[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 385 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 385

  To amend the Clean Air Act to eliminate methyl tertiary butyl ether 
 from the United States fuel supply, to increase production and use of 
 renewable fuel, and to increase the Nation's energy independence, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 13, 2003

    Mr. Daschle (for himself, Mr. Lugar, Mr. Hagel, Mr. Dorgan, Mr. 
 Johnson, Mr. Voinovich, Mr. Harkin, Mr. Bond, Mr. Nelson of Nebraska, 
 Mr. Grassley, Mr. Durbin, Mr. Talent, Mr. Dayton, Mr. Fitzgerald, Mr. 
Coleman, and Mr. Conrad) introduced the following bill; which was read 
  twice and referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
  To amend the Clean Air Act to eliminate methyl tertiary butyl ether 
 from the United States fuel supply, to increase production and use of 
 renewable fuel, and to increase the Nation's energy independence, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fuels Security Act 
of 2003''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Renewable content of motor vehicle fuel.
Sec. 102. Federal agency ethanol-blended gasoline and biodiesel 
                            purchasing requirement.
Sec. 103. Commercial byproducts from municipal solid waste loan 
                            guarantee program.
Sec. 104. Data collection.
                  TITLE II--FEDERAL REFORMULATED FUELS

Sec. 201. Short title.
Sec. 202. Leaking underground storage tanks.
Sec. 203. Authority for water quality protection from fuels.
Sec. 204. Elimination of oxygen content requirement for reformulated 
                            gasoline.
Sec. 205. Public health and environmental impacts of fuels and fuel 
                            additives.
Sec. 206. Analyses of motor vehicle fuel changes.
Sec. 207. Additional opt-in areas under reformulated gasoline program.
Sec. 208. Federal enforcement of State fuels requirements.
Sec. 209. Fuel system requirements harmonization study.
Sec. 210. Review of Federal procurement initiatives relating to use of 
                            recycled products and fleet and 
                            transportation efficiency.

SEC. 101. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
            (1) by redesignating subsection (o) as subsection (q); and
            (2) by inserting after subsection (n) the following:
    ``(o) Renewable Fuel Program.--
            ``(1) Definitions.--In this section:
                    ``(A) Cellulosic biomass ethanol.--The term 
                `cellulosic biomass ethanol' means ethanol derived from 
                any lignocellulosic or hemicellulosic matter that is 
                available on a renewable or recurring basis, 
                including--
                            ``(i) dedicated energy crops and trees;
                            ``(ii) wood and wood residues;
                            ``(iii) plants;
                            ``(iv) grasses;
                            ``(v) agricultural residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other waste 
                        materials; and
                            ``(viii) municipal solid waste.
                    ``(B) Renewable fuel.--
                            ``(i) In general.--The term `renewable 
                        fuel' means motor vehicle fuel that--
                                    ``(I)(aa) is produced from grain, 
                                starch, oilseeds, or other biomass; or
                                    ``(bb) is natural gas produced from 
                                a biogas source, including a landfill, 
                                sewage waste treatment plant, feedlot, 
                                or other place where decaying organic 
                                material is found; and
                                    ``(II) is used to replace or reduce 
                                the quantity of fossil fuel present in 
                                a fuel mixture used to operate a motor 
                                vehicle.
                            ``(ii) Inclusion.--The term `renewable 
                        fuel' includes cellulosic biomass ethanol and 
                        biodiesel (as defined in section 312(f) of the 
                        Energy Policy Act of 1992 (42 U.S.C. 
                        13220(f))).
                    ``(C) Small refinery.--The term `small refinery' 
                means a refinery for which average aggregate daily 
                crude oil throughput for the calendar year (as 
                determined by dividing the aggregate throughput for the 
                calendar year by the number of days in the calendar 
                year) does not exceed 75,000 barrels.
            ``(2) Renewable fuel program.--
                    ``(A) In general.--Not later than 1 year from 
                enactment of this provision, the Administrator shall 
                promulgate regulations ensuring that gasoline sold or 
                dispensed to consumers in the United States, on an 
                annual average basis, contains the applicable volume of 
                renewable fuel as specified in subparagraph (B). 
                Regardless of the date of promulgation, such 
                regulations shall contain compliance provisions for 
                refiners, blenders, and importers, as appropriate, to 
                ensure that the requirements of this section are met, 
                but shall not restrict where renewables can be used, or 
                impose any per-gallon obligation for the use of 
                renewables. If the Administrator does not promulgate 
                such regulations, the applicable percentage, on a 
                volume percentage of gasoline basis, shall be 1.62 in 
                2004.
                    ``(B) Applicable volume.--
                            (i) Calendar years 2004 through 2012.--For 
                        the purpose of subparagraph (A), the applicable 
                        volume for any of calendar years 2004 through 
                        2012 shall be determined in accordance with the 
                        following table:

