[Congressional Record Volume 151, Number 80 (Thursday, June 16, 2005)]
[Senate]
[Pages S6768-S6777]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 790. Mr. DAYTON submitted an amendment intended to be proposed by 
him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:

       On page 159, after line 23, add the following:

     SEC. 211. ETHANOL CONTENT OF GASOLINE.

       (a) Definitions.--In this section:
       (1) 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, including--
       (A) dedicated energy crops and trees;
       (B) wood and wood residues;
       (C) plants;
       (D) grasses;
       (E) agricultural residues; and
       (F) fibers.
       (2) Waste derived ethanol.--The term ``waste derived 
     ethanol'' means ethanol derived from--
       (A) animal wastes, including poultry fats and poultry 
     wastes, and other waste materials; or
       (B) municipal solid waste.
       (3) Ethanol.--The term ``ethanol'' means cellulosic biomass 
     ethanol and waste derived ethanol.
       (b) Renewable Fuel Program.--Notwithstanding any other 
     provision of law, not later than 1 year after the date of 
     enactment of this section, the Secretary shall promulgate 
     regulations ensuring that each gallon of gasoline sold or 
     dispensed to consumers in

[[Page S6769]]

     the contiguous United States contains 10 percent ethanol by 
     2015.
                                 ______
                                 
  SA 791. Mr. BINGAMAN (for himself, Mr. Coleman, Mr. Jeffords, Ms. 
Collins, Mr. Dorgan, Mrs. Feinstein, Ms. Cantwell, Mr. Reid, Mr. 
Salazar, Mr. Obama, Mrs. Clinton, Mr. Kerry, Mr. Lautenberg, Mr. 
Johnson, and Ms. Snowe) proposed an amendment to the bill H.R. 6, 
Reserved; as follows:

       At the end of title II, add the following:

                Subtitle F--Renewable Portfolio Standard

     SEC. 271. RENEWABLE PORTFOLIO STANDARD.

       Title VI of the Public Utility Regulatory Policies Act of 
     1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 609. FEDERAL RENEWABLE PORTFOLIO STANDARD.

       ``(a) Renewable Energy Requirement.--
       ``(1) In general.--Each electric utility that sells 
     electricity to electric consumers shall obtain a percentage 
     of the base amount of electricity it sells to electric 
     consumers in any calendar year from new renewable energy or 
     existing renewable energy. The percentage obtained in a 
     calendar year shall not be less than the amount specified in 
     the following table:

``Calendar year:                             Minimum annual percentage:
  2008 through 2011............................................2.5 ....

  2012 through 2015............................................5.0 ....

  2016 through 2019............................................7.5 ....

  2020 through 2030...........................................10.0.....

       ``(2) Means of compliance.--An electric utility shall meet 
     the requirements of paragraph (1) by--
       ``(A) generating electric energy using new renewable energy 
     or existing renewable energy;
       ``(B) purchasing electric energy generated by new renewable 
     energy or existing renewable energy;
       ``(C) purchasing renewable energy credits issued under 
     subsection (b); or
       ``(D) a combination of the foregoing.
       ``(b) Renewable Energy Credit Trading Program.--
       ``(1) Not later than January 1, 2007, the Secretary shall 
     establish a renewable energy credit trading program to permit 
     an electric utility that does not generate or purchase enough 
     electric energy from renewable energy to meet its obligations 
     under subsection (a)(1) to satisfy such requirements by 
     purchasing sufficient renewable energy credits.
       ``(2) As part of such program the Secretary shall--
       ``(A) issue renewable energy credits to generators of 
     electric energy from new renewable energy;
       ``(B) sell renewable energy credits to electric utilities 
     at the rate of 1.5 cents per kilowatt-hour (as adjusted for 
     inflation under subsection (g));
       ``(C) ensure that a kilowatt hour, including the associated 
     renewable energy credit, shall be used only once for purposes 
     of compliance with this section; and
       ``(D) allow double credits for generation from facilities 
     on Indian Lands, and triple credits for generation from small 
     renewable distributed generators (meaning those those no 
     larger than 1 megawatt).
       ``(3) Credits under paragraph (2)(A) may only be used for 
     compliance with this section for 3 years from the date 
     issued.
       ``(c) Enforcement.--
       ``(1) Civil penalties.--Any electric utility that fails to 
     meet the renewable energy requirements of subsection (a) 
     shall be subject to a civil penalty.
       ``(2) Amount of penalty.--The amount of the civil penalty 
     shall be determined by multiplying the number of kilowatt-
     hours of electric energy sold to electric consumers in 
     violation of subsection (a) by the greater of 1.5 cents 
     (adjusted for inflation under subsection (g)) or 200 percent 
     of the average market value of renewable energy credits 
     during the year in which the violation occurred.
       ``(3) Mitigation or waiver.--The Secretary may mitigate or 
     waive a civil penalty under this subsection if the electric 
     utility was unable to comply with subsection (a) for reasons 
     outside of the reasonable control of the utility. The 
     Secretary shall reduce the amount of any penalty determined 
     under paragraph (2) by an amount paid by the electric utility 
     to a State for failure to comply with the requirement of a 
     State renewable energy program if the State requirement is 
     greater than the applicable requirement of subsection (a).
       ``(4) Procedure for assessing penalty.--The Secretary shall 
     assess a civil penalty under this subsection in accordance 
     with the procedures prescribed by section 333(d) of the 
     Energy Policy and Conservation Act of 1954 (42 U.S.C. 6303).
       ``(d) State Renewable Energy Account Program.--
       ``(1) The Secretary shall establish, not later than 
     December 31, 2008, a State renewable energy account program.
       ``(2) All money collected by the Secretary from the sale of 
     renewable energy credits and the assessment of civil 
     penalties under this section shall be deposited into the 
     renewable energy account established pursuant to this 
     subsection. The State renewable energy account shall be held 
     by the Secretary and shall not be transferred to the Treasury 
     Department.
       ``(3) Proceeds deposited in the State renewable energy 
     account shall be used by the Secretary, subject to 
     appropriations, for a program to provide grants to the State 
     agency responsible for developing State energy conservation 
     plans under section 362 of the Energy Policy and Conservation 
     Act (42 U.S.C. 6322) for the purposes of promoting renewable 
     energy production, including programs that promote 
     technologies that reduce the use of electricity at customer 
     sites such as solar water heating.
       ``(4) The Secretary may issue guidelines and criteria for 
     grants awarded under this subsection. State energy offices 
     receiving grants under this section shall maintain such 
     records and evidence of compliance as the Secretary may 
     require.
       ``(5) In allocating funds under this program, the Secretary 
     shall give preference--
       ``(A) to States in regions which have a disproportionately 
     small share of economically sustainable renewable energy 
     generation capacity; and
       ``(B) to State programs to stimulate or enhance innovative 
     renewable energy technologies.
       ``(e) Rules.--The Secretary shall issue rules implementing 
     this section not later than 1 year after the date of 
     enactment of this section.
       ``(f) Exemptions.--This section shall not apply in any 
     calendar year to an electric utility--
       ``(1) that sold less than 4,000,000 megawatt-hours of 
     electric energy to electric consumers during the preceding 
     calendar year; or
       ``(2) in Hawaii.
       ``(g) Inflation Adjustment.--Not later than December 31 of 
     each year beginning in 2008, the Secretary shall adjust for 
     inflation the price of a renewable energy credit under 
     subsection (b)(2)(B) and the amount of the civil penalty per 
     kilowatt-hour under subsection (c)(2).
       ``(h) State Programs.--Nothing in this section shall 
     diminish any authority of a State or political subdivision 
     thereof to adopt or enforce any law or regulation respecting 
     renewable energy, but, except as provided in subsection 
     (c)(3), no such law or regulation shall relieve any person of 
     any requirement otherwise applicable under this section. The 
     Secretary, in consultation with States having such renewable 
     energy programs, shall, to the maximum extent practicable, 
     facilitate coordination between the Federal program and State 
     programs.
       ``(i) Definitions.--For purposes of this section:
       ``(1) Base amount of electricity.--The term `base amount of 
     electricity' means the total amount of electricity sold by an 
     electric utility to electric consumers in a calendar year, 
     excluding--
       ``(A) electricity generated by a hydroelectric facility 
     (including a pumped storage facility but excluding 
     incremental hydropower); and
       ``(B) electricity generated through the incineration of 
     municipal solid waste.
       ``(2) Distributed generation facility.--The term 
     `distributed generation facility' means a facility at a 
     customer site.
       ``(3) Existing renewable energy.--The term `existing 
     renewable energy' means, except as provided in paragraph 
     (7)(B), electric energy generated at a facility (including a 
     distributed generation facility) placed in service prior to 
     the date of enactment of this section from solar, wind, or 
     geothermal energy; ocean energy; biomass (as defined in 
     section 203(a) of the Energy Policy Act of 2005); or landfill 
     gas.
       ``(4) Geothermal energy.--The term `geothermal energy' 
     means energy derived from a geothermal deposit (within the 
     meaning of section 613(e)(2) of the Internal Revenue Code of 
     1986).
       ``(5) Incremental geothermal production.--
       ``(A) In general.--The term `incremental geothermal 
     production' means for any year the excess of--
       ``(i) the total kilowatt hours of electricity produced from 
     a facility (including a distributed generation facility) 
     using geothermal energy, over
       ``(ii) the average annual kilowatt hours produced at such 
     facility for 5 of the previous 7 calendar years before the 
     date of enactment of this section after eliminating the 
     highest and the lowest kilowatt hour production years in such 
     7-year period.
       ``(B) Special rule.--A facility described in subparagraph 
     (A) which was placed in service at least 7 years before the 
     date of enactment of this section shall commencing with the 
     year in which such date of enactment occurs, reduce the 
     amount calculated under subparagraph (A)(ii) each year, on a 
     cumulative basis, by the average percentage decrease in the 
     annual kilowatt hour production for the 7-year period 
     described in subparagraph (A)(ii) with such cumulative sum 
     not to exceed 30 percent.
       ``(6) Incremental hydropower.--The term `incremental 
     hydropower' means additional energy generated as a result of 
     efficiency improvements or capacity additions made on or 
     after the date of enactment of this section or the effective 
     date of an existing applicable State renewable portfolio 
     standard program at a hydroelectric facility that was placed 
     in service before that date. The term does not include 
     additional energy generated as a result of operational 
     changes not directly associated with efficiency improvements 
     or capacity additions. Efficiency improvements and capacity 
     additions shall be measured on the basis of the same water 
     flow information used to determine a historic average annual

