Title: Next Generation Fuels Act of 2020
Policy area: Environmental Protection

Summary:
Next Generation Fuels Act of 2020
This bill establishes and revises requirements for transportation fuels, including to (1) require the Environmental Protection Agency to test and certify a low-carbon, high-octane fuel; (2) establish a minimum octane standard for gasoline; (3) limit the use of aromatic hydrocarbon content in gasoline; and (4) revise requirements regarding ethanol blends.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8371 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8371

To promote low-carbon, high-octane fuels, to protect public health, and 
 to improve vehicle efficiency and performance, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2020

 Mrs. Bustos introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To promote low-carbon, high-octane fuels, to protect public health, and 
 to improve vehicle efficiency and performance, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Next Generation Fuels Act of 2020''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                 TITLE I--LOW-CARBON HIGH-OCTANE FUELS

Sec. 101. High-octane certification fuel.
Sec. 102. Clean octane standard.
                   TITLE II--REGULATORY HARMONIZATION

Sec. 201. Reid vapor pressure.
Sec. 202. Fuel economy adjustment.
Sec. 203. E30.
Sec. 204. Replacement of motor vehicle emissions simulator (MOVES) 
                            model.
                       TITLE III--INFRASTRUCTURE

Sec. 301. High-efficiency vehicles.
Sec. 302. Performance standards for new e30 infrastructure.
Sec. 303. CAFE and GHG credit generation.

                 TITLE I--LOW-CARBON HIGH-OCTANE FUELS

SEC. 101. HIGH-OCTANE CERTIFICATION FUEL.

    (a) In General.--Not later than January 1, 2022, the Administrator 
of the Environmental Protection Agency shall take such actions as are 
necessary to allow the use of a certification test fuel described in 
subsection (b) for purposes of--
            (1) testing and certification under section 206(a) of the 
        Clean Air Act (42 U.S.C. 7525(a)) of motor vehicles described 
        in section 220(a) of the Clean Air Act (as added by section 301 
        of this Act); and
            (2) testing and calculation procedures under section 
        32904(c) of title 49, United States Code, with respect to such 
        motor vehicles.
    (b) Certification Test Fuel Described.--A certification test fuel 
referred to in subsection (a) shall--
            (1) have a research octane number of 98; and
            (2) be blended by adding sources of octane value that meet 
        the requirements of subsection (c) to the low-level ethanol-
        gasoline blend test fuel used to certify model year 2020 light-
        duty vehicles.
    (c) Low-Carbon Requirement.--In carrying out subsection (a), the 
Administrator of the Environmental Protection Agency shall ensure that 
the sources of octane value for the certification test fuel allowed 
under subsection (a) have average lifecycle greenhouse gas emissions, 
as determined by the Secretary of Energy using the version of the 
Argonne National Laboratory Greenhouse gases, Regulated Emissions, and 
Energy use in Transportation (GREET) model in effect as of the date of 
enactment of this Act, that are at least 30 percent less than the 
baseline lifecycle greenhouse gas emissions.
    (d) Definitions.--In this section:
            (1) Baseline lifecycle greenhouse gas emissions.--The term 
        ``baseline lifecycle greenhouse gas emissions'' means the 
        average lifecycle greenhouse gas emissions, as determined by 
        the Administrator of the Environmental Protection Agency in 
        consultation with the Director of the Argonne National 
        Laboratory, for unblended gasoline sold or distributed as 
        transportation fuel in 2018.
            (2) Lifecycle greenhouse gas emissions.--The term 
        ``lifecycle greenhouse gas emissions'' means the aggregate 
        quantity of greenhouse gas emissions as determined by using the 
        version of the Argonne National Laboratory Greenhouse gases, 
        Regulated Emissions, and Energy use in Transportation (GREET) 
        model as in effect on the date of enactment of this Act.
            (3) Light-duty vehicle.--The term ``light-duty vehicle'' 
        has the meaning given to that term in section 216 of the Clean 
        Air Act (42 U.S.C. 7550).
            (4) Research octane number.--The term ``research octane 
        number'' has the meaning given such term in section 201 of the 
        Petroleum Marketing Practices Act.

