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108th CONGRESS
1st Session
H. R. 1020
To amend the Clean Air Act requirements relating to gasoline to prevent
future supply shortages and price spikes in the gasoline market, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2003
Mr. Ryan of Wisconsin (for himself, Mr. Green of Wisconsin, and Mr.
Sensenbrenner) introduced the following bill; which was referred to the
Committee on Energy and Commerce
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A BILL
To amend the Clean Air Act requirements relating to gasoline to prevent
future supply shortages and price spikes in the gasoline market, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. FINDINGS.
Congress finds the following:
(1) The President's National Energy Policy Development
(NEPD) Group recommended that the Environmental Protection
Agency (EPA) study the environmental benefits of State boutique
fuels and methods to increase the flexibility of the fuel
distribution infrastructure and the gasoline market liquidity.
(2) Seasonal price spikes, particularly in the Midwest, can
be attributed to the number of boutique fuels and the lack of
fungibility, especially when there is a disruption in the
refining or pipeline system.
(3) According to the EPA Study of Boutique Fuels released
October 24, 2001, a reduction of the number of boutique fuels
may moderate the price spikes that occur with the transition of
winter to summer grade reformulated gasoline (RFG).
(4) The propagation of boutique fuels may occur in the
future as a result of State laws banning the use of MTBE, an
oxygenated gasoline additive.
(5) Refiners argue that without any restrictions on States,
boutique fuels will continue to proliferate.
(6) Stakeholders have acknowledged that fewer fuel types
would simplify gasoline distribution and therefore ease the
potential for local supply disruptions and resulting price
volatility without disrupting gasoline supply, air quality
benefits, or prices.
(7) The EPA study examined several options, one of which
would create a menu of three fuels for States to choose from
(conventional gasoline, low-RVP, or a new Federal clean burning
gas), including a new national renewable fuel requirement.
(8) The EPA study found that this option is the least
costly of all the options presented and would increase gasoline
production capacity, giving the best balance among gasoline
cost, distribution, and supply, and air quality.
SEC. 2. BOUTIQUE FUELS.
(a) Reducing the Proliferation of Boutique Fuels.--(1) Section
211(c)(4) of such Act (42 U.S.C. 7545(c)(4)) is amended by adding the
following at the end thereof:
``(D) In the case of gasoline, in addition to the requirements of
subparagraph (C), after the enactment of this subparagraph, the
Administrator may approve a provision described in subparagraph (C) in
an implementation plan only if the Administrator finds that the control
or prohibition in the applicable implementation plan requires the use
of either of the following:
``(i) Federal clean burning fuel meeting the requirements
of subsection (k).
``(ii) Low RVP gasoline meeting the requirements of
subsection (h)(6).
``(E) In the case of implementation plan provisions approved under
subparagraph (C) on or before the date of the enactment of this
subparagraph, such provisions may remain in effect after the date 4
years after the enactment of this subparagraph only if the State has,
within 6 months after the enactment of this subparagraph, reevaluated
the provisions and established to the satisfaction of the Administrator
that the benefits of such provisions in terms of air quality
improvement, consistent supply, production costs and stable prices for
gasoline exceed the benefits of modifying such provisions to require
the use of Federal clean burning fuel meeting the requirements of
subsection (k) or low RVP gasoline meeting the requirements of
subsection (h)(6) (whichever requires a Reid Vapor Pressure closest to
the Reid Vapor Pressure required by the plan provisions prior to
modification).''.
(2) By striking ``engine--'' in subparagraph (A) of section
211(c)(4) of the Clean Air Act and all that follows down through the
end of such subparagraph and inserting ``engine.''.
(3) By striking ``, for the purposes of motor vehicle emission
control,'' in subparagraph (A) of section 211(c)(4) of the Clean Air
Act.