[[Page S6770]]

     generation baseline for the hydroelectric facility and 
     certified by the Secretary or the Federal Energy Regulatory 
     Commission.
       ``(7) New renewable energy.--The term `new renewable 
     energy' means--
       ``(A) electric energy generated at a facility (including a 
     distributed generation facility) placed in service on or 
     after January 1, 2003, from--
       ``(i) solar, wind, or geothermal energy or ocean energy;
       ``(ii) biomass (as defined in section 203(a) of the Energy 
     Policy Act of 2005);
       ``(iii) landfill gas; or
       ``(iv) incremental hydropower; and
       ``(B) for electric energy generated at a facility 
     (including a distributed generation facility) placed in 
     service prior to the date of enactment of this section--
       ``(i) the additional energy above the average generation in 
     the 3 years preceding the date of enactment of this section 
     at the facility from--

       ``(I) solar or wind energy or ocean energy;
       ``(II) biomass (as defined in section 203(a) of the Energy 
     Policy Act of 2005);
       ``(III) landfill gas; or
       ``(IV) incremental hydropower.

       ``(ii) the incremental geothermal production.
       ``(8) Ocean energy.--The term `ocean energy' includes 
     current, wave, tidal, and thermal energy.
       ``(j) Sunset.--This section expires on December 31, 
     2030.''.
                                 ______
                                 
  SA 792. Mr. WYDEN (for himself and Mr. Dorgan) submitted an amendment 
intended to be proposed by him to the bill H.R. 6, Reserved; which was 
ordered to lie on the table; as follows:

       On page 208, strike lines 11 through 20 and insert the 
     following:
       (e) Fill Strategic Petroleum Reserve to Capacity.--
       (1) Definition of price of oil.--In this subsection, the 
     term ``price of oil'' means the West Texas Intermediate 1-
     month future price of oil on the New York Mercantile 
     Exchange.
       (2) Acquisition.--The Secretary shall, as expeditiously as 
     practicable, without incurring excessive cost or appreciably 
     affecting the price of gasoline or heating oil to consumers, 
     acquire petroleum in quantities sufficient to fill the 
     Strategic Petroleum Reserve to the 1,000,000,000-barrel 
     capacity authorized under section 154(a) of the Energy Policy 
     and Conservation Act (42 U.S.C. 6234(a)), in accordance with 
     the sections 159 and 160 of that Act (42 U.S.C. 6239, 6240).
       (3) Suspension of acquisitions.--
       (A) In general.--The Secretary shall suspend acquisitions 
     of petroleum under paragraph (2) when the market day closing 
     price of oil exceeds $58.28 per barrel (adjusted in 
     accordance with the Consumer Price Index for all-urban 
     consumers United States city average, as published by the 
     Bureau of Labor Statistics) for 10 consecutive trading days.
       (B) Acquisition.--Acquisitions suspended under subparagraph 
     (A) shall resume when the market day closing price of oil 
     remains below $40 per barrel (adjusted in accordance with the 
     Consumer Price Index for all-urban consumers United States 
     city average, as published by the Bureau of Labor Statistics) 
     for 10 consecutive trading days.
                                 ______
                                 
  SA 793. Mr. LAUTENBERG submitted an amendment intended to be proposed 
by him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:

       Beginning on page 135, strike line 6 and all that follows 
     through page 160, line 1, and insert the following:
       (d) Report.--Not later than April 16, 2007, and every 3 
     years thereafter, the Secretary shall provide to Congress a 
     report on the progress of the Federal Government in meeting 
     the goals established by this section.

                       Subtitle B--Reliable Fuels

     SEC. 211. RENEWABLE CONTENT OF GASOLINE.

       (a) In General.--Section 211 of the Clean Air Act (42 
     U.S.C. 7545) is amended--
       (1) by redesignating subsection (o) as subsection (r); and
       (2) by inserting after subsection (n) the following:
       ``(o) Renewable Fuel Program.--
       ``(1) Definitions.--In this section and section 212:
       ``(A) 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, including--
       ``(i) dedicated energy crops and trees;
       ``(ii) wood and wood residues;
       ``(iii) plants;
       ``(iv) grasses;
       ``(v) agricultural residues;
       ``(vi) fibers;
       ``(vii) animal wastes and other waste materials; and
       ``(viii) municipal solid waste.
       ``(B) Cellulosic biomass feedstock.--The term `cellulosic 
     biomass feedstock' means--
       ``(i) dedicated energy crops and trees;
       ``(ii) wood and wood residues;
       ``(iii) plants;
       ``(iv) grasses;
       ``(v) agricultural residues;
       ``(vi) fibers;
       ``(vii) animal wastes and other waste materials; and
       ``(viii) municipal solid waste.
       ``(C) Cellulosic biomass-derived liquid alternative fuel.--
       ``(i) In general.--The term `cellulosic biomass-derived 
     liquid alternative fuel' means an alternative fuel (as 
     defined in section 301 of the Energy Policy Act of 1992 (42 
     U.S.C. 13211)), or a blending component for alternate fuel, 
     that--

       ``(I) is derived from cellulosic biomass feedstock or 
     waste; and
       ``(II) remains substantially in a liquid phase at room 
     temperature and atmospheric pressure.

       ``(ii) Certain liquid alternative fuels.--For any liquid 
     alternative fuel that contains a component that is not 
     derived from a cellulosic biomass feedstock or waste, only 
     the portion of the fuel that is derived from a cellulosic 
     biomass feedstock shall be considered to be a biomass-derived 
     liquid alternative fuel.
       ``(D) Renewable fuel.--
       ``(i) In general.--The term `renewable fuel' means motor 
     vehicle fuel that--

       ``(I)(aa) is produced from grain, starch, oilseeds, 
     sugarcane, sugar beets, sugar components, tobacco, potatoes, 
     or other biomass; or
       ``(bb) is natural gas produced from a biogas source, 
     including a landfill, sewage waste treatment plant, feedlot, 
     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; and
       ``(II) biodiesel (as defined in section 312(f) of the 
     Energy Policy Act of 1992 (42 U.S.C. 13220(f))).