SEC. 102. CLEAN OCTANE STANDARD.

    (a) Requirements.--Section 211 of the Clean Air Act (42 U.S.C. 
7545) is amended--
            (1) in subsection (d)(1), by striking ``or (o)'' and 
        inserting ``(o), or (w)'';
            (2) in subsection (d)(2), by striking ``or (o)'' each place 
        it appears and inserting ``(o), or (w)''; and
            (3) by inserting at the end the following:
    ``(w) Clean Octane Standard.--
            ``(1) Aromatics.--
                    ``(A) Annual average limitation.--Effective January 
                1, 2023, no refiner or importer shall sell motor 
                vehicle gasoline that contains, on an average annual 
                basis, an aromatic hydrocarbon content in excess of 
                17.5 percent.
                    ``(B) Cap.--Effective January 1, 2023, no person 
                shall sell motor vehicle gasoline that contains an 
                aromatic hydrocarbon content in excess of 17.5 percent.
                    ``(C) Regulations.--
                            ``(i) Promulgation.--The Administrator of 
                        the Environmental Protection Agency shall 
                        promulgate regulations to implement this 
                        paragraph. Not later than January 1, 2023, the 
                        Administrator shall promulgate final 
                        regulations under the preceding sentence.
                            ``(ii) Tradeable credits.--The regulations 
                        to implement this paragraph shall--
                                    ``(I) allow for the generation of 
                                tradeable credits to meet the 
                                requirement of subparagraph (A); and
                                    ``(II) provide that any such 
                                credits shall expire after not more 
                                than 5 years.
            ``(2) Clean octane.--
                    ``(A) Prohibition.--Effective January 1, 2023, no 
                refiner or importer shall introduce any source of 
                octane value into motor vehicle gasoline with a 
                research octane number of 98 or higher unless such 
                source of octane value has average lifecycle greenhouse 
                gas emissions, as determined by the Secretary of Energy 
                using the version of the Argonne National Laboratory 
                Greenhouse gases, Regulated Emissions, and Energy use 
                in Transportation (GREET) model in effect as of the 
                date of enactment of the Next Generation Fuels Act of 
                2020, that are at least 30 percent less than the 
                baseline lifecycle greenhouse gas emissions.
                    ``(B) Regulations.--
                            ``(i) Promulgation.--The Administrator of 
                        the Environmental Protection Agency shall 
                        promulgate regulations to implement this 
                        paragraph. Not later than January 1, 2023, the 
                        Administrator shall promulgate final 
                        regulations under the preceding sentence.
                            ``(ii) Contents.--The regulations to 
                        implement this paragraph shall--
                                    ``(I) determine the baseline 
                                lifecycle greenhouse gas emissions for 
                                purposes of this paragraph;
                                    ``(II) determine the average 
                                lifecycle greenhouse gas emissions of 
                                sources of octane value for purposes of 
                                this paragraph; and
                                    ``(III) ensure that the 
                                requirements of this paragraph are met.
            ``(3) Definitions.--In this subsection, the terms `baseline 
        lifecycle greenhouse gas emissions', `lifecycle greenhouse gas 
        emissions', and `research octane number' have the meanings 
        given to those terms in section 101 of the Next Generation 
        Fuels Act of 2020.''.
    (b) Reformulated Gasoline.--Clause (ii) of section 211(k)(3)(A) of 
the Clean Air Act is (42 U.S.C. 7545(k)(3)(A)) is amended to read as 
follows:
                            ``(ii) Aromatics.--The aromatic hydrocarbon 
                        content of the reformulated gasoline--
                                    ``(I) shall not exceed 25 percent 
                                by volume; and
                                    ``(II) beginning January 1, 2023, 
                                shall not exceed 17.5 percent by 
                                volume.''.

                   TITLE II--REGULATORY HARMONIZATION

SEC. 201. REID VAPOR PRESSURE.

