To amend the Clean Air Act to prohibit the use of methyl tertiary butyl ether as a gasoline additive and to repeal the oxygenate requirement for reformulated gasoline, to provide funding for the clean up of underground storage tanks, and for other purposes.

SECTION 1. MTBE PROHIBITION.

    (a) MTBE Prohibition.--Section 211(c) of the Clean Air Act (42 
U.S.C. 7545(c)) is amended by adding at the end the following:
            ``(5) Prohibition on use of mtbe.--
                    ``(A) In general.--Subject to subparagraph (C), not 
                later than 6 months after the date of enactment of this 
                paragraph, the use of methyl tertiary butyl ether in 
                motor vehicle fuel in any State is prohibited.
                    ``(B) Regulations.--The Administrator shall 
                promulgate regulations to carry out the prohibition set 
                forth in subparagraph (A).
                    ``(C) Trace quantities.--In carrying out 
                subparagraph (A), the Administrator may allow trace 
                quantities of methyl tertiary butyl ether, not to 
                exceed 0.5 percent by volume, to be present in motor 
                vehicle fuel in cases that the Administrator determines 
                to be appropriate.''.
    (b) No Effect on Law Concerning State Authority.--The amendments 
made by subsection (a) have no effect on the law in effect on the day 
before the date of enactment of this Act regarding the authority of 
States to limit the use of methyl tertiary butyl ether in motor vehicle 
fuel.

SEC. 2. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED 
              GASOLINE.

    (a) Repeal.--Section 211(k) of the Clean Air Act (42 U.S.C. 
7545(k)) is amended--
            (1) in paragraph (2)--
                    (A) in the second sentence of subparagraph (A), by 
                striking ``(including the oxygen content requirement 
                contained in subparagraph (B))'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraphs (C) and (D) as 
                subparagraphs (B) and (C), respectively;
            (2) in paragraph (3)(A), by striking clause (v);
            (3) in paragraph (7)--
                    (A) in subparagraph (A)--
                            (i) by striking clause (i); and
                            (ii) by redesignating clauses (ii) and 
                        (iii) as clauses (i) and (ii), respectively; 
                        and
                    (B) in subparagraph (C)--
                            (i) by striking clause (ii); and
                            (ii) by redesignating clause (iii) as 
                        clause (ii).
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of enactment of this Act.
    (c) Maintenance of Toxic Air Pollutant Emission 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 enactment of the 
        Clean Air Act Amendments of 1990,'' and inserting the 
        following:
                    ``(A) In general.--Not later than November 15, 
                1991,''.
            (2) By adding at the end the following:
                    ``(B) Maintenance of toxic air pollutant emissions 
                reductions from reformulated gasoline.--
                            ``(i) Definitions.--In this subparagraph 
                        the term `PADD' means a Petroleum 
                        Administration for Defense District.
                            ``(ii) Regulations regarding emissions of 
                        toxic air pollutants.--Not later than 270 days 
                        after the date of enactment of this 
                        subparagraph the Administrator shall establish, 
                        for each refinery or importer, standards for 
                        toxic air pollutants from use of the 
                        reformulated gasoline produced or distributed 
                        by the refinery or importer that maintain the 
                        reduction of the average annual aggregate 
                        emissions of toxic air pollutants for 
                        reformulated gasoline 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 standards.--
                                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 importer 
                                in the calendar year only to the extent 
                                that the quantity is less than or equal 
                                to the average annual quantity of 
                                reformulated gasoline produced or 
                                distributed by the refinery or importer 
                                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 
                                subject to subclause (I) shall be 
                                subject to standards for toxic air 
                                pollutants promulgated under 
                                subparagraph (A) and paragraph (3)(B).
                            ``(iv) Credit program.--The Administrator 
                        shall provide for the granting and use of 
                        credits for emissions of toxic air pollutants 
                        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 enactment of 
                                this subparagraph, and not later than 
                                April 1 of each calendar year that 
                                begins after that date of enactment, 
                                the Administrator shall publish in the 
                                Federal Register a report that 
                                specifies, with respect to the previous 
                                calendar year--
                                            ``(aa) the quantity of 
                                        reformulated 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 
                                        emissions of toxic air 
                                        pollutants in each PADD, based 
                                        on retail survey data or data 
                                        from other appropriate sources.
                                    ``(II) Effect of failure to 
                                maintain aggregate toxics reductions.--
                                If, in any calendar year, the reduction 
                                of the average annual aggregate 
                                emissions of toxic air pollutants in a 
                                PADD fails to meet or exceed the 
                                reduction of the average annual 
                                aggregate emissions of toxic air 
                                pollutants in the PADD in calendar 
                                years 1999 and 2000, the Administrator, 
                                not later than 90 days after the date 
                                of publication of the report for the 
                                calendar year under subclause (I), 
                                shall--
                                            ``(aa) identify, to the 
                                        maximum extent practicable, the 
                                        reasons for the failure, 
                                        including the sources, volumes, 
                                        and characteristics 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 of the year following 
                                        the report in subclause (II) 
                                        and for subsequent 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 
                        regulations 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).''.
    (d) Consolidation in Reformulated Gasoline Regulations.--Not later 
than 180 days after the date of enactment of this Act, the 
Administrator of the Environmental Protection Agency shall revise the 
reformulated gasoline regulations under subpart D of part 80 of title 
40, Code of Federal Regulations, to consolidate the regulations 
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 requirements applicable to gasoline designated for VOC-
Control Region 1.
    (e) Savings Clause.--Nothing in this section is intended to affect 
or prejudice either any legal claims or actions with respect to 
regulations promulgated by the Administrator of the Environmental 
Protection Agency prior to enactment of this Act regarding emissions of 
toxic air pollutants from motor vehicles 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 adjustments 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 any lawful and 
        enforceable Federal or State prohibition on methyl tertiary 
        butyl ether imposed after the effective date of the enactment 
        of this paragraph, except that any such adjustment shall 
        require such refiner or importer, to the greatest extent 
        practicable, to maintain the reduction achieved during calendar 
        year 1999-2000 in the average annual aggregate emissions of 
        toxic air pollutants from reformulated gasoline produced or 
        distributed by the refinery or importer. Any such adjustment 
        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. 3. FUNDING FOR MTBE CONTAMINATION.

     Notwithstanding any other provision of law, there is authorized to 
be appropriated to the Administrator of the Environmental Protection 
Agency from the Leaking Underground Storage Tank Trust Fund not more 
than $850,000,000 for the fiscal year period of fiscal years 2004 
through 2008.

Summary: Amends the Clean Air Act to prohibit the use of methyl tertiary butyl ether (MBTE) as a motor vehicle fuel additive.

Repeals the oxygen content requirement for reformulated gasoline.

Requires the Administrator of the Environmental Protection Agency to promulate regulations which continue required toxic air pollutant emissions reductions from reformulated gasoline.

Authorizes appropriations from the Leaking Underground Storage Tank Trust Fund.