Volume 150, No. 55 covering the 2nd Session of the 108th Congress (2003 - 2004) was published by the Congressional Record.
The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“TEXT OF AMENDMENTS” mentioning the Environmental Protection Agency was published in the Senate section on pages S4435-S4442 on April 27, 2004.
The publication is reproduced in full below:
TEXT OF AMENDMENTS
SA 3048. Mr. McCAIN proposed an amendment to the bill S. 150, to make permanent the moratorium on taxes on Internet access and multiple and discriminatory taxes on electronic commerce imposed by the Internet Freedom Act; as follows:
Strike out all after the enacting clause and insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Internet Tax Nondiscrimination Act''.
SEC. 2. FOUR-YEAR EXTENSION OF INTERNET TAX MORATORIUM.
(a) In General.--Subsection (a) of section 1101 of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to read as follows:
``(a) Moratorium.--No State or political subdivision thereof may impose any of the following taxes during the period beginning November 1, 2003, and ending November 1, 2007:
``(1) Taxes on Internet access.
``(2) Multiple or discriminatory taxes on electronic commerce.''.
(b) Conforming Amendments.--
(1) Section 1101 of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking subsection (d) and redesignating subsections (e) and (f) as subsections (d) and
(e), respectively.
(2) Section 1104(10) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to read as follows:
``(10) Tax on internet access.--
``(A) In general.--The term `tax on Internet access' means a tax on Internet access, regardless of whether such tax is imposed on a provider of Internet access or a buyer of Internet access and regardless of the terminology used to describe the tax.
``(B) General exception.--The term `tax on Internet access' does not include a tax levied upon or measured by net income, capital stock, net worth, or property value.''.
(3) Section 1104(2)(B)(i) of the Internet Tax Freedom Act
(47 U.S.C. 151 note) is amended by striking ``except with respect to a tax (on Internet access) that was generally imposed and actually enforced prior to October 1, 1998,''.
(c) Internet Access Service; Internet Access.--
(1) Internet access service.--Paragraph (3)(D) of section 1101(d) (as redesignated by subsection (b)(1) of this section) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking the second sentence and inserting
``The term `Internet access service' does not include telecommunications services, except to the extent such services are purchased, used, or sold by a provider of Internet access to provide Internet access.''.
(2) Internet access.--Section 1104(5) of that Act is amended by striking the second sentence and inserting ``The term `Internet access' does not include telecommunications services, except to the extent such services are purchased, used, or sold by a provider of Internet access to provide Internet access.''.
SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS.
The Internet Tax Freedom Act (47 U.S.C. 151 note) is amended--
(1) by redesignating section 1104 as section 1105; and
(2) by inserting after section 1103 the following:
``SEC. 1104. GRANDFATHERING OF STATES THAT TAX INTERNET
ACCESS.
``(a) Pre-October 1998 Taxes.--
``(1) In general.--Section 1101(a) does not apply to a tax on Internet access that was generally imposed and actually enforced prior to October 1, 1998, if, before that date, the tax was authorized by statute and either--
``(A) a provider of Internet access services had a reasonable opportunity to know, by virtue of a rule or other public proclamation made by the appropriate administrative agency of the State or political subdivision thereof, that such agency has interpreted and applied such tax to Internet access services; or
``(B) a State or political subdivision thereof generally collected such tax on charges for Internet access.
``(2) Termination.--This subsection shall not apply after November 1, 2006.
``(b) Pre-November 2003 Taxes.--
``(1) In general.--Section 1101(a) does not apply to a tax on Internet access that was generally imposed and actually enforced as of November 1, 2003, if, as of that date, the tax was authorized by statute and--
``(A) a provider of Internet access services had a reasonable opportunity to know by virtue of a public rule or other public proclamation made by the appropriate administrative agency of the State or political subdivision thereof, that such agency has interpreted and applied such tax to Internet access services; and
``(B) a State or political subdivision there-of generally collected such tax on charges for Internet access.
