To amend the Clean Air Act to permit the Administrator of the Environmental Protection Agency to waive the lifecycle greenhouse gas emission reduction requirements for renewable fuel production, and for other purposes.

SECTION 1. DIRECT LIFECYCLE GREENHOUSE GAS EMISSIONS.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended 
as follows:
            (1) In paragraph (1), by striking subparagraph (H) and 
        inserting the following:
                    ``(H) Lifecycle greenhouse gas emissions.--
                            ``(i) In general.--The term `lifecycle 
                        greenhouse gas emissions' means the aggregate 
                        quantity of direct greenhouse gas emissions 
                        relating to the full fuel lifecycle, as 
                        determined by the Administrator based on--
                                    ``(I) measurements taken using the 
                                most recent observable data; and
                                    ``(II) consideration of regional 
                                differences of renewable fuel 
                                production.
                            ``(ii) Inclusions.--The term `lifecycle 
                        greenhouse gas emissions' includes greenhouse 
                        gas emissions from all stages of fuel and 
                        feedstock production and distribution, from 
                        feedstock generation or extraction through the 
                        distribution and delivery and use of the 
                        finished fuel to the ultimate consumer, where 
                        the mass values for all greenhouse gases are 
                        adjusted to account for the relative global 
                        warming potential of the greenhouse gases.
                            ``(iii) Availability of model.--The 
                        Administrator shall make the model used in 
                        measuring lifecycle greenhouse gas emissions 
                        publicly available before publishing any 
                        administrative action on lifecycle greenhouse 
                        gas emissions.''.
            (2) By inserting after paragraph (12) the following:
            ``(13) Waiver authority.--
                    ``(A) In general.--A renewable fuel manufacturer 
                may petition the Administrator to waive, and the 
                Administrator may waive, the lifecycle greenhouse gas 
                emission reduction requirements for renewable fuel 
                production set forth in paragraph (2)(A) if, as 
                determined by the Administrator--
                            ``(i) the requirements are the primary or 
                        contributing factor of a failure to achieve the 
                        applicable renewable fuels standard for 
                        biomass-based diesel, conventional biofuel, 
                        cellulosic biofuel, or advanced biofuel;
                            ``(ii) the requirements are causing 
                        economic harm within the biofuels industry; or
                            ``(iii) the requirements are directly or 
                        indirectly increasing the dependence of the 
                        United States on foreign oil.
                    ``(B) Innovative production methods.--
                            ``(i) In general.--A renewable fuel 
                        manufacturer may petition the Administrator to 
                        certify an innovative production method that 
                        may result in lower lifecycle greenhouse gas 
                        emissions than the lifecycle greenhouse gas 
                        emissions of a renewable fuel determined by the 
                        Administrator under paragraph (1)(H).
                            ``(ii) Requirements.--A petition submitted 
                        under clause (i) shall include a full lifecycle 
                        greenhouse gas emission analysis of the 
                        applicable renewable fuel based on the 
                        lifecycle greenhouse gas emission model used by 
                        the Administrator.
                    ``(C) Failure to act.--If the Administrator does 
                not approve or deny a petition submitted under 
                subparagraph (A) or (B) by the date that is 90 days 
                after the date of receipt of the petition, the petition 
                shall be considered to be approved.
            ``(14) State low-carbon fuel standards.--
                    ``(A) In general.--No waiver may be granted under 
                subparagraph (B) or (C) of subsection (c)(4) in the 
                case of a State low-carbon fuel standard or similar 
                policy that requires a reduction in lifecycle 
                greenhouse gas emissions for renewable fuels, unless 
                the State standard or policy applies a lifecycle 
                greenhouse gas emission baseline identical to the 
                lifecycle greenhouse gas emissions of the fuel 
                concerned as determined by the Administrator under 
                paragraph (1)(H) and used for the Federal renewable 
                fuels standard under this subsection.
                    ``(B) Basis for measurements.--Measurements taken 
                under a State standard for renewable fuel described in 
                subparagraph (A) shall be based on observable data 
                relating to the direct lifecycle greenhouse gas 
                emissions from the renewable fuel.''.

Summary: Amends the Clean Air Act to revise the definition of "lifecycle greenhouse gas emissions" to: (1) exclude significant indirect emissions; (2) provide that emissions are to be determined by the Environmental Protection Agency (EPA) Administrator based on the most recent observable data and on consideration of regional differences of renewable fuel production; and (3) require the Administrator to make the model used in measuring emissions publicly available before publishing any administrative action on such emissions.

Authorizes a renewable fuel manufacturer to petition the Administrator to waive, and the Administrator to waive, the lifecycle greenhouse gas emission reduction requirements for renewable fuel production if the requirements: (1) are the primary or contributing factor of a failure to achieve the applicable renewable fuels standard for biomass-based diesel, conventional biofuel, cellulosic biofuel, or advanced biofuel; (2) are causing economic harm within the biofuels industry; or (3) are increasing U.S. dependence on foreign oil.

Authorizes a renewable fuel manufacturer to petition the Administrator to certify an innovative production method that may result in lower lifecycle greenhouse gas emissions than the lifecycle greenhouse gas emissions of a renewable fuel. Considers a petition to be approved if the Administrator does not approve or deny it within 90 days of its receipt.

Prohibits such waivers from being granted in the case of a state low-carbon fuel standard or similar policy that requires a reduction in lifecycle greenhouse gas emissions for renewable fuels, unless the state standard or policy applies a lifecycle greenhouse gas emission baseline identical to the lifecycle greenhouse gas emissions as determined by EPA and used for the federal renewable fuels standard. Requires measurements taken under a state standard to be based on observable data relating to the direct lifecycle greenhouse gas emissions from the renewable fuel.