[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1346 Engrossed in House (EH)]
<DOC>
119th CONGRESS
2d Session
H. R. 1346
_______________________________________________________________________
AN ACT
To amend the Clean Air Act with respect to the ethanol waiver for Reid
Vapor Pressure under that Act, 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. YEAR-ROUND E15 AND RFS REFORM.
(a) Ethanol Waiver.--
(1) Existing waivers.--Section 211(f)(4) of the Clean Air
Act (42 U.S.C. 7545(f)(4)) is amended--
(A) by striking ``(4) The Administrator, upon'' and
inserting the following:
``(4) Waivers.--
``(A) In general.--The Administrator, on'';
(B) in subparagraph (A) (as so designated)--
(i) in the first sentence--
(I) by striking ``of this
subsection'' each place it appears; and
(II) by striking ``if he
determines'' and inserting ``if the
Administrator determines''; and
(ii) in the second sentence, by striking
``The Administrator'' and inserting the
following:
``(B) Final action.--The Administrator''; and
(C) by adding at the end the following:
``(C) Reid vapor pressure.--A fuel or fuel additive
may be introduced into commerce if--
``(i)(I) the Administrator determines that
the fuel or fuel additive is substantially
similar to a fuel or fuel additive utilized in
the certification of any model year vehicle
pursuant to paragraph (1)(A); or
``(II) the fuel or fuel additive has been
granted a waiver under subparagraph (A) and
meets all of the conditions of that waiver
other than any limitation of the waiver with
respect to the Reid Vapor Pressure of the fuel
or fuel additive; and
``(ii) the fuel or fuel additive meets all
other applicable Reid Vapor Pressure
requirements under subsection (h).''.
(2) Reid vapor pressure limitation.--Section 211(h) of the
Clean Air Act (42 U.S.C. 7545(h)) is amended--
(A) by striking ``vapor pressure'' each place it
appears and inserting ``Vapor Pressure'';
(B) in paragraph (4), in the matter preceding
subparagraph (A), by striking ``10 percent'' and
inserting ``10 to 15 percent''; and
(C) in paragraph (5)(A)--
(i) by striking ``Upon notification,
accompanied by'' and inserting ``On receipt of
a notification that is submitted after the date
of enactment of the Farm, Food, and National
Security Act of 2026, and is accompanied by
appropriate'';
(ii) by striking ``10 percent'' and
inserting ``10 to 15 percent''; and
(iii) by adding at the end the following:
``Upon the enactment of the Farm, Food, and
National Security Act of 2026, any State for
which the notification from the Governor of a
State was submitted after January 1, 2022, and
before the date of enactment of the Farm, Food,
and National Security Act of 2026 and to which
the Administrator applied the Reid Vapor
Pressure limitation established by paragraph
(1) shall instead have the Reid Vapor Pressure
limitation established by paragraph (4) apply
to all fuel blends containing gasoline and 10
to 15 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) Definition of Small Refining Company.--Section 211(o)(1) of the
Clean Air Act (42 U.S.C. 7545(o)(1)) is amended--
(1) by redesignating subparagraph (L) as subparagraph (M);
and
(2) by inserting after subparagraph (K) the following:
``(L) Small refining company.--The term `small
refining company' means a company, entity, or group of
affiliated entities, including through subsidiaries,
parent companies, joint ventures, holding companies,
spin-offs, or other associated corporate or legal
structures, the daily average aggregate production of
obligated fuels of which for calendar year 2025 did not
exceed 75,000 barrels per day across all of the
facilities of the company, entity, or group of
affiliated entities that produced transportation fuel
subject to the requirements of paragraph (2).''.
(c) Termination of Petitions; Adjusted Small Refining Company
Obligation.--
(1) In general.--Section 211(o)(9) of the Clean Air Act (42
U.S.C. 7545(o)(9)) is amended--
(A) in subparagraph (B)--
(i) in clause (i), by striking ``A small''
and inserting ``Subject to clause (iv), a
small''; and
(ii) by adding at the end the following:
``(iv) Termination of exemption and
petitions.--
``(I) In general.--Beginning in
calendar year 2028, the Administrator
may not apply or enforce any extension
of an exemption granted pursuant to a
petition under this subparagraph or
otherwise continue to enforce the
exemption under subparagraph (A) with
respect to any small refinery.
