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H.R. 1021 (ih) To amend the Internal Revenue Code of 1986 to allow small employers a credit against income tax for costs incurred in establishing a qualified employer plan. [Introduced in House] ...


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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

_______________________________________________________________________

                                 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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