[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3081 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 3081

   To amend the Clean Air Act to increase the production and use of 
    renewable fuel in the United States and to increase the energy 
       independence of the United States, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2005

Mr. Gutknecht (for himself, Ms. Herseth, Mr. Goodlatte, Mr. Peterson of 
Minnesota, Mr. Scott of Georgia, Mr. LaHood, Mr. Boswell, Mr. Osborne, 
 Mr. Fortenberry, Mr. Salazar, Mr. Butterfield, Ms. Foxx, Mr. Moran of 
  Kansas, Mr. Kennedy of Minnesota, Mr. King of Iowa, Mr. Johnson of 
    Illinois, Mr. Burton of Indiana, and Mr. Latham) introduced the 
   following bill; which was referred to the Committee on Energy and 
    Commerce, and in addition to the Committees on Agriculture and 
 Government Reform, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Clean Air Act to increase the production and use of 
    renewable fuel in the United States and to increase the energy 
       independence of the United States, 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 ``Renewable Fuels 
Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      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. Monthly survey of renewable fuels demand in motor vehicle 
                            fuels market.
Sec. 104. Commodity credit corporation bioenergy program.
                  TITLE II--FEDERAL REFORMULATED FUELS

Sec. 201. Elimination of oxygen content requirement for reformulated 
                            gasoline.
Sec. 202. Public health and environmental impacts of fuels and fuel 
                            additives.
Sec. 203. Analyses of motor vehicle fuel changes.
Sec. 204. Additional opt-in areas under reformulated gasoline program.
Sec. 205. Federal enforcement of State fuels requirements.
Sec. 206. Fuel system requirements harmonization study.
Sec. 207. Review of Federal procurement initiatives relating to use of 
                            recycled products and fleet and 
                            transportation efficiency.
Sec. 208. Report on renewable motor fuel.

                      TITLE I--GENERAL PROVISIONS

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 subsection:
                    ``(A) Ethanol.--
                            ``(i) 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. The term includes 
                        the material specified in clauses (i) through 
                        (vi) of section 9001(3)(B) of the Farm Security 
                        and Rural Investment Act of 2002 (7 U.S.C. 
                        (8101(3)(B)).
                            ``(ii) Waste derived ethanol.--The term 
                        `waste derived ethanol' means ethanol derived 
                        from--
                                    ``(I) material specified in clauses 
                                (vii) and (viii) of section 9001(3)(B) 
                                of the Farm Security and Rural 
                                Investment Act of 2002 (7 U.S.C. 
                                (8101(3)(B)); or
                                    ``(II) 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, wood fiber, or other 
                                biomass; or
                                    ``(bb) is natural gas produced from 
                                a biogas source, including a landfill, 
                                sewage waste treatment plant, feedlot, 
                                paper mill, 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--
                                    ``(I) cellulosic biomass ethanol;
                                    ``(II) waste derived ethanol;
                                    ``(III) biodiesel (as defined in 
                                section 312(f) of the Energy Policy Act 
                                of 1992 (42 U.S.C. 13220(f)); and
                                    ``(IV) any blending components 
                                derived from renewable fuel, except 
                                that only the renewable fuel portion of 
                                any such blending component shall be 
                                considered part of the applicable 
                                volume under the renewable fuel program 
                                established by this subsection.
                    ``(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.--
                            ``(i) Regulations.--Not later than 1 year 
                        after the date of enactment of this subsection, 
                        the Administrator shall promulgate regulations 
                        ensuring that motor vehicle fuel sold or 
                        dispensed to consumers in the contiguous United 
                        States, on an annual average basis, contains 
                        the applicable volume of renewable fuel 
                        specified in subparagraph (B).
                            ``(ii) Compliance.--Regardless of the date 
                        of promulgation, the regulations shall contain 
                        compliance provisions for refiners, blenders, 
                        and importers, as appropriate, to ensure that 
                        the requirements of this subsection are met, 
                        but shall not restrict where renewable fuel can 
                        be used, or impose any per-gallon obligation 
                        for the use of renewable fuel.
                            ``(iii) No regulations.--If the 
                        Administrator does not promulgate the 
                        regulations, the applicable percentage referred 
                        to in paragraph (3), on a volume percentage of 
                        gasoline basis, shall be 3.2 in 2006.
                    ``(B) Applicable volume.--
                            ``(i) For the purpose of subparagraph (A), 
                        the applicable volume for any of calendar years 
                        2006 through 2012 shall be determined in 
                        accordance with the following table:

                                                             Applicable
                                                              volume of
                                                         renewable fuel
                                                           (in billions
``Calendar year:                                           of gallons):
    2006..........................................                 4.0 
    2007..........................................                 4.7 
    2008..........................................                 5.4 
    2009..........................................                 6.1 
    2010..........................................                 6.8 
    2011..........................................                 7.4 
    2012..........................................                 8.0.
                            ``(ii) Calendar years 2013 and 
                        thereafter.--For the purpose of subparagraph 
                        (A), the applicable volume for calendar year 
                        2013 and each calendar year thereafter shall be 
                        determined by the Administrator, in 
                        coordination with the Secretary of Energy and 
                        the Secretary of Agriculture. In determining 
                        the applicable volume for a calendar year, the 
                        Administrator shall take into consideration the 
                        following reviews:
                                    ``(I) The Administrator shall 
                                review the implementation of the 
                                program since calendar year 2006 and 
                                the impact of the use of renewable 
                                fuels on the environment, air quality, 
                                energy security, and job creation.
                                    ``(II) The Secretary of Agriculture 
                                shall review the rate of production of 
                                cellulosic ethanol and waste derived 
                                ethanol (other than municipal solid 
                                waste) since calendar year 2006, the 
                                anticipated future production of such 
                                cellulosic ethanol and waste derived 
                                ethanol, and the impact of the use of 
                                renewable fuels on rural economic 
                                development.
                            ``(iii) Limitation.--An increase in the 
                        applicable volume for a calendar year under 
                        clause (ii) shall be not less than the product 
                        obtained by multiplying--
                                    ``(I) the number of gallons of 
                                gasoline that the Administrator 
                                estimates will be sold or introduced 
                                into commerce during the calendar year; 
                                and
                                    ``(II) the quotient obtained by 
                                dividing--
                                            ``(aa) 8,000,000,000; by
                                            ``(bb) the number of 
                                        gallons of gasoline sold or 
                                        introduced into commerce during 
                                        calendar year 2012.
            ``(3) Applicable percentages.--
                    ``(A) Provision of estimate of volumes of gasoline 
                sales.--Not later than October 31 of each of calendar 
                years 2006 through 2011, the Administrator of the 
                Energy Information Administration shall provide to the 
                Administrator of the Environmental Protection Agency an 
                estimate of the volumes of gasoline that will be sold 
                or introduced into commerce in the United States during 
                the following calendar year.
                    ``(B) Determination of applicable percentages.--
                            ``(i) In general.--Not later than November 
                        30 of each of calendar years 2006 through 2011, 
                        based on the estimate provided under 
                        subparagraph (A), the Administrator shall 
                        determine and publish in the Federal Register, 
                        with respect to the following calendar year, 
                        the renewable fuel obligation that ensures that 
                        the requirements under paragraph (2) are met.
                            ``(ii) Required elements.--The renewable 
                        fuel obligation determined for a calendar year 
                        under clause (i) shall--
                                    ``(I) be applicable to refiners, 
                                blenders, and importers, as 
                                appropriate;
                                    ``(II) be expressed in terms of a 
                                volume percentage of gasoline sold or 
                                introduced into commerce; and
                                    ``(III) subject to subparagraph 
                                (C)(i), consist of a single applicable 
                                percentage that applies to all 
                                categories of persons specified in 
                                subclause (I).
                    ``(C) Adjustments.--In determining the applicable 
                percentage for a calendar year, the Administrator shall 
                make adjustments--
                            ``(i) to prevent the imposition of 
                        redundant obligations to any person specified 
                        in subparagraph (B)(ii)(I); and
                            ``(ii) to account for the use of renewable 
                        fuel during the previous calendar year by small 
                        refineries that are exempt under paragraph 
                        (11).
            ``(4) Equivalency.--For the purpose of paragraph (2), 1 
        gallon of either cellulosic biomass ethanol or waste derived 
        ethanol shall be considered to be the equivalent of 2.5 gallons 
        of renewable fuel.
            ``(5) Credit program.--
                    ``(A) Regulations.--The regulations promulgated to 
                carry out this subsection shall provide for--
                            ``(i) 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);
                            ``(ii) the generation of an appropriate 
                        amount of credits for biodiesel fuel; and
                            ``(iii) if a small refinery notifies the 
                        Administrator that the small refinery waives 
                        the exemption provided by this subsection, the 
                        generation of credits by the small refinery 
                        beginning in the year following the 
                        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 demonstrate compliance 