       ``(E) Small refinery.--The term `small refinery' means a 
     refinery 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 75,000 barrels.
       ``(F) Waste.--The term `waste' means--
       ``(i) animal wastes, including poultry fats and poultry 
     wastes, and other waste materials; or
       ``(ii) municipal solid waste (as defined in section 1004 of 
     the Solid Waste Disposal Act (42 U.S.C. 6903)).
       ``(2) Renewable fuel program.--
       ``(A) Regulations.--
       ``(i) In general.--Not later than 1 year after the date of 
     enactment of this paragraph, the Administrator shall 
     promulgate regulations to ensure that gasoline sold or 
     introduced into commerce in the United States (except in 
     noncontiguous States or territories), on an annual average 
     basis, contains the applicable volume of renewable fuel 
     determined in accordance with subparagraph (B).
       ``(ii) Noncontiguous state opt-in.--

       ``(I) In general.--On the petition of a noncontiguous State 
     or territory, the Administrator may allow the renewable fuel 
     program established under this subsection to apply in the 
     noncontiguous State or territory at the same time or any time 
     after the Administrator promulgates regulations under this 
     subparagraph.
       ``(II) Other actions.--In carrying out this clause, the 
     Administrator may--

       ``(aa) issue or revise regulations under this paragraph;
       ``(bb) establish applicable percentages under paragraph 
     (3);
       ``(cc) provide for the generation of credits under 
     paragraph (5); and
       ``(dd) take such other actions as are necessary to allow 
     for the application of the renewable fuels program in a 
     noncontiguous State or territory.
       ``(iii) Provisions of regulations.--Regardless of the date 
     of promulgation, the regulations promulgated under clause 
     (i)--

       ``(I) shall contain compliance provisions applicable to 
     refineries, blenders, distributors, and importers, as 
     appropriate, to ensure that the requirements of this 
     paragraph are met; but
       ``(II) shall not--

       ``(aa) restrict geographic areas in which renewable fuel 
     may be used; or
       ``(bb) impose any per-gallon obligation for the use of 
     renewable fuel.
       ``(iv) Requirement in case of failure to promulgate 
     regulations.--If the Administrator does not promulgate 
     regulations under clause (i), the percentage of renewable 
     fuel in gasoline sold or dispensed to consumers in the United 
     States, on a volume basis, shall be 3.2 percent for calendar 
     year 2006.
       ``(B) Applicable volume.--
       ``(i) Calendar years 2006 through 2012.--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
``Calendar year:                              (in billions 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 year 2013 and thereafter.--Subject to 
     clauses (iii) and (iv), for the purposes of subparagraph (A), 
     the applicable volume for calendar year 2013 and each 
     calendar year thereafter shall be determined by the 
     Administrator, in coordination with

[[Page S6771]]

     the Secretary of Agriculture and the Secretary of Energy, 
     based on a review of the implementation of the program during 
     calendar years 2006 through 2012, including a review of--

       ``(I) the impact of the use of renewable fuels on the 
     environment, air quality, energy security, job creation, and 
     rural economic development; and
       ``(II) the expected annual rate of future production of 
     renewable fuels, including cellulosic ethanol.

       ``(iii) Minimum quantity derived from cellulosic biomass.--
     For calendar year 2013 and each calendar year thereafter--

       ``(I) the applicable volume referred to in clause (ii) 
     shall contain a minimum of 250,000,000 gallons that are 
     derived from cellulosic biomass; and
       ``(II) the 2.5-to-1 ratio referred to in paragraph (4) 
     shall not apply.

       ``(iv) Minimum applicable volume.--For the purpose of 
     subparagraph (A), the applicable volume for calendar year 
     2013 and each calendar year thereafter 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 in the calendar year; and
       ``(II) the ratio that--

       ``(aa) 8,000,000,000 gallons of renewable fuel; bears to
       ``(bb) the number of gallons of gasoline sold or introduced 
     into commerce in 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 2005 
     through 2011, the Administrator of the Energy Information 
     Administration shall provide to the Administrator of the 
     Environmental Protection Agency an estimate, with respect to 
     the following calendar year, of the volumes of gasoline 
     projected to be sold or introduced into commerce in the 
     United States.
       ``(B) Determination of applicable percentages.--
       ``(i) In general.--Not later than November 30 of each of 
     calendar years 2005 through 2012, based on the estimate 
     provided under subparagraph (A), the Administrator of the 
     Environmental Protection Agency shall determine and publish 
     in the Federal Register, with respect to the following 
     calendar year, the renewable fuel obligation that ensures 
     that the requirements of paragraph (2) are met.
       ``(ii) Required elements.--The renewable fuel obligation 
     determined for a calendar year under clause (i) shall--

       ``(I) be applicable to refineries, blenders, and importers, 
     as appropriate;
       ``(II) be expressed in terms of a volume percentage of 
     gasoline sold or introduced into commerce in the United 
     States; 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 on 
     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 (9).
       ``(4) Cellulosic biomass ethanol.--For the purpose of 
     paragraph (2), 1 gallon of cellulosic biomass ethanol shall 
     be considered to be the equivalent of 2.5 gallons of 
     renewable fuel.
       ``(5) Credit program.--
       ``(A) In general.--The regulations promulgated under 
     paragraph (2)(A) shall provide--
       ``(i) for 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) for the generation of an appropriate amount of 
     credits for biodiesel; and
       ``(iii) for the generation of credits by small refineries 
     in accordance with paragraph (9)(C).
       ``(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) Duration of credits.--A credit generated under this 
     paragraph shall be valid to show compliance for the calendar 
     year in which the credit was generated.
       ``(D) Inability to generate or purchase sufficient 
     credits.--The regulations promulgated under paragraph (2)(A) 
     shall include provisions allowing any person that is unable 
     to generate or purchase sufficient credits to meet the 
     requirements of paragraph (2) to carry forward a renewable 
     fuel deficit on condition that the person, in the calendar 
     year following the year in which the renewable fuel deficit 
     is created--
       ``(i) achieves compliance with the renewable fuel 
     requirement under paragraph (2); and
       ``(ii) generates or purchases additional renewable fuel 
     credits to offset the renewable fuel deficit of the previous 
     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 
     shall conduct a study of renewable fuel blending to determine 
     whether there are excessive seasonal variations in the use of 
     renewable fuel.
       ``(B) Regulation of excessive seasonal variations.--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 of the Environmental 
     Protection Agency shall promulgate regulations to ensure that 
     35 percent or more of the quantity of renewable fuel 
     necessary to meet the requirements of paragraph (2) is used 
     during each of the 2 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 
     fuel necessary to meet the requirements of paragraph (2) has 
     been used during 1 of the 2 periods specified in subparagraph 
     (D) of the calendar year; and
       ``(ii) a pattern of excessive seasonal variation described 
     in clause (i) will continue in subsequent calendar years.
       ``(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) Exclusion.--Renewable fuel blended or consumed in 
     calendar year 2006 in a State that has received a waiver 
     under section 209(b) shall not be included in the study under 
     subparagraph (A).
       ``(F) State exemption from seasonality requirements.--
     Notwithstanding any other provision of law, the seasonality 
     requirement relating to renewable fuel use established by 
     this paragraph shall not apply to any State that has received 
     a waiver under section 209(b).
       ``(7) Waivers.--
       ``(A) In general.--The Administrator, in consultation with 
     the Secretary of Agriculture and the Secretary of Energy, may 
     waive the requirements of paragraph (2) in whole or in part 
     on petition by 1 or more States by reducing the national 
     quantity of renewable fuel required under paragraph (2)--
       ``(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, after 
     public notice and opportunity for comment, that there is an 
     inadequate domestic supply.
       ``(B) Petitions for waivers.--The Administrator, in 
     consultation with the Secretary of Agriculture and the 
     Secretary of Energy, shall approve or disapprove a State 
     petition for a waiver of the requirements of paragraph (2) 
     within 90 days after the date on which the petition is 
     received by the Administrator.
       ``(C) Termination of waivers.--A waiver granted under 
     subparagraph (A) shall terminate after 1 year, but may be 
     renewed by the Administrator after consultation with the 
     Secretary of Agriculture and the Secretary of Energy.
       ``(8) Study and waiver for initial year of program.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this paragraph, the Secretary of Energy shall 
     conduct for the Administrator a study assessing whether the 
     renewable fuel requirement under paragraph (2) will likely 
     result in significant adverse impacts on consumers in 2006, 
     on a national, regional, or State basis.
       ``(B) Required evaluations.--The study shall evaluate 
     renewable fuel--
       ``(i) supplies and prices;
       ``(ii) blendstock supplies; and
       ``(iii) supply and distribution system capabilities.
       ``(C) Recommendations by the Secretary.--Based on the 
     results of the study, the Secretary of Energy shall make 
     specific recommendations to the Administrator concerning 
     waiver of the requirements of paragraph (2), in whole or in 
     part, to prevent any adverse impacts described in 
     subparagraph (A).
       ``(D) Waiver.--
       ``(i) In general.--Not later than 270 days after the date 
     of enactment of this paragraph, the Administrator shall, if 
     and to the extent recommended by the Secretary of Energy 
     under subparagraph (C), waive, in whole or in part, the 
     renewable fuel requirement under paragraph (2) by reducing 
     the national quantity of renewable fuel required under 
     paragraph (2) in calendar year 2006.
       ``(ii) No effect on waiver authority.--Clause (i) does not 
     limit the authority of the Administrator to waive the 
     requirements of paragraph (2) in whole, or in part, under 
     paragraph (7).
       ``(9) Small refineries.--
       ``(A) Temporary exemption.--
       ``(i) In general.--The requirements of paragraph (2) shall 
     not apply to small refineries until calendar year 2011.
       ``(ii) Extension of exemption.--

       ``(I) Study by Secretary of Energy.--Not later than 
     December 31, 2008, the Secretary of Energy shall conduct for 
     the Administrator a study to determine whether compliance 
     with the requirements of paragraph (2) would impose a 
     disproportionate economic hardship on small refineries.
       ``(II) Extension of exemption.--In the case of a small 
     refinery that the Secretary of Energy determines under 
     subclause (I) would be

[[Page S6772]]

     subject to a disproportionate economic hardship if required 
     to comply with paragraph (2), the Administrator shall extend 
     the exemption under clause (i) for the small refinery for a 
     period of not less than 2 additional years.

