[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3596 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 3596
To amend the Clean Air Act requirements relating to gasoline to prevent
future supply shortages and price spikes in the gasoline market, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 20, 2001
Mr. Ryan of Wisconsin (for himself and Mr. Green of Wisconsin)
introduced the following bill; which was referred to the Committee on
Energy and Commerce
_______________________________________________________________________
A BILL
To amend the Clean Air Act requirements relating to gasoline to prevent
future supply shortages and price spikes in the gasoline market, 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. FINDINGS.
Congress finds the following:
(1) The President's National Energy Policy Development
(NEPD) Group recommended that the Environmental Protection
Agency (EPA) study the environmental benefits of State boutique
fuels and methods to increase the flexibility of the fuel
distribution infrastructure and the gasoline market liquidity.
(2) Seasonal price spikes, particularly in the Midwest, can
be attributed to the number of boutique fuels and the lack of
fungibility, especially when there is a disruption in the
refining or pipeline system.
(3) According to the EPA Study of Boutique Fuels released
October 24, 2001, a reduction of the number of boutique fuels
may moderate the price spikes that occur with the transition of
winter to summer grade reformulated gasoline (RFG).
(4) The propagation of boutique fuels may occur in the
future as a result of State laws banning the use of MTBE, an
oxygenated gasoline additive.
(5) Refiners argue that without any restrictions on States,
boutique fuels will continue to proliferate.
(6) Stakeholders have acknowledged that fewer fuel types
would simplify gasoline distribution and therefore ease the
potential for local supply disruptions and resulting price
volatility without disrupting gasoline supply, air quality
benefits, or prices.
(7) The EPA study examined several options, one of which
would create a menu of three fuels for States to choose from
(conventional gasoline, low-RVP, or a new Federal clean burning
gas), including a new national renewable fuel requirement.
(8) The EPA study found that this option is the least
costly of all the options presented and would increase gasoline
production capacity, giving the best balance among gasoline
cost, distribution, and supply, and air quality.
SEC. 2. BOUTIQUE FUELS.
(a) Reducing the Proliferation of Boutique Fuels.--(1) Section
211(c)(4) of such Act (42 U.S.C. 7545(c)(4)) is amended by adding the
following at the end thereof:
``(D) In the case of gasoline, in addition to the requirements of
subparagraph (C), after the enactment of this subparagraph, the
Administrator may approve a provision described in subparagraph (C) in
an implementation plan only if the Administrator finds that the control
or prohibition in the applicable implementation plan requires the use
of either of the following:
``(i) Federal clean burning fuel meeting the requirements
of subsection (k).
``(ii) Low RVP gasoline meeting the requirements of
subsection (h)(6).
``(E) In the case of implementation plan provisions approved under
subparagraph (C) on or before the date of the enactment of this
subparagraph, such provisions may remain in effect after the date 4
years after the enactment of this subparagraph only if the State has,
within 6 months after the enactment of this subparagraph, reevaluated
the provisions and established to the satisfaction of the Administrator
that the benefits of such provisions in terms of air quality
improvement, consistent supply, production costs and stable prices for
gasoline exceed the benefits of modifying such provisions to require
the use of Federal clean burning fuel meeting the requirements of
subsection (k) or low RVP gasoline meeting the requirements of
subsection (h)(6) (whichever requires a Reid Vapor Pressure closest to
the Reid Vapor Pressure required by the plan provisions prior to
modification).''.
(2) By striking ``engine--'' in subparagraph (A) of section
211(c)(4) of the Clean Air Act and all that follows down through the
end of such subparagraph and inserting ``engine.''.
(3) By striking ``, for the purposes of motor vehicle emission
control,'' in subparagraph (A) of section 211(c)(4) of the Clean Air
Act.
