A bill to amend the Clean Air Act to provide for a Federal Fuels List, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Affordable and Reliable Gas Act of 
2005''.

SEC. 2. LIST OF FUELS.

    (a) List of Fuels.--Section 211(c)(4)(C) of the Clean Air Act (42 
U.S.C. 7545(c)(4)(C)) (as amended by the Energy Policy Act of 2005 
(Public Law 109-58; 119 Stat. 1106)) is amended by striking the second 
clause (v) and inserting the following:
    ``(vi)(I) The Administrator shall have no authority, when 
considering a State implementation plan or a State implementation plan 
revision, to approve under this paragraph any fuel included in such 
plan or revision if the effect of such approval would be to increase 
the total number of fuels approved under this paragraph as of September 
1, 2004 in all State implementation plans.
    ``(II) The Administrator, in consultation with the Secretary of 
Energy, shall determine the total number of fuels approved under this 
paragraph as of September 1, 2004, in all State implementation plans 
and shall publish a list of such fuels, including the states and 
Petroleum Administration for Defense District in which they are used, 
in the Federal Register no later than 90 days after enactment.
    ``(III) The Administrator shall remove a fuel from the list 
published under subclause (II) if a fuel ceases to be included in a 
State implementation plan or if a fuel in a State implementation plan 
is identical to a Federal fuel formulation implemented by the 
Administrator and shall reduce the total number of fuels authorized 
under the list published under subclause (II) appropriately.
    ``(IV) Subclause (I) shall not limit the Administrator's authority 
to approve a control or prohibition respecting any new fuel under this 
paragraph in a State's implementation plan or a revision to that 
State's implementation plan after the date of enactment of this Act if 
such new fuel completely replaces a fuel on the list published under 
subclause (II).
    ``(V) The Administrator shall have no authority under this 
paragraph, when considering any particular State's implementation plan 
or a revision to that State's implementation plan, to approve any fuel 
unless that fuel was, as of the date of such consideration, approved in 
at least one State implementation plan in the applicable Petroleum 
Administrator for Defense District. However, the Administrator may 
approve as part of a State implementation plan or State implementation 
plan revision a fuel with a summertime Reid Vapor Pressure of 7.0 psi. 
In no event shall such approval by the Administrator cause an increase 
in the total number of fuels on the list published under subclause (II) 
as of the date of consideration.
    ``(VI) Nothing in this clause shall be construed to have any effect 
regarding any available authority of States to require the use of any 
fuel additive registered in accordance with subsection (b), including 
any fuel additive registered in accordance with subsection (b) after 
the enactment of this subclause.
    ``(vii)(I) The provisions of clause (vi), including the limitations 
of the authority of the Administrator and the cap on the total number 
of fuels permitted, shall remain in effect until the harmonization of 
fuels under subclause V of this clause is accomplished. Once such 
harmonization has been accomplished, clause (v) shall sunset and the 
limitations of the authority of the Administrator under subclause (IV) 
of this clause shall apply.
    ``(II) The Administrator, in coordination with the Secretary of 
Energy (hereinafter in this clause referred to as the `Secretary'), 
shall identify and publish in the Federal Register, within 12 months 
after the enactment of this subclause and after notice and opportunity 
for public comment, a list of 5 gasolines and diesel fuels to be used 
in States that have not received a waiver under section 209(b) of this 
Act. The list shall be referred to as the `Federal Fuels List' and 
shall include one Federal on-road diesel fuel (which shall grandfather 
the sulfur phase down in the Administrator's ultra low sulfur diesel 
fuel regulations in effect as of the date of enactment and shall permit 
the implementation of one alternative diesel fuel, approved under this 
subparagraph before enactment of this subclause for a State that has 
not received a section 209(b) waiver, only in the State in which it was 
approved prior to enactment), one conventional gasoline for ozone 
attainment areas, one reformulated gasoline (RFG) meeting the 
requirements of subsection (k), and 2 additional gasolines with Reid 
vapor pressure (RVP) controls for use in ozone attainment areas of 
varying degrees of severity. None of the fuels identified under this 
subclause shall control fuel sulfur or toxics levels beyond levels 
required by regulations of the Administrator.
    ``(III) Gasolines and diesel fuels shall be included on the Federal 
Fuels List based on the Administrator's analysis of their ability to 
reduce ozone emissions to assist States in attaining established ozone 
standards under this Act, and on an analysis by the Secretary that the 
adoption of the Federal Fuels List will not result in a reduction in 
supply or in producibility, including that caused by a reduction in 
domestic refining capacity as a result of the adoption of the Federal 
Fuels List. In the event the Secretary concludes that adoption of the 
Federal Fuels List will result in a reduction in supply or in 
producibility, the Administrator and the Secretary shall report that 
conclusion to Congress, and suspend implementation of this clause. The 
Administrator and the Secretary shall conduct the study required under 
section 1541(c) of the Energy Policy Act of 2005 on the timetable 
required in that section to provide Congress with legislative 
recommendations for modifications to the proposed Federal Fuels List 
only if the Secretary concludes that adoption of the Federal Fuels List 
will result in a reduction in supply or in producibility.
    ``(IV) Upon publication of the Federal Fuels List, the 
Administrator shall have no authority, when considering a State 
implementation plan or State implementation plan revisions, to approve 
under this subparagraph any fuel included in such plan or plan revision 
if the proposed fuel is not one of the fuels on the Federal Fuels List; 
or to approve a State's plan or plan revision to move from one fuel on 
the Federal Fuels List to another unless, after consultation with the 