       ``(B) Petitions based on disproportionate economic 
     hardship.--
       ``(i) Extension of exemption.--A small refinery may at any 
     time petition the Administrator for an extension of the 
     exemption under subparagraph (A) for the reason of 
     disproportionate economic hardship.
       ``(ii) Evaluation of petitions.--In evaluating a petition 
     under clause (i), the Administrator, in consultation with the 
     Secretary of Energy, shall consider the findings of the study 
     under subparagraph (A)(ii) and 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 date of receipt of the petition.
       ``(C) Credit program.--If a small refinery notifies the 
     Administrator that the small refinery waives the exemption 
     under subparagraph (A), the regulations promulgated under 
     paragraph (2)(A) shall provide for the generation of credits 
     by the small refinery under paragraph (5) beginning in the 
     calendar year following the date of notification.
       ``(D) Opt-in for small refineries.--A small refinery shall 
     be subject to the requirements of paragraph (2) if the small 
     refinery notifies the Administrator that the small refinery 
     waives the exemption under subparagraph (A).
       ``(10) Ethanol market concentration analysis.--
       ``(A) Analysis.--
       ``(i) In general.--Not later than 180 days after the date 
     of enactment of this paragraph, and annually thereafter, the 
     Federal Trade Commission shall perform a market concentration 
     analysis of the ethanol production industry using the 
     Herfindahl-Hirschman Index to determine whether there is 
     sufficient competition among industry participants to avoid 
     price-setting and other anticompetitive behavior.
       ``(ii) Scoring.--For the purpose of scoring under clause 
     (i) using the Herfindahl-Hirschman Index, all marketing 
     arrangements among industry participants shall be considered.
       ``(B) Report.--Not later than December 1, 2005, and 
     annually thereafter, the Federal Trade Commission shall 
     submit to Congress and the Administrator a report on the 
     results of the market concentration analysis performed under 
     subparagraph (A)(i).
       ``(p) Renewable Fuel Safe Harbor.--
       ``(1) In general.--
       ``(A) Safe harbor.--Notwithstanding any other provision of 
     Federal or State law, no renewable fuel (as defined in 
     subsection (o)(1)) used or intended to be used as a motor 
     vehicle fuel, nor any motor vehicle fuel containing renewable 
     fuel, shall be deemed to be defective in design or 
     manufacture by reason of the fact that the fuel is, or 
     contains, renewable fuel, if--
       ``(i) the fuel does not violate a control or prohibition 
     imposed by the Administrator under this section; and
       ``(ii) the manufacturer of the fuel is in compliance with 
     all requests for information under subsection (b).
       ``(B) Safe harbor not applicable.--In any case in which 
     subparagraph (A) 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.
       ``(2) Exception.--This subsection does not apply to ethers.
       ``(3) Applicability.--This subsection applies with respect 
     to all claims filed on or after the date of enactment of this 
     subsection.''.
       (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)'' each 
     place it appears and inserting ``(n), or (o)''; 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)'' each place it appears and inserting ``(n), and 
     (o)''.
       (c) Exclusion From Ethanol Waiver.--Section 211(h) of the 
     Clean Air Act (42 U.S.C. 7545(h)) is amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following:
       ``(5) Exclusion from ethanol waiver.--
       ``(A) Promulgation of regulations.--Upon notification, 
     accompanied by supporting documentation, from the Governor of 
     a State that the Reid vapor pressure limitation established 
     by paragraph (4) will increase emissions that contribute to 
     air pollution in any area in the State, the Administrator 
     shall, by regulation, apply, in lieu of the Reid vapor 
     pressure limitation established by paragraph (4), the Reid 
     vapor pressure limitation established by paragraph (1) to all 
     fuel blends containing gasoline and 10 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) Deadline for promulgation.--The Administrator shall 
     promulgate regulations under subparagraph (A) not later than 
     90 days after the date of receipt of a notification from a 
     Governor under that subparagraph.
       ``(C) Effective date.--
       ``(i) In general.--With respect to an area in a State for 
     which the Governor submits a notification under subparagraph 
     (A), the regulations under that subparagraph shall take 
     effect on the later of--

       ``(I) the first day of the first high ozone season for the 
     area that begins after the date of receipt of the 
     notification; or
       ``(II) 1 year after the date of receipt of the 
     notification.

       ``(ii) Extension of effective date Based on determination 
     of insufficient supply.--

       ``(I) In general.--If, after receipt of a notification with 
     respect to an area from a Governor of a State under 
     subparagraph (A), the Administrator determines, on the 
     Administrator's own motion or on petition of any person and 
     after consultation with the Secretary of Energy, that the 
     promulgation of regulations described in subparagraph (A) 
     would result in an insufficient supply of gasoline in the 
     State, the Administrator, by regulation--

       ``(aa) shall extend the effective date of the regulations 
     under clause (i) with respect to the area 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. 212. RENEWABLE FUEL.

       (a) In General.--The Clean Air Act is amended by inserting 
     after section 211 (42 U.S.C. 7411) the following:

     ``SEC. 212. RENEWABLE FUEL.

       ``(a) Definitions.--In this section:
       ``(1) Municipal solid waste.--The term `municipal solid 
     waste' has the meaning given the term `solid waste' in 
     section 1004 of the Solid Waste Disposal Act (42 U.S.C. 
     6903).
       ``(2) RFG State.--The term `RFG State' means a State in 
     which is located 1 or more covered areas (as defined in 
     section 211(k)(10)(D)).
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Energy.
       ``(b) Survey of Renewable Fuel Market.--
       ``(1) Survey and report.--Not later than December 1, 2006, 
     and annually thereafter, the Administrator shall--
       ``(A) conduct, with respect to each conventional gasoline 
     use area and each reformulated gasoline use area in each 
     State, a survey to determine the market shares of--
       ``(i) conventional gasoline containing ethanol;
       ``(ii) reformulated gasoline containing ethanol;
       ``(iii) conventional gasoline containing renewable fuel; 
     and
       ``(iv) reformulated gasoline containing renewable fuel; and
       ``(B) submit to Congress, and make publicly available, a 
     report on the results of the survey under subparagraph (A).
       ``(2) Recordkeeping and reporting requirements.--
       ``(A) In general.--The Administrator may require any 
     refiner, blender, or importer to keep such records and make 
     such reports as are necessary to ensure that the survey 
     conducted under paragraph (1) is accurate.
       ``(B) Reliance on existing requirements.--To avoid 
     duplicative requirements, in carrying out subparagraph (A), 
     the Administrator shall rely, to the maximum extent 
     practicable, on reporting and recordkeeping requirements in 
     effect on the date of enactment of this section.
       ``(3) Confidentiality.--Activities carried out under this 
     subsection shall be conducted in a manner designed to protect 
     confidentiality of individual responses.
       ``(c)  Cellulosic Biomass Ethanol And Municipal Solid Waste 
     Loan Guarantee Program.--
       ``(1) In general.--Funds may be provided for the cost (as 
     defined in the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661 et seq.)) of loan guarantees issued under title XIV of 
     the Energy Policy Act of 2005 to carry out commercial 
     demonstration projects for celluosic biomass and sucrose-
     derived ethanol and cellulosic biomass-derived liquid 
     alternative fuels.
       ``(2) Demonstration projects.--
       ``(A) In general.--The Secretary shall issue loan 
     guarantees under this section to carry out not more than 4 
     projects to commercially demonstrate the feasibility and 
     viability of producing cellulosic biomass ethanol, sucrose-
     derived ethanol, or cellulosic biomass-derived liquid 
     alternative fuels, including at least 1 project that uses 
     cereal straw as a feedstock and 1 project that uses municipal 
     solid waste as a feedstock.
       ``(B) Design capacity.--Each project shall have a design 
     capacity to produce at least 30,000,000 gallons of cellulosic 
     biomass ethanol or cellulosic biomass-derived liquid 
     alternative fuels each year.
       ``(3) Applicant assurances.--An applicant for a loan 
     guarantee under this section shall provide assurances, 
     satisfactory to the Secretary, that--
       ``(A) the project design has been validated through the 
     operation of a continuous process facility with a cumulative 
     output of at least 50,000 gallons of ethanol or cellulosic 
     biomass-derived liquid alternative fuels;
       ``(B) the project has been subject to a full technical 
     review;

