A bill to amend the Clean Air Act to improve motor fuel supply and distribution.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Motor Fuel Supply and Distribution 
Improvement Act''.

SEC. 2. IMPROVING MOTOR FUEL SUPPLY AND DISTRIBUTION.

    (a) Limiting Number of Boutique Fuels.--Section 211(c)(4)(C) of the 
Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended by striking the 
second clause (v) (as added by section 1541(b) of Public Law 109-58) 
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 January 1, 2009 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 January 1, 2009, 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, but the Administrator shall not 
                        reduce the total number of fuels authorized 
                        under the list published under subclause (II).
                            ``(IV) Subclause (I) shall not apply to 
                        approval by the Administrator of 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 the 
                        fuel, as of the date of consideration by the 
                        Administrator--
                                    ``(aa) would replace completely a 
                                fuel on the list published under 
                                subclause (II);
                                    ``(bb) has been approved in at 
                                least one State implementation plan in 
                                the applicable Petroleum Administration 
                                for Defense District; or
                                    ``(cc) is a fuel that differs from 
                                the Federal conventional gasoline 
                                specifications under subsection (k)(8) 
                                only with respect to the requirement of 
                                a summertime Reid Vapor Pressure of 7.0 
                                or 7.8 pounds per square inch.
                            ``(V) 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.
                            ``(VI) In this clause:
                                    ``(aa) The term `control or 
                                prohibition respecting a new fuel' 
                                means a control or prohibition on the 
                                formulation, composition, or emissions 
                                characteristics of a fuel that would 
                                require the increase or decrease of a 
                                constituent in gasoline or diesel fuel.
                                    ``(bb) The term `fuel' means 
                                gasoline, diesel fuel, and any other 
                                liquid petroleum product commercially 
                                known as gasoline and diesel fuel for 
                                use in highway and non-road motor 
                                vehicles.''.
    (b) Temporary Waivers During Supply Emergencies.--Section 211(c)(4) 
of the Clean Air Act (42 U.S.C. 7545(c)(4)) is amended by adding at the 
end the following:
    ``(D) Temporary Waivers During Supply Emergencies.--The 
Administrator may temporarily waive a control or prohibition with 
respect to the use of a fuel or fuel additive required or regulated by 
the Administrator under subsection (c), (h), (i), (k), or (m), or 
prescribed in an applicable implementation plan under section 110 that 
is approved by the Administrator under subparagraph (c)(4)(C)(i), if, 
after consultation with and concurrence by the Secretary of Energy, the 
Administrator determines that--
            ``(i) an extreme and unusual fuel or fuel additive supply 
        circumstance exists in a State or region that prevents the 
        distribution of an adequate supply of the fuel or fuel additive 
        to consumers;
            ``(ii) the extreme and unusual fuel or fuel additive supply 
        circumstance is the result of a natural disaster, an act of 
        God, a pipeline or refinery equipment failure, or another event 
        that could not reasonably have been foreseen or prevented and 
        not a lack of prudent planning on the part of the suppliers of 
        the fuel or fuel additive to the State or region; and
            ``(iii) it is in the public interest to grant the waiver.
    ``(E) Requirements for Waiver.--
            ``(i) Definition of motor fuel distribution system.--In 
        this subparagraph, the term `motor fuel distribution system' 
        has the meaning given the term by the Administrator, by 
        regulation.
            ``(ii) Requirements.--A waiver under subparagraph (D) shall 
        be permitted only if--
                    ``(I) the waiver applies to the smallest geographic 
                area necessary to address the extreme and unusual fuel 
                or fuel additive supply circumstance;
                    ``(II) the waiver is effective for a period of 15 
                calendar days or, if the Administrator determines that 
                a shorter or longer waiver period is adequate, for the 
                shortest practicable time period necessary to permit 
                the correction of the extreme and unusual fuel or fuel 
                additive supply circumstances and to mitigate impact on 
                air quality;
                    ``(III) the waiver permits a transitional period, 
                the duration of which shall be determined by the 
                Administrator, after the termination of the temporary 
                waiver to permit wholesalers and retailers to blend 
                down wholesale and retail inventory;
                    ``(IV) the waiver applies to all persons in the 
                motor fuel distribution system; and
                    ``(V) the Administrator has given public notice 
                regarding consideration by the Administrator of, and, 
                if applicable, the granting of, a waiver to all parties 
                in the motor fuel distribution system, State and local 
                regulators, public interest groups, and consumers in 
                the State or region to be covered by the waiver.
    ``(F) Affect on Waiver Authority.--Nothing in subparagraph (D)--
            ``(i) limits or otherwise affects the application of any 
        other waiver authority of the Administrator under this section 
        or a regulation promulgated pursuant to this section; or
            ``(ii) subjects any State or person to an enforcement 
        action, penalties, or liability solely arising from actions 
        taken pursuant to the issuance of a waiver under subparagraph 
        (D).''.

Summary: Motor Fuel Supply and Distribution Improvement Act - Amends the Clean Air Act to: (1) update provisions limiting the number of gasoline or diesel fuels allowed in a state implementation plan; and (2) allow a limited, temporary waiver of a control or prohibition of a fuel or fuel additive in circumstances that prevent the distribution of an adequate supply of such fuel or fuel additive to consumers.