                for the calendar year in which the credit was 
                generated.
                    ``(D) Inability to purchase sufficient credits.--
                The regulations promulgated to carry out this 
                subsection shall include provisions permitting any 
                person that is unable to generate or purchase 
                sufficient credits to meet the requirement under 
                paragraph (2) to carry forward a renewables deficit if, 
                for the calendar year following the year in which the 
                renewables deficit is created--
                            ``(i) the person achieves compliance with 
                        the renewables requirement under paragraph (2); 
                        and
                            ``(ii) generates or purchases additional 
                        renewables credits to offset the renewables 
                        deficit of the preceding year.
            ``(6) Seasonal variations in renewable fuel use.--
                    ``(A) Study.--For each of calendar years 2006 
                through 2012, the Administrator of the Energy 
                Information Administration, in consultation with the 
                Secretary of Agriculture, 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 variation.--
                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 requirements under 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 
                        requirements under paragraph (2) has been used 
                        during 1 of the periods specified in 
                        subparagraph (D) of the calendar year;
                            ``(ii) a pattern of excessive seasonal 
                        variation described in clause (i) will continue 
                        in subsequent calendar years; and
                            ``(iii) promulgating regulations or other 
                        requirements to impose a 35 percent or more 
                        seasonal use of renewable fuels will not 
                        prevent or interfere with the attainment of 
                        national ambient air quality standards or 
                        significantly increase the price of motor fuels 
                        to the consumer.
                    ``(D) Periods.--The 2 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 2006 in a State that has received a waiver 
                under section 209(b) shall not be included in the study 
                under subparagraph (A).
            ``(7) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, may waive the requirements under 
                paragraph (2), in whole or in part, on a petition by 1 
                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 and the Secretary of Agriculture, 
                        after public notice and opportunity for 
                        comment, that there is an inadequate domestic 
                        supply to meet the requirement.
                    ``(B) Petitions for waivers..--Not later than 90 
                days after the date on which a petition is received by 
                the Administrator under subparagraph (A), the 
                Administrator, in consultation with the Secretary of 
                Agriculture and the Secretary of Energy, shall approve 
                or disapprove the petition.
                    ``(C) Termination of waivers.--A waiver granted 
                under subparagraph (A) shall terminate on the date that 
                is 1 year after the date on which the waiver was 
                granted, but may be renewed by the Administrator, after 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy.
            ``(8) Small refineries.--
                    ``(A) In general.--Paragraph (2) shall not apply to 
                small refineries until the first calendar year 
                beginning more than 5 years after the first year set 
                forth in the table in paragraph (2)(B)(i).
                    ``(B) Study.--Not later than December 31, 2008, the 
                Secretary of Energy shall complete for the 
                Administrator a study to determine whether the 
                requirements under paragraph (2) would impose a 
                disproportionate economic hardship on small refineries.
                    ``(C) Small refineries and economic hardship.--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 the small refinery for not less 
                than 2 additional years.
                    ``(D) Economic hardship.--
                            ``(i) Extension of exemption.--A small 
                        refinery may at any time petition the 
                        Administrator for an extension of the exemption 
                        from the requirements under paragraph (2) for 
                        the reason of disproportionate economic 
                        hardship.
                            ``(ii) Evaluation.--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.
                            ``(iii) 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.
                    ``(E) Credit program.--Paragraph (6)(A)(iii) shall 
                apply to each small refinery that waives an exemption 
                under this paragraph.
                    ``(F) Opt-in for small refiners.--A small refinery 
                shall be subject to paragraph (2) if the small refinery 
                notifies the Administrator that the small refinery 
                waives the exemption under subparagraph (C).
    ``(p) Renewable Fuel Safe Harbor.--
            ``(1) Safe harbor.--Notwithstanding any other provision of 
        Federal or State law, a renewable fuel (as defined in 
        subsection (o)(1)) that is used or intended to be used as a 
        motor vehicle fuel and any motor vehicle fuel containing 
        renewable fuel (as so defined) shall not be considered or 
        determined to be defective in design or manufacture by reason 
        of the fact that the fuel is, or contains, renewable fuel, if--
                    ``(A) the fuel does not violate a control or 
                prohibition imposed by the Administrator under this 
                section; and
                    ``(B) the manufacturer of the fuel is in compliance 
                with all requests for information under subsection (b).
            ``(2) When safe harbor not applicable.--In any case in 
        which paragraph (1) does not apply to a quantity of fuel, the 
        existence of a design defect or manufacturing defect with 
        respect to the fuel shall be determined under otherwise 
        applicable law.
            ``(3) Exception to safe harbor.--Paragraph (1) does not 
        apply to ethers.
            ``(4) Effective date.--Paragraph (1) applies with respect 
        to any claim filed on or after the date of the enactment of the 
        Renewable Fuels Act of 2005.''.
    (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)'' 
                and inserting ``(n), or (o)'' each place it appears; 
                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)'' and inserting ``(n), and (o)'' each place it 
        appears.

