S.Amdt. 712

SA 712. Mr. NELSON of Nebraska submitted an amendment intended to be
proposed to amendment SA 605 proposed by Mr. Inhofe to the bill H.R. 3,
to authorize funds for Federal-aid highways, highway safety programs,
and transit programs, and for other purposes; which was ordered to lie
on the table; as follows:

On page 217, between lines 1 and 2, insert the following:

CHAPTER 1--GENERAL PROVISIONS

On page 297, between lines 9 and 10, insert the following:

CHAPTER 2--FUELS SECURITY

SEC. 1641. SHORT TITLE.

Short Title.--This chapter may be cited as the ``Fuels
Security Act of 2005''.

Subchapter A--General Provisions

SEC. 1651. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

(a) In General.--Section 211 of the Clean Air Act (42
U.S.C. 7545) is amended--
(1) by redesignating subsection (o) as subsection (q); and
(2) by inserting after subsection (n) the following:
``(o) Renewable Fuel Program.--
``(1) Definitions.--In this subsection:
``(A) Ethanol.--
``(i) 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; and
``(VI) fibers.

``(ii) Waste derived ethanol.--The term `waste derived
ethanol' means ethanol derived from--

``(I) animal wastes, including poultry fats and poultry
wastes, and other waste materials; or
``(II) 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

[[Page S4994]]

``(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;
``(II) waste derived ethanol;
``(III) biodiesel (as defined in section 312(f) of the
Energy Policy Act of 1992 (42 U.S.C. 13220(f)); and
``(IV) any blending components derived from renewable fuel,
except that only the renewable fuel portion of any such
blending component shall be considered part of the applicable
volume under the renewable fuel program established by this
subsection.

``(C) Small refinery.--The term `small refinery' means a
refinery for which average aggregate daily crude oil
throughput for the 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) In general.--
``(i) Regulations.--Not later than 1 year after the date of
enactment of this subsection, the Administrator shall
promulgate regulations ensuring that motor vehicle fuel sold
or dispensed to consumers in the contiguous United States, on
an annual average basis, contains the applicable volume of
renewable fuel specified in subparagraph (B).
``(ii) Compliance.--Regardless of the date of promulgation,
the regulations shall contain compliance provisions for
refiners, blenders, and importers, as appropriate, to ensure
that the requirements of this subsection are met, but shall
not restrict where renewable fuel can be used, or impose any
per-gallon obligation for the use of renewable fuel.
``(iii) No regulations.--If the Administrator does not
promulgate the regulations, the applicable percentage
referred to in paragraph (3), on a volume percentage of
gasoline basis, shall be 3.2 in 2006.
``(B) Applicable volume.--
``(i) Calendar years 2006 through 2012.--For the purpose of
subparagraph (A), the applicable volume for any of calendar
years 2006 through 2012 shall be determined in accordance
with the following table:

``Applicable volume of renewable fuel

Calendar year:                               (In billions of gallons)
2006...........................................................4.0
2007...........................................................4.7
2008...........................................................5.4
2009...........................................................6.1
2010...........................................................6.8
2011...........................................................7.4
2012...........................................................8.0

``(ii) Calendar years 2013 and thereafter.--For the purpose
of subparagraph (A), the applicable volume for calendar year
2013 and each calendar year thereafter shall be determined by
the Administrator, in coordination with the Secretary of
Energy and the Secretary of Agriculture, based on a review of
the implementation of the program during calendar years 2006
through 2012, including a review of--

``(I) the impact of the use of renewable fuels on the
environment, air quality, energy security, job creation, and
rural economic development; and
``(II) the expected annual rate of future production of
renewable fuels, including cellulosic ethanol.