[[Page S6773]]

       ``(C) the project is covered by adequate project 
     performance guarantees;
       ``(D) the project, with the loan guarantee, is economically 
     viable; and
       ``(E) there is a reasonable assurance of repayment of the 
     guaranteed loan.
       ``(4) Limitations.--
       ``(A) Maximum guarantee.--Except as provided in 
     subparagraph (B), a loan guarantee under this section may be 
     issued for up to 80 percent of the estimated cost of a 
     project, but may not exceed $250,000,000 for a project.
       ``(B) Additional guarantees.--
       ``(i) In general.--The Secretary may issue additional loan 
     guarantees for a project to cover up to 80 percent of the 
     excess of actual project cost over estimated project cost but 
     not to exceed 15 percent of the amount of the original 
     guarantee.
       ``(ii) Principal and interest.--Subject to subparagraph 
     (A), the Secretary shall guarantee 100 percent of the 
     principal and interest of a loan made under subparagraph (A).
       ``(5) Equity contributions.--To be eligible for a loan 
     guarantee under this section, an applicant for the loan 
     guarantee shall have binding commitments from equity 
     investors to provide an initial equity contribution of at 
     least 20 percent of the total project cost.
       ``(6) Insufficient amounts.--If the amount made available 
     to carry out this section is insufficient to allow the 
     Secretary to make loan guarantees for 3 projects described in 
     subsection (b), the Secretary shall issue loan guarantees for 
     1 or more qualifying projects under this section in the order 
     in which the applications for the projects are received by 
     the Secretary.
       ``(7) Approval.--An application for a loan guarantee under 
     this section shall be approved or disapproved by the 
     Secretary not later than 90 days after the application is 
     received by the Secretary.
       ``(d) Authorization of Appropriations for Resource 
     Center.--There is authorized to be appropriated, for a 
     resource center to further develop bioconversion technology 
     using low-cost biomass for the production of ethanol at the 
     Center for Biomass-Based Energy at the Mississippi State 
     University and the Oklahoma State University, $4,000,000 for 
     each of fiscal years 2005 through 2007.
       ``(e) Renewable Fuel Production Research and Development 
     Grants.--
       ``(1) In general.--The Administrator shall provide grants 
     for the research into, and development and implementation of, 
     renewable fuel production technologies in RFG States with low 
     rates of ethanol production, including low rates of 
     production of cellulosic biomass ethanol.
       ``(2) Eligibility.--
       ``(A) In general.--The entities eligible to receive a grant 
     under this subsection are academic institutions in RFG 
     States, and consortia made up of combinations of academic 
     institutions, industry, State government agencies, or local 
     government agencies in RFG States, that have proven 
     experience and capabilities with relevant technologies.
       ``(B) Application.--To be eligible to receive a grant under 
     this subsection, an eligible entity shall submit to the 
     Administrator an application in such manner and form, and 
     accompanied by such information, as the Administrator may 
     specify.
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $25,000,000 
     for each of fiscal years 2006 through 2010.
       ``(f) Cellulosic Biomass Ethanol Conversion Assistance.--
       ``(1) In general.--The Secretary may provide grants to 
     merchant producers of cellulosic biomass ethanol in the 
     United States to assist the producers in building eligible 
     production facilities described in paragraph (2) for the 
     production of cellulosic biomass ethanol.
       ``(2) Eligible production facilities.--A production 
     facility shall be eligible to receive a grant under this 
     subsection if the production facility--
       ``(A) is located in the United States; and
       ``(B) uses cellulosic biomass feedstocks derived from 
     agricultural residues or municipal solid waste.
       ``(3) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection--
       ``(A) $250,000,000 for fiscal year 2005; and
       ``(B) $400,000,000 for fiscal year 2006.''.
       (b) Conforming Amendment.--The table of contents for the 
     Clean Air Act (42 U.S.C. 7401 prec.) is amended by inserting 
     after the item relating to section 211 the following:

``Sec. 212. Renewable fuels''.

     SEC. 213. SURVEY OF RENEWABLE FUELS CONSUMPTION.

       Section 205 of the Department of Energy Organization Act 
     (42 U.S.C. 7135) is amended by adding at the end the 
     following:
       ``(m) Survey of Renewable Fuels Consumption.--
       ``(1) In general.--In order to improve the ability to 
     evaluate the effectiveness of the Nation's renewable fuels 
     mandate, the Administrator shall conduct and publish the 
     results of a survey of renewable fuels consumption in the 
     motor vehicle fuels market in the United States monthly, and 
     in a manner designed to protect the confidentiality of 
     individual responses.
       ``(2) Elements of survey.--In conducting the survey, the 
     Administrator shall collect information retrospectively to 
     1998, on a national basis and a regional basis, including--
       ``(A) the quantity of renewable fuels produced;
       ``(B) the cost of production;
       ``(C) the cost of blending and marketing;
       ``(D) the quantity of renewable fuels blended;
       ``(E) the quantity of renewable fuels imported; and
       ``(F) market price data.''.

                 Subtitle C--Federal Reformulated Fuels

     SEC. 221. SHORT TITLE.

       This subtitle may be cited as the ``Federal Reformulated 
     Fuels Act of 2005''.

     SEC. 222. LEAKING UNDERGROUND STORAGE TANKS.

       (a) Use of LUST Funds for Remediation of Contamination From 
     Ether Fuel Additives.--Section 9003(h) of the Solid Waste 
     Disposal Act (42 U.S.C. 6991b(h)) is amended--
       (1) in paragraph (7)(A)--
       (A) by striking ``paragraphs (1) and (2) of this 
     subsection'' and inserting ``paragraphs (1), (2), and (12)''; 
     and
       (B) by inserting ``and section 9010'' before ``if''; and
       (2) by adding at the end the following:
       ``(12) Remediation of contamination from ether fuel 
     additives.--
       ``(A) In general.--The Administrator and the States may use 
     funds made available under section 9013(1) to carry out 
     corrective actions with respect to a release of methyl 
     tertiary butyl ether or other ether fuel additive that 
     presents a threat to human health, welfare, or the 
     environment.
       ``(B) Applicable authority.--Subparagraph (A) shall be 
     carried out--
       ``(i) in accordance with paragraph (2), except that a 
     release with respect to which a corrective action is carried 
     out under subparagraph (A) shall not be required to be from 
     an underground storage tank; and
       ``(ii) in the case of a State, in accordance with a 
     cooperative agreement entered into by the Administrator and 
     the State under paragraph (7).''.
       (b) Release Prevention and Compliance.--Subtitle I of the 
     Solid Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended 
     by striking section 9010 and inserting the following:

     ``SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.

       ``Funds made available under section 9013(2) from the 
     Leaking Underground Storage Tank Trust Fund may be used for 
     conducting inspections, or for issuing orders or bringing 
     actions under this subtitle--
       ``(1) by a State (pursuant to section 9003(h)(7)) acting 
     under--
       ``(A) a program approved under section 9004; or
       ``(B) State requirements regulating underground storage 
     tanks that are similar or identical to this subtitle, as 
     determined by the Administrator; and
       ``(2) by the Administrator, acting under this subtitle or a 
     State program approved under section 9004.

     ``SEC. 9011. AUTHORIZATION OF APPROPRIATIONS.

       ``In addition to amounts made available under section 
     2007(f), there are authorized to be appropriated from the 
     Leaking Underground Storage Tank Trust Fund, notwithstanding 
     section 9508(c)(1) of the Internal Revenue Code of 1986--
       ``(1) to carry out section 9003(h)(12), $200,000,000 for 
     fiscal year 2005, to remain available until expended; and
       ``(2) to carry out section 9010--
       ``(A) $50,000,000 for fiscal year 2005; and
       ``(B) $30,000,000 for fiscal years 2006 through 2010.''.
       (c) Technical Amendments.--
       (1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C. 
     prec. 6901) is amended by striking the item relating to 
     section 9010 and inserting the following:

``Sec. 9010. Release prevention and compliance.
``Sec. 9011. Authorization of appropriations.''.

