[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 950 Reported in Senate (RS)]






                                                       Calendar No. 302
107th CONGRESS
  1st Session
                                 S. 950

                          [Report No. 107-131]

   To amend the Clean Air Act to address problems concerning methyl 
             tertiary butyl ether, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2001

 Mr. Smith of New Hampshire (for himself, Mr. Reid, Mr. Schumer, Mrs. 
   Feinstein, Mr. Chafee, Mr. Corzine, and Ms. Snowe) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Environment and Public Works

            December 20 (legislative day, December 18), 2001

               Reported by Mr. Jeffords, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
   To amend the Clean Air Act to address problems concerning methyl 
             tertiary butyl ether, 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 ``Federal Reformulated Fuels Act of 
2001''.

SEC. 2. LEAKING UNDERGROUND STORAGE TANKS.

    (a) Use of LUST Funds for Remediation of MTBE Contamination.--
Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C. 6991b(h)) is 
amended--
            (1) in paragraph (7)(A)--
                    (A) by striking ``paragraphs (1) and (2) of this 
                subsection'' and inserting ``paragraphs (1), (2), and 
                (12)''; and
                    (B) by inserting ``and section <DELETED>9010(a)</DELETED> 
                9010'' before ``if''; and
            (2) by adding at the end the following:
            ``(12) Remediation of mtbe contamination.--
                    ``(A) In general.--The Administrator and the States 
                may use funds made available under section 9011(1) to 
                carry out corrective actions with respect to a release 
                of methyl tertiary butyl ether that presents a threat 
                to human health, welfare, or the environment.
                    ``(B) Applicable authority.--Subparagraph (A) shall 
                be carried out--
                            ``(i) in accordance with paragraph (2); and
                            ``(ii) in the case of a State, in 
                        accordance with a cooperative agreement entered 
                        into by the Administrator and the State under 
                        paragraph (7).''.
    (b) Release Prevention and Compliance.--Subtitle I of the Solid 
Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended by striking 
section 9010 and inserting the following:

``SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.

    ``Funds made available under section 9011(2) from the Leaking 
Underground Storage Tank Trust Fund may be used for conducting 
inspections, or for issuing orders or bringing actions under this 
subtitle--
            ``(1) by a State (pursuant to section 9003(h)(7)) acting 
        under--
                    ``(A) a program approved under section 9004; or
                    ``(B) State requirements regulating underground 
                storage tanks that are similar or identical to this 
                subtitle; and
            ``(2) by the Administrator, acting under this subtitle or a 
        State program approved under section 9004.

``SEC. 9011. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to amounts made available under section 2007(f), 
there are authorized to be appropriated from the Leaking Underground 
Storage Tank Trust Fund--
            ``(1) to carry out section 9003(h)(12), $200,000,000 for 
        fiscal year 2002, to remain available until expended; and
            ``(2) to carry out section 9010--
                    ``(A) $50,000,000 for fiscal year 2002; and
                    ``(B) $30,000,000 for each of fiscal years 2003 
                through 2007.''.
    (c) Technical Amendments.--
            (1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C. 
        prec. 6901) is amended by striking the item relating to section 
        9010 and inserting the following:

``Sec. 9010. Release prevention and compliance.
``Sec. 9011. Authorization of appropriations.''.
            (2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 
        U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and 
        inserting ``substances''.
            (3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 
        U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and 
        (d) of this section'' and inserting ``subsections (c) and 
        (d)''.
            (4) Section 9004(a) of the Solid Waste Disposal Act (42 
        U.S.C. 6991c(a)) is amended in the second sentence by striking 
        ``referred to'' and all that follows and inserting ``referred 
        to in subparagraph (A) or (B), or both, of section 9001(2).''.
            (5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 
        6991d) is amended--
                    (A) in subsection (a), by striking ``study taking'' 
                and inserting ``study, taking'';
                    (B) in subsection (b)(1), by striking ``relevent'' 
                and inserting ``relevant''; and
                    (C) in subsection (b)(4), by striking 
                ``Evironmental'' and inserting ``Environmental''.

SEC. 3. AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS.