Secretary, the Administrator publishes in the Federal Register, after 
notice and opportunity for public comment, a finding that, in the 
Administrator's judgment, such plan or plan revision to adopt a 
different fuel on the Federal Fuels List will not cause fuel supply or 
distribution disruptions in the affected area or contiguous areas. The 
Administrator's finding shall include an assessment of reasonably 
foreseeable supply or distribution emergencies that could occur in the 
affected area or contiguous area and how adoption of the particular 
fuel revisions would effect alternative supply options during 
reasonably foreseeable supply or distribution emergencies.
    ``(V) The Administrator, in consultation with the Secretary, shall 
develop a plan to harmonize the currently approved fuels in State 
implementation plans with the fuels included on the Federal Fuels List 
and shall promulgate implementing regulations for this plan not later 
than 18 months after enactment of this subclause. This harmonization 
shall be fully implemented by the States by December 31, 2008.''.
    (b) Boutique Fuels.--Section 1541 of the Energy Policy Act of 2005 
(Public Law 109-58; 119 Stat. 1106) is amended by striking subsection 
(c) and inserting the following:
    ``(c) Study and Report to Congress on Boutique Fuels.--
            ``(1) Joint study.--The Administrator of the Environmental 
        Protection Agency and the Secretary of Energy shall undertake a 
        study of the effects on air quality, on the number of fuel 
        blends, on fuel availability, on fuel fungibility, and on fuel 
        costs of the State plan provisions adopted pursuant to section 
        211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)).
            ``(2) Focus of study.--The primary focus of the study 
        required under paragraph (1) shall be to determine how to 
        develop a Federal fuels system that maximizes motor fuel 
        fungibility and supply, preserves air quality standards, and 
        reduces motor fuel price volatility that results from the 
        proliferation of boutique fuels, and to recommend to Congress 
        such legislative changes as are necessary to implement such a 
        system. The study should include the impacts on overall energy 
        supply, distribution, and use as a result of the legislative 
        changes recommended. The study should include an analysis of 
        the impact on ozone emissions and supply of a mandatory 
        reduction in the number of fuel blends to 5, including one on-
        road Federal diesel fuel (which shall grandfather the sulfur 
        phase down in the Administrator's ultra low sulfur diesel fuel 
        regulations and shall permit the implementation of, one 
        alternative diesel fuel, blend approved under this subparagraph 
        before enactment of this subclause for a State that has not 
        received a section 209(b) waiver, only in the State in which it 
        was approved prior to enactment), one conventional gasoline for 
        ozone attainment areas, one reformulated gasoline (RFG) meeting 
        the requirements of subsection (k), and 2 additional gasolines 
        blends with Reid vapor pressure (RVP) controls for use in ozone 
        attainment areas of varying degrees of severity.
            ``(3) Conduct of study.--In carrying out their joint duties 
        under this section, the Administrator and the Secretary shall 
        use sound science and objective science practices, shall 
        consider the best available science, shall use data collected 
        by accepted means and shall consider and include a description 
        of the weight of the scientific evidence. The Administrator and 
        the Secretary shall coordinate the study required by this 
        section with other studies required by the act and shall 
        endeavor to avoid duplication of effort with regard to such 
        studies.
            ``(4) Responsibility of administrator.--In carrying out the 
        study required by this section, the Administrator shall 
        coordinate obtaining comments from affected parties interested 
        in the air quality impact assessment portion of the study. The 
        Administrator shall use sound and objective science practices, 
        shall consider the best available science, and shall consider 
        and include a description of the weight of the scientific 
        evidence.
            ``(5) Responsibility of secretary.--In carrying out the 
        study required by this section, the Secretary shall coordinate 
        obtaining comments from affected parties interested in the fuel 
        availability, number of fuel blends, fuel fungibility and fuel 
        costs portion of the study.
            ``(6) Report to congress.--The Administrator and the 
        Secretary jointly shall submit the results of the study 
        required by this section in a report to the Congress not later 
        than 12 months after the date of the enactment of this Act, 
        together with any recommended regulatory and legislative 
        changes. Such report shall be submitted to the Committee on 
        Energy and Commerce of the House of Representatives and the 
        Committee on Environment and Public Works of the Senate.
            ``(7) Authorization of appropriations.--There is authorized 
        to be appropriated jointly to the Administrator and the 
        Secretary $500,000 for the completion of the study required 
        under this subsection.''.

Summary: Affordable and Reliable Gas Act of 2005 - Amends the Clean Air Act (as amended by the Energy Policy Act of 2005) to: (1) require the Administrator of the Environmental Protection Agency (EPA), in coordination with the Secretary of Energy, to identify and publish in the Federal Register a list of five gasolines and diesel fuels to be used in state implementation plans (SIPs) (Federal Fuels List); (2) require an analysis of the ability of such listed fuels to reduce ozone emissions; (3) restrict the authority of the Administrator to approve fuels proposed in an SIP but not included on the Federal Fuels List; (4) require the Administrator, in consultation with the Secretary, to develop a federal-state fuel harmonization plan to be fully implemented by the states by December 31, 2008; and (5) revise requirements for the joint study of boutique fuels to require an analysis of the impact on ozone emissions and supply of a mandatory reduction to five in the number of approved fuel blends.