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 subparagraphs (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. MONTHLY SURVEY OF RENEWABLE FUELS DEMAND IN MOTOR VEHICLE 
              FUELS MARKET.

    (a) Survey Required.--The Secretary of Agriculture, with the 
assistance of the Administrator of the Energy Information 
Administration, shall conduct and publish the results of a monthly 
survey of renewable fuels demand in the motor vehicle fuels market in 
the United States monthly, and in a manner designed to protect the 
confidentiality of individual responses.
    (b) Content of Survey.--In conducting the monthly survey required 
by subsection (a), the Secretary of Agriculture shall collect 
information, both on a national and regional basis, regarding--
            (1) the quantity of renewable fuels produced;
            (2) the quantity of renewable fuels blended;
            (3) the quantity of renewable fuels imported;
            (4) the quantity of renewable fuels demanded; and
            (5) the market price of renewable fuels.
    (c) Role of Office of Energy Policy and New Uses.--The Office of 
Energy Policy and New Uses of the Department of Agriculture shall 
assist the Secretary of Agriculture in evaluating the effectiveness of 
the renewable fuels mandate of the United States.
    (d) Renewable Fuels Defined.--In this section, the term ``renewable 
fuel'' has the meaning given that term in section 211(o)(1) of the 
Clean Air Act (42 U.S.C. 7545(o)(1)).

SEC. 104. COMMODITY CREDIT CORPORATION BIOENERGY PROGRAM.

     In order to assist with the implementation of the national 
renewable fuels standard, funds made available under section 9010(c) of 
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8108) for 
the bioenergy program of the Department of Agriculture for a fiscal 
year and unobligated by the end of that fiscal year shall remain 
available for obligation until expended.

                  TITLE II--FEDERAL REFORMULATED FUELS

SEC. 201. 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); 
                and
                    (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).
            (2) Effective date.--The amendments made by paragraph (1) 
        take effect on the date that is 1 year after the date of 
        enactment of this Act, except that the amendments shall take 
        effect upon that date of enactment in any State that has 
        received a waiver under section 209(b) of the Clean Air Act (42 
        U.S.C. 7543(b)).
    (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) Definition of padd.--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, 
                        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 2001 and 2002, 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 2001 and 2002.
                                    ``(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 2001 and 2002; 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 2001 and 2002, 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 (ii) not later than 
                                        April 1 of the year following 
                                        the report under this subclause 
                                        and for subsequent years.
                            ``(vi) Regulations to control hazardous air 
                        pollutants from motor vehicles and motor 
                        vehicle fuels.--Not later than July 1, 2006, 
                        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 of the Environmental Protection Agency shall revise the 
reformulated gasoline regulations under subpart D of part 80 of title 
40, Code of Federal Regulations (or any successor 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) Authority of Administrator.--Nothing in this section affects or 
prejudices any legal claim or action with respect to regulations 
promulgated by the Administrator of the Environmental Protection Agency 
before the date of enactment of this Act regarding--
            (1) emissions of toxic air pollutants from motor vehicles; 
        or
            (2) the adjustment of standards applicable to a specific 
        refinery or importer made under the prior regulations.
    (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 later than 30 days after 
                the date of enactment of this paragraph, the 
                Administrator shall determine the adequacy of any 
                petition received from a Governor of a State to exempt 
                gasoline sold in that State from the requirements under 
                paragraph (2)(B).
                    ``(B) Approval.--If a determination under 
                subparagraph (A) is not made by the date that is 30 
                days after the date of enactment of this paragraph, the 
                petition shall be considered to be approved.''.

SEC. 202. 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 the 
                                Administrator;
                                    ``(VI) ethanol;
                                    ``(VII) iso-octane; and
                                    ``(VIII) alkylates;
                            ``(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); and
                            ``(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. 203. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
inserting after subsection (o) (as added by section 101(a)(2)) 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 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 Renewable Fuels Act of 2005.
                    ``(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. 204. 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 to read as follows:
            (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 2 
                                        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. 205. 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. 206. 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. 207. 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).

SEC. 208. REPORT ON RENEWABLE MOTOR FUEL.

    Not later than January 1, 2007, the Secretary of Energy and the 
Secretary of Agriculture shall jointly prepare and submit to Congress a 
report containing recommendations for achieving, by January 1, 2025, at 
least 25 percent renewable fuel content (calculated on an average 
annual basis) for all gasoline sold or introduced into commerce in the 
United States.
                                 <all>