       (2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 
     U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and 
     inserting ``substances''.
       (3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 
     U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) 
     and (d) of this section'' and inserting ``subsections (c) and 
     (d)''.
       (4) Section 9004(a) of the Solid Waste Disposal Act (42 
     U.S.C. 6991c(a)) is amended in the second sentence by 
     striking ``referred to'' and all that follows and inserting 
     ``referred to in subparagraph (A) or (B), or both, of section 
     9001(2).''.
       (5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 
     6991d) is amended--
       (A) in subsection (a), by striking ``study taking'' and 
     inserting ``study, taking'';
       (B) in subsection (b)(1), by striking ``relevent'' and 
     inserting ``relevant''; and
       (C) in subsection (b)(4), by striking ``Evironmental'' and 
     inserting ``Environmental''.

     SEC. 223. RESTRICTIONS ON THE USE OF MTBE.

       (a) Findings.--Congress finds that--
       (1) since 1979, methyl tertiary butyl ether (referred to in 
     this section as ``MTBE'') has been used nationwide at low 
     levels in gasoline to replace lead as an octane booster or 
     anti-knocking agent;
       (2) Public Law 101-549 (commonly known as the ``Clean Air 
     Act Amendments of 1990'') (42 U.S.C. 7401 et seq.) 
     established a fuel oxygenate standard under which 
     reformulated gasoline must contain at least 2 percent oxygen 
     by weight;
       (3) at the time of the adoption of the fuel oxygenate 
     standard, Congress was aware that--
       (A) increased use of MTBE could result from the adoption of 
     that standard; and

[[Page S6774]]

       (B) the use of MTBE would likely be needed to implement 
     that standard;
       (4) Congress is aware that gasoline and its component 
     additives have leaked from storage tanks, with consequences 
     for water quality;
       (5) the fuel industry responded to the fuel oxygenate 
     standard established by Public Law 101-549 by making 
     substantial investments in--
       (A) MTBE production capacity; and
       (B) systems to deliver MTBE-containing gasoline to the 
     marketplace;
       (6) when leaked or spilled into the environment, MTBE may 
     cause serious problems of drinking water quality;
       (7) in recent years, MTBE has been detected in water 
     sources throughout the United States;
       (8) MTBE can be detected by smell and taste at low 
     concentrations;
       (9) while small quantities of MTBE can render water 
     supplies unpalatable, the precise human health effects of 
     MTBE consumption at low levels are yet unknown as of the date 
     of enactment of this Act;
       (10) in the report entitled ``Achieving Clean Air and Clean 
     Water: The Report of the Blue Ribbon Panel on Oxygenates in 
     Gasoline'' and dated September 1999, Congress was urged--
       (A) to eliminate the fuel oxygenate standard;
       (B) to greatly reduce use of MTBE; and
       (C) to maintain the environmental performance of 
     reformulated gasoline;
       (11) Congress has--
       (A) reconsidered the relative value of MTBE in gasoline; 
     and
       (B) decided to eliminate use of MTBE as a fuel additive;
       (12) the timeline for elimination of use of MTBE as a fuel 
     additive must be established in a manner that achieves an 
     appropriate balance among the goals of--
       (A) environmental protection;
       (B) adequate energy supply; and
       (C) reasonable fuel prices; and
       (13) it is appropriate for Congress to provide some limited 
     transition assistance--
       (A) to merchant producers of MTBE who produced MTBE in 
     response to a market created by the oxygenate requirement 
     contained in the Clean Air Act (42 U.S.C. 7401 et seq.); and
       (B) for the purpose of mitigating any fuel supply problems 
     that may result from elimination of a widely-used fuel 
     additive.
       (b) Purposes.--The purposes of this section are--
       (1) to eliminate use of MTBE as a fuel oxygenate; and
       (2) to provide assistance to merchant producers of MTBE in 
     making the transition from producing MTBE to producing other 
     fuel additives.
       (c) Authority for Water Quality Protection From Fuels.--
     Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is 
     amended--
       (1) in paragraph (1)(A)--
       (A) by inserting ``fuel or fuel additive or'' after 
     ``Administrator any''; and
       (B) by striking ``air pollution which'' and inserting ``air 
     pollution, or water pollution, that'';
       (2) in paragraph (4)(B), by inserting ``or water quality 
     protection,'' after ``emission control,''; and
       (3) by adding at the end the following:
       ``(5) Restrictions on use of MTBE.--
       ``(A) In general.--Subject to subparagraph (E), not later 
     than 4 years after the date of enactment of this paragraph, 
     the use of methyl tertiary butyl ether in motor vehicle fuel 
     in any State other than a State described in subparagraph (C) 
     is prohibited.
       ``(B) Regulations.--The Administrator shall promulgate 
     regulations to effect the prohibition in subparagraph (A).
       ``(C) States that authorize use.--A State described in this 
     subparagraph is a State that submits to the Administrator a 
     notice that the State authorizes use of methyl tertiary butyl 
     ether in motor vehicle fuel sold or used in the State.
       ``(D) Publication of notice.--The Administrator shall 
     publish in the Federal Register each notice submitted by a 
     State under subparagraph (C).
       ``(E) Trace quantities.--In carrying out subparagraph (A), 
     the Administrator may allow trace quantities of methyl 
     tertiary butyl ether, not to exceed 0.5 percent by volume, to 
     be present in motor vehicle fuel in cases that the 
     Administrator determines to be appropriate.
       ``(6) MTBE merchant producer conversion assistance.--
       ``(A) In general.--
       ``(i) Grants.--The Secretary of Energy, in consultation 
     with the Administrator, may make grants to merchant producers 
     of methyl tertiary butyl ether in the United States to assist 
     the producers in the conversion of eligible production 
     facilities described in subparagraph (C) to the production 
     of--

       ``(I) iso-octane or alkylates, unless the Administrator, in 
     consultation with the Secretary of Energy, determines that 
     transition assistance for the production of iso-octane or 
     alkylates is inconsistent with the criteria specified in 
     subparagraph (B); and
       ``(II) any other fuel additive that meets the criteria 
     specified in subparagraph (B).

       ``(B) Criteria.--The criteria referred to in subparagraph 
     (A) are that--
       ``(i) use of the fuel additive is consistent with this 
     subsection;
       ``(ii) the Administrator has not determined that the fuel 
     additive may reasonably be anticipated to endanger public 
     health or the environment;
       ``(iii) the fuel additive has been registered and tested, 
     or is being tested, in accordance with the requirements of 
     this section; and
       ``(iv) the fuel additive will contribute to replacing 
     quantities of motor vehicle fuel rendered unavailable as a 
     result of paragraph (5).
       ``(C) Eligible production facilities.--A production 
     facility shall be eligible to receive a grant under this 
     paragraph if the production facility--
       ``(i) is located in the United States; and
       ``(ii) produced methyl tertiary butyl ether for consumption 
     in nonattainment areas during the period--

       ``(I) beginning on the date of enactment of this paragraph; 
     and
       ``(II) ending on the effective date of the prohibition on 
     the use of methyl tertiary butyl ether under paragraph (5).

       ``(D) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $250,000,000 
     for each of fiscal years 2005 through 2008.''.
       (d) No Effect on Law Concerning State Authority.--The 
     amendments made by subsection (c) have no effect on any law 
     enacted or in effect before the date of enactment of this Act 
     concerning the authority of States to limit the use of methyl 
     tertiary butyl ether in motor vehicle fuel.

     SEC. 224. 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) Applicability.--The amendments made by paragraph (1) 
     apply--
       (A) in the case of a State that has received a waiver under 
     section 209(b) of the Clean Air Act (42 U.S.C. 7543(b)), 
     beginning on the date of enactment of this Act; and
       (B) in the case of any other State, beginning 270 days 
     after the date of enactment of this Act.
       (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 concerning emissions of toxic air 
     pollutants.--Not later than 270 days after the date of 
     enactment of this subparagraph, the Administrator shall 
     establish by regulation, for each refinery or importer (other 
     than a refiner or importer in a State that has received a 
     waiver under section 209(b) with respect to gasoline produced 
     for use in that State), standards for toxic air pollutants 
     from use of the reformulated gasoline produced or distributed 
     by the refiner or importer that maintain the reduction of the 
     average annual aggregate emissions of toxic air pollutants 
     for reformulated gasoline produced or distributed by the 
     refiner or importer during calendar years 2001 and 2002 (as 
     determined on the basis of data collected by the 
     Administrator with respect to the refiner or importer).
       ``(iii) Standards applicable to specific refineries or 
     importers.--

       ``(I) Applicability of standards.--For any calendar year, 
     the standards applicable to a refiner or importer under 
     clause (ii) shall apply to the quantity of gasoline produced 
     or distributed by the refiner 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 refiner 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 
     refiner or importer that is in excess of the quantity subject 
     to subclause (I) shall be subject to standards for emissions 
     of 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).