                  Applicable volume of renewable fuel

    ``Calendar year:                           (In billions of gallons)
                2004.......................................        2.3 
                2005.......................................        2.6 
                2006.......................................        2.9 
                2007.......................................        3.2 
                2008.......................................        3.5 
                2009.......................................        3.9 
                2010.......................................        4.3 
                2011.......................................        4.7 
                2012.......................................        5.0.
                            ``(ii) Calendar year 2013 and thereafter.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for calendar year 2013 and 
                        each calendar year thereafter shall be equal to 
                        the product obtained by multiplying--
                                    ``(I) the number of gallons of 
                                gasoline that the Administrator 
                                estimates will be sold or introduced 
                                into commerce in the calendar year; and
                                    ``(II) the ratio that--
                                            ``(aa) 5.0 billion gallons 
                                        of renewable fuels; bears to
                                            ``(bb) the number of 
                                        gallons of gasoline sold or 
                                        introduced into commerce in 
                                        calendar year 2012.
            ``(3) Applicable percentages.--Not later than October 31 of 
        each calendar year, through 2011, the Administrator of the 
        Energy Information Administration shall provide the 
        Administrator an estimate of the volumes of gasoline sales in 
        the United States for the coming calendar year. Based on such 
        estimates, the Administrator shall by November 30 of each 
        calendar year, through 2011, determine and publish in the 
        Federal Register, the renewable fuel obligation, on a volume 
        percentage of gasoline basis, applicable to refiners, blenders, 
        distributors and importers, as appropriate, for the coming 
        calendar year, to ensure that the requirements of paragraph (2) 
        are met. For each calendar year, the Administrator shall 
        establish a single applicable percentage that applies to all 
        parties, and make provision to avoid redundant obligations. In 
        determining the applicable percentages, the Administrator shall 
        make adjustments to account for the use of renewable fuels by 
        exempt small refineries during the previous year.
            ``(4) Cellulosic biomass ethanol.--For the purpose of 
        paragraph (2), 1 gallon of cellulosic biomass ethanol shall be 
        considered to be the equivalent of 1.5 gallon of renewable 
        fuel.
            ``(5) Credit program.--
                    ``(A) In general.--The regulations promulgated to 
                carry out this subsection shall provide for the 
                generation of an appropriate amount of credits by any 
                person that refines, blends, or imports gasoline that 
                contains a quantity of renewable fuel that is greater 
                than the quantity required under paragraph (2). Such 
                regulations shall provide for the generation of an 
                appropriate amount of credits for biodiesel fuel. If a 
                small refinery notifies the Administrator that it 
                waives the exemption provided by this Act, the 
                regulations shall provide for the generation of credits 
                by the small refinery beginning in the year following 
                such notification.
                    ``(B) Use of credits.--A person that generates 
                credits under subparagraph (A) may use the credits, or 
                transfer all or a portion of the credits to another 
                person, for the purpose of complying with paragraph 
                (2).
                    ``(C) Life of credits.--A credit generated under 
                this paragraph shall be valid to show compliance:
                            ``(i) in the calendar year in which the 
                        credit was generated or the next calendar year, 
                        or
                            ``(ii) in the calendar year in which the 
                        credit was generated or next two consecutive 
                        calendar years if the Administrator promulgates 
                        regulations under paragraph (6).
                    ``(D) Inability to purchase sufficient credits.--
                The regulations promulgated to carry out this 
                subsection shall include provisions allowing any person 
                that is unable to generate or purchase sufficient 
                credits to meet the requirements under paragraph (2) to 
                carry forward a renewables deficit provided that, in 
                the calendar year following the year in which the 
                renewables deficit is created, such person shall 
                achieve compliance with the renewables requirement 
                under paragraph (2), and shall generate or purchase 
                additional renewables credits to offset the renewables 
                deficit of the previous year.
            ``(6) Seasonal variations in renewable fuel use.--
                    ``(A) Study.--For each of calendar years 2004 
                through 2012, the Administrator of the Energy 
                Information Administration, shall conduct a study of 
                renewable fuels blending to determine whether there are 
                excessive seasonal variations in the use of renewable 
                fuels.
                    ``(B) Regulation of excessive seasonal 
                variations.--If, for any calendar year, the 
                Administrator of the Energy Information Administration, 
                based on the study under subparagraph (A), makes the 
                determinations specified in subparagraph (C), the 
                Administrator shall promulgate regulations to ensure 
                that 35 percent or more of the quantity of renewable 
                fuels necessary to meet the requirement of paragraph 
                (2) is used during each of the periods specified in 
                subparagraph (D) of each subsequent calendar year.
                    ``(C) Determinations.--The determinations referred 
                to in subparagraph (B) are that--
                            ``(i) less than 35 percent of the quantity 
                        of renewable fuels necessary to meet the 
                        requirement of paragraph (2) has been used 
                        during one of the periods specified in 
                        subparagraph (D) of the calendar year; and
                            ``(ii) a pattern of excessive seasonal 
                        variation described in clause (i) will continue 
                        in subsequent calendar years.
                    ``(D) Periods.--The two periods referred to in this 
                paragraph are--
                            ``(i) April through September; and
                            ``(ii) January through March and October 
                        through December.
                    ``(E) Exclusions.--Renewable fuels blended or 
                consumed in 2004 in a state which has received a waiver 
                under section 209(b) shall not be included in the study 
                in subparagraph (A).
            ``(7) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, may waive the requirement of 
                paragraph (2) in whole or in part on petition by one or 
                more States by reducing  the national quantity of 
renewable fuel required under this subsection--
                            ``(i) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that implementation of 
                        the requirement would severely harm the economy 
                        or environment of a State, a region, or the 
                        United States; or
                            ``(ii) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that there is an 
                        inadequate domestic supply or distribution 
                        capacity to meet the requirement.
                     ``(B) Petitions for waivers.--The Administrator, 
                in consultation with the Secretary of Agriculture and 
                the Secretary of Energy, shall approve or disapprove a 
                State petition for a waiver of the requirement of 
                paragraph (2) within 90 days after the date on which 
                the petition is received by the Administrator.
                    ``(C) Termination of waivers.--A waiver granted 
                under subparagraph (A) shall terminate after 1 year, 
                but may be renewed by the Administrator after 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy.
            ``(8) Study and waiver for initial year of program.--Not 
        later than 180 days from enactment, the Secretary of Energy 
        shall complete for the Administrator a study assessing whether 
        the renewable fuels requirement under paragraph (2) will likely 
        result in significant adverse consumer impacts in 2004, on a 
        national, regional or state basis. Such study shall evaluate 
        renewable fuel supplies and prices, blendstock supplies, and 
        supply and distribution system capabilities. Based on such 
        study, the Secretary shall make specific recommendations to the 
        Administrator regarding waiver of the requirements of paragraph 
        (2), in whole or in part, to avoid any such adverse impacts. 
        Within 270 days from enactment, the Administrator shall, 
        consistent with the recommendations of the Secretary waive, in 
