[Congressional Record Volume 148, Number 35 (Friday, March 22, 2002)]
[Senate]
[Pages S2320-S2321]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ENERGY POLICY ACT OF 2002
Mr. JEFFORDS. Mr. President, the Daschle-Bingaman substitute
amendment, also known as the Energy Policy Act of 2002, includes
portions of a bill that was reported favorably last year from the
Committee on Environment and Public Works.
That bill, the Federal Reformulated Fuels Act, S. 950, was approved
with the committee's understanding that further action by the full
Senate would be necessary to solve the delicate problem of eliminating
MTBE from the fuel supply to protect water resources, while maintaining
air quality and stimulating renewable fuel use.
The substitute amendment before the Senate now does a good job of
resolving that problem and balancing many political and environmental
concerns. This language does not represent the perfect solution for my
State or the Northeast. However, without it, MTBE contamination of
water resources will continue unabated. With it, at least we can be
assured of greater protection of air and water quality.
If States proceed to ban MTBE without clear Federal authority
provided in this amendment, air quality could suffer as RFG areas would
be forced to use ethanol in a very inflexible way due to the existing
oxygen content requirement in the Clean Air Act. In that situation, and
without the anti-backsliding provisions in the substitute amendment
before us, there might be significant increases in vehicle emissions of
both volatile organic compounds, which contribute to smog, and toxic
air pollutants, and large and sudden increases in gasoline prices could
also occur.
I would have preferred a bill that, in addition to eliminating the
oxygen content requirement, simply eliminated the existing one-pound
waiver of Reid vapor pressure requirements for ethanol blends and
allowed all Governors to opt-in easily to the RFG program for their
whole States. But, at least this language expedites Governors' access
to that RVP waiver's elimination and provides accelerated opt-in
authority to the entire States in the ozone transport region, where the
ozone problems are quite serious. My preferred construction would have
gone even further toward providing ever greater air quality benefits
and a clearer set of ``national'' fuels.
The provision on liability limitations for renewable fuels is also
problematic in that it is not clear to many of us why such a limitation
is necessary. One would assume that Congress has required a renewable
fuel content in motor vehicle fuel knowing what renewable fuels will be
used to meet this requirement. Indeed, we assume that these renewable
fuels will be ethanol and biodiesel. If these renewable fuels are as
beneficial to the public health as we have been lead to believe, then
there should be no need for such a liability limitation.
Under the provision, it is clear that no liability limitation applies
to MTBE. It is clear that no liability limitation applies to any cases
filed prior to the date of enactment of the bill. It is clear that the
limitation applies only to a defective product claim and no other type
of claim. It is clear that this limitation applies only to a renewable
fuel, and if such fuel is blended with substances that do not meet the
definition of a renewable fuel, the limitation does not extend to those
substances.
The limitation is not intended to limit any legal requirements that
apply to the use, distribution, transport or storage of these renewable
fuels, and as such, this provision does not amend or modify any such
requirements. Nor should this provision be read to curtail the duty of
the producers, transporters and distributors of these fuels to act
responsibly with regard to their products, including providing all
warnings of dangers to human health or the environment associated with
their products and taking all precautions to avoid any such harm which
may include eliminating the use of the product altogether.
The substitute amendment provides protection against increases in
toxic air pollutant emissions by maintaining the overcompliance that
refiners have achieved since the inception of the RFG program. This is
particularly vital to the Northeast, as vehicles are a
disproportionately large source of these emissions inventory. The
language includes an important statutory deadline for further EPA
rulemaking to impose any additional and necessary toxics reductions to
protect public health. As my colleagues may know, several studies have
implicated vehicle toxics emissions as a contributor to increased
cancer and developmental risks in congested urban areas.
Perhaps as important, the amendment requires the EPA to do a much
better job of ensuring that fuels and fuel additives don't harm water
quality, as well as air quality. Manufacturers will need to regularly
supply information to the Agency on the public health and environmental
impacts of the use of fuels and fuel additives. The Administrator will
be held responsible for assuring that that data is up to date and
adequate for determining whether those substances' use is a cause for
concern.