(b) Low rvp Gas Option.--Section 211(h) of the Clean Air Act (42
U.S.C. 7545(h)) is amended by adding the following new paragraph at the
end thereof:
``(6) Low rvp gasoline.--The Administrator shall promulgate
regulations providing for a gasoline blend for the high ozone
season (as determined by the Administrator) having a Reid Vapor
Pressure of 7.8 pounds per square inch (psi). The Administrator
shall approve State plan provisions submitted under subsection
(c)(4)(C) and (D) for ozone nonattainment areas in both
northern and southern areas of the nation (other than covered
areas under subsection (k)) that require gasoline to meet the
requirements of the regulations under this paragraph.''.
(c) Federal Clean Burning Gas.--(1) Section 211(k) of the Clean Air
Act is amended to read as follows:
``(k) Federal Clean Burning Gas.--
``(1) EPA regulations.--The Administrator shall promulgate
regulations under this section establishing requirements for
Federal clean burning gasoline to be used in gasoline-fueled
vehicles in specified nonattainment areas. Such regulations
shall require the greatest reduction in emissions of ozone
forming volatile organic compounds (during the high ozone
season) and emissions of toxic air pollutants (during the
entire year) achievable through the reformulation of
conventional gasoline, taking into consideration the cost of
achieving such emission reductions, any nonair-quality and
other air-quality related health and environmental impacts and
energy requirements.
``(2) General requirements.--The regulations referred to in
paragraph (1) shall require that Federal clean burning gasoline
comply with paragraph (3) and with each of the following
requirements (subject to paragraph (7)):
``(A) NO<INF>X</INF> emissions.--The emissions of
oxides of nitrogen (NO<INF>X</INF>) from baseline
vehicles when using the Federal clean burning gasoline
shall be no greater than the level of such emissions
from such vehicles when using baseline gasoline. If the
Administrator determines that compliance with the
limitation on emissions of oxides of nitrogen under the
preceding sentence is technically infeasible,
considering the other requirements applicable under
this subsection to such gasoline, the Administrator
may, as appropriate to ensure compliance with this
subparagraph, adjust (or waive entirely), any other
requirements of this paragraph (including the oxygen
content requirement contained in subparagraph (B)) or
any requirements applicable under paragraph (3)(A).
``(B) Benzene content.--The benzene content of the
gasoline shall not exceed 1.0 percent by volume.
``(C) Heavy metals.--The gasoline shall have no
heavy metals, including lead or manganese. The
Administrator may waive the prohibition contained in
this subparagraph for a heavy metal (other than lead)
if the Administrator determines that addition of the
heavy metal to the gasoline will not increase, on an
aggregate mass or cancer-risk basis, toxic air
pollutant emissions from motor vehicles.
``(3) More stringent of formula or performance standards.--
The regulations referred to in paragraph (1) shall require
compliance with the more stringent of either the requirements
set forth in subparagraph (A) or the requirements of
subparagraph (B) of this paragraph. For purposes of determining
the more stringent provision, clause (i) and clause (ii) of
subparagraph (B) shall be considered independently.
``(A) Formula.--
``(i) Benzene.--The benzene content of the
Federal clean burning gasoline shall not exceed
1.0 percent by volume.
``(ii) Aromatics.--The aromatic hydrocarbon
content of the Federal clean burning gasoline
shall not exceed 25 percent by volume.
``(iii) Lead.--The Federal clean burning
gasoline shall have no lead content.
``(iv) Detergents.--The Federal clean
burning gasoline shall contain additives to
prevent the accumulation of deposits in engines
or vehicle fuel supply systems.
``(v) Reid vapor pressure.--The Reid Vapor
Pressure of the gasoline shall not exceed 6.8
pounds per square inch (psi) for the high ozone
season (as determined by the Administrator).
``(B) Performance standard.--
``(i) VOC emissions.--During the high ozone
season (as defined by the Administrator), the
Reid Vapor Pressure of the gasoline shall not
exceed 6.8 pounds per square inch (psi).