``(2) Termination.--This subsection shall not apply after November 1, 2005.''.
SEC. 4. ACCOUNTING RULE.
The Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by adding at the end the following:
``SEC. 1106. ACCOUNTING RULE.
``(a) In General.--If charges for Internet access are aggregated with and not separately stated from charges for telecommunications services or other charges that are subject to taxation, then the charges for Internet access may be subject to taxation unless the Internet access provider can reasonably identify the charges for Internet access from its books and records kept in the regular course of business.
``(b) Definitions.--In this section:
``(1) Charges for internet access.--The term `charges for Internet access' means all charges for Internet access as defined in section 1105(5).
``(2) Charges for telecommunications services.--The term
`charges for telecommunications services' means all charges for telecommunications services, except to the extent such services are purchased, used, or sold by a provider of Internet access to provide Internet access.''.
SEC. 5. EFFECT ON OTHER LAWS.
The Internet Tax Freedom Act (47 U.S.C. 151 note), as amended by section 4, is amended by adding at the end the following:
``SEC. 1107. EFFECT ON OTHER LAWS.
``(a) Universal Service.--Nothing in this Act shall prevent the imposition or collection of any fees or charges used to preserve and advance Federal universal service or similar State programs--
``(1) authorized by section 254 of the Communications Act of 1934 (47 U.S.C. 254); or
``(2) in effect on February 8, 1996.
``(b) 911 and E-911 Services.--Nothing in this Act shall prevent the imposition or collection, on a service used for access to 911 or E-911 services, of any fee or charge specifically designated or presented as dedicated by a State or political subdivision thereof for the support of 911 or E-911 services if no portion of the revenue derived from such fee or charge is obligated or expended for any purpose other than support of 911 or E-911 services.
``(c) Non-Tax Regulatory Proceedings.--Nothing in this Act shall be construed to affect any Federal or State regulatory proceeding that is not related to taxation.''.
SEC. 6. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE
INTERNET.
The Internet Tax Freedom Act (47 U.S.C. 151 note), as amended by section 5, is amended by adding at the end the following:
``SEC. 1108. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE
INTERNET.
``Nothing in this Act shall be construed to affect the imposition of tax on a charge for voice or any other service utilizing Internet Protocol or any successor protocol. This section shall not apply to Internet access or to any services that are incidental to Internet access, such as e-mail, text instant messaging, and instant messaging with voice capability.''.
SEC. 7. EFFECTIVE DATE.
The amendments made by this Act take effect on November 1, 2003.
______
SA 3049. Mrs. HUTCHISON proposed an amendment to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make permanent the moratorium on taxes on Internet access and multiple and discriminatory taxes on electronic commerce imposed by the Internet Tax Freedom Act; as follows:
At the appropriate place, insert the following:
SEC. __. CHANGE IN DEFINITION OF INTERNET ACCESS SERVICE.
Paragraph (10) of section 1105 of the Internet Tax Freedom Act, as redesignated by this Act, is amended--
(1) by striking ``The term'' and inserting the following:
``(A) In general.--The term''; and
(2) by adding at the end the following:
``(B) General exception.--The term does not--
``(i) include a tax levied upon or measured by net income, capital stock, net worth, or property value; or
``(ii) apply to any payment made for use of the public right-of-way or made in lieu of a fee for use of the public right-of-way, however it may be denominated, including but not limited to an access line fee, franchise fee, license fee, or gross receipts or gross revenue fee.''.
______
SA 3050. Mr. DASCHLE (for himself, Mr. Durbin, and Mr. Johnson) proposed an amendment to the bill S. 150, to make permanent the moratorium on taxes on Internet access and multiple and discriminatory taxes on electronic commerce imposed by the Internet Tax Freedom Act; as follows:
At the end, add the following:
TITLE__--FUELS
Subtitle A--General Provisions Relating to Renewable Fuels
SEC. __01. 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 (except in Alaska and Hawaii), 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 refiners, blenders, distributors, and importers, as appropriate, to ensure that the requirements of this paragraph are met; but
``(II) shall not--
``(aa) restrict cases in geographic areas 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 2005 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.........................................................3.1 ....