[[Page S6775]]

       ``(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 refiner 
     or importer shall meet the standards applicable under clause 
     (iii)(I) beginning not later than April 1 of the calendar 
     year following publication of the report under subclause (I) 
     and in each calendar year thereafter.
       ``(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) Commingling.--
       (1) In general.--Section 211(k) of the Clean Air Act (42 
     U.S.C. 7545(k)) is amended by adding at the end the 
     following:
       ``(11) Commingling.--The regulations under paragraph (1) 
     shall permit the commingling at a retail station of 
     reformulated gasoline containing ethanol and reformulated 
     gasoline that does not contain ethanol if, each time such 
     commingling occurs--
       ``(A) the retailer notifies the Administrator before the 
     commingling, identifying the exact location of the retail 
     station and the specific tank in which the commingling will 
     take place; and
       ``(B) the retailer certifies that the reformulated gasoline 
     resulting from the commingling will meet all applicable 
     requirements for reformulated gasoline, including content and 
     emission performance standards.''.
       (d) 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, 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.
       (e) Savings Clause.--
       (1) In general.--Nothing in this section or any amendment 
     made by this section affects or prejudices any legal claim or 
     action with respect to regulations promulgated by the 
     Administrator before the date of enactment of this Act 
     regarding--
       (A) emissions of toxic air pollutants from motor vehicles; 
     or
       (B) the adjustment of standards applicable to a specific 
     refinery or importer made under those regulations.
       (2) Adjustment of standards.--
       (A) Applicability.--The Administrator may apply any 
     adjustments to the standards applicable to a refinery or 
     importer under subparagraph (B)(iii)(I) of section 211(k)(1) 
     of the Clean Air Act (as added by subsection (b)(2)), except 
     that--
       (i) the Administrator shall revise the adjustments to be 
     based only on calendar years 2001 and 2002;
       (ii) any such adjustment shall not be made at a level below 
     the average percentage of reductions of emissions of toxic 
     air pollutants for reformulated gasoline supplied to PADD I 
     during calendar years 2001 and 2002; and
       (iii) in the case of an adjustment based on toxic air 
     pollutant emissions from reformulated gasoline significantly 
     below the national annual average emissions of toxic air 
     pollutants from all reformulated gasoline--

       (I) the Administrator may revise the adjustment to take 
     account of the scope of the prohibition on methyl tertiary 
     butyl ether imposed by paragraph (5) of section 211(c) of the 
     Clean Air Act (as added by section 211(c)); and
       (II) any such adjustment shall require the refiner or 
     importer, to the maximum extent practicable, to maintain the 
     reduction achieved during calendar years 2001 and 2002 in the 
     average annual aggregate emissions of toxic air pollutants 
     from reformulated gasoline produced or distributed by the 
     refiner or importer.

     SEC. 225. 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 
     (including the effects on children, pregnant women, minority 
     or low-income communities, and other sensitive populations), 
     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 
     then Administrator;
       ``(VI) ethanol;
       ``(VII) iso-octane; and
       ``(VIII) alkylates; and

       ``(ii) conduct a study on the effects on public health 
     (including the effects on children, pregnant women, minority 
     or low-income communities, and other sensitive populations), 
     air quality, and water resources of the adjustment for 
     ethanol-blended reformulated gasoline to the volatile organic 
     compounds performance requirements that are applicable under 
     paragraphs (1) and (3) of section 211(k); 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 the studies under clauses (i) and (ii).
       ``(B) Contracts for study.--In carrying out this paragraph, 
     the Administrator may enter into 1 or more contracts with 
     nongovernmental entities such as--
       ``(i) the national energy laboratories; and
       ``(ii) institutions of higher education (as defined in 
     section 101 of the Higher Education Act of 1965 (20 U.S.C. 
     1001)).''.

     SEC. 226. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

       Section 211 of the Clean Air Act (42 U.S.C. 7545) (as 
     amended by section 205(a)) is amended by inserting after 
     subsection (p) the following:
       ``(q) 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 paragraph, 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 Federal 
     Reformulated 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 section, 
     not later than 4 years after the date of enactment of this 
     paragraph, the Administrator shall develop and finalize an 
     emissions model that reflects, to the maximum extent 
     practicable, the effects of gasoline characteristics or 
     components on emissions from vehicles in the motor vehicle 
     fleet during calendar year 2007.
       ``(3) Permeation effects study.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this paragraph, the Administrator shall conduct 
     a study, and report to Congress the results of the study, on 
     the effects of ethanol content in gasoline on permeation, the 
     process by which fuel molecules migrate through the 
     elastomeric materials (rubber and plastic parts) that make up 
     the fuel and fuel vapor systems of a motor vehicle.
       ``(B) Evaporative emissions.--The study shall include 
     estimates of the increase in total evaporative emissions 
     likely to result from the use of gasoline with ethanol 
     content in a motor vehicle, and the fleet of motor vehicles, 
     due to permeation.''.

     SEC. 227. 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--
       (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))--

[[Page S6776]]

       (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.--On 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. 228. 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. 229. 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 (including the protection of children, 
     pregnant women, minority or low-income communities, and other 
     sensitive populations);
       (C) the effect of Federal, State, and local motor vehicle 
     fuel regulations, including multiple motor vehicle fuel 
     requirements, on--
       (i) domestic refiners;
       (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, refiners, 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, 2008, 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) State and local air pollution control regulators;
       (D) public health experts;
       (E) motor vehicle fuel producers and distributors; and
       (F) the public.

     SEC. 230. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM.

       (a) In General.--Subject to the availability of 
     appropriations under subsection (d), the Administrator of the 
     Environmental Protection Agency shall, in consultation with 
     the Secretary of Agriculture and the Biomass Research and 
     Development Technical Advisory Committee established under 
     section 306 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note), establish a 
     program, to be known as the ``Advanced Biofuel Technologies 
     Program'', to demonstrate advanced technologies for the 
     production of alternative transportation fuels.
       (b) Priority.--In carrying out the program under subsection 
     (a), the Administrator shall give priority to projects that 
     enhance the geographical diversity of alternative fuels 
     production and utilize feedstocks that represent 10 percent 
     or less of ethanol or biodiesel fuel production in the United 
     States during the previous fiscal year.
       (c) Demonstration Projects.--
       (1) In general.--As part of the program under subsection 
     (a), the Administrator shall fund demonstration projects--
       (A) to develop not less than 4 different conversion 
     technologies for producing cellulosic biomass ethanol and 
     cellulosic biomass-derived liquid alternative fuel (as 
     defined in section 211(o)(1) of the Clean Air Act (as amended 
     by section 211(a))); and
       (B) to develop not less than 5 technologies for coproducing 
     value-added bioproducts (such as fertilizers, herbicides, and 
     pesticides) resulting from the production of biodiesel fuel.
       (2) Administration.--Demonstration projects under this 
     subsection shall be--
       (A) conducted based on a merit-reviewed, competitive 
     process; and
       (B) subject to the cost-sharing requirements of section 
     1002.
       (d) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this section $110,000,000 for 
     each of fiscal years 2005 through 2009.

     SEC. 231. SUGAR CANE ETHANOL PROGRAM.

       (a) Definition of Program.--In this section, the term 
     ``program'' means the Sugar Cane Ethanol Program established 
     by subsection (b).
       (b) Establishment.--There is established within the 
     Environmental Protection Agency a program to be known as the 
     ``Sugar Cane Ethanol Program''.
       (c) Project.--
       (1) In general.--Subject to the availability of 
     appropriations under subsection (d), in carrying out the 
     program, the Administrator of the Environmental Protection 
     Agency shall establish a project that is--
       (A) carried out in multiple States--
       (i) in each of which is produced cane sugar that is 
     eligible for loans under section 156 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7272), or a similar subsequent authority; and
       (ii) at the option of each such State, that have an 
     incentive program that requires the use of ethanol in the 
     State; and
       (B) designed to study the production of ethanol from cane 
     sugar, sugarcane, and sugarcane byproducts.
       (2) Requirements.--A project described in paragraph (1) 
     shall--
       (A) be limited to the production of ethanol in the States 
     of Florida, Louisiana, Texas, and Hawaii in a way similar to 
     the existing program for the processing of corn for ethanol 
     to demonstrate that the process may be applicable to cane 
     sugar, sugarcane, and sugarcane byproducts;
       (B) include information on the ways in which the scale of 
     production may be replicated once the sugar cane industry has 
     located sites for, and constructed, ethanol production 
     facilities; and
       (C) not last more than 3 years.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to

[[Page S6777]]

     carry out this section $36,000,000, to remain available until 
     expended.