``(iii) Limitation.--An increase in the applicable volume
for a calendar year under clause (ii) shall be not less than
the product obtained by multiplying--

``(I) the number of gallons of gasoline that the
Administrator estimates will be sold or introduced into
commerce during the calendar year; and
``(I) the quotient obtained by dividing--

``(aa) 8,000,000,000; by
``(bb) the number of gallons of gasoline sold or introduced
into commerce during 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 2006
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 that will be 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 2006 through 2011, based on the estimate
provided under subparagraph (A), the Administrator shall
determine and publish in the Federal Register, with respect
to the following calendar year, the renewable fuel obligation
that ensures that the requirements under 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 to
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 (11).
``(4) Equivalency.--For the purpose of paragraph (2), 1
gallon of either cellulosic biomass ethanol or waste derived
ethanol shall be considered to be the equivalent of 2.5
gallons of renewable fuel.
``(5) Credit program.--
``(A) Regulations.--The regulations promulgated to carry
out this subsection shall provide for--
``(i) 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) the generation of an appropriate amount of credits
for biodiesel fuel; and
``(iii) if a small refinery notifies the Administrator that
the small refinery waives the exemption provided by this
subsection, the generation of credits by the small refinery
beginning in the year following the notification.
``(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) Life of credits.--A credit generated under this
paragraph shall be valid to demonstrate compliance for the
calendar year in which the credit was generated.
``(D) Inability to purchase sufficient credits.--The
regulations promulgated to carry out this subsection shall
include provisions permitting any person that is unable to
generate or purchase sufficient credits to meet the
requirement under paragraph (2) to carry forward a renewables
deficit if, for the calendar year following the year in which
the renewables deficit is created--
``(i) the person achieves compliance with the renewables
requirement under paragraph (2); and
``(ii) generates or purchases additional renewables credits
to offset the renewables deficit of the preceding year.
``(6) Seasonal variations in renewable fuel use.--
``(A) Study.--For each of calendar years 2006 through 2012,
the Administrator of the Energy Information Administration
shall conduct a study of renewable fuels blending to
determine whether there are excessive seasonal variations in
the use of renewable fuels.
``(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 shall promulgate
regulations to ensure that 35 percent or more of the quantity
of renewable fuels necessary to meet the requirements under
paragraph (2) is used during each of the 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
fuels necessary to meet the requirements under paragraph (2)
has been used during 1 of the periods specified in
subparagraph (D) of the calendar year;
``(ii) a pattern of excessive seasonal variation described
in clause (i) will continue in subsequent calendar years; and
``(iii) promulgating regulations or other requirements to
impose a 35 percent or more seasonal use of renewable fuels
will not prevent or interfere with the attainment of national
ambient air quality standards or significantly increase the
price of motor fuels to the consumer.
``(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) Exclusions.--Renewable fuels blended or consumed in
2006 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 under paragraph (2), in whole or in
part, on a petition by 1 or more States by reducing the
national quantity of renewable fuel required under this
subsection--
``(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 to meet the requirement.
``(B) Petitions for waivers.--Not later than 90 days after
the date on which a petition is received by the Administrator
under subparagraph (A), the Administrator, in consultation
with the Secretary of Agriculture and the Secretary of
Energy, shall approve or disapprove the petition.
``(C) Termination of waivers.--A waiver granted under
subparagraph (A) shall terminate on the date that is 1 year
after the date on which the waiver was granted, but may be

[[Page S4995]]

renewed by the Administrator, after consultation with the
Secretary of Agriculture and the Secretary of Energy.
``(8) Small refineries.--
``(A) In general.--Paragraph (2) shall not apply to small
refineries until the first calendar year beginning more than
5 years after the first year set forth in the table in
paragraph (2)(B)(i).
``(B) Study.--Not later than December 31, 2008, the
Secretary of Energy shall complete for the Administrator a
study to determine whether the requirements under paragraph
(2) would impose a disproportionate economic hardship on
small refineries.
``(C) Small refineries and economic hardship.--For any
small refinery that the Secretary of Energy determines would
experience a disproportionate economic hardship, the
Administrator shall extend the small refinery exemption for
the small refinery for not less than 2 additional years.
``(D) Economic hardship.--
``(i) Extension of exemption.--A small refinery may at any
time petition the Administrator for an extension of the
exemption from the requirements under paragraph (2) for the
reason of disproportionate economic hardship.
``(ii) Evaluation.--In evaluating a hardship petition, the
Administrator, in consultation with the Secretary of Energy,
shall consider the findings of the study in addition to 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 receipt of the petition.
``(E) Credit program.--Paragraph (6)(A)(iii) shall apply to
each small refinery that waives an exemption under this
paragraph.
``(F) Opt-in for small refiners.--A small refinery shall be
subject to paragraph (2) if the small refinery notifies the
Administrator that the small refinery waives the exemption
under subparagraph (C).''.
(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)'' and
inserting ``(n), or (o)'' each place it appears; 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)'' and inserting ``(n), and (o)'' each place it
appears.