2006.........................................................3.3 ....
2007.........................................................3.5 ....
2008.........................................................3.8 ....
2009.........................................................4.1 ....
2010.........................................................4.4 ....
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 2004 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 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 refiners, blenders, and importers, as appropriate;
``(II) be expressed in terms of a volume percentage of gasoline sold or introduced into commerce; 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--
``(A) shall be considered to be the equivalent of 1.5 gallons of renewable fuel; or
``(B) if the cellulosic biomass is derived from agricultural residue, 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--
``(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 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 2005 in a State that has received a waiver under section 209(b) shall not be included in the study under subparagraph (A).
``(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 or distribution capacity to meet the requirement.
``(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 2005, 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 2005.
``(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) Assessment and waiver.--
``(A) In general.--The Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, shall evaluate the requirement of paragraph (2) and determine, before January 1, 2007, and before January 1 of any subsequent year in which the applicable volume of renewable fuel is increased under paragraph (2)(B), whether the requirement of paragraph (2), including the applicable volume of renewable fuel contained in paragraph (2)(B) should remain in effect, in whole or in part, during 2007 or any subsequent year.
``(B) Considerations.--In evaluating the requirement of paragraph (2) and in making any determination under this paragraph, the Administrator shall consider the best available information and data collected by accepted methods or best available means regarding--
``(i) the capacity of renewable fuel producers to supply an adequate amount of renewable fuel at competitive prices to fulfill the requirement of paragraph (2);
``(ii) the potential of the requirement of paragraph (2) to raise significantly the price of gasoline, food (excluding the net price impact on the requirement in paragraph (2) on commodities used in the production of ethanol), or heating oil for consumers in any significant region of the country above the price that would otherwise apply to those commodities in the absence of the requirement;
``(iii) the potential of the requirement of paragraph (2) to interfere with the supply of fuel in any significant gasoline market or region of the country, including interference with the efficient operation of refiners, blenders, importers, wholesale suppliers, and retail vendors of gasoline and other motor fuels; and
``(iv) the potential of the requirement of paragraph (2) to cause or promote exceedances of Federal, State, or local air quality standards.
``(C) Waiver.--If the Administrator determines, by clear and convincing information, after public notice and opportunity for comment, that the requirement of paragraph
(2) would have significant and meaningful adverse impact on the supply of fuel and related infrastructure or on the economy, public health, or environment of any significant area or region of the country, the Administrator may waive, in whole or in part, the requirement of paragraph (2) in any 1 year for which the determination is made for that area or region of the country, except that any such waiver shall not have the effect of reducing the applicable volume of renewable fuel specified in paragraph (2)(B) with respect to any year for which the determination is made.
``(D) Economic impact.--In determining economic impact under this paragraph, the Administrator shall not consider the reduced revenues available from the Highway Trust Fund as a result of the use of ethanol.
``(10) 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, 2007, 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 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).
``(11) 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, 2004, 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).''.
(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. __02. 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) Commercial Byproducts From Municipal Solid Waste Loan Guarantee Program.--
``(1) Establishment of program.--The Secretary shall establish a program to provide guarantees of loans by private institutions for the construction of facilities for the processing and conversion of municipal solid waste into fuel ethanol and other commercial byproducts.
``(2) Requirements.--The Secretary may provide a loan guarantee under paragraph (1) to an applicant if--
``(A) without a loan guarantee, credit is not available to the applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in paragraph (1);
``(B) the prospective earning power of the applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed in accordance with the terms of the loan; and
``(C) the loan bears interest at a rate determined by the Secretary to be reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.
``(4) Criteria.--In selecting recipients of loan guarantees from among applicants, the Secretary shall give preference to proposals that--
``(A) meet all applicable Federal and State permitting requirements;
``(B) are most likely to be successful; and
``(C) are located in local markets that have the greatest need for the facility because of--
``(i) the limited availability of land for waste disposal; or
``(ii) a high level of demand for fuel ethanol or other commercial byproducts of the facility.
