S.Amdt. 3635

1. Inserts new text on page 253, between lines 19 and 20

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   Inserted: FEDERAL FUELS LIST

   Inserted: Sec. 7__. (a) Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is amended by striking the second clause (v) and inserting the following:

   Inserted: "(vi)(I) The Administrator shall have no authority, when considering a State implementation plan or a State implementation plan revision, to approve under this paragraph any fuel included in such plan or revision if the effect of such approval would be to increase the total number of fuels approved under this paragraph as of September 1, 2004, in all State implementation plans.

   Inserted: "(II) The Administrator, in consultation with the Secretary of Energy (referred to in this clause as the 'Secretary'), shall--

   Inserted: "(aa) determine the total number of fuels approved under this paragraph as of September 1, 2004, in all State implementation plans; and

   Inserted: "(bb) not later than 90 days after the date of enactment of this item, publish in the Federal Register a list of the fuels described in item (aa), including the states and Petroleum Administration for Defense District in which they are used.

   Inserted: "(III) The Administrator--

   Inserted: "(aa) shall remove a fuel from the list published under subclause (II) if the fuel ceases to be included in a State implementation plan or if a fuel in a State implementation plan is identical to a Federal fuel formulation implemented by the Administrator; and

   Inserted: "(bb) reduce the total number of fuels authorized under the list published under subclause (II) appropriately.

   Inserted: "(IV) Subclause (I) shall not limit the authority of the Administrator to approve a control or prohibition respecting any new fuel under this paragraph in an implementation plan of a State, or a revision to such a plan, after the date of enactment of this subclause if the new fuel completely replaces a fuel on the list published under subclause (II).

   Inserted: "(V)(aa) Except as provided in item (bb), in considering the implementation plan of a State or a revision to such a plan, the Administrator shall have no authority under this paragraph to approve any fuel unless that fuel was, as of the date of the consideration, approved in at least 1 State implementation plan in the applicable Petroleum Administrator for Defense District.

   Inserted: "(bb) The Administrator may approve as part of a State implementation plan, or a revision to such a plan, a fuel with a summertime Reid Vapor Pressure of 7.0 psi, but such an approval by the Administrator shall not cause an increase in the total number of fuels on the list published under subclause (II) as of the date of consideration.

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   Inserted: "(VI) Nothing in this clause affects any available authority of States to require the use of any fuel additive registered in accordance with subsection (b), including any fuel additive registered in accordance with that subsection after the date of enactment of this subclause.

   Inserted: "(vii)(I) Clause (vi), including the limitations of the authority of the Administrator and the cap on the total number of fuels permitted, shall remain in effect until the harmonization of fuels under subclause (V) is achieved, at which time clause (v) shall no longer apply and the limitations of the authority of the Administrator under subclause (IV) shall apply.

   Inserted: "(II)(aa) Not later than 1 year after the date of enactment of this clause, the Administrator, in coordination with the Secretary and after providing notice and an opportunity for public comment, shall identify and publish in the Federal Register a list, to be known as the 'Federal Fuels List', containing 5 gasolines and diesel fuels to be used in States that have not received a waiver under section 209(b).

   Inserted: "(bb) The list shall include 1 Federal on-road diesel fuel (which shall grandfather the sulfur phase down in the ultra low sulfur diesel fuel regulations of the Administrator in effect as of the date of enactment of enactment of this clause and shall permit the implementation of 1 alternative diesel fuel, approved under this subparagraph before that date for a State that has not received a section 209(b) waiver, only in the State in which it was approved before that date), 1 conventional gasoline for ozone attainment areas, 1 reformulated gasoline (RFG) meeting the requirements of subsection (k), and 2 additional gasolines with Reid vapor pressure (RVP) controls for use in ozone attainment areas of varying degrees of severity.

   Inserted: "(cc) None of the fuels identified under this subclause shall control fuel sulfur or toxics levels beyond levels required by regulations of the Administrator.

   Inserted: "(III)(aa) Gasolines and diesel fuels shall be included on the Federal Fuels List based on an analysis by the Administrator of the ability of the fuels to reduce ozone emissions to assist States in attaining established ozone standards under this Act, and on an analysis by the Secretary that the adoption of the Federal Fuels List will not result in a reduction in supply or in producibility, including that caused by a reduction in domestic refining capacity as a result of the adoption of the Federal Fuels List.

   Inserted: "(bb) In the event the Secretary concludes that adoption of the Federal Fuels List will result in a reduction in supply or in producibility, the Administrator and the Secretary shall report that conclusion to Congress, and suspend the implementation of this clause.

   Inserted: "(cc) The Administrator and the Secretary shall conduct the study required under section 1541(c) of the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 1108) on the timetable required in that section to provide Congress with legislative recommendations for modifications to the proposed Federal Fuels List only if the Secretary concludes that adoption of the Federal Fuels List will result in a reduction in supply or in producibility.