``(ii) Toxics.--During the entire year, the
aggregate emissions of toxic air pollutants
from baseline vehicles when using the Federal
clean burning gasoline shall be 15 percent
below the aggregate emissions of toxic air
pollutants from such vehicles when using
baseline gasoline. Effective in calendar year
2000 and thereafter, 25 percent shall be
substituted for 15 percent in applying this
clause, except that the Administrator may
adjust such 25 percent requirement to provide
for a lesser or greater reduction based on
technological feasibility, considering the cost
of achieving such reductions in toxic air
pollutants. No such adjustment shall provide
for less than a 20 percent reduction below the
aggregate emissions of such air pollutants from
such vehicles when using baseline gasoline. The
reductions required under this clause shall be
on a mass basis.
Any reduction greater than a specific percentage reduction
required under this subparagraph shall be treated as satisfying
such percentage reduction requirement.
``(4) Certification procedures.--
``(A) Regulations.--The regulations under this
subsection shall include procedures under which the
Administrator shall certify Federal clean burning
gasoline as complying with the requirements established
pursuant to this subsection. Under such regulations,
the Administrator shall establish procedures for any
person to petition the Administrator to certify a fuel
formulation, or slate of fuel formulations. Such
procedures shall further require that the Administrator
shall approve or deny such petition within 180 days of
receipt. If the Administrator fails to act within such
180-day period, the fuel shall be deemed certified
until the Administrator completes action on the
petition.
``(B) Certification; equivalency.--The
Administrator shall certify a fuel formulation or slate
of fuel formulations as complying with this subsection
if such fuel or fuels--
``(i) comply with the requirements of
paragraph (2), and
``(ii) achieve equivalent or greater
reductions in emissions of ozone forming
volatile organic compounds and emissions of
toxic air pollutants than are achieved by a
Federal clean burning gasoline meeting the
applicable requirements of paragraph (3).
``(C) EPA determination of emissions level.--The
Administrator shall determine the level of emissions of
ozone forming volatile organic compounds and emissions
of toxic air pollutants emitted by baseline vehicles
when operating on baseline gasoline. For purposes of
this subsection, the Administrator shall, by rule,
determine appropriate measures of, and methodology for,
ascertaining the emissions of air pollutants (including
calculations, equipment, and testing tolerances).
``(5) Prohibition.--Effective on the date 4 years after the
enactment of this paragraph, each of the following shall be a
violation of this subsection:
``(A) The sale or dispensing by any person of
conventional gasoline to ultimate consumers in any
covered area.
``(B) The sale or dispensing by any refiner,
blender, importer, or marketer of conventional gasoline
for resale in any covered area, without (i) segregating
such gasoline from Federal clean burning gasoline, and
(ii) clearly marking such conventional gasoline as
``conventional gasoline, not for sale to ultimate
consumer in a covered area''.
Any refiner, blender, importer or marketer who purchases
property segregated and marked conventional gasoline, and
thereafter labels, represents, or wholesales such gasoline as
Federal clean burning gasoline shall also be in violation of
this subsection. The Administrator may impose sampling,
testing, and recordkeeping requirements upon any refiner,
blender, importer, or marketer to prevent violations of this
section.
``(6) Opt-in areas.--(A) Upon the application of the
Governor of a State, the Administrator shall apply the
prohibition set forth in paragraph (5) in any area in the State
classified under subpart 2 of part D of title I as a Marginal,
Moderate, Serious, or Severe Area (without regard to whether or
not the 1980 population of the area exceeds 250,000). In any
such case, the Administrator shall establish an effective date
for such prohibition as he deems appropriate, 1 year after such
application is received. The Administrator shall publish such
application in the Federal Register upon receipt.
``(B) If the Administrator determines, on the
Administrator's own motion or on petition of any person, after
consultation with the Secretary of Energy, that there is
insufficient domestic capacity to produce gasoline certified
under this subsection, the Administrator shall, by rule, extend
the effective date of such prohibition in Marginal, Moderate,
Serious, or Severe Areas referred to in subparagraph (A) for
one additional year, and may, by rule, renew such extension for
2 additional one-year periods. The Administrator shall act on
any petition submitted under this paragraph within 6 months
after receipt of the petition. The Administrator shall issue
such extensions for areas with a lower ozone classification
before issuing any such extension for areas with a higher
classification.