``(II) Limitation on petitions.--
Notwithstanding any other provision of
law--
``(aa) no small refinery
may petition for an extension
under this subparagraph with
respect to any calendar year
after calendar year 2027;
``(bb) the Administrator
may not consider any petition
for an extension under this
subparagraph, with respect to
any calendar year, that is
submitted after July 1, 2028;
and
``(cc) to the maximum
extent practicable, the
Administrator shall, not later
than October 1, 2028, act on
all outstanding petitions.'';
(B) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively; and
(C) by inserting after subparagraph (B) the
following:
``(C) Adjusted compliance requirements for small
refining companies.--
``(i) In general.--Beginning in calendar
year 2028, the Administrator shall, subject to
clause (ii), reduce the compliance requirements
of each small refining company under paragraph
(2) by 75 percent.
``(ii) No subsequent redesignation.--If the
average aggregate daily production of obligated
fuels of a small refining company exceeds the
limit described in paragraph (1)(L) in calendar
year 2026 or any subsequent calendar year, the
small refining company shall no longer be
eligible for the adjusted compliance
requirements under clause (i) during that
calendar year or any subsequent calendar year,
regardless of whether the average aggregate
daily production of obligated fuels of the
small refining company drops below that limit
again.''.
(2) Savings provision.--Nothing in this Act or an amendment
made by this Act affects any remedy available to a small
refinery (as defined in paragraph (1) of section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o))) with respect to petitions
for extensions of exemptions under paragraph (9) of that
section and, for purposes of the application of such extensions
and the review of the denial of such petitions, section
211(o)(9) of the Clean Air Act (42 U.S.C. 7545(o)(9)) shall be
applied as in effect on the day before the date of enactment of
this Act.
(d) Generation of Credits by Small Refineries Under the Renewable
Fuel Program.--Section 211(o)(9) of the Clean Air Act (42 U.S.C.
7545(o)(9)) is further amended by adding at the end the following:
``(F) Credits generated for 2016-2018 compliance
years.--
``(i) Rule.--For any small refinery
described in clause (ii) or (iii), the credits
described in the respective clause shall be--
``(I) returned to the small
refinery and, notwithstanding paragraph
(5)(C), deemed eligible for future
compliance years; or
``(II) applied as a credit in the
EPA Moderated Transaction System (EMTS)
account of the small refinery.
``(ii) Compliance years 2016 and 2017.--
Clause (i) applies with respect to any small
refinery that--
``(I) retired credits generated for
compliance years 2016 or 2017; and
``(II) submitted a petition under
subparagraph (B)(i) for that compliance
year that remained outstanding as of
December 1, 2022.
``(iii) Compliance year 2018.--In addition
to small refineries described in clause (ii),
clause (i) applies with respect to any small
refinery--
``(I) that submitted a petition
under subparagraph (B)(i) for
compliance year 2018 by September 1,
2019;
``(II) that retired credits
generated for compliance year 2018 as
part of the compliance demonstration of
the small refinery for compliance year
2018 by March 31, 2019; and
``(III) for which--
``(aa) the petition
remained outstanding as of
December 1, 2022; or
``(bb) the Administrator
denied the petition as of July
1, 2022, and has not returned
the retired credits as of
December 1, 2022.''.
(e) Prohibition on Reallocation of Obligated Volumes.--Section
211(o)(9) of the Clean Air Act (42 U.S.C. 7545(o)(9)) is further
amended by adding at the end the following:
``(G) Prohibition on reallocation.--For the purpose
of making the determinations in paragraph (2)(B)(ii),
for calendar year 2028 and each calendar year
thereafter, the Administrator may not reallocate to
other persons any renewable fuel obligation applicable
to a small refining company the compliance requirements
of which were reduced pursuant to subparagraph (C).''.
(f) Fuel Infrastructure Rulemaking.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall, after a period of notice and public
comment, finalize a rule modifying the regulations of the
Environmental Protection Agency under the Clean Air Act (42
U.S.C. 7401 et seq.) and the Solid Waste Disposal Act (42
U.S.C. 6901 et seq.) (commonly known as the ``Resource
Conservation and Recovery Act of 1976'') relating to the sale
and distribution of gasoline-ethanol blends that contain
greater than 10 volume percent ethanol and less than or equal
to 15 volume percent ethanol.
(2) Requirement.--In finalizing the rule required under
paragraph (1), the Administrator of the Environmental
Protection Agency shall modify the E15 fuel dispenser labeling
requirements and the underground storage tank regulations of
the Environmental Protection Agency with respect to
compatibility with gasoline-ethanol blends.