    (a) Reid Vapor Pressure Limitation.--Section 211(h) of the Clean 
Air Act (42 U.S.C. 7545(h)) is amended--
            (1) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``or more'' after ``10 percent''; and
                    (B) in subparagraph (C), by striking ``additional 
                alcohol or''; and
            (2) in paragraph (5)(A), by inserting ``or more'' after 
        ``10 percent''.
    (b) Existing Waivers.--Section 211(f)(4) of the Clean Air Act (42 
U.S.C. 7545(f)(4)) is amended--
            (1) by striking ``The Administrator, upon'' and inserting 
        ``(A) The Administrator, upon''; and
            (2) by adding at the end the following:
    ``(B) A fuel or fuel additive with respect to which a waiver has 
been granted in accordance with subparagraph (A) prior to January 1, 
2019, and that meets all of the conditions of that waiver, other than 
the waiver's limits for Reid vapor pressure, may be introduced into 
commerce if the fuel or fuel additive meets all other applicable Reid 
vapor pressure requirements.''.

SEC. 202. FUEL ECONOMY ADJUSTMENT.

    For purposes of fuel economy testing and calculation procedures 
under section 32904(c) of title 49, United States Code, the fuel 
economy of motor vehicles using a certification test fuel allowed under 
section 101 of this Act shall be determined on an energy-equivalent 
basis, calculated by multiplying fuel economy (as measured under such 
section 32904(c) without regard to this section) by the ratio of--
            (1) 114,086 British thermal units per gallon; divided by
            (2) the volumetric energy density of such test fuel.

SEC. 203. E30.

    Section 211(f)(4) of the Clean Air Act (42 U.S.C. 7545(f)(4)), as 
amended by section 201(b) of this Act, is further amended by adding at 
the end the following:
    ``(C) Beginning January 1, 2022, a fuel with a concentration of 
ethanol that is more than 15 percent and not more than 30 percent, 
shall be deemed to have received a waiver in accordance with 
subparagraph (A).''.

SEC. 204. REPLACEMENT OF MOTOR VEHICLE EMISSIONS SIMULATOR (MOVES) 
              MODEL.

    Section 211(q)(2) of the Clean Air Act (42 U.S.C. 7545) is 
amended--
            (1) by striking ``For purposes of this section'' and 
        inserting the following:
                    ``(A) Initial model.--For purposes of this 
                section''; and
            (2) by adding at the end of the following:
                    ``(B) New model.--Not later than 24 months after 
                the date of enactment of the Next Generation Fuels Act 
                of 2020, the Administrator shall develop and finalize 
                an emissions model based on appropriate test fuels and 
                methods to replace the emissions model under 
                subparagraph (A).
                    ``(C) Definition.--For purposes of subparagraph 
                (B), the term `appropriate test fuels and methods' 
                means test fuels and methods that rely on commercially 
                available fuel and accurately reflect the profile of 
                higher ethanol blends.''.

                       TITLE III--INFRASTRUCTURE

SEC. 301. HIGH-EFFICIENCY VEHICLES.

    (a) In General.--Part A of title II of the Clean Air Act (42 U.S.C. 
7521 et seq.) is amended by adding at the end the following new 
section:

``SEC. 220. OCTANE SPECIFICATION.