``(7) Credits.--(A) The regulations promulgated under this
subsection shall provide for the granting of an appropriate
amount of credits to a person who refines, blends, or imports
and certifies a gasoline or slate of gasoline that--
``(i) has an aromatic hydrocarbon content (by
volume) that is less than the maximum aromatic
hydrocarbon content required to comply with paragraph
(3); or
``(ii) has a benzene content (by volume) that is
less than the maximum benzene content specified in
paragraph (2).
``(B) The regulations described in subparagraph (A) shall
also provide that a person who is granted credits may use such
credits, or transfer all or a portion of such credits to
another person for use within the same nonattainment area, for
the purpose of complying with this subsection.
``(C) The regulations promulgated under subparagraphs (A)
and (B) shall ensure the enforcement of the requirements for
the issuance, application, and transfer of the credits. Such
regulations shall prohibit the granting or transfer of such
credits for use with respect to any gasoline in a nonattainment
area, to the extent the use of such credits would result in any
of the following:
``(i) An average gasoline aromatic hydrocarbon
content (by volume) for the nonattainment (taking into
account all gasoline sold for use in conventional
gasoline-fueled vehicles in the nonattainment area)
higher than the average fuel aromatic hydrocarbon
content (by volume) that would occur in the absence of
using any such credits.
``(ii) An average benzene content (by volume) for
the nonattainment area (taking into account all
gasoline sold for use in conventional gasoline-fueled
vehicles in the nonattainment area) higher than the
average benzene content (by volume) that would occur in
the absence of using any such credits.
``(8) Anti-dumping rules.--
``(A) In general.--The Administrator shall
promulgate regulations applicable to each refiner,
blender, or importer of gasoline ensuring that gasoline
sold or introduced into commerce by such refiner,
blender, or importer (other than Federal clean burning
gasoline subject to the requirements of paragraph (1))
does not result in average per gallon emissions
(measured on a mass basis) of (i) volatile organic
compounds, (ii) oxides of nitrogen, (iii) carbon
monoxide, and (iv) toxic air pollutants in excess of
such emissions of such pollutants attributable to
gasoline sold or introduced into commerce in calendar
year 1990 by that refiner, blender, or importer.
``(B) Adjustments.--In evaluating compliance with
the requirements of subparagraph (A), the Administrator
shall make appropriate adjustments to insure that no
credit is provided for improvement in motor vehicle
emissions control in motor vehicles sold after the
calendar year 1990.
``(C) Compliance determined for each pollutant
independently.--In determining whether there is an
increase in emissions in violation of the prohibition
contained in subparagraph (A) the Administrator shall
consider an increase in each air pollutant referred to
in clauses (i) through (iv) as a separate violation of
such prohibition, except that the Administrator shall
promulgate regulations to provide that any increase in
emissions of oxides of nitrogen resulting from adding
oxygenates to gasoline may be offset by an equivalent
or greater reduction (on a mass basis) in emissions of
volatile organic compounds, carbon monoxide, or toxic
air pollutants, or any combination of the foregoing.
``(D) Compliance period.--The Administrator shall
promulgate an appropriate compliance period or
appropriate compliance periods to be used for assessing
compliance with the prohibition contained in
subparagraph (A).
``(E) Baseline for determining compliance.--If the
Administrator determines that no adequate and reliable
data exists regarding the composition of gasoline sold
or introduced into commerce by a refiner, blender, or
importer in calendar year 1990, for such refiner,
blender, or importer, baseline gasoline shall be
substituted for such 1990 gasoline in determining
compliance with subparagraph (A).
``(9) Emissions from entire vehicle.--In applying the
requirements of this subsection, the Administrator shall take
into account emissions from the entire motor vehicle, including
evaporative, running, refueling, and exhaust emissions.
``(10) Definitions.--For purposes of this subsection--
``(A) Baseline vehicles.--The term `baseline
vehicles' mean representative model year 1990 vehicles.