        whole or in part, the renewable fuels requirement under 
        paragraph (2) by reducing the national quantity of renewable 
        fuel required under this subsection in 2004. This provision 
        shall not be interpreted as limiting the Administrator's 
        authority to waive the requirements of paragraph (2) in whole, 
        or in part, under paragraph (7), pertaining to waivers.
            ``(9) Small refineries.--
                    ``(A) In general.--The requirement of paragraph (2) 
                shall not apply to small refineries until January 1, 
                2008. Not later than December 31, 2006, the Secretary 
                of Energy shall complete for the Administrator a study 
                to determine whether the requirement of paragraph (2) 
                would impose a disproportionate economic hardship on 
                small refineries. For any small refinery that the 
                Secretary of Energy determines would experience a 
                disproportionate economic hardship, the Administrator 
                shall extend the small refinery exemption for such 
                small refinery for no less than two additional years.
                    ``(B) Economic hardship.--
                            ``(i) Extension of exemption.--A small 
                        refinery may at any time petition the 
                        Administrator for an extension of the exemption 
                        from the requirement of paragraph (2) for the 
                        reason of disproportionate economic hardship. 
                        In evaluating a hardship petition, the 
                        Administrator, in consultation with the 
                        Secretary of Energy, shall consider the 
                        findings of the study in addition to other 
                        economic factors.
                            ``(ii) Deadline for action on petitions.--
                        The Administrator shall act on any petition 
                        submitted by a small refinery for a hardship 
                        exemption not later than 90 days after the 
                        receipt of the petition.
                    ``(C) Credit program.--If a small refinery notifies 
                the Administrator that it waives the exemption provided 
                by this Act, the regulations shall provide for the 
                generation of credits by the small refinery beginning 
                in the year following such notification.
                    ``(D) Opt-in for small refiners.--A small refinery 
                shall be subject to the requirements of this section if 
                it notifies the Administrator that it waives the 
                exemption under subparagraph (A).
    (b) Penalties and Enforcement.--Section 211(d) of the Clean Air Act 
(42 U.S.C. 7545(d)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``or (n)'' 
                each place it appears and inserting ``(n) or (o)''; and
                    (B) in the second sentence, by striking ``or (m)'' 
                and inserting ``(m), or (o)''; and
            (2) in the first sentence of paragraph (2), by striking 
        ``and (n)'' each place it appears and inserting ``(n), and 
        (o)''.
    (c) Exclusion From Ethanol Waiver.--Section 211(h) of the Clean Air 
Act (42 U.S.C. 7545(h)) is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
        ``(5) Exclusion from ethanol waiver.--
                    ``(A) Promulgation of regulations.--Upon 
                notification, accompanied by supporting documentation, 
                from the Governor of a State that the Reid vapor 
                pressure limitation established by paragraph (4) will 
                increase emissions that contribute to air pollution in 
                any area in the State, the Administrator shall, by 
                regulation, apply, in lieu of the Reid vapor pressure 
                limitation established by paragraph (4), the Reid vapor 
                pressure limitation established by paragraph (1) to all 
                fuel blends containing gasoline and 10 percent 
                denatured anhydrous ethanol that are sold, offered for 
                sale, dispensed, supplied, offered for supply, 
                transported or introduced into commerce in the area 
                during the high ozone season.
                    ``(B) Deadline for promulgation.--The Administrator 
                shall promulgate regulations under subparagraph (A) not 
                later than 90 days after the date of receipt of a 
                notification from a Governor under that subparagraph.
                    ``(C) Effective date.--
                            ``(i) In general.--With respect to an area 
                        in a State for which the Governor submits a 
                        notification under subparagraph (A), the 
                        regulations under that subparagraph shall take 
                        effect on the later of--
                                    ``(I) the first day of the first 
                                high ozone season for the area that 
                                begins after the date of receipt of the 
                                notification; or
                                    ``(II) 1 year after the date of 
                                receipt of the notification.
                            ``(ii) Extension of effective date based on 
                        determination of insufficient supply.--
                                    ``(I) In general.--If, after 
                                receipt of a notification with respect 
                                to an area from a Governor of a State 
                                under subparagraph (A), the 
                                Administrator determines, on the 
                                Administrator's own motion or on 
                                petition of any person and after 
                                consultation with the Secretary of 
                                Energy, that the promulgation of 
                                regulations described in subparagraph 
                                (A) would result in an insufficient 
                                supply of gasoline in the State, the 
                                Administrator, by regulation--
                                            ``(aa) shall extend the 
                                        effective date of the 
                                        regulations under clause (i) 
                                        with respect to the area for 
                                        not more than 1 year; and
                                            ``(bb) may renew the 
                                        extension under item (aa) for 
                                        two additional periods, each of 
                                        which shall not exceed 1 year.
                                    ``(II) Deadline for action on 
                                petitions.--The Administrator shall act 
                                on any petition submitted under 
                                subclause (I) not later than 180 days 
                                after the date of receipt of the 
                                petition.''.
    (d) Survey of Renewable Fuel Market.--
            (1) Survey and report.--Not later than December 1, 2005, 
        and annually thereafter, the Administrator shall--
                    (A) conduct, with respect to each conventional 
                gasoline use area and each reformulated gasoline use 
                area in each State, a survey to determine the market 
                shares of--
                            (i) conventional gasoline containing 
                        ethanol;
                            (ii) reformulated gasoline containing 
                        ethanol;
                            (iii) conventional gasoline containing 
                        renewable fuel; and
                            (iv) reformulated gasoline containing 
                        renewable fuel; and
                    (B) submit to Congress, and make publicly 
                available, a report on the results of the survey under 
                subparagraph (A).
            (2) Recordkeeping and reporting requirements.--The 
        Administrator may require any refiner, blender, or importer to 
        keep such records and make such reports as are necessary to 
        ensure that the survey conducted under paragraph (1) is 
        accurate. The Administrator shall rely, to the extent 
        practicable, on existing reporting and recordkeeping 
        requirements to avoid duplicative requirements.
            (3) Applicable law.--Activities carried out under this 
        subsection shall be conducted in a manner designed to protect 
        confidentiality of individual responses.
    (e) Renewable Fuels Safe Harbor.--
            (1) In general.--Notwithstanding any other provision of 
        federal or state law, no renewable fuel, as defined by this 
        Act, used or intended to be used as a motor vehicle fuel, nor 
        any motor vehicle fuel containing such renewable fuel, shall be 
        deemed defective in design or manufacture by virtue of the fact 
        that it is, or contains, such a renewable fuel, if it does not 
        violate a control or prohibition imposed by the Administrator 
        under section 211 of the Clean Air Act, as amended by this Act, 
        and the manufacturer is in compliance with all requests for 
        information under section 211(b) of the Clean Air Act, as 
        amended by this Act. In the event that the safe harbor under 
        this section does not apply, the existence of a design defect 
        or manufacturing defect shall be determined under otherwise 
        applicable law.
            (2) Exceptions.--This subsection shall not apply to ethers.
            (3) Effective date.--This subsection shall be effective as 
        of the date of enactment and shall apply with respect to all 
        claims filed on or after that date.