SEC. 1652. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND
BIODIESEL PURCHASING REQUIREMENT.

Title III of the Energy Policy Act of 1992 is amended by
striking section 306 (42 U.S.C. 13215) and inserting the
following:

``SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND
BIODIESEL PURCHASING REQUIREMENT.

``(a) Ethanol-Blended Gasoline.--The head of each Federal
agency shall ensure that, in areas in which ethanol-blended
gasoline is reasonably available at a generally competitive
price, the Federal agency purchases ethanol-blended gasoline
containing at least 10 percent ethanol rather than
nonethanol-blended gasoline, for use in vehicles used by the
agency that use gasoline.
``(b) Biodiesel.--
``(1) Definition of biodiesel.--In this subsection, the
term `biodiesel' has the meaning given the term in section
312(f).
``(2) Requirement.--The head of each Federal agency shall
ensure that the Federal agency purchases, for use in fueling
fleet vehicles that use diesel fuel used by the Federal
agency at the location at which fleet vehicles of the Federal
agency are centrally fueled, in areas in which the biodiesel-
blended diesel fuel described in subparagraphs (A) and (B) is
available at a generally competitive price--
``(A) as of the date that is 5 years after the date of
enactment of this paragraph, biodiesel-blended diesel fuel
that contains at least 2 percent biodiesel, rather than
nonbiodiesel-blended diesel fuel; and
``(B) as of the date that is 10 years after the date of
enactment of this paragraph, biodiesel-blended diesel fuel
that contains at least 20 percent biodiesel, rather than
nonbiodiesel-blended diesel fuel.
``(3) Requirement of Federal Law.--The provisions of this
subsection shall not be considered a requirement of Federal
law for the purposes of section 312.
``(c) Exemption.--This section does not apply to fuel used
in vehicles excluded from the definition of `fleet' by
subparagraphs (A) through (H) of section 301(9).''.

SEC. 1653. DATA COLLECTION.

Section 205 of the Department of Energy Organization Act
(42 U.S.C. 7135) is amended by adding at the end the
following:
``(m)(1) In order to improve the ability to evaluate the
effectiveness of the renewable fuels mandate of the United
States, the Administrator shall conduct and publish the
results of a survey of renewable fuels demand in the motor
vehicle fuels market in the United States monthly, and in a
manner designed to protect the confidentiality of individual
responses.
``(2) In conducting the survey, the Administrator shall
collect information both on a national and regional basis,
including--
``(A) information on--
``(i) the quantity of renewable fuels produced;
``(ii) the quantity of renewable fuels blended;
``(iii) the quantity of renewable fuels imported; and
``(iv) the quantity of renewable fuels demanded; and
``(B) market price data.''.

Subchapter B--Federal Reformulated Fuels

SEC. 1661. 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) Effective date.--The amendments made by paragraph (1)
take effect on the date that is 1 year after the date of
enactment of this Act, except that the amendments shall take
effect upon that date of enactment in any State that has
received a waiver under section 209(b) of the Clean Air Act
(42 U.S.C. 7543(b)).
(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 regarding emissions of toxic air
pollutants.--Not later than 270 days after the date of
enactment of this subparagraph, the Administrator shall
establish, for each refinery or importer, standards for toxic
air pollutants from use of the reformulated gasoline produced
or distributed by the refinery or importer that maintain the
reduction of the average annual aggregate emissions of toxic
air pollutants for reformulated gasoline produced or
distributed by the refinery or importer during calendar years
2001 and 2002, determined on the basis of data collected by
the Administrator with respect to the refinery or importer.
``(iii) Standards applicable to specific refineries or
importers.--