    (a) In General.--Section 211(c) of the Clean Air Act (42 U.S.C. 
7545(c)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by inserting ``fuel or fuel additive or'' after 
                ``Administrator any''; and
                    (B) by striking ``air pollution which'' and 
                inserting ``air pollution, or water pollution, that'';
            (2) in paragraph (4)(B), by inserting ``or water quality 
        protection,'' after ``emission control,''; and
            (3) by adding at the end the following:
            ``(5) Ban on the use of mtbe.--Not later than 4 years after 
        the date of enactment of this paragraph, the Administrator 
shall ban use of methyl tertiary butyl ether in motor vehicle fuel.''.
    (b) No Effect on Law Regarding 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 gasoline.

SEC. 4. WAIVER OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED GASOLINE.

    Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is 
amended--
            (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,''; and
            (2) by adding at the end the following:
                    ``(B) Waiver of oxygen content requirement.--
                            ``(i) Authority of the governor.--
                                    ``(I) In general.--Notwithstanding 
                                any other provision of this subsection, 
                                a Governor of a State, upon 
                                notification by the Governor to the 
                                Administrator during the 90-day period 
                                beginning on the date of enactment of 
                                this subparagraph, or during the 90-day 
                                period beginning on the date on which 
                                an area in the State becomes a covered 
                                area by operation of the second 
                                sentence of paragraph <DELETED>(11)(D)</DELETED> 
                                (10)(D), may waive the application of 
                                paragraphs (2)(B) and (3)(A)(v) to 
                                gasoline sold or dispensed in the 
                                State.
                                    ``(II) Opt-in areas.--A Governor of 
                                a State that submits an application 
                                under paragraph (6) may, as part of 
                                that application, waive the application 
                                of paragraphs (2)(B) and (3)(A)(v) to 
                                gasoline sold or dispensed in the 
                                State.
                            ``(ii) Treatment as reformulated 
                        gasoline.--In the case of a State for which the 
                        Governor invokes the waiver described in clause 
                        (i), gasoline that complies with all provisions 
                        of this subsection other than paragraphs (2)(B) 
                        and (3)(A)(v) shall be considered to be 
                        reformulated gasoline for the purposes of this 
                        subsection.
                            ``(iii) Effective date of waiver.--A waiver 
                        under clause (i) shall take effect on the 
                        earlier of--
                                    ``(I) the date on which the 
                                performance standards under 
                                subparagraph (C) take effect; or
                                    ``(II) the date that is 270 days 
                                after the date of enactment of this 
                                subparagraph.
                    ``(C) Maintenance of toxic air pollutant emission 
                reductions.--
                            ``(i) In general.--As soon as practicable 
                        after the date of enactment of this 
                        subparagraph, the Administrator shall--
                                    ``(I) promulgate regulations 
                                consistent with subparagraph (A) and 
                                paragraph (3)(B)(ii) to ensure that 
                                reductions of toxic air pollutant 
                                emissions achieved under the 
                                reformulated gasoline program under 
                                this section before the date of 
                                enactment of this subparagraph are 
                                maintained in States for which the 
                                Governor waives the oxygenate 
                                requirement under subparagraph (B)(i); 
                                or
                                    ``(II) determine that the 
                                requirement described in clause (iv)--
                                            ``(aa) is consistent with 
                                        the bases for performance 
                                        standards described in clause 
                                        (ii); and
                                            ``(bb) shall be deemed to 
                                        be the performance standards 
                                        under clause (ii) and shall be 
                                        applied in accordance with 
                                        clause (iii).
                            ``(ii) PADD performance standards.--The 
                        Administrator, in regulations promulgated under 
                        clause (i)(I), shall establish annual average 
                        performance standards for each Petroleum 
                        Administration for Defense District (referred 
                        to in this subparagraph as a `PADD') based on--
                                    ``(I) the average of the annual 
                                aggregate reductions in emissions of 
                                toxic air pollutants achieved under the 
                                reformulated gasoline program in each 
                                PADD during calendar years 1999 and 
                                2000, determined on the basis of the 
                                1999 and 2000 Reformulated Gasoline 
                                Survey Data, as collected by the 
                                Administrator; and
                                    ``(II) such other information as 
                                the Administrator determines to be 
                                appropriate.
                            ``(iii) Applicability.--
                                    ``(I) In general.--The performance 
                                standards under this subparagraph shall 
                                be applied on an annual average 
                                importer or refinery-by-refinery basis 
                                to reformulated gasoline that is sold 
                                or introduced into commerce in a State 
                                for which the Governor waives the 
                                oxygenate requirement under 
                                subparagraph (B)(i).
                                    ``(II) More stringent 
                                requirements.--The performance 
                                standards under this subparagraph shall 
                                not apply to the extent that any 
                                requirement under section 202(l) is 
                                more stringent than the performance 
                                standards.
                                    ``(III) State standards.--The 
                                performance standards under this 
                                subparagraph shall not apply in any 
                                State that has received a waiver under 
                                section 209(b).
                                    ``(IV) Credit program.--The 
                                Administrator shall provide for the 
                                granting of credits for exceeding the 
                                performance standards under this 
                                subparagraph in the same manner as 
                                provided in paragraph (7).
                            ``(iv) Statutory performance standards.--
                                    ``(I) In general.--Subject to 
                                subclause (IV), if the regulations 
                                under clause (i)(I) have not been 
                                promulgated by the date that is 270 
                                days after the date of enactment of 
                                this subparagraph, the requirement 
                                described in subclause (III) shall be 
                                deemed to be the performance standards 
                                under clause (ii) and shall be applied 
                                in accordance with clause (iii).
                                    ``(II) Publication in federal 
                                register.--Not later than 30 days after 
                                the date of enactment of this 
                                subparagraph, the Administrator shall 
                                publish in the Federal Register, 
for each PADD, the percentage equal to the average of the annual 
aggregate reductions in the PADD described in clause (ii)(I).
                                    ``(III) Toxic air pollutant 
                                emissions.--The annual aggregate 
                                emissions of toxic air pollutants from 
                                baseline vehicles when using 
                                reformulated gasoline in each PADD 
                                shall be not greater than--
                                            ``(aa) the aggregate 
                                        emissions of toxic air 
                                        pollutants from baseline 
                                        vehicles when using baseline 
                                        gasoline in the PADD; reduced 
                                        by
                                            ``(bb) the quantity 
                                        obtained by multiplying the 
                                        aggregate emissions described 
                                        in item (aa) for the PADD by 
                                        the percentage published under 
                                        subclause (II) for the PADD.
                                    ``(IV) Subsequent regulations.--
                                Through promulgation of regulations 
                                under clause (i)(I), the Administrator 
                                may modify the performance standards 
                                established under subclause (I) to 
                                require each PADD to achieve a greater 
                                percentage reduction than the 
                                percentage published under subclause 
                                (II) for the PADD.''.