SEC. 102. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL 
              PURCHASING REQUIREMENT.

    Title III of the Energy Policy Act of 1992 is amended by striking 
section 306 (42 U.S.C. 13215) and inserting the following:

``SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL 
              PURCHASING REQUIREMENT.

    ``(a) Ethanol-Blended Gasoline.--The head of each Federal agency 
shall ensure that, in areas in which ethanol-blended gasoline is 
reasonably available at a generally competitive price, the Federal 
agency purchases ethanol-blended gasoline containing at least 10 
percent ethanol rather than nonethanol-blended gasoline, for use in 
vehicles used by the agency that use gasoline.
    ``(b) Biodiesel.--
            ``(1) Definition of biodiesel.--In this subsection, the 
        term `biodiesel' has the meaning given the term in section 
        312(f).
            ``(2) Requirement.--The head of each Federal agency shall 
        ensure that the Federal agency purchases, for use in fueling 
        fleet vehicles that use diesel fuel used by the Federal agency 
        at the location at which fleet vehicles of the Federal agency 
        are centrally fueled, in areas in which the biodiesel-blended 
        diesel fuel described in paragraphs (A) and (B) is available at 
        a generally competitive price--
                    ``(A) as of the date that is 5 years after the date 
                of enactment of this paragraph, biodiesel-blended 
                diesel fuel that contains at least 2 percent biodiesel, 
                rather than nonbiodiesel-blended diesel fuel; and
                    ``(B) as of the date that is 10 years after the 
                date of enactment of this paragraph, biodiesel-blended 
                diesel fuel that contains at least 20 percent 
                biodiesel, rather than nonbiodiesel-blended diesel 
                fuel.
            ``(3) Requirement of Federal Law.--The provisions of this 
        subsection shall not be considered a requirement of Federal law 
        for the purposes of section 312.
    ``(c) Exemption.--This section does not apply to fuel used in 
vehicles excluded from the definition of `fleet' by subparagraphs (A) 
through (H) of section 301(9).''.

SEC. 103. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE LOAN 
              GUARANTEE PROGRAM.