``(5) Maturity.--A loan guaranteed under paragraph (1) shall have a maturity of not more than 20 years.
``(6) Terms and conditions.--The loan agreement for a loan guaranteed under paragraph (1) shall provide that no provision of the loan agreement may be amended or waived without the consent of the Secretary.
``(7) Assurance of repayment.--The Secretary shall require that an applicant for a loan guarantee under paragraph (1) provide an assurance of repayment in the form of a performance bond, insurance, collateral, or other means acceptable to the Secretary in an amount equal to not less than 20 percent of the amount of the loan.
``(8) Guarantee fee.--The recipient of a loan guarantee under paragraph (1) shall pay the Secretary an amount determined by the Secretary to be sufficient to cover the administrative costs of the Secretary relating to the loan guarantee.
``(9) Full faith and credit.--
``(A) In general.--The full faith and credit the United States is pledged to the payment of all guarantees made under this subsection.
``(B) Conclusive evidence.--Any guarantee made by the Secretary under this subsection shall be conclusive evidence of the eligibility of the loan for the guarantee with respect to principal and interest.
``(C) Validity.--The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed loan.
``(10) Reports.--Until each guaranteed loan under this subsection has been repaid in full, the Secretary shall annually submit to Congress a report on the activities of the Secretary under this subsection.
``(11) Authorization of appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this subsection.
``(12) Termination of authority.--The authority of the Secretary to issue a new loan guarantee under paragraph (1) terminates on the date that is 10 years after the date of enactment of this section.
``(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 University of Mississippi and the University of Oklahoma, $4,000,000 for each of fiscal years 2004 through 2006.
``(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.
``(4) Authorization of appropriations.--There is authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2004 through 2008.
``(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) $100,000,000 for fiscal year 2004;
``(B) $250,000,000 for fiscal year 2005; and
``(C) $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:
``212. Renewable fuels.''.
SEC. __03. 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 B--Federal Reformulated Fuels
SEC. __11. SHORT TITLE.
This subtitle may be cited as the ``Federal Reformulated Fuels Act of 2004''.
SEC. __12. 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 2003, to remain available until expended; and
``(2) to carry out section 9010--
``(A) $50,000,000 for fiscal year 2003; and
``(B) $30,000,000 for each of fiscal years 2004 through 2008.''.
(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. __13. 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) significant use of MTBE could result from the adoption of that standard; and
(B) the use of MTBE would likely be important to the cost-effective implementation of 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 2004 through 2007.''.
(d) No Effect on Law Concerning State Authority.--The amendments made by subsection (c) have no effect on the law in effect on the day 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. __14. 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 1999 and 2000 (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 1999 and 2000.
``(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).
``(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 1999 and 2000; 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 1999 and 2000, 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, 2004, 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 1999 and 2000;
(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 1999 and 2000; 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 203(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 1999 and 2000 in the average annual aggregate emissions of toxic air pollutants from reformulated gasoline produced or distributed by the refiner or importer.
SEC. __15. 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. __16. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) (as amended by section __01(a)) is amended by inserting after subsection (o) the following:
``(p) 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 Reliable Fuels Act.
``(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 subsection, as soon as the necessary data are available, the Administrator shall develop and finalize an emissions model that reasonably reflects the effects of gasoline characteristics or components on emissions from vehicles in the motor vehicle fleet during calendar year 2006.''.
SEC. __17. 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))--
(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. __18. 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. __19. 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, 2007, 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.
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SA 3051. Mr. DOMENICI proposed an amendment to amendment SA 3050 proposed by Mr. Daschle (for himself, Mr. Durbin, and Mr. Johnson) to the bill S. 150, to make permanent the moratorium on taxes on Internet access and multiple and discriminatory taxes on electronic commerce imposed by the Internet Tax Freedom Act; as follows:
(The amendment will be printed in a future edition of the Record.)
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