    ``(a) Applicability.--This section applies with respect to any 
motor vehicle (other than a motorcycle) that is introduced into 
commerce that--
            ``(1) is a light-duty vehicle or light-duty truck;
            ``(2) is a model year 2024 or later motor vehicle; and
            ``(3) uses gasoline for propulsion or any other operation 
        of the motor vehicle, including the engine thereof.
    ``(b) Warranty Requirements.--The manufacturer of a motor vehicle 
described in subsection (a) shall warrant to the ultimate purchaser and 
each subsequent purchaser that each such motor vehicle is designed--
            ``(1) to operate with gasoline containing up to and 
        including 30 percent ethanol; and
            ``(2) to meet the design requirements under subsection (c).
    ``(c) Design Requirements.--The manufacturer of a motor vehicle 
described in subsection (a) shall design each such motor vehicle--
            ``(1) to operate using gasoline that has a research octane 
        number (as defined in section 101 of the Next Generation Fuels 
        Act of 2020) of 98 or higher; and
            ``(2) to improve fuel economy connected to the use of 
        gasoline that has a research octane number (as defined in 
        section 101 of the Next Generation Fuels Act of 2020) of 98 or 
        higher.
    ``(d) Enforcement.--
            ``(1) Violations.--Any manufacturer who violates subsection 
        (b) or (c) shall be subject to a civil penalty of not more than 
        $25,000. Any such violation shall constitute a separate offense 
        with respect to each motor vehicle.
            ``(2) Civil actions; administrative assessment of certain 
        penalties.--The provisions of subsections (b) and (c) of 
        section 205 shall apply with respect to a violation of 
        subsection (b) or (c) of this section to the same extent and in 
        the same manner as such provisions apply with respect to a 
        violation of section 203(a)(3).
    ``(e) Consultation.--In promulgating regulations to carry out this 
section, the Administrator shall consult with persons to be regulated 
under this section.''.
    (b) Regulations.--The Administrator of the Environmental Protection 
Agency shall--
            (1) not later than 24 months after the date of enactment of 
        this Act, propose regulations to carry out the amendments made 
        by this section; and
            (2) not later than 30 months after such date of enactment, 
        finalize regulations to carry out the amendments made by this 
        section.

SEC. 302. PERFORMANCE STANDARDS FOR NEW E30 INFRASTRUCTURE.

    Section 9003 of the Solid Waste Disposal Act (42 U.S.C. 6991b) is 
amended by adding at the end the following:
    ``(k) E30 Retail Dispenser Systems.--
            ``(1) In general.--The Administrator shall, not later than 
        1 year prior to the effective date specified in paragraph (3), 
        issue or revise, as necessary, performance standards for 
        dispenser systems described in paragraph (2) to require that 
        such dispenser systems be compatible with automotive fuel with 
        a concentration of up to and including 30 percent ethanol by 
        volume.
            ``(2) Dispenser systems.--This subsection applies with 
        respect to dispenser systems that are--
                    ``(A) on or after the effective date specified in 
                paragraph (3), brought into use to dispense at retail 
                automotive fuel from an underground storage tank; and
                    ``(B) subject to regulation under sections 1910.106 
                and 1926.152 of title 29, Code of Federal Regulations 
                (as in effect on the date of enactment of this 
                subsection).
            ``(3) Effective date.--Standards issued or revised pursuant 
        to paragraph (1) shall take effect on January 1, 2024.
            ``(4) Definitions.--In this subsection:
                    ``(A) Automotive fuel.--The term `automotive fuel' 
                has the meaning given such term in section 201(6) of 
                the Petroleum Marketing Practices Act (15 U.S.C. 
                2821(6)).
                    ``(B) Compatible.--The term `compatible' means, to 
                the extent feasible, certified by a nationally 
                recognized testing laboratory recognized by the 
                Occupational Safety and Health Administration in 
                accordance with section 1910.7 of title 29, Code of 
                Federal Regulations (or any successor regulations) to 
                maintain system performance throughout the operational 
                life of the dispenser system.
                    ``(C) Dispenser system.--The term `dispenser 
                system' has the meaning given such term in section 
                280.12 of title 40, Code of Federal Regulations (as in 
                effect on the date of enactment of this subsection).''.

SEC. 303. CAFE AND GHG CREDIT GENERATION.

    (a) In General.--Subsection (a) of section 32906 of title 49, 
United States Code, is amended--
            (1) by striking ``1993 through 2019'' and inserting ``1993 
        through 2035''; and
            (2) by striking ``the maximum increase in average fuel 
        economy for a manufacturer attributable to dual fueled 
        automobiles is'' and all that follows through the end of the 
        subsection and inserting ``the maximum increase in average fuel 
        economy for a manufacturer attributable to dual fueled 
        automobiles is 1.2 miles per gallon.''.
    (b) Conforming Amendments.--Section 32905 of title 49, United 
States Code, is amended--
            (1) in subsection (b), by striking ``2019,'' and inserting 
        ``2035,''; and
            (2) in subsection (d), by striking ``2019,'' and inserting 
        ``2035,''.
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