    (a) Definition of Municipal Solid Waste.--In this section, the term 
``municipal solid waste'' has the meaning given the term ``solid 
waste'' in section 1004 of the Solid Waste Disposal Act (42 U.S.C. 
6903).
    (b) Establishment of Program.--The Secretary of Energy shall 
establish a program to provide guarantees of loans by private 
institutions for the construction of facilities for the processing and 
conversion of municipal solid waste into fuel ethanol and other 
commercial byproducts.
    (c) Requirements.--The Secretary may provide a loan guarantee under 
subsection (b) to an applicant if--
            (1) without a loan guarantee, credit is not available to 
        the applicant under reasonable terms or conditions sufficient 
        to finance the construction of a facility described in 
        subsection (b);
            (2) the prospective earning power of the applicant and the 
        character and value of the security pledged provide a 
        reasonable assurance of repayment of the loan to be guaranteed 
        in accordance with the terms of the loan; and
            (3) the loan bears interest at a rate determined by the 
        Secretary to be reasonable, taking into account the current 
        average yield on outstanding obligations of the United States 
        with remaining periods of maturity comparable to the maturity 
        of the loan.
    (d) Criteria.--In selecting recipients of loan guarantees from 
among applicants, the Secretary shall give preference to proposals 
that--
            (1) meet all applicable Federal and State permitting 
        requirements;
            (2) are most likely to be successful; and
            (3) are located in local markets that have the greatest 
        need for the facility because of--
                    (A) the limited availability of land for waste 
                disposal; or
                    (B) a high level of demand for fuel ethanol or 
                other commercial byproducts of the facility.
    (e) Maturity.--A loan guaranteed under subsection (b) shall have a 
maturity of not more than 20 years.
    (f) Terms and Conditions.--The loan agreement for a loan guaranteed 
under subsection (b) shall provide that no provision of the loan 
agreement may be amended or waived without the consent of the 
Secretary.
    (g) Assurance of Repayment.--The Secretary shall require that an 
applicant for a loan guarantee under subsection (b) provide an 
assurance of repayment in the form of a performance bond, insurance, 
collateral, or other means acceptable to the Secretary in an amount 
equal to not less than 20 percent of the amount of the loan.
    (h) Guarantee Fee.--The recipient of a loan guarantee under 
subsection (b) shall pay the Secretary an amount determined by the 
Secretary to be sufficient to cover the administrative costs of the 
Secretary relating to the loan guarantee.
    (i) Full Faith and Credit.--The full faith and credit of the United 
States is pledged to the payment of all guarantees made under this 
section. Any such guarantee made by the Secretary shall be conclusive 
evidence of the eligibility of the loan for the guarantee with respect 
to principal and interest. The validity of the guarantee shall be 
incontestable in the hands of a holder of the guaranteed loan.
    (j) Reports.--Until each guaranteed loan under this section has 
been repaid in full, the Secretary shall annually submit to Congress an 
report on the activities of the Secretary under this section.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (l) Termination of Authority.--The authority of the Secretary to 
issue a loan guarantee under subsection  (b) terminates on the date 
that is 10 years after the date of enactment of this Act.

SEC. 104. DATA COLLECTION.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 
7135) is amended by adding at the end the following:
    ``(m) In order to improve the ability to evaluate the effectiveness 
of the Nation's renewable fuels mandate, the Administrator shall 
conduct and publish the results of a survey of renewable fuels 
consumption in the motor vehicle fuels market in the United States 
monthly, and in a manner designed to protect the confidentiality of 
individual responses. In conducting the survey, the Administrator shall 
collect information retrospectively to 1998, both on a national basis 
and a regional basis, including--
            ``(1) the quantity of renewable fuels produced;
            ``(2) the cost of production;
            ``(3) the cost of blending and marketing;
            ``(4) the quantity of renewable fuels blended;
            ``(5) the quantity of renewable fuels imported; and
            ``(6) market price data.''.

                  TITLE II--FEDERAL REFORMULATED FUELS

SEC. 201. SHORT TITLE.

    This subtitle may be cited as the ``Federal Reformulated Fuels Act 
of 2002''.

SEC. 202. LEAKING UNDERGROUND STORAGE TANKS.

    (a) Use of Lust Funds for Remediation of Contamination From Ether 
Fuel Additives.--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 9010'' before 
                ``if''; and
            (2) by adding at the end the following:
            ``(12) Remediation of contamination from ether fuel 
        additives.--
                    ``(A) In general.--The Administrator and the States 
                may use funds made available under section 9013(1) to 
                carry out corrective actions with respect to a release 
                of methyl tertiary butyl ether or other ether fuel 
                additive 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), 
                        except that a release with respect to which a 
                        corrective action is carried out under 
                        subparagraph (A) shall not be required to be 
                        from an underground storage tank; 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 9013(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, as determined by the Administrator; and
            ``(2) by the Administrator, acting under this subtitle or a 
        State program approved under section 9004.

``SEC. 9011. BEDROCK BIOREMEDIATION.

    ``The Administrator shall establish, at an institution of higher 
education (as defined in section 101 of the Higher Education Act of 
1965 (20 U.S.C. 1001)) with established expertise in bioremediation of 
contaminated bedrock aquifers, a resource center--
            ``(1) to conduct research concerning bioremediation of 
        methyl tertiary butyl ether in contaminated underground 
        aquifers, including contaminated bedrock; and
            ``(2) to provide for States a technical assistance 
        clearinghouse for information concerning innovative 
        technologies for bioremediation described in paragraph (1).

``SEC. 9012. SOIL REMEDIATION.

    ``The Administrator may establish a program to conduct research 
concerning remediation of methyl tertiary butyl ether contamination of 
soil, including granitic or volcanic soil.