   Inserted: "(IV)(aa) On publication of the Federal Fuels List, the Administrator shall have no authority, in considering a State implementation plan or State implementation plan revisions, to approve under this subparagraph any fuel included in such plan or plan revision if the proposed fuel is not 1 of the fuels on the Federal Fuels List or to approve an implementation plan or plan revision of a State to move from 1 fuel on the Federal Fuels List to another unless, after consultation with the Secretary, the Administrator publishes in the Federal Register, after notice and opportunity for public comment, a finding that, in the judgment of the Administrator, the plan or plan revision to adopt a different fuel on the Federal Fuels List will not cause fuel supply or distribution disruptions in the affected area or contiguous areas.

   Inserted: "(bb) A finding of the Administrator under item (aa) shall include an assessment of reasonably foreseeable supply or distribution emergencies that could occur in the affected area or contiguous area and how adoption of the particular fuel revisions would effect alternative supply options during reasonably foreseeable supply or distribution emergencies.

   Inserted: "(V) The Administrator, in consultation with the Secretary, shall--

   Inserted: "(aa) develop a plan to harmonize the currently approved fuels in State implementation plans with the fuels included on the Federal Fuels List; and

   Inserted: "(bb) not later than 18 months after the date of enactment of this subclause, promulgate implementing regulations for this plan.

   Inserted: "(VI) The harmonization plan under subclause (V) shall be fully implemented by the States by not later than December 31, 2008.".

   Inserted: (b) Section 1541 of the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 1106) is amended by striking subsection (c) and inserting the following:

   Inserted: "(c) Study and Report to Congress on Boutique Fuels.--

   Inserted: "(1) Joint study.--The Administrator of the Environmental Protection Agency and the Secretary shall undertake a study of the effects of the State plan provisions adopted pursuant to section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) on--

   Inserted: "(A) air quality;

   Inserted: "(B) the number of fuel blends;

   Inserted: "(C) fuel availability;

   Inserted: "(D) fuel fungibility; and

   Inserted: "(E) fuel costs.

   Inserted: "(2) Focus of study.--

   Inserted: "(A) In general.--The primary focus of the study required under paragraph (1) shall be to determine how to develop a Federal fuels system that maximizes motor fuel fungibility and supply, preserves air quality standards, and reduces motor fuel price volatility that results from the proliferation of boutique fuels, and to recommend to Congress such legislative changes as are necessary to implement such a system.

   Inserted: "(B) Inclusions.--The study under paragraph (1) shall include an analysis of--

   Inserted: "(i) the impacts on overall energy supply, distribution, and use as a result of the legislative changes recommended;

   Inserted: "(ii) the impact on ozone emissions and supply of a mandatory reduction in the number of fuel blends to 5, including--

   Inserted: "(I) a fuel blend of on-road Federal diesel fuel (which shall grandfather the sulfur phase down in the ultra low sulfur diesel fuel regulations of the Administrator and shall permit the implementation of, one alternative diesel fuel, blend approved under this subparagraph before the date of enactment of this subclause for a State that has not received a section 209(b) waiver, only in the State in which it was approved before that date);

   Inserted: "(II) a fuel blend of conventional gasoline for ozone attainment areas;

   Inserted: "(III) a fuel blend of reformulated gasoline (RFG) meeting the requirements of subsection (k); and

   Inserted: "(IV) 2 gasolines blends with Reid vapor pressure (RVP) controls for use in ozone attainment areas of varying degrees of severity.

   Inserted: "(3) Conduct of study.--

   Inserted: "(A) In general.--In carrying out this subsection, the Administrator and the Secretary shall--

   Inserted: "(i) use sound science and objective science practices;

   Inserted: "(ii) consider the best available science;

   Inserted: "(iii) use data collected by accepted means; and

   Inserted: "(iv) consider and include a description of the weight of the scientific evidence.

   Inserted: "(B) Coordination with other studies.--The Administrator and the Secretary shall--

   Inserted: "(i) coordinate the study required by this section with other studies required by this Act; and

   Inserted: "(ii) avoid duplication of effort with regard to those studies, to the maximum extent practicable.

   Inserted: "(4) Responsibility of administrator.--In carrying out the study under this subsection, the Administrator shall--

   Inserted: "(A) coordinate obtaining comments from affected parties interested in the air quality impact assessment portion of the study;

   Inserted: "(B) use sound and objective science practices; and

   Inserted: "(C) take into consideration the best available science; and

   Inserted: "(D) take into consideration and include a description of the weight of the scientific evidence.

   Inserted: "(5) Responsibility of secretary.--In carrying out the study under this subsection, the Secretary shall coordinate obtaining comments from affected parties interested in the fuel availability, number of fuel blends, fuel fungibility and fuel costs portion of the study.

   Inserted: "(6) Report to congress.--Not later than 1 year after the date of enactment of this Act, the Administrator and the Secretary shall jointly submit to Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate a report describing the results of the study under this subsection, including any recommended regulatory and legislative changes.

   Inserted: "(7) Authorization of appropriations.--There is authorized to be appropriated to the Administrator and the Secretary $500,000 for the completion of the study under this subsection.".

   Original wording

   On page 253, between lines 19 and 20, insert the following:

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