Renewable Fuel Standard reforms

(a)

In general

Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended— (1)in paragraph (2)(B), by adding at the end the following:

(vi)

Maximum changes in applicable volumes

Notwithstanding clauses (iii) through (v) and the analyses required under subclauses (I) through (VI) of clause (ii), for the purpose of making the determinations in clause (ii), the Administrator shall ensure that, for the first calendar year that begins after the date of enactment of this clause and for each calendar year thereafter, the applicable volume for renewable fuel that is not advanced biofuel does not exceed the projected annual domestic consumption of ethanol blended fuel projected in the most recent Annual Energy Outlook report of the Energy Information Administration for the applicable year.

;

(2)in paragraph (5)— (A)in subparagraph (C), by striking A credit and inserting Except as provided in subparagraph (F), a credit; and (B)by adding at the end the following:

(F)

Extended duration of certain credits

A credit generated under this paragraph in calendar year 2020 through 2022 may be used to show compliance for any of the 5 calendar years following the date of the enactment of this subparagraph, except that not more than 20 percent of the credits used by a person to demonstrate compliance with paragraph (2) in a calendar year may be credits that were generated in calendar year 2020 through 2022. (G)

Prohibition

In promulgating regulations under paragraph (2)(A) to carry out this paragraph, the Administrator may not impose a requirement to use an electric credit (commonly referred to as an e-RIN).

; and

(3)in paragraph (9)— (A)in subparagraph (A), by adding at the end the following:

(iii)

Applicability to certain small refineries

(I)

In general

A small refinery described in subclause (III) is eligible to receive an exemption from compliance with the requirements of paragraph (2) with respect to a calendar year for the reason of disproportionate economic hardship. (II)

Treatment

The Administrator shall deem any exemption under this clause as an extension of an exemption under subparagraph (A), and the requirements of subparagraphs (B), (C), and (D) shall apply in the same manner and to the same extent with respect to such exemptions as to such extensions of exemptions. (III)

Small refineries described

A small refinery described in this subclause is a small refinery— (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.

;

(B)in subparagraph (B)— (i)in clause (i), by striking the exemption and inserting an exemption; (ii)in clause (ii), by inserting after and other economic factors.

Beginning on date that is 1 year after the date of enactment of the Farm, Food, and National Security Act of 2026, such economic factors shall be the following: (I)As applicable to small refineries under the control of a holding company, the cost of credits purchased by such holding company to demonstrate compliance with paragraph (2) calendar year divided by the revenue of such holding company over the calendar year. (II)Whether the costs to a small refinery of complying with the requirements of paragraph (2) would eliminate efficiency gains, as described in the study of the Department of Energy titled Small Refinery Exemption Study An Investigation into Disproportionate Economic Hardship and dated March 2011. (III)Whether the costs to a small refinery of complying with such requirements are likely to lead to the refinery ceasing to operate. (IV)Exceptional State regulatory environment, as determined by the Administrator. (V)Whether a small refinery is actively building infrastructure to blend biofuels, as demonstrated by the submission of a plan to the Administrator.

;

(iii)in clause (iii)— (I)by striking The Administrator and inserting the following:

(I)

In general

The Administrator

; and

(II)by adding at the end the following:

(II)

Failure to respond

If the Administrator does not, during the 90-day period described in subclause (I), provide to the petitioner a description of the legal basis pursuant to which the Administrator has determined that the small refinery that is the subject of the petition under clause (i) does not qualify for an extension of an exemption under subparagraph (A), the petition shall be considered granted.

; and

(iv)by adding at the end the following:

(iv)

Approval of certain petitions

Notwithstanding clause (ii) and subject to clause (v), the Administrator shall grant a petition submitted under clause (i) by a small refinery for an extension of an exemption under subparagraph (A) if the Secretary of Energy determines that, with respect to the small refinery— (I)the disproportionate impacts index, as described in the report of the Office of Policy and International Affairs of the Department of Energy entitled Small Refinery Exemption Study: An Investigation into Disproportionate Economic Hardship and dated March 2011, is greater than or equal to 1; or (II)the viability index, as described in the report described in subclause (I), is greater than or equal to 1. (v)

Limitation

The Administrator may not approve a petition submitted under clause (i) by a small refinery under the control of a holding company if such approval would result in a total exempted volume that— (I)taken together with any other refinery under the control of the holding company, exceeds 75,000 barrels of oil produced per day or 50 percent of the total amount of barrels of oil produced per day by such refineries, whichever is greater; or (II)exceeds the combined total capacity for barrels of oil produced per day by any small refinery under such control.

; and

(C)in subparagraph (C)— (i)by striking If a small and inserting the following:

(i)

Effect of waiver

If a small

; and

(ii)by adding at the end the following:

(ii)

Effect of exemption

If the Administrator grants a petition for an extension of an exemption under subparagraph (A) submitted by a small refinery, the Administrator may not reallocate the renewable fuel obligation of that small refinery to other refineries.

(b)

Year-Round sale of E15

Section 211 of the Clean Air Act (42 U.S.C. 7545) is further amended— (1) in subsection (f), by adding at the end the following:

(6) The Reid vapor pressure limitation applicable under this subsection to fuel blends containing gasoline and a percent of denatured anhydrous ethanol that exceeds 10 percent and is not more than 15 percent shall be the same as any such limitation applicable under this subsection to fuel blends containing gasoline and 10 percent denatured anhydrous ethanol.

; and

(2) in subsection (h)— (A) in paragraph (4), by striking 10 percent and inserting 10 to 15 percent; and (B) in paragraph (5)(A), by striking 10 percent and inserting 10 to 15 percent.