``SEC. 9013. 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, notwithstanding section 9508(c)(1) of the 
Internal Revenue Code of 1986--
            ``(1) to carry out section 9003(h)(12), $200,000,000 for 
        fiscal year 2003, to remain available until expended;
            ``(2) to carry out section 9010--
                    ``(A) $50,000,000 for fiscal year 2003; and
                    ``(B) $30,000,000 for each of fiscal years 2004 
                through 2008;
            ``(3) to carry out section 9011--
                    ``(A) $500,000 for fiscal year 2003; and
                    ``(B) $300,000 for each of fiscal years 2004 
                through 2008; and
            ``(4) to carry out section 9012--
                    ``(A) $100,000 for fiscal year 2003; and
                    ``(B) $50,000 for each of fiscal years 2004 through 
                2008.
    (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. Bedrock bioremediation.
``Sec. 9012. Soil remediation.
``Sec. 9013. 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. 203. AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS.

    (a) Findings.--Congress finds that--
            (1) since 1979, methyl tertiary butyl ether (referred to in 
        this section as ``MTBE'') has been used nationwide at low 
        levels in gasoline to replace lead as an octane booster or 
        anti-knocking agent;
            (2) Public Law 101-549 (commonly known as the ``Clean Air 
        Act Amendments of 1990'') (42 U.S.C. 7401 et seq.) established 
        a fuel oxygenate standard under which reformulated gasoline 
        must contain at least 2 percent oxygen by weight;
            (3) at the time of the adoption of the fuel oxygen 
        standard, Congress was aware that significant use of MTBE could 
        result from the adoption of that standard, and that the use of 
        MTBE would likely be important to the cost-effective 
        implementation of that program;
            (4) Congress is aware that gasoline and its component 
        additives have leaked from storage tanks, with consequences for 
        water quality;
            (5) the fuel industry responded to the fuel oxygenate 
        standard established by Public Law 101-549 by making 
        substantial investments in--
                    (A) MTBE production capacity; and
                    (B) systems to deliver MTBE-containing gasoline to 
                the marketplace;
            (6) when leaked or spilled into the environment, MTBE may 
        cause serious problems of drinking water quality;
            (7) in recent years, MTBE has been detected in water 
        sources throughout the United States;
            (8) MTBE can be detected by smell and taste at low 
        concentrations;
            (9) while small quantities of MTBE can render water 
        supplies unpalatable, the precise human health effects of MTBE 
        consumption at low levels are yet unknown;
            (10) in the report entitled ``Achieving Clean Air and Clean 
        Water: The Report of the Blue Ribbon Panel on Oxygenates in 
        Gasoline'' and dated September 1999, Congress was urged--
                    (A) to eliminate the fuel oxygenate standard;
                    (B) to greatly reduce use of MTBE; and
                    (C) to maintain the environmental performance of 
                reformulated gasoline;
            (11) Congress has--
                    (A) reconsidered the relative value of MTBE in 
                gasoline; and
                    (B) decided to eliminate use of MTBE as a fuel 
                additive;
            (12) the timeline for elimination of use of MTBE as a fuel 
        additive must be established in a manner that achieves an 
        appropriate balance among the goals of--
                    (A) environmental protection;
                    (B) adequate energy supply; and
                    (C) reasonable fuel prices; and
            (13) it is appropriate for Congress to provide some limited 
        transition assistance--
                    (A) to merchant producers of MTBE who produced MTBE 
                in response to a market created by the oxygenate 
                requirement contained in the Clean Air Act; and
                    (B) for the purpose of mitigating any fuel supply 
                problems that may result from elimination of a widely-
                used fuel additive.
    (b) Purposes.--The purposes of this section are--
            (1) to eliminate use of MTBE as a fuel oxygenate; and
            (2) to provide assistance to merchant producers of MTBE in 
        making the transition from producing MTBE to producing other 
        fuel additives.
    (c) Authority for Water Quality Protection From Fuels.--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) Prohibition on use of mtbe.--
                    ``(A) In general.--Subject to subparagraph (E), not 
                later than 4 years after the date of enactment of this 
                paragraph, the use of methyl tertiary butyl ether in 
                motor vehicle fuel in any State other than a State 
                described in subparagraph (C) is prohibited.
                    ``(B) Regulations.--The Administrator shall 
                promulgate regulations to effect the prohibition in 
                subparagraph (A).
                    ``(C) States that authorize use.--A State described 
                in this subparagraph is a State that submits to the 
                Administrator a notice that the State authorizes use of 
                methyl tertiary butyl ether in motor vehicle fuel sold 
                or used in the State.
                    ``(D) Publication of notice.--The Administrator 
                shall publish in the Federal Register each notice 
                submitted by a State under subparagraph (C).
                    ``(E) 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.
            ``(6) MTBE merchant producer conversion assistance.--
                    ``(A) In general.--
                            ``(i) Grants.--The Secretary of Energy, in 
                        consultation with 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 
                        (C) to the production of iso-octane and 
                        alkylates.
                            ``(ii) Determination.--The Administrator, 
                        in consultation with the Secretary of Energy, 
                        may determine that transition assistance for 
                        the production of iso-octane and alkylates is 
                        inconsistent with the provisions of 
                        subparagraph (B) and, on that basis, may deny 
                        applications for grants authorized by this 
                        provision.
                    ``(B) Further grants.--The Secretary of Energy, in 
                consultation with the Administrator, may also further 
                make grants to merchant producers of MTBE in the United 
                States to assist the producers in the conversion of 
                eligible production facilities described in 
                subparagraph (C) to the production of such other fuel 
                additives that, consistent with 211(c)--
                            ``(i) unless the Administrator determines 
                        that such fuel additives may reasonably be 
                        anticipated to endanger public health or the 
                        environment;
                            ``(ii) have been registered and have been 
                        tested or are being tested in accordance with 
                        the requirements of this section; and
                            ``(iii) will contribute to replacing 
                        gasoline volumes lost as a result of paragraph 
                        (5).
                    ``(C) 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 prohibition on the use of methyl 
                                tertiary butyl ether under paragraph 
                                (5).
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $250,000,000 for each of fiscal years 2003 
                through 2005.''.
    (d) No Effect on Law Concerning State Authority.--The amendments 
made by subsection (c) 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. 204. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED 
              GASOLINE.