(b) Low rvp Gas Option.--Section 211(h) of the Clean Air Act (42
U.S.C. 7545(h)) is amended by adding the following new paragraph at the
end thereof:
``(6) Low rvp gasoline.--The Administrator shall promulgate
regulations providing for a gasoline blend for the high ozone
season (as determined by the Administrator) having a Reid Vapor
Pressure of 7.8 pounds per square inch (psi). The Administrator
shall approve State plan provisions submitted under subsection
(c)(4)(C) and (D) for ozone nonattainment areas in both
northern and southern areas of the nation (other than covered
areas under subsection (k)) that require gasoline to meet the
requirements of the regulations under this paragraph.''.
(c) Federal Clean Burning Gas.--(1) Section 211(k) of the Clean Air
Act is amended to read as follows:
``(k) Federal Clean Burning Gas.--
``(1) EPA regulations.--The Administrator shall promulgate
regulations under this section establishing requirements for
Federal clean burning gasoline to be used in gasoline-fueled
vehicles in specified nonattainment areas. Such regulations
shall require the greatest reduction in emissions of ozone
forming volatile organic compounds (during the high ozone
season) and emissions of toxic air pollutants (during the
entire year) achievable through the reformulation of
conventional gasoline, taking into consideration the cost of
achieving such emission reductions, any nonair-quality and
other air-quality related health and environmental impacts and
energy requirements.
``(2) General requirements.--The regulations referred to in
paragraph (1) shall require that Federal clean burning gasoline
comply with paragraph (3) and with each of the following
requirements (subject to paragraph (7)):
``(A) NO<INF>X</INF> emissions.--The emissions of
oxides of nitrogen (NO<INF>X</INF>) from baseline
vehicles when using the Federal clean burning gasoline
shall be no greater than the level of such emissions
from such vehicles when using baseline gasoline. If the
Administrator determines that compliance with the
limitation on emissions of oxides of nitrogen under the
preceding sentence is technically infeasible,
considering the other requirements applicable under
this subsection to such gasoline, the Administrator
may, as appropriate to ensure compliance with this
subparagraph, adjust (or waive entirely), any other
requirements of this paragraph (including the oxygen
content requirement contained in subparagraph (B)) or
any requirements applicable under paragraph (3)(A).
``(B) Benzene content.--The benzene content of the
gasoline shall not exceed 1.0 percent by volume.
``(C) Heavy metals.--The gasoline shall have no
heavy metals, including lead or manganese. The
Administrator may waive the prohibition contained in
this subparagraph for a heavy metal (other than lead)
if the Administrator determines that addition of the
heavy metal to the gasoline will not increase, on an
aggregate mass or cancer-risk basis, toxic air
pollutant emissions from motor vehicles.
``(3) More stringent of formula or performance standards.--
The regulations referred to in paragraph (1) shall require
compliance with the more stringent of either the requirements
set forth in subparagraph (A) or the requirements of
subparagraph (B) of this paragraph. For purposes of determining
the more stringent provision, clause (i) and clause (ii) of
subparagraph (B) shall be considered independently.
``(A) Formula.--
``(i) Benzene.--The benzene content of the
Federal clean burning gasoline shall not exceed
1.0 percent by volume.
``(ii) Aromatics.--The aromatic hydrocarbon
content of the Federal clean burning gasoline
shall not exceed 25 percent by volume.
``(iii) Lead.--The Federal clean burning
gasoline shall have no lead content.
``(iv) Detergents.--The Federal clean
burning gasoline shall contain additives to
prevent the accumulation of deposits in engines
or vehicle fuel supply systems.
``(v) Reid vapor pressure.--The Reid Vapor
Pressure of the gasoline shall not exceed 6.8
pounds per square inch (psi) for the high ozone
season (as determined by the Administrator).
``(B) Performance standard.--
``(i) VOC emissions.--During the high ozone
season (as defined by the Administrator), the
Reid Vapor Pressure of the gasoline shall not
exceed 6.8 pounds per square inch (psi).
