C. 6991e(d)(2)) is amended as follows: 
(1) By adding the following new subparagraph 
after subparagraph (D): 
‘‘(E) the delivery prohibition requirement estab-
lished by section 9012,’’. 
(2) By adding the following new sentence at the 
end thereof: ‘‘Any person making or accepting a de-
livery or deposit of a regulated substance to an un-
derground storage tank at an ineligible facility in
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violation of section 9012 shall also be subject to the 
same civil penalty for each day of such violation.’’. 
(c) TABLE OF CONTENTS.—The table of contents for 
such subtitle I is amended by adding the following new 
item at the end thereof: 
‘‘Sec. 9012. Delivery prohibition.’’. 
SEC. 1528. FEDERAL FACILITIES. 
Section 9007 of the Solid Waste Disposal Act (42 
U.S.C. 6991f) is amended to read as follows: 
‘‘SEC. 9007. FEDERAL FACILITIES. 
‘‘(a) IN GENERAL.—Each department, agency, and 
instrumentality of the executive, legislative, and judicial 
branches of the Federal Government (1) having jurisdic-
tion over any underground storage tank or underground 
storage tank system, or (2) engaged in any activity result-
ing, or which may result, in the installation, operation, 
management, or closure of any underground storage tank, 
release response activities related thereto, or in the deliv-
ery, acceptance, or deposit of any regulated substance to 
an underground storage tank or underground storage tank 
system shall be subject to, and comply with, all Federal, 
State, interstate, and local requirements, both substantive 
and procedural (including any requirement for permits or 
reporting or any provisions for injunctive relief and such 
sanctions as may be imposed by a court to enforce such 
relief), respecting underground storage tanks in the same
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manner, and to the same extent, as any person is subject 
to such requirements, including the payment of reasonable 
service charges. The Federal, State, interstate, and local 
substantive and procedural requirements referred to in 
this subsection include, but are not limited to, all adminis-
trative orders and all civil and administrative penalties 
and fines, regardless of whether such penalties or fines 
are punitive or coercive in nature or are imposed for iso-
lated, intermittent, or continuing violations. The United 
States hereby expressly waives any immunity otherwise 
applicable to the United States with respect to any such 
substantive or procedural requirement (including, but not 
limited to, any injunctive relief, administrative order or 
civil or administrative penalty or fine referred to in the 
preceding sentence, or reasonable service charge). The rea-
sonable service charges referred to in this subsection in-
clude, but are not limited to, fees or charges assessed in 
connection with the processing and issuance of permits, 
renewal of permits, amendments to permits, review of 
plans, studies, and other documents, and inspection and 
monitoring of facilities, as well as any other nondiscrim-
inatory charges that are assessed in connection with a 
Federal, State, interstate, or local underground storage 
tank regulatory program. Neither the United States, nor 
any agent, employee, or officer thereof, shall be immune
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or exempt from any process or sanction of any State or 
Federal Court with respect to the enforcement of any such 
injunctive relief. No agent, employee, or officer of the 
United States shall be personally liable for any civil pen-
alty under any Federal, State, interstate, or local law con-
cerning underground storage tanks with respect to any act 
or omission within the scope of the official duties of the 
agent, employee, or officer. An agent, employee, or officer 
of the United States shall be subject to any criminal sanc-
tion (including, but not limited to, any fine or imprison-
ment) under any Federal or State law concerning under-
ground storage tanks, but no department, agency, or in-
strumentality of the executive, legislative, or judicial 
branch of the Federal Government shall be subject to any 
such sanction. The President may exempt any under-
ground storage tank of any department, agency, or instru-
mentality in the executive branch from compliance with 
such a requirement if he determines it to be in the para-
mount interest of the United States to do so. No such 
exemption shall be granted due to lack of appropriation 
unless the President shall have specifically requested such 
appropriation as a part of the budgetary process and the 
Congress shall have failed to make available such re-
quested appropriation. Any exemption shall be for a period 
not in excess of one year, but additional exemptions may
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be granted for periods not to exceed one year upon the 
President’s making a new determination. The President 
shall report each January to the Congress all exemptions 
from the requirements of this section granted during the 
preceding calendar year, together with his reason for 
granting each such exemption. 
‘‘(b) REVIEW OF AND REPORT ON FEDERAL UNDER-
GROUND STORAGE TANKS.— 
‘‘(1) REVIEW.—Not later than 12 months after 
the date of enactment of the Underground Storage 
Tank Compliance Act of 2004, each Federal agency 
that owns or operates 1 or more underground stor-
age tanks, or that manages land on which 1 or more 
underground storage tanks are located, shall submit 
to the Administrator, the Committee on Energy and 
Commerce of the United States House of Represent-
atives, and the Committee on the Environment and 
Public Works of the United States Senate a compli-
ance strategy report that— 
‘‘(A) lists the location and owner of each 
underground storage tank described in this 
paragraph; 
‘‘(B) lists all tanks that are not in compli-
ance with this subtitle that are owned or oper-
ated by the Federal agency;
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‘‘(C) specifies the date of the last inspec-
tion by a State or Federal inspector of each un-
derground storage tank owned or operated by 
the agency; 
‘‘(D) lists each violation of this subtitle re-
specting any underground storage tank owned 
or operated by the agency; 
‘‘(E) describes the operator training that 
has been provided to the operator and other 
persons having primary daily on-site manage-
ment responsibility for the operation and main-
tenance of underground storage tanks owned or 
operated by the agency; and 
‘‘(F) describes the actions that have been 
and will be taken to ensure compliance for each 
underground storage tank identified under sub-
paragraph (B). 
‘‘(2) NOT A SAFE HARBOR.—This subsection 
does not relieve any person from any obligation or 
requirement under this subtitle.’’. 
SEC. 1529. TANKS ON TRIBAL LANDS. 
(a) IN GENERAL.—Subtitle I of the Solid Waste Dis-
posal Act (42 U.S.C. 6991 et seq.) is amended by adding 
the following at the end thereof:
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‘‘SEC. 9013. TANKS ON TRIBAL LANDS. 
‘‘(a) STRATEGY.—The Administrator, in coordination 
with Indian tribes, shall, not later than 1 year after the 
date of enactment of this section, develop and implement 
a strategy— 
‘‘(1) giving priority to releases that present the 
greatest threat to human health or the environment, 
to take necessary corrective action in response to re-
leases from leaking underground storage tanks lo-
cated wholly within the boundaries of— 
‘‘(A) an Indian reservation; or 
‘‘(B) any other area under the jurisdiction 
of an Indian tribe; and 
‘‘(2) to implement and enforce requirements 
concerning underground storage tanks located wholly 
within the boundaries of— 
‘‘(A) an Indian reservation; or 
‘‘(B) any other area under the jurisdiction 
of an Indian tribe. 
‘‘(b) REPORT.—Not later than 2 years after the date 
of enactment of this section, the Administrator shall sub-
mit to Congress a report that summarizes the status of 
implementation and enforcement of this subtitle in areas 
located wholly within— 
‘‘(1) the boundaries of Indian reservations; and