``(I) Applicability of standards.--For any calendar year,
the standards applicable to a refinery or importer under
clause (ii) shall apply to the quantity of gasoline produced
or distributed by the refinery 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 refinery or importer during
calendar years 2001 and 2002.
``(II) Applicability of other standards.--For any calendar
year, the quantity of gasoline produced or distributed by a
refinery or importer that is in excess of the quantity
subject to subclause (I) shall be subject to standards for
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 2001 and 2002; 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 2001 and 2002, 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

[[Page S4996]]

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 refinery or importer shall
meet the standards applicable under clause (ii) not later
than April 1 of the year following the report under this
subclause and for subsequent years.
``(vi) Regulations to control hazardous air pollutants from
motor vehicles and motor vehicle fuels.--Not later than July
1, 2006, 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) 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
(or any successor 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.
(d) Authority of Administrator.--Nothing in this section
affects or prejudices any legal claim or action with respect
to regulations promulgated by the Administrator of the
Environmental Protection Agency before the date of enactment
of this Act regarding--
(1) emissions of toxic air pollutants from motor vehicles;
or
(2) the adjustment of standards applicable to a specific
refinery or importer made under the prior regulations.
(e) Determination Regarding a State Petition.--Section
211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended by
inserting after paragraph (10) the following:
``(11) Determination regarding a state petition.--
``(A) In general.--Notwithstanding any other provision of
this section, not later than 30 days after the date of
enactment of this paragraph, the Administrator shall
determine the adequacy of any petition received from a
Governor of a State to exempt gasoline sold in that State
from the requirements under paragraph (2)(B).
``(B) Approval.--If a determination under subparagraph (A)
is not made by the date that is 30 days after the date of
enactment of this paragraph, the petition shall be considered
to be approved.''.

SEC. 1662. 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, 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 the
Administrator;
``(VI) ethanol;
``(VII) iso-octane; and
``(VIII) alkylates;

``(ii) conduct a study on the effects on public health, air
quality, and water resources of the adjustment for ethanol-
blended reformulated gasoline to the VOC performance
requirements otherwise applicable under sections 211(k)(1)
and 211(k)(3); 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 these studies.
``(B) Contracts for study.--In carrying out this paragraph,
the Administrator may enter into one or more contracts with
nongovernmental entities including but not limited to
National Energy Laboratories and institutions of higher
education (as defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001)).''.

SEC. 1663. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by inserting after subsection (o) (as added by
section 1651(a)(2)) 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 subsection, 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 Fuels Security
Act of 2005.
``(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 2005.''.

SEC. 1664. 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.--In addition to the provisions of
subparagraph (A), upon the 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. 1665. 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. 1666. 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--

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(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;
(C) the effect of Federal, State, and local motor vehicle
fuel regulations, including multiple motor vehicle fuel
requirements, on--
(i) domestic refineries;
(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, refineries, 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, 2006, 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) motor vehicle fuel producers and distributors; and
(D) the public.

SEC. 1667. REVIEW OF FEDERAL PROCUREMENT INITIATIVES RELATING
TO USE OF RECYCLED PRODUCTS AND FLEET AND
TRANSPORTATION EFFICIENCY.

Not later than 180 days after the date of enactment of this
Act, the Administrator of General Services shall submit to
Congress a report that details efforts by each Federal agency
to implement the procurement policies specified in Executive
Order No. 13101 (63 Fed. Reg. 49643; relating to governmental
use of recycled products) and Executive Order No. 13149 (65
Fed. Reg. 24607; relating to Federal fleet and transportation
efficiency).

SEC. 1668. REPORT ON RENEWABLE MOTOR FUEL.

Not later than January 1, 2007, the Secretary of Energy and
the Secretary of Agriculture shall jointly prepare and submit
to Congress a report containing recommendations for
achieving, by January 1, 2025, at least 25 percent renewable
fuel content (calculated on an average annual basis) for all
gasoline sold or introduced into commerce in the United
States.
______