II 111th CONGRESS 2d Session S. 3736 IN THE SENATE OF THE UNITED STATES August 5, 2010 Mr. Inhofe 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 allow States to opt out of the corn ethanol portions of the renewable fuel standard.

1.

State opt-out election from renewable fuel standard

Section 211(o)(2)(B) of the Clean Air Act (42 U.S.C. 7545(o)(2)(B)) is amended by adding at the end the following: (vi)

Opt-out by State government

(I)

In general

For purposes of subparagraph (A), the applicable volume of renewable fuel as determined under this subparagraph shall be adjusted in accordance with this clause. (II)

Requirements

On passage by a State legislature and signature by the Governor of the State of a law that elects to opt-out of the applicable volume of renewable fuel in accordance with this clause, the Administrator shall allow a State to opt-out of the applicable volume of renewable fuel determined under subclause (I) of clause (i), other than the applicable volumes of renewable fuel required under subclauses (II), (III), and (IV) of that clause. (III)

Reduction

On the election of a State under subclause (II), the Administrator shall reduce the applicable volume of renewable fuel determined under clause (i)(I) by the percentage that reflects the national gasoline consumption that is attributable to the State. (IV)

Credits to hold fuel sales harmless

On the election of a State under subclause (II), the Administrator shall provide for the generation of credits for all gasoline (regardless of whether the gasoline is blended) provided through a fuel terminal in the State to be calculated as though the gasoline were blended with the maximum allowable ethanol content of gasoline to apply toward the applicable volume of renewable fuel determined under clause (i)(I). .