As my colleagues know, I have been a strong proponent of encouraging
the use of alternative and renewable fuels for decades. That is why I
have supported S. 760, a bill to provide incentives for those fuels and
vehicles, and many many other efforts to motivate reductions in our
dependency on petroleum. We are making a small dent in that dependency
with this language. The total motor gasoline consumption in 2012 is
expected to exceed 180 billion gallons annually. The substitute's
provisions require that about 2.8 percent of gasoline consumption in
that year to be fuel made from renewable sources. This is good for
energy security and the environment.
Work has been underway in Congress to try to solve this problem since
MTBE contamination was first found. Senators Boxer, Feinstein and Bob
Smith, in particular, have been instrumental in addressing the matter.
Before S. 950, the Committee on Environment and Public Works reported a
bill, S. 2962, in the 106th Congress which had an effect similar to
what is contained in this substitute amendment. Many of the most
important concepts in those bills are now embodied in the amendment. It
is past time that Congress acted on this matter. Further delay will
simply lead to more water resource contamination.
I ask unanimous consent that a brief and informal section-by-section
summary of the renewable fuels and MTBE provisions be included in the
Record following my statement. This may assist Senators and their staff
in understanding what we are attempting to do with this substitute. I
urge them to help us solve this problem.
There being no objection, the following material was ordered to be
printed in the Record.
[[Page S2321]]
Section-by-Section Summary
Section 819. Renewable Content of Motor Vehicle Fuel.
Amends the Clean Air Act to require that gasoline sold or
dispensed to consumers in the United States contain a certain
volume of renewable fuel starting in the year 2004. The
volume starts at 2.3 billion gallons in the first year and
increases to 5.0 billion gallons in 2012. The volume
requirement continues thereafter at the same percentage that
the 5.0 billion gallons represents in relation to the total
gasoline pool in 2012. Existing Clean Air Act compliance
requirements for section 211 apply to this new requirement.
Renewable fuel is defined as motor vehicle fuel made from
grain or other biomass sources, methane from landfills,
sewage, etc. and that replaces or reduces fossil fuel. This
includes ethanol and biodiesel.
EPA must promulgate regulations translating the total
national volume requirement into percentages that are
applicable to individual refiners, blenders and importers.
They may achieve compliance with the applicable percentage by
buying credits from others in the industry that have used
more renewable fuel than required.
Credits are valid for up to three consecutive years,
depending on regulations promulgated. Compliance with the
applicable percentage of renewable fuel may be deferred for
one year, if the refiner, blender or importer makes up the
deficit in the following year and complies with the following
year's requirement. Ethanol made from non-corn sources, such
as dedicated energy crops, animal waste, municipal solid
waste, and wood and wood residues, generates 1.5 credits for
every gallon sold or introduced into commerce.
Using EIA information, EPA will ensure that no less than 35
percent of the applicable renewable fuel use shall take place
in every season. In 2004, ethanol consumed in California will
not be included in calculating that year's seasonal
variation.
EPA, in consultation with DOE and USDA, may waive the
renewable fuel requirement in whole or in part on petition by
one or more States by reducing the national quantity required
for one year at a time, if one of two conditions are met.
One, implementation would severely harm the economy or
environment of a State, a region or the country. Two, there
is an inadequate domestic supply or distribution capacity to
meet the requirement. DOE must do an initial study within 180
days to review the consumer impacts of the requirement in
2004 and make recommendations regarding a waiver.
Small refineries are not covered by the renewable fuel
content requirement until 2008. Before 2007, DOE must study
the economic hardship on small refineries of compliance with
that requirement. If DOE finds disproportionate impact on a
small refinery, EPA will provide an extension on compliance
for up to 2 years. Small refiners may opt in to the renewable
fuel program at any time before compliance is required.
Exclusions from Ethanol Waiver. A Governor may require that
gasoline to be blended with ethanol must achieve a lower Reid
vapor pressure than the Clean Air Act currently provides,
upon a showing to EPA that there will otherwise be an
increase in emissions that will contribute to air pollution
in that State. EPA is required to act on a Governor's
petition within 90 days, and promulgate regulations that will
take effect the later of one year or the next high ozone
season. If approving the Governor's petition would result in
insufficient supplies of gasoline, EPA will extend the
effective date of the regulations for not more than 1 year
and may renew the extension two more times.