(g) Exemption for At-risk Qualifying Small Refineries.--Section
211(o)(9) of the Clean Air Act (42 U.S.C. 7545(o)(9)) is further
amended by adding at the end the following:
``(H) Exemption for at-risk qualifying small
refineries.--
``(i) In general.--Beginning in calendar
year 2028, not later than December 31 of a
calendar year, a qualifying small refinery may
petition the Administrator for an exemption
from compliance with the requirements of
paragraph (2) for such calendar year for the
reason of the imminent risk of closure,
permanent idling, or conversion to a renewable
fuel production facility.
``(ii) Matters included in petitions.--In
submitting a petition for an exemption under
clause (i), a qualifying small refinery shall
include in such petition the following:
``(I) Information demonstrating
that--
``(aa) the qualifying small
refinery is at imminent risk of
closure, permanent idling, or
conversion to a renewable fuel
production facility;
``(bb) such risk is solely
caused by the cost of
compliance with the
requirements of paragraph (2);
and
``(cc) the ownership of the
qualifying small refinery has
not changed after the date of
enactment of this paragraph.
``(II) An attestation, executed by
a senior corporate officer (or any
equivalent position) with direct
responsibility for the applicable
operations of the qualifying small
refinery, certifying that the
information included under subclause
(I) is correct.
``(iii) Public disclosure.--Any petition
submitted under this subparagraph, including
any information, attestation, or other
supporting documentation included in such a
petition--
``(I) shall not be eligible for
treatment as confidential business
information for purposes of section
114(c) or any other provision of law;
and
``(II) shall be made publicly
available by the Administrator not
later than 30 days after the date of
such submission.
``(iv) Deadline for action on petitions.--
The Administrator shall act on any petition
submitted by a qualifying small refinery for an
exemption under this subparagraph not later
than 90 days after the date of receipt of the
petition.
``(v) Administrator determination.--The
Administrator may grant an exemption under this
subparagraph only upon a determination by the
Administrator that the petition submitted for
the exemption adequately demonstrates the
matters specified in items (aa) through (cc) of
clause (ii)(I) and includes the attestation
described in clause (ii)(II).
``(vi) Scope and duration.--An exemption
granted for a qualifying small refinery under
this subparagraph--
``(I) may exempt the qualifying
small refinery from compliance with the
requirements of paragraph (2) in whole
or in part;
``(II) may only exempt the
qualifying small refinery from
compliance with the requirements of
paragraph (2) to the extent necessary
to prevent the closure, permanent
idling, or conversion described in
clause (i); and
``(III) shall only apply with
respect to the calendar year for which
the petition for the exemption is
submitted.
``(vii) Exempted volumes.--
``(I) In general.--In acting on
petitions submitted by qualifying small
refineries for exemptions under this
subparagraph, the Administrator may not
exempt, in total, renewable fuel
obligations for qualifying small
refineries such that the total volume
of renewable fuel so exempted exceeds
the relevant volume cap for the
applicable calendar year described in
subclause (II).
``(II) Volume cap.--The volume cap
described in this subclause is--
``(aa) for calendar year
2028, the volume of all
renewable fuel, including
advanced biofuel, cellulosic
biofuel, biomass-based diesel,
and conventional biofuel, that
the Administrator determines
has, in total, an energy
content equal to the energy
content of 150 million gallons
of conventional biofuel; and
``(bb) for each calendar
year after calendar year 2028,
the volume of renewable fuel
determined under item (aa), as
adjusted by the Administrator
in direct proportion to any
changes to the applicable
volume of renewable fuel
established for the calendar
year under paragraph (2)(B)(ii)
as compared to the applicable
volume of renewable fuel
established for calendar year
2028.
``(viii) Qualifying small refinery
defined.--In this subparagraph, the term
`qualifying small refinery' means a small
refinery--
``(I) that received an extension of
an exemption under paragraph (9); or
``(II)(aa) for which the average
aggregate daily crude oil throughput
for a 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
10,000 barrels; and
``(bb) that began production on or
after January 1, 2007, and before
January 1, 2026.''.
Passed the House of Representatives May 13, 2026.
Attest:
Clerk.
119th CONGRESS
2d Session
H. R. 1346
_______________________________________________________________________
AN ACT
To amend the Clean Air Act with respect to the ethanol waiver for Reid
Vapor Pressure under that Act, and for other purposes.