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108th CONGRESS
1st Session
S. 791
To amend the Clean Air Act to eliminate methyl tertiary butyl ether
from the United States fuel supply, to increase production and use of
renewable fuel, and to increase the Nation's energy independence, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 3, 2003
Mr. Inhofe (for himself, Mr. Voinovich, and Mr. Talent) introduced the
following bill; which was read twice and referred to the Committee on
Environment and Public Works
_______________________________________________________________________
A BILL
To amend the Clean Air Act to eliminate methyl tertiary butyl ether
from the United States fuel supply, to increase production and use of
renewable fuel, and to increase the Nation's energy independence, 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. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Reliable Fuels
Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--GENERAL PROVISIONS
Sec. 101. Renewable content of gasoline.
Sec. 102. Survey of renewable fuels consumption.
TITLE II--FEDERAL REFORMULATED FUELS
Sec. 201. Short title.
Sec. 202. Leaking underground storage tanks.
Sec. 203. Restrictions on the use of MTBE.
Sec. 204. Elimination of oxygen content requirement for reformulated
gasoline.
Sec. 205. Public health and environmental impacts of fuels and fuel
additives.
Sec. 206. Analyses of motor vehicle fuel changes.
Sec. 207. Additional opt-in areas under reformulated gasoline program.
Sec. 208. Federal enforcement of State fuels requirements.
Sec. 209. Fuel system requirements harmonization study.
TITLE I--GENERAL PROVISIONS
SEC. 101. 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:
``(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) Renewable fuel.--
``(i) In general.--The term `renewable
fuel' means motor vehicle fuel that--
``(I)(aa) is produced from grain,
starch, oilseeds, 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))).
``(C) 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.
``(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, on an annual
average basis, contains the applicable volume
of renewable fuel determined in accordance with
subparagraph (B).
``(ii) 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 cases in
which renewable fuel may be
used; or
``(bb) impose any per-
gallon obligation for the use
of renewable fuel.
``(iii) 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 1.8
percent for calendar year 2005.
``(B) Applicable volume.--
``(i) Calendar years 2004 through 2012.--
For the purpose of subparagraph (A), the
applicable volume for any of calendar years
2005 through 2012 shall be determined in
accordance with the following table:
Applicable volume of
``Calendar year: renewable fuel
(in billions of gallons):
2005.......................................... 2.6
2006.......................................... 2.9
2007.......................................... 3.2
2008.......................................... 3.5
2009.......................................... 3.9
2010.......................................... 4.3
2011.......................................... 4.7
2012.......................................... 5.0.
``(ii) Calendar year 2013 and thereafter.--
For the purpose of subparagraph (A), the
applicable volume for calendar year 2013 and
each calendar year thereafter shall be equal to
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) 5,000,000,000
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 2003 through 2011, the Administrator of the
Energy Information Administration shall provide to the
Administrator of the Environmental Protection Agency an
estimate of the volumes of gasoline sold or introduced
into commerce in the United States during the following
calendar year.
``(B) Determination of applicable percentages.--
``(i) In general.--Not later than November
30 of each of calendar years 2004 through 2011,
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; 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 1.5 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--
``(i) subject to clause (ii), for the
calendar year in which the credit was generated
or the following calendar year; or
``(ii) if the Administrator promulgates
regulations under paragraph (6), for the
calendar year in which the credit was generated
or any of the following 2 calendar years.
``(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 2005
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
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