    (a) Elimination.--
            (1) In general.--Section 211(k) of the Clean Air Act (42 
        U.S.C. 7545(k)) is amended--
                    (A) in paragraph (2)--
                            (i) in the second sentence of subparagraph 
                        (A), by striking ``(including the oxygen 
                        content requirement contained in subparagraph 
                        (B))'';
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraphs (C) 
                        and (D) as subparagraphs (B) and (C), 
                        respectively;
                    (B) in paragraph (3)(A), by striking clause (v);
                    (C) in paragraph (7)--
                            (i) in subparagraph (A)--
                                    (I) by striking clause (i); and
                                    (II) by redesignating clauses (ii) 
                                and (iii) as clauses (i) and (ii), 
                                respectively; and
                            (ii) in subparagraph (C)--
                                    (I) by striking clause (ii); and
                                    (II) by redesignating clause (iii) 
                                as clause (ii); and
            (2) Effective date.--The amendments made by paragraph (1) 
        take effect 270 days after the date of enactment of this Act, 
        except that such amendments shall take effect upon enactment in 
        any State that has received a waiver under section 209(b) of 
        the Clean Air Act.
    (b) 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--
            (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) 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 (other 
                        than a refinery or importer in a State that has 
                        received a waiver under section 209(b) with 
                        regard to gasoline produced for use in that 
                        state), 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 (iii) 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).''.
    (c) Consolidation in Reformulated Gasoline Regulations.--Not later 
than 180 days after the date of enactment of this Act, the 
Administrator 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.
    (d) Savings Clause.--Nothing in this section is intended to affect 
or prejudice any legal claims or actions with respect to regulations 
promulgated by the Administrator prior to enactment of this Act 
regarding emissions of toxic air pollutants from motor vehicles.
    (e) Determination Regarding a State Petition.--Section 211(k) of 
the Clean Air Act (42 U.S.C. 7545(k)) is amended by inserting after 
paragraph (10) the following:
            ``(11) Determination regarding a state petition.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, not less than 30 days after 
                enactment of this paragraph the Administrator must 
                determine the adequacy of any petition received from a 
                Governor of a State to exempt gasoline sold in that 
                State from the requirements of paragraph (2)(B).
                    ``(B) Approval.--If the determination in (A) is not 
                made within thirty days of enactment of this paragraph, 
                the petition shall be deemed approved.''.

SEC. 205. 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) Study on certain fuel additives and blendstocks.--
                    ``(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;
                                    ``(II) tertiary amyl methyl ether;
                                    ``(III) di-isopropyl ether;
                                    ``(IV) tertiary butyl alcohol;
                                    ``(V) other ethers and heavy 
                                alcohols, as determined by then 
                                Administrator;
                                    ``(VI) ethanol;
                                    ``(VII) iso-octane; and
                                    ``(VIII) alkylates; and
                            ``(ii) conduct a study on the effects on 
                        public health, air quality, and water resources 
                        of the adjustment for ethanol-blended 
                        reformulated gasoline to the VOC performance 
                        requirements otherwise applicable under 
                        sections 211(k)(1) and 211(k)(3) of the Clean 
                        Air Act.
                            ``(iii) submit to the Committee on 
                        Environment and Public Works of the Senate and 
                        the Committee on Energy and Commerce of the 
                        House of Representatives a report describing 
                        the results of these studies.
                    ``(B) Contracts for study.--In carrying out this 
                paragraph, the Administrator may enter into one or more 
                contracts with nongovernmental entities including but 
                not limited to National Energy Laboratories and 
                institutions of higher education (as defined in section 
                101 of the Higher Education Act of 1965 (20 U.S.C. 
                1001)).''.

SEC. 206. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) (as amended by 
section 101(a)) is amended by inserting after subsection (o) the 
following:
    ``(p) 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 paragraph, 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 2002.
                    ``(B) Final analysis.--After providing a reasonable 
                opportunity for comment but not later than 5 years 
                after the date of enactment of this paragraph, 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 gasoline 
        characteristics or components on emissions from vehicles in the 
        motor vehicle fleet during calendar year 2005.''.