SEC. 5. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL 
              ADDITIVES.

    Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``may also'' and inserting ``shall, 
                on a regular basis,''; and
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) to conduct tests to determine potential 
                public health and environmental effects of the fuel or 
                additive (including carcinogenic, teratogenic, or 
                mutagenic effects); and''; and
            (2) by adding at the end the following:
            ``(4) Ethyl tertiary butyl ether.--
                    ``(A) In general.--Not later than 2 years after the 
                date of enactment of this paragraph, the Administrator 
                shall--
                            ``(i) conduct a study on the effects on 
                        public health, air quality, and water resources 
                        of increased use of, and the feasibility of 
                        using as substitutes for methyl tertiary butyl 
                        ether in gasoline--
                                    ``(I) ethyl tertiary butyl ether; 
                                and
                                    ``(II) other ethers, as determined 
                                by the Administrator; and
                            ``(ii) submit to the Committee on Energy 
                        and Commerce of the House of Representatives 
                        and the Committee on Environment and Public 
                        Works of the Senate a report describing the 
                        results of the study.
                    ``(B) Contracts for study.--In carrying out this 
                paragraph, the Administrator may enter into 1 or more 
                contracts with nongovernmental entities.''.

SEC. 6. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended--
            (1) by redesignating subsection (o) as subsection (p); and
            (2) by inserting after subsection (n) the following:
    ``(o) Analyses of Motor Vehicle Fuel Changes and Emissions Model.--
            ``(1) Anti-backsliding analysis.--
                    ``(A) Draft analysis.--Not later than 4 years after 
                the date of enactment of this subsection, the 
                Administrator shall publish for public comment a draft 
                analysis of the changes in emissions of air pollutants 
                and air quality due to the use of motor vehicle fuel 
                and fuel additives resulting from implementation of the 
                amendments made by the Federal Reformulated Fuels Act 
                of 2001.
                    ``(B) Final analysis.--After providing a reasonable 
                opportunity for comment but not later than 5 years 
                after the date of enactment of this subsection, the 
                Administrator shall publish the analysis in final form.
            ``(2) Emissions model.--For the purposes of this 
        subsection, as soon as the necessary data are available, the 
        Administrator shall develop and finalize an emissions model 
        that reasonably reflects the effects of fuel characteristics or 
        components on emissions from vehicles in the motor vehicle 
        fleet during calendar year 2005.''.