``(ii) Toxics.--During the entire year, the
aggregate emissions of toxic air pollutants
from baseline vehicles when using the Federal
clean burning gasoline shall be 15 percent
below the aggregate emissions of toxic air
pollutants from such vehicles when using
baseline gasoline. Effective in calendar year
2000 and thereafter, 25 percent shall be
substituted for 15 percent in applying this
clause, except that the Administrator may
adjust such 25 percent requirement to provide
for a lesser or greater reduction based on
technological feasibility, considering the cost
of achieving such reductions in toxic air
pollutants. No such adjustment shall provide
for less than a 20 percent reduction below the
aggregate emissions of such air pollutants from
such vehicles when using baseline gasoline. The
reductions required under this clause shall be
on a mass basis.
Any reduction greater than a specific percentage reduction
required under this subparagraph shall be treated as satisfying
such percentage reduction requirement.
``(4) Certification procedures.--
``(A) Regulations.--The regulations under this
subsection shall include procedures under which the
Administrator shall certify Federal clean burning
gasoline as complying with the requirements established
pursuant to this subsection. Under such regulations,
the Administrator shall establish procedures for any
person to petition the Administrator to certify a fuel
formulation, or slate of fuel formulations. Such
procedures shall further require that the Administrator
shall approve or deny such petition within 180 days of
receipt. If the Administrator fails to act within such
180-day period, the fuel shall be deemed certified
until the Administrator completes action on the
petition.
``(B) Certification; equivalency.--The
Administrator shall certify a fuel formulation or slate
of fuel formulations as complying with this subsection
if such fuel or fuels--
``(i) comply with the requirements of
paragraph (2), and
``(ii) achieve equivalent or greater
reductions in emissions of ozone forming
volatile organic compounds and emissions of
toxic air pollutants than are achieved by a
Federal clean burning gasoline meeting the
applicable requirements of paragraph (3).
``(C) EPA determination of emissions level.--The
Administrator shall determine the level of emissions of
ozone forming volatile organic compounds and emissions
of toxic air pollutants emitted by baseline vehicles
when operating on baseline gasoline. For purposes of
this subsection, the Administrator shall, by rule,
determine appropriate measures of, and methodology for,
ascertaining the emissions of air pollutants (including
calculations, equipment, and testing tolerances).
``(5) Prohibition.--Effective on the date 4 years after the
enactment of this paragraph, each of the following shall be a
violation of this subsection:
``(A) The sale or dispensing by any person of
conventional gasoline to ultimate consumers in any
covered area.
``(B) The sale or dispensing by any refiner,
blender, importer, or marketer of conventional gasoline
for resale in any covered area, without (i) segregating
such gasoline from Federal clean burning gasoline, and
(ii) clearly marking such conventional gasoline as
``conventional gasoline, not for sale to ultimate
consumer in a covered area''.
Any refiner, blender, importer or marketer who purchases
property segregated and marked conventional gasoline, and
thereafter labels, represents, or wholesales such gasoline as
Federal clean burning gasoline shall also be in violation of
this subsection. The Administrator may impose sampling,
testing, and recordkeeping requirements upon any refiner,
blender, importer, or marketer to prevent violations of this
section.
``(6) Opt-in areas.--(A) Upon the application of the
Governor of a State, the Administrator shall apply the
prohibition set forth in paragraph (5) in any area in the State
classified under subpart 2 of part D of title I as a Marginal,
Moderate, Serious, or Severe Area (without regard to whether or
not the 1980 population of the area exceeds 250,000). In any
such case, the Administrator shall establish an effective date
for such prohibition as he deems appropriate, 1 year after such
application is received. The Administrator shall publish such
application in the Federal Register upon receipt.
``(B) If 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 domestic capacity to produce gasoline certified
under this subsection, the Administrator shall, by rule, extend
the effective date of such prohibition in Marginal, Moderate,
Serious, or Severe Areas referred to in subparagraph (A) for
one additional year, and may, by rule, renew such extension for
2 additional one-year periods. The Administrator shall act on
any petition submitted under this paragraph within 6 months
after receipt of the petition. The Administrator shall issue
such extensions for areas with a lower ozone classification
before issuing any such extension for areas with a higher
classification.
``(7) Credits.--(A) The regulations promulgated under this
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