SEC. 207. 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 redesignated by paragraph 
        (2))--
                    (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) Ozone transport region.--
                            ``(i) Application of prohibition.--
                                    ``(I) In general.--In addition to 
                                the provisions of subparagraph (A), 
                                upon the application of the Governor of 
                                a State in the ozone transport region 
                                established by section 184(a), the 
                                Administrator, not later than 180 days 
                                after the date of receipt of the 
                                application, shall apply the 
                                prohibition specified in paragraph (5) 
                                to any area in the State (other than an 
                                area classified as a marginal, 
                                moderate, serious, or severe ozone 
                                nonattainment area under subpart 2 of 
                                part D of title I) unless the 
                                Administrator determines under clause 
                                (iii) that there is insufficient 
                                capacity to supply reformulated 
                                gasoline.
                                    ``(II) Publication of 
                                application.--As soon as practicable 
                                after the date of receipt of an 
                                application under subclause (I), the 
                                Administrator shall publish the 
                                application in the Federal Register.
                            ``(ii) Period of applicability.--Under 
                        clause (i), the prohibition specified in 
                        paragraph (5) shall apply in a State--
                                    ``(I) commencing as soon as 
                                practicable but not later than 2 years 
                                after the date of approval by the 
                                Administrator of the application of the 
                                Governor of the State; and
                                    ``(II) ending not earlier than 4 
                                years after the commencement date 
                                determined under subclause (I).
                            ``(iii) Extension of commencement date 
                        based on insufficient capacity.--
                                    ``(I) In general.--If, after 
                                receipt of an application from a 
                                Governor of a State under clause (i), 
                                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 
                                capacity to supply reformulated 
                                gasoline, the Administrator, by 
                                regulation--
                                            ``(aa) shall extend the 
                                        commencement date with respect 
                                        to the State under clause 
                                        (ii)(I) for not more than 1 
                                        year; and
                                            ``(bb) may renew the 
                                        extension under item (aa) for 
                                        two additional periods, each of 
                                        which shall not exceed 1 year.
                                    ``(II) Deadline for action on 
                                petitions.--The Administrator shall act 
                                on any petition submitted under 
                                subclause (I) not later than 180 days 
                                after the date of receipt of the 
                                petition.''.

SEC. 208. FEDERAL ENFORCEMENT OF STATE FUELS REQUIREMENTS.

    Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) 
is amended--
            (1) by striking ``(C) A State'' and inserting the 
        following:
                    ``(C) Authority of state to control fuels and fuel 
                additives for reasons of necessity.--
                            ``(i) In general.--A State''; and
            (2) by adding at the end the following:
                            ``(ii) Enforcement by the administrator.--
                        In any case in which a State prescribes and 
                        enforces a control or prohibition under clause 
                        (i), the Administrator, at the request of the 
                        State, shall enforce the control or prohibition 
                        as if the control or prohibition had been 
                        adopted under the other provisions of this 
                        section.''.

SEC. 209. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) Study.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency and the Secretary of Energy shall jointly 
        conduct a study of Federal, State, and local requirements 
        concerning motor vehicle fuels, including--
                    (A) requirements relating to reformulated gasoline, 
                volatility (measured in Reid vapor pressure), 
                oxygenated fuel, and diesel fuel; and
                    (B) other requirements that vary from State to 
                State, region to region, or locality to locality.
            (2) Required elements.--The study shall assess--
                    (A) the effect of the variety of requirements 
                described in paragraph (1) on the supply, quality, and 
                price of motor vehicle fuels available to the consumer;
                    (B) the effect of the requirements described in 
                paragraph (1) on achievement of--
                            (i) national, regional, and local air 
                        quality standards and goals; and
                            (ii) related environmental and public 
                        health protection standards and goals;
                    (C) the effect of Federal, State, and local motor 
                vehicle fuel regulations, including multiple motor 
                vehicle fuel requirements, on--
                            (i) domestic refineries;
                            (ii) the fuel distribution system; and
                            (iii) industry investment in new capacity;
                    (D) the effect of the requirements described in 
                paragraph (1) on emissions from vehicles, refineries, 
                and fuel handling facilities;
                    (E) the feasibility of developing national or 
                regional motor vehicle fuel slates for the 48 
                contiguous States that, while protecting and improving 
                air quality at the national, regional, and local 
                levels, could--
                            (i) enhance flexibility in the fuel 
                        distribution infrastructure and improve fuel 
                        fungibility;
                            (ii) reduce price volatility and costs to 
                        consumers and producers;
                            (iii) provide increased liquidity to the 
                        gasoline market; and
                            (iv) enhance fuel quality, consistency, and 
                        supply; and
                    (F) the feasibility of providing incentives, and 
                the need for the development of national standards 
                necessary, to promote cleaner burning motor vehicle 
                fuel.
    (b) Report.--
            (1) In general.--Not later than June 1, 2006, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall submit to Congress a report on the 
        results of the study conducted under subsection (a).
            (2) Recommendations.--
                    (A) In general.--The report shall contain 
                recommendations for legislative and administrative 
                actions that may be taken--
                            (i) to improve air quality;
                            (ii) to reduce costs to consumers and 
                        producers; and
                            (iii) to increase supply liquidity.
                    (B) Required considerations.--The recommendations 
                under subparagraph (A) shall take into account the need 
                to provide advance notice of required modifications to 
                refinery and fuel distribution systems in order to 
                ensure an adequate supply of motor vehicle fuel in all 
                States.
            (3) Consultation.--In developing the report, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall consult with--
                    (A) the Governors of the States;
                    (B) automobile manufacturers;
                    (C) motor vehicle fuel producers and distributors; 
                and
                    (D) the public.

SEC. 210. REVIEW OF FEDERAL PROCUREMENT INITIATIVES RELATING TO USE OF 
              RECYCLED PRODUCTS AND FLEET AND TRANSPORTATION 
              EFFICIENCY.

    Not later than 180 days after the date of enactment of this Act, 
the Administrator of General Services shall submit to Congress a report 
that details efforts by each Federal agency to implement the 
procurement policies specified in Executive Order No. 13101 (63 Fed. 
Reg. 49643; relating to governmental use of recycled products) and 
Executive Order No. 13149 (65 Fed. Reg. 24607; relating to Federal 
fleet and transportation efficiency).
                                 <all>