To change the definition of Internet access service.

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

[[Page S4436]]

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--

[[Page S4437]]

``(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.--

[[Page S4438]]

``(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.

[[Page S4439]]

``(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;

[[Page S4440]]

(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

[[Page S4441]]

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.--

[[Page S4442]]

``(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.
______

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.)

____________________