``(B) Baseline gasoline.--
``(i) Summertime.--The term `baseline
gasoline' means in the case of gasoline sold
during the high ozone period (as defined by the
Administrator) a gasoline which meets the
following specifications:
BASELINE GASOLINE FUEL PROPERTIES
API Gravity........................... 57.4
Sulfur, ppm........................... 339
Benzene, %............................ 1.53
RVP, psi.............................. 8.7
Octane, R+M/2......................... 87.3
IBP, F................................ 91
10%, F................................ 128
50%, F................................ 218
90%, F................................ 330
End Point, F.......................... 415
Aromatics, %.......................... 32.0
Olefins, %............................ 9.2
Saturates, %.......................... 58.8
``(ii) Wintertime.--The Administrator shall
establish the specifications of `baseline
gasoline' for gasoline sold at times other than
the high ozone period (as defined by the
Administrator). Such specifications shall be
the specifications of 1990 industry average
gasoline sold during such period.
``(C) Toxic air pollutants.--The term `toxic air
pollutants' means the aggregate emissions of the
following: Benzene, 3 Butadiene, Polycyclic organic
matter (POM), Acetaldehyde, Formaldehyde.
``(D) Covered area.--The 9 ozone nonattainment
areas having a 1980 population in excess of 250,000 and
having the highest ozone design value during the period
1987 through 1989 shall be ``covered areas'' for
purposes of this subsection. Effective one year after
the reclassification of any ozone nonattainment area as
a Severe ozone nonattainment area under section 181(b),
such Severe area shall also be a ``covered area'' for
purposes of this subsection.
``(E) Federal clean burning gasoline.--The term
`Federal clean burning gasoline' means any gasoline
which is certified by the Administrator under this
section as complying with this subsection.
``(F) Conventional gasoline.--The term
`conventional gasoline' means any gasoline which does
not meet specifications set by a certification under
this subsection and which is not low RVP gasoline
meeting the requirements of section 211(h)(6).''.
(2) The Clean Air Act is amended by striking the term
``reformulated gasoline'' in each place it appears and inserting in
lieu thereof ``Federal clean burning fuel''.
(3) Except for purposes of section 211(v)(4)(D)(i) of the Clean Air
Act, as added by subsection (a) of this section, the amendments made by
this subsection shall take effect on the date 4 years after the
enactment of this Act. For purposes of such section 211(v)(4)(D)(i),
the amendments made by this subsection shall take effect on the date of
the enactment of this Act.
SEC. 3. REPEAL OF OXYGEN CONTENT REQUIREMENT FOR CERTAIN REFORMULATED
GASOLINE.
Effective January 1, 2003, sections 211(k)(2)(B), and
211(k)(3)(A)(v), and 211(k)(7)(A)(i) of the Clean Air Act are repealed.
SEC. 4. ELIMINATION OF MTBE.
Section 211(f) of the Clean Air Act (42 U.S.C.7545(f)) is amended
by adding the following new paragraph after paragraph (5):
``(6) After January 1, 2006, it shall be unlawful for any
manufacturer of any fuel to introduce into commerce any gasoline which
contains methyl tertiary butyl ether (MTBE).''.
SEC. 5. RENEWABLE FUELS CONTENT OF GASOLINE.
Title II of the Clean Air Act is amended by adding the following
new section after section 211:
``SEC. 212. RENEWABLE FUELS CONTENT OF GASOLINE.
``(a) Definitions.--In this section:
``(1) Biomass.--The term `biomass' means lignocellulosic or
hemicellulosic matter that is available on a renewable basis,
including dedicated energy crops and trees, wood and wood
residues, plants, grasses, agricultural commodities and
residues, fibers; and animal waste, municipal solid waste, and
other waste.
``(2) Renewable fuel.--The term `renewable fuel' means fuel
that--
``(A) is ethanol or any other liquid fuel produced
from biomass; and
``(B) is used to reduce the quantity of fossil fuel
present in gasoline used to operate a motor vehicle.
