article: SECTION 1. WAIVER OF OXYGEN CONTENT REQUIREMENTS. Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended by adding the following new paragraph at the end: ``(11) Waiver of oxygen content requirement.-- ``(A) In general.--Upon petition to the Administrator by the Governor of a State, the Administrator shall waive any oxygen content requirement in effect under this subsection for that State. ``(B) Action by environmental protection agency.-- Not later than 270 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator shall grant the waiver of the oxygen content requirement requested in the petition. If, by the date that is 270 days after the date of receipt of such a petition, the Administrator has not granted the petition, the petition shall be deemed to be granted. The waiver under this subparagraph shall take effect on the date 90 days after the petition is granted or deemed granted unless the Administrator establishes an earlier effective date. ``(C) Special rule.--The oxygen content requirement in effect under this subsection shall not apply to a State referred to in subsection (c)(4)(B).''. SEC. 2. CONTROL OF OXYGENATES. (a) EPA Authority.--(1) Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1)) is amended by inserting ``(A)'' after ``(1)'' by redesignating subparagraphs (A) and (B) as clauses (i) and (ii) and by adding the following at the end thereof: ``(B) The Administrator may, by regulation, control or prohibit the use of any oxygenate (including methyl tertiary butyl ether, `MTBE') as a fuel, or fuel additive for fuel, for use in a motor vehicle, motor vehicle engine, or nonroad engine or nonroad vehicle if in the judgment of the Administrator such oxygenate causes or contributes to contamination of drinking water which may reasonably be anticipated to endanger public health, welfare, or the environment in the United States.''. (2) Section 211(c)(2)(A) of such Act (42 U.S.C. 7545(c)(2)(A)) is amended by inserting ``(i) of subparagraph'' before ``(A) of paragraph''. (3) Section 211(c)(2)(B) of such Act (42 U.S.C. 7545(c)(2)(B)) is amended by striking ``(B)'' and inserting ``(ii) of subparagraph (A)''. (4) Section 211(c)(2)(C) of such Act (42 U.S.C. 7545(c)(2)(C)) is amended by inserting ``clause (i) or (ii) of subparagraph (A) of'' before ``paragraph (1)''. (5) Section 211(c)(2) of such Act (42 U.S.C. 7545(c)(2)) is amended by adding the following at the end thereof: ``(D) If the Administrator seeks to control or prohibit the use of any oxygenate under subparagraph (B) of paragraph (1), the Administrator shall take into account information as to whether such control or prohibition will affect the use of any other oxygenate in a manner which may reasonably be anticipated to endanger public health, welfare, or the environment in the United States.''. (b) MTBE Levels.--Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended by adding the following at the end thereof: ``(5) MTBE levels.--Within 1 year after the enactment of this paragraph, the Administrator shall promulgate regulations to require that, for the calendar year beginning January 1, 2005, and for each calendar year thereafter, the annual volume of methyl tertiary butyl ether (MTBE) manufactured or introduced into commerce in a calendar year in the United States for use as a fuel, or fuel additive for fuel, for use in a motor vehicle, motor vehicle engine, or nonroad engine or nonroad vehicle shall not exceed the average annual volume of MTBE estimated by the Administrator to have been manufactured or introduced into commerce in calendar years 1986 through 1991 in the United States for use as a fuel or fuel additive for fuel, for use in a motor vehicle, motor vehicle engine, or nonroad engine or nonroad vehicle. The regulations under this paragraph may include regulations regarding the quantity of MTBE on a per-gallon basis or annual average basis provided that such an annual average standard has associated with it a per-gallon maximum standard.''. (c) State Authority.--Section 211(c)(4) of the Clean Air Act (42 U.S.C. 7545(c)(4)) is amended by adding the following at the end: ``(D) The Administrator may permit any State to prescribe and enforce controls or prohibitions on the use of methyl tertiary butyl ether (MTBE) as a fuel additive in fuel offered for sale, or sold, at retail in a calendar year in that State in order to reduce the volume of MTBE offered for sale, or sold, at retail in that State to levels below the levels estimated by the State to be offered for sale, or sold, at retail in that State under paragraph (1)(B) or (5). The Administrator may also permit any such State to establish such controls or prohibitions on MTBE on a more expeditious schedule than required under paragraph (1)(B) or (5). Any State seeking additional controls or prohibitions or a more expeditious schedule under this subparagraph shall submit a petition to the Administrator. The Administrator may only grant such a petition if the Administrator finds that the controls on MTBE in effect under paragraph (1)(B) or (5) will not prevent MTBE from causing or contributing to air pollution in that State, or contamination of drinking water in that State, which may reasonably be anticipated to endanger public health, welfare, or the environment. No State may submit such a petition to the Administrator before the date 1 year after the enactment of this subparagraph. The Administrator shall act on such petitions within 180 days of receipt. No State referred to in subparagraph (B) shall be subject to the requirements of this subparagraph. ``(E) Subparagraph (D) shall not limit the authority of any State under any other provision of law to prescribe and enforce any control or prohibition on the use of methyl tertiary butyl ether (MTBE) as a fuel additive.''