                       Subtitle B--Insular Energy

                                 ______
                                 
  SA 794. Mr. DOMENICI (for himself and Mr. Bingaman) proposed an 
amendment to the bill H.R. 6, Reserved; as follows:

       On page 10, strike lines 5 through 8 and insert the 
     following:
       (2) Institution of higher education.--
       (A) In general.--The term ``institution of higher 
     education'' has the meaning given the term in section 101(a) 
     of the Higher Education Act of 1065 (20 U.S.C. 1001(a)).
       (B) Inclusion.--The term ``institution of higher 
     education'' includes an organization that--
       (i) is organized, and at all times thereafter operated, 
     exclusively for the benefit of, to perform the functions of, 
     or to carry out the functions of 1 or more organizations 
     referred to in subparagraph (A); and
       (ii) is operated, supervised, or controlled by or in 
     connection with 1 or more of those organizations.
       On page 121, lines 9 and 10, strike ``subsection (a)'' and 
     insert ``paragraph (1)''.
       On page 223, line 16, strike ``date of enactment of this 
     Act'' and insert ``effective date of this section''.
       On page 225, between lines 4 and 5, insert the following:
       (e) Effective Date.--This section takes effect on October 
     1, 2006.
       On page 451, line 8, insert ``manufacturability,'' after 
     ``electronic controls''.
       On page 452, strike lines 8 and 9 and insert the following:
       ``(b) Membership.--The Task Force shall be
       On page 452, line 15, strike ``members'' and insert 
     ``Federal employees''.
       On page 452, strike lines 18 through 21.
       On page 478, between lines 9 and 10, insert the following:

     SEC. 916. BUILDING STANDARDS.

       (a) Definition of High Performance Building.--In this 
     section, the term ``high performance building'' means a 
     building that integrates and optimizes energy efficiency, 
     durability, life-cycle performance, and occupant 
     productivity.
       (b) Assessment.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall enter into an 
     agreement with the National Institute of Building Sciences 
     to--
       (1) conduct an assessment (in cooperation with industry, 
     standards development organizations, and other entities, as 
     appropriate) of whether the current voluntary consensus 
     standards and rating systems for high performance buildings 
     are consistent with the research, development and 
     demonstration activities of the Department;
       (2) determine if additional research is required, based on 
     the findings of the assessment; and,
       (3) recommend steps for the Secretary to accelerate the 
     development of voluntary consensus-based standards for high 
     performance buildings that are based on the findings of the 
     assessment.
       (c) Grant and Technical Assistance Program.--Consistent 
     with subsection (b), the National Technology Transfer and 
     Advancement Act of 1995 (15 U.S.C. 3701 et seq.), and the 
     amendments made by that Act, the Secretary shall establish a 
     grant and technical assistance program to support the 
     development of voluntary consensus-based standards for high 
     performance buildings.
       On page 497, line 13, strike ``using thermochemical 
     processes''.
       On page 505, line 23, strike ``proton exchange membrane''.
       On page 742, line 8, strike ``Power'' and insert ``Energy 
     Regulatory''.
       On page 755, after line 25, insert the following:

     SEC. 1329. OVERALL EMPLOYMENT IN A HYDROGEN ECONOMY.

       (a) Study.--
       (1) In general.--The Secretary shall carry out a study of 
     the likely effects of a transition to a hydrogen economy on 
     overall employment in the United States.
       (2) Contents.--In completing the study, the Secretary shall 
     take into consideration--
       (A) the replacement effects of new goods and services;
       (B) international competition;
       (C) workforce training requirements;
       (D) multiple possible fuel cycles, including usage of raw 
     materials;
       (E) rates of market penetration of technologies; and
       (F) regional variations based on geography.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing the findings, conclusions, and 
     recommendations of the study under subsection (a).
                                 ______
                                 
  SA 795. Mr. BAYH submitted an amendment intended to be proposed by 
him to the bill H.R. 6, Reserved; which was ordered to lie on the 
table; as follows:

       On page 159, after line 23, add the following:

     SEC. 211. SENSE OF THE SENATE REGARDING INCLUSION OF 
                   LIABILITY WAIVER TO MTBE PRODUCERS.

       It is the sense of the Senate that the Senate conferees 
     should not agree to the inclusion of a provision in the 
     conference report that would grant a liability waiver to MTBE 
     producers.
                                 ______
                                 
  SA 796. Mr. FEINGOLD (for himself and Mr. Brownback) submitted an 
amendment intended to be proposed by him to the bill H.R. 6, Reserved; 
which was ordered to lie on the table; as follows:

       On page 697, between lines 6 and 7, insert the following:

     SEC. 127__. FAIR COMPETITION AND FINANCIAL INTEGRITY.

       Section 204 of the Federal Power Act (16 U.S.C. 824c) is 
     amended by adding at the end the following:
       ``(i)(1) In this subsection, the terms `affiliate', 
     `associate company', and `public-utility company' have the 
     meanings given those terms in section 1272 of the Energy 
     Policy Act of 2005.
       ``(2)(A) Not later than 1 year after the date of enactment 
     of this subsection, the Commission shall issue regulations to 
     regulate transactions between public-utility companies and 
     affiliates and associate companies of the public-utility 
     companies.
       ``(B) At a minimum, the regulations under subparagraph (A) 
     shall require, with respect to a transaction between a 
     public-utility company and an affiliate or associate company 
     of the public-utility company, that--
       ``(i) any business activity other than public-utility 
     company business shall be conducted through 1 or more 
     affiliates or associate companies, which shall be 
     independent, separate, and distinct entities from the public-
     utility company;
       ``(ii) the affiliate or associate company shall--
       ``(I) maintain separate books, accounts, memoranda, and 
     other records; and
       ``(II) prepare separate financial statements;
       ``(iii)(I) the public-utility company shall conduct the 
     transaction in a manner that is consistent with the 
     transactions among nonaffiliated and nonassociated companies; 
     and
       ``(II) the public-utility company shall not use its status 
     as a monopoly franchise to confer on its affiliate, or 
     associate company, any unfair competitive advantage;
       ``(iv) the public-utility company shall not declare or pay 
     any dividend on any security of the public-utility company in 
     contravention of such regulations as the Commission considers 
     appropriate to protect the financial integrity of the public-
     utility company;
       ``(v) the public-utility company shall have at least 1 
     independent director on its board of directors;
       ``(vi) the affiliate or associate company shall not 
     structure its governance nor shall it acquire any loan, loan 
     guarantee, or other indebtedness in a manner that would 
     permit creditors to have recourse against the tangible or 
     intangible assets of the public-utility company;
       ``(vii) the public-utility company shall not--
       ``(I) commingle any tangible or intangible assets or 
     liabilities of the public-utility company with any assets or 
     liabilities of an affiliate, or associate company, of the 
     public-utility company; or
       ``(II) pledge or encumber any assets of the public-utility 
     company on behalf of an affiliate, or associate company, of 
     the public-utility company;
       ``(viii)(I) the public-utility company shall not cross-
     subsidize or shift costs from an affiliate, or associate 
     company, of the public-utility company to the public-utility 
     company; and
       ``(II) the public-utility company shall disclose and fully 
     value, at the market value or other value specified by the 
     Commission, any tangible or intangible assets or services by 
     the public-utility company that, directly or indirectly, are 
     transferred to, or otherwise provided for the benefit of, an 
     affiliate, or associate company of the public-utility 
     company; and
       ``(ix) electricity and natural gas consumers and 
     investors--
       ``(I) shall be protected against the financial risks of 
     public-utility company diversification and transactions with 
     and among affiliates and associate companies of public-
     utility companies; and
       ``(II) shall not be subject to rates or charges that are 
     not reasonably related to the provision of electricity or 
     natural gas service.
       ``(3) This subsection does not preclude or deny the right 
     of any State or political subdivision of a State to adopt and 
     enforce standards for the corporate and financial separation 
     of public-utility companies that are more stringent than 
     those provided under the regulations issued under paragraph 
     (2).
       ``(4) It shall be unlawful for a public-utility company to 
     enter into or take any action in the performance of any 
     transaction with any affiliate, or associate company, of a 
     public-utility company in violation of the regulations issued 
     under paragraph (2).''.

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