SEC. 7. ELIMINATION OF ETHANOL WAIVER.

    Section 211(h) of the Clean Air Act (42 U.S.C. 7545(h)) is 
amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraph (5) as paragraph (4).

SEC. 8. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE PROGRAM.

    Section 211(k)(6) of the Clean Air Act (42 U.S.C. 7545(k)(6)) is 
amended--
            (1) by striking ``(6) Opt-in areas.--(A) Upon'' and 
        inserting the following:
            ``(6) Opt-in areas.--
                    ``(A) Classified areas.--
                            ``(i) In general.--Upon'';
            (2) in subparagraph (B), by striking ``(B) If'' and 
        inserting the following:
                            ``(ii) Effect of insufficient domestic 
                        capacity to produce reformulated gasoline.--
                        If'';
            (3) in subparagraph (A)(ii) (as so redesignated)--
                    (A) in the first sentence, by striking 
                ``subparagraph (A)'' and inserting ``clause (i)''; and
                    (B) in the second sentence, by striking ``this 
                paragraph'' and inserting ``this subparagraph''; and
            (4) by adding at the end the following:
                    ``(B) Nonclassified areas.--
                            ``(i) In general.--In accordance with 
                        section 110, a State may submit to the 
                        Administrator, and the Administrator may 
                        approve, a State implementation plan revision 
                        that provides for application of the 
                        prohibition specified in paragraph (5) in any 
                        portion of the State that is not a covered area 
                        or an area referred to in subparagraph (A)(i).
                            ``(ii) Period of effectiveness.--Under 
                        clause (i), the State implementation plan shall 
                        establish a period of effectiveness for 
                        applying the prohibition specified in paragraph 
                        (5) to a portion of a State that--
                                    ``(I) commences not later than 1 
                                year after the date of approval by the 
                                Administrator of the State 
                                implementation plan; and
                                    ``(II) ends not earlier than 4 
                                years after the date of commencement 
                                under subclause (I).''.

SEC. 9. MTBE MERCHANT PRODUCER CONVERSION ASSISTANCE.

    Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) (as amended 
by section 3(a)(3)) is amended by adding at the end the following:
            ``(6) MTBE merchant producer conversion assistance.--
                    ``(A) In general.--The Administrator may make 
                grants to merchant producers of methyl tertiary butyl 
                ether in the United States to assist the producers in 
                the conversion of eligible production facilities 
                described in subparagraph (B) to the production of 
                other fuel additives that--
                            ``(i) will be consumed in nonattainment 
                        areas;
                            ``(ii) will assist the nonattainment areas 
                        in achieving attainment with a national primary 
                        ambient air quality standard;
                            ``(iii) will not degrade air quality or 
                        surface or ground water quality or resources; 
                        and
                            ``(iv) have been registered and tested in 
                        accordance with the requirements of this 
                        section.
                    ``(B) Eligible production facilities.--A production 
                facility shall be eligible to receive a grant under 
                this paragraph if the production facility--
                            ``(i) is located in the United States; and
                            ``(ii) produced methyl tertiary butyl ether 
                        for consumption in nonattainment areas during 
                        the period--
                                    ``(I) beginning on the date of 
                                enactment of this paragraph; and
                                    ``(II) ending on the effective date 
                                of the ban on the use of methyl 
                                tertiary butyl ether under paragraph 
                                (5).
                    ``(C) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $250,000,000 for each of fiscal years 2002 
                through 2004.''.




                                                       Calendar No. 302

107th CONGRESS

  1st Session

                                 S. 950

                          [Report No. 107-131]

_______________________________________________________________________

                                 A BILL

   To amend the Clean Air Act to address problems concerning methyl 
             tertiary butyl ether, and for other purposes.

_______________________________________________________________________

            December 20 (legislative day, December 18), 2001

                        Reported with amendments