``(3) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(b) Renewable Fuel Program.--
``(1) In general.--The gasoline sold or introduced into
commerce in the United States in the calendar year 2003 or any
calendar year thereafter by a refiner, blender, or importer for
use in motor vehicles shall, on an average annual basis, be
comprised of a quantity of renewable fuel that is not less than
the applicable percentage by volume for the annual period.
``(2) Applicable percentage.--
``(A) In general.--For the purposes of paragraph
(1), the applicable percentage for any calendar year
shall be determined in accordance with the following
schedule, unless modified under subparagraph (B):
Calendar year: Applicable percentage of renewable
fuel:
2003.......................................... 1.61
up to 2011 and thereafter..................... 2.43
``(B) Adjustments to applicable percentage.--On
petition submitted by a State, the Administrator, in
consultation with the Secretary of Energy and the
Secretary of Agriculture, may lower the applicable
percentage specified in subparagraph (A) for one
calendar year with respect to gasoline sold or
introduced into commerce in the State, if the
Administrator, after public notice and opportunity for
comment, determines that during the calendar year there
is likely to be an inadequate domestic supply or
distribution capacity in the State to meet the applicable percentage
specified in subparagraph (A) for the calendar year.
``(C) Petitions for adjustment.--
``(i) Submission.--A State shall submit a
petition under subparagraph (B) not later than
April 1 of the year preceding the calendar year
for which the adjustment is sought.
``(ii) Action on petitions.--The
Administrator, in consultation with the
Secretary of Energy and the Secretary of
Agriculture, shall approve or deny a State
petition before the beginning of the calendar
year.
``(c) Credit Program.--
``(1) In general.--Not later than 6 months after the date
of enactment of this Act, the Administrator, in consultation
with the Secretary of Energy and the Secretary of Agriculture,
shall promulgate regulations providing for the generation of an
appropriate amount of credits by a person that refines, blends,
or imports gasoline that contains, on an annual average basis,
a quantity of renewable fuel that is greater than the quantity
required for that annual period under subsection (b).
``(2) Use of credits.--A person that generates credits
under paragraph (1) may use the credits, hold the credits for
later use, or transfer all or a portion of the credits to
another person, for the purpose of complying with subsection
(b).
``(3) Inability to purchase sufficient credits.--The
regulations under paragraph (1) shall include provisions
allowing a refiner, blender, or importer that is unable to
purchase sufficient credits to meet the requirements of
subsection (b) to enter into an enforceable agreement to
generate or purchase sufficient credits to make up for any
deficiency within a period of time specified in the agreement.
``(4) Testing; reports.--The regulations under paragraph
(1) may include provisions requiring a refiner, blender, or
importer--
``(A) to conduct tests to ascertain the composition
of fuels for the purpose of compliance with subsection
(b); and
``(B) to submit to the Administrator periodic
reports on the composition of the fuels refined,
blended, or imported.
``(d) Civil Penalties and Enforcement.--
``(1) Civil penalties.--
``(A) In general.--The Administrator may impose
against a person that fails to comply with subsection
(b) or with a regulation under subsection (c) a civil
penalty in the amount of--
``(i) not more than $25,000 for each day of
the failure to comply; plus
``(ii) the amount of economic benefit
realized by the person as a result of the
failure to comply.
``(B) Averaging period.--Any failure to comply with
respect to a regulation under subsection (c) for any
calendar year shall constitute a separate day of
failure of compliance for each day of such year.
``(2) Enforcement.--The Administrator may bring a civil
action in United States district court for--
``(A) an order enjoining a failure to comply with
subsection (b) or with a regulation under subsection
(c); and
``(B) other appropriate relief.
``(e) Congressional Support for Ethanol.--It is the sense of the
Congress that it is in the national interest to support the promotion
of ethanol as the primary renewable fuel to be used for purposes of
satisfying the requirements of this section.''.
SEC. 6. STUDY OF EFFECT ON AIR QUALITY.
Within 7 years after the enactment of this Act, the Administrator
of the Environmental Protection Agency shall complete and publish a
study of the changes in the emissions of any air pollutant and in air
quality attributable to the amendments made by this Act.
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