. SEC. 3. MAINTENANCE OF EMISSION CONTROL BENEFITS. (a) Toxic Air Pollutants.--Section 211(k)(3) of the Clean Air Act (42 U.S.C. 7545(k)(3)) is amended by adding the following at the end: ``(C) Maintaining toxic control benefits in oxygen waiver areas.--(i) Not later than 90 days after the date of enactment of this subparagraph, the Administrator shall propose, and not later than later than 270 days after the enactment of this subparagraph, promulgate, regulations under this subparagraph (consistent with section 211(k)(3)(B)(ii) of the Clean Air Act) establishing regional performance standards to ensure that the levels of reductions of toxic air pollutants achieved under the Reformulated Gasoline Program in effect under this subsection are maintained in areas where the oxygen content requirement is waived under paragraph (11). ``(ii) For purposes of establishing regional performance standards under this subparagraph, the Administrator shall determine the reductions of toxic air pollutants achieved under the Reformulated Gasoline Program in effect under this subsection on average in calendar years 1998 and 1999 in various regions selected, in consultation with the Secretary of Energy. Such regions shall be selected on the basis of the existing gasoline distribution and supply network to the extent practicable. The Administrator's determination shall be based on compliance survey data, other appropriate and reliable data and the Environmental Protection Agency's existing Phase II complex model. ``(iii) The Administrator shall convert the average air toxic reductions, calculated as described in clause (ii), into annual average regional performance standards. Such regional performance standards shall apply to reformulated gasoline to be sold, or offered for sale, or introduced into commerce in areas where the oxygen content requirement is waived under paragraph (11). ``(iv) The performance standards under this subparagraph shall not apply to the extent that regulations under this Act (including the Environmental Protection Agency's existing Phase II Reformulated Gasoline air toxics performance standards, or regulations promulgated under section 202(l)) are more stringent than such performance standards. The performance standards under this subparagraph shall not apply in any State referred to in section 211(c)(4)(B). ``(v) Pending promulgation of regulations under this subparagraph, the Environmental Protection Agency's Phase II Reformulated Gasoline complex model toxic performance standards shall apply in areas where the oxygen content requirement is waived under paragraph (11).''. (b) Criteria Air Pollutants.--Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by adding at the end the following: ``(p) Conventional Gasoline.-- ``(1) In general.--Not later than October 1, 2007-- ``(A) the Administrator shall determine whether the use of conventional gasoline during the period of calendar years 2005 and 2006 resulted in a greater volume of emissions of criteria air pollutants listed under section 108, determined on the basis of a weighted average of those pollutants, than the volume of such emissions during the period of calendar years 1998 and 1999; and ``(B) if the Administrator determines that a significant increase in emissions occurred, the Administrator shall promulgate such regulations under subsection (c) concerning the use of conventional gasoline as are appropriate regarding that increase. ``(2) Applicability to certain states.--The Administrator shall make the determination under paragraph (1)(A) without regard to, and the regulations promulgated under paragraph (1)(B) shall not apply to, any State that has received a waiver under section 209(b).''. SEC. 4. ASSURANCE OF ADEQUATE FUEL SUPPLY. Any regulation or modification of fuel properties promulgated by, or approved by the Administrator of the Environmental Protection Agency under the amendments made by this Act, shall take into account the need to provide lead time for refinery and fuel distribution system modifications necessary to assure adequate fuel supply for all States. Such regulation or modification shall include provisions for the banking and trading of allowances within, but not between, the regions referred to in section 211(k)(3)(C) of the Clean Air Act.
summary: Amends the Clean Air Act to authorize the Administrator of the Environmental Protection Agency to waive oxygen content requirements for reformulated gasoline upon petition of a State.Permits the Administrator to control or prohibit the use of any oxygenate (including methyl tertiary butyl ether (MTBE)) as a fuel or fuel additive if the oxygenate contributes to contamination of drinking water which may be anticipated to endanger public health, welfare, or the environment.Caps the annual volume of MTBE manufactured or introduced into commerce as a fuel or fuel additive, beginning in 2005, at the average annual volume estimated to have been manufactured or introduced into commerce in 1986 through 1991.Grants States certain authority to prescribe and enforce controls on the use of MTBE as a fuel additive.Directs the Administrator to establish regional performance standards to ensure that levels of reductions of toxic air pollutants achieved under the Reformulated Gasoline Program are maintained in areas where the oxygen content requirement is waived.Requires any regulation or modification of fuel properties made by this Act to take into account the need to provide lead time for refinery and fuel distribution system modifications necessary to assure adequate fuel supply for all States.