Renewable Fuels Safe Harbor. This section provides that
renewable fuels required to be used and as defined by this
act will not be deemed defective in design or manufacture, in
terms of a manufacturer's liability for introducing it into
commerce after enactment, so long as the renewable fuel does
not violate EPA controls or prohibitions and the manufacturer
is in compliance with EPA requests for information on the
renewable fuels' public health and environmental effects, the
techniques for detecting the additive in fuel, and the
resulting effects on emissions from vehicles, vehicles'
performance, and any emissions related effect on public
wealth and welfare.
Section 832. The Leaking Underground Storage Tank, LUST,
program is modified to allow EPA and the States to use LUST
monies to carry out corrective actions to remediate MTBE and
other ether contamination that poses a threat to human
health, welfare, or the environment. Contamination by or from
an underground tank leak is not required for use of the
funds.
Bedrock/Soil Remediation. Funds are authorized to study
remediation of aquifers of various sorts that have been
contaminated by MTBE.
Total LUST funds authorized to be appropriated for this
section are $402.35 million.
Section 833. Authority for Water Quality Protection From
Fuels. The Clean Air Act is amended to allow EPA to regulate
fuels and fuel additives to prevent degradation of water
quality.
MTBE use is discontinued not later than 4 years after
enactment, except in any State that chooses to continue using
it. EPA will promulgate the appropriate implementing
regulations and may allow trace quantities of MTBE in motor
vehicle fuel to exist nationally after 4 years. This Federal
phase out is not intended to affect any existing State
efforts to ban MTBE.
Existing domestic manufacturers of MTBE supplying today's
nonattainment areas are eligible for transition assistance
for conversion of their facilities to produce MTBE
substitutes. There are $750 million total authorized for
2003-05 for such assistance.
Section 834. Elimination of the Oxygen Content Requirement
for Reformulated Gasoline. The 2 percent oxygen content
requirement for RFG under section 211 of the Clean Air Act is
eliminated 270 days after enacted, except that it is
eliminated upon enactment for California.
To ensure that elimination of the oxygen requirement and
the phase out of MTBE do not increase toxic air pollutant
emissions, within 270 days EPA must promulgate regulations to
ensure that each refinery or importer of RFG maintains its
toxics emissions reduction performance achieved in 1999-2000.
If that performance is not achieved in any region, PADD, of
the country, EPA must modify the regulations for all RFG to
assure performance.
EPA will promulgate revisions to the RFG regulations to
require that the more stringent VOC performance requirements
of Southern region RFG apply to all RFG.
Section 835. Public Health and Environmental Impacts of
Fuels and Fuel Additives. EPA is required to regularly
collect information from manufacturers on the public health
and environmental effects, including water quality, of fuels
and fuel additives. EPA must also study a variety of
potential MTBE substitutes.
Section 836. Analyses of Motor Vehicle Fuel Changes. Within
5 years, EPA will conduct and submit to Congress a broad
analysis of the changes in emissions of air pollutants and
air quality due to the changes in the use of motor vehicle
fuel that occurred as a result of this act.
Section 837. Additional Opt-in Areas Under Reformulated
Gasoline Program. Any Governor of a State in the ozone
transport region, 13 north/eastern States, may opt the whole
State in to the reformulated gasoline program so long as
there is a sufficient capacity to supply RFG. EPA shall
implement this change not later than 2 years after the
Governor's request, but opt in States must stay in the
program for at least 4 years.
Section 838. Federal Enforcement of State Fuels
Requirements. States may have the Federal Government enforce
a State's controls on fuels or fuel additives if the controls
are part of an approved SIP and otherwise meet the
requirements of section 211(c)(4)(c).
Section 839. Fuel System Requirements Harmonization Study.
EPA and DOE will conduct a study of motor vehicle fuel
requirements and report to Congress by June 1, 2006, with
recommendations for improving air quality, reducing costs to
consumers and producers, and to increase supply liquidity.
____________________