[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5089 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 5089
To promote low-carbon, high-octane fuels, to protect public health, and
to improve vehicle efficiency and performance, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 24, 2021
Mrs. Bustos (for herself, Mr. Cleaver, Mr. Smith of Missouri, Mr.
Comer, Mr. LaHood, and Mrs. Axne) introduced the following bill; which
was referred to the Committee on Energy and Commerce, and in addition
to the Committee on Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To promote low-carbon, high-octane fuels, to protect public health, and
to improve vehicle efficiency and performance, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Next Generation Fuels Act of 2021''.
SEC. 2. FINDINGS.
Congress finds that--
(1) continued increases in new automobile efficiency are
needed to improve consumer welfare and reduce carbon emissions;
(2) the widespread availability of low-carbon, high-octane
fuel will allow continued cost-effective improvements in
automobile efficiency by enabling increased engine compression
ratios;
(3) high-octane automobiles and low-carbon fuels are
readily available to consumers at little incremental cost;
(4) ethanol is a cost-effective and low-carbon octane
enhancer;
(5) the widespread adoption of climate-smart practices and
precision technologies by United States corn producers over the
past decade have further reduced the carbon intensity of
conventional ethanol;
(6) on average, ethanol has been estimated to have
lifecycle greenhouse gas emissions that are 46 percent lower
than average gasoline, with some corn ethanol achieving a 61-
percent reduction compared to gasoline; and
(7) ethanol has one of the highest blending octane values
available in the marketplace.
SEC. 3. HIGH-OCTANE VEHICLES.
Title II of the Clean Air Act (42 U.S.C. 7521 et seq.) is amended
by adding at the end the following:
``PART D--HIGH-OCTANE VEHICLES
``SEC. 261. DEFINITIONS; APPLICABILITY.
``(a) Definitions.--In this part:
``(1) Automobile.--The term `automobile' has the meaning
given to such term in section 32901(a)(3) of title 49, United
States Code.
``(2) Research octane number.--The term `research octane
number' has the meaning given to such term in section 201 of
the Petroleum Marketing Practices Act.
``(3) Manufacturer.--The term `manufacturer' has the
meaning given that term in section 216.
``(b) Applicability.--This part applies with respect to any motor
vehicle that is introduced into commerce that--
``(1) is an automobile;
``(2) uses gasoline for propulsion or any other operation
of the motor vehicle, including the engine thereof; and
``(3) is a model year 2026 or later motor vehicle.
``SEC. 262. HIGH-OCTANE TEST FUELS.
``(a) E20 Certification Fuel.--Except as provided in subsections
(b) and (c), manufacturers producing motor vehicles described in
section 261(b) shall use a test fuel consisting of gasoline and 19.4 to
20 volume percent ethanol with a minimum 95 research octane number in--
``(1) emissions testing and certification under section
206(a) of this Act; and
``(2) fuel economy testing and calculation procedures under
section 32904(c) of title 49, United States Code.
``(b) E25 to E30 Certification Fuel.--As an alternative to the test
fuel described in subsection (a), manufacturers producing motor
vehicles described in section 261(b) may use a test fuel consisting of
gasoline and 24.3 to 30 volume percent ethanol with a minimum 98
research octane number in--
``(1) emissions testing and certification under section
206(a) of this Act; and
``(2) fuel economy testing and calculation procedures under
section 32904(c) of title 49, United States Code.
``(c) Model Year 2031 and Later Model Years.--Notwithstanding
subsections (a) and (b), beginning in model year 2031, manufacturers of
motor vehicles described in section 261(b) shall use the gasoline test
fuel described in subsection (b) in--
``(1) emissions testing and certification under section
206(a) of this Act; and
``(2) fuel economy testing and calculation procedures under
section 32904(c) of title 49, United States Code.
``(d) Formulation.--The test fuels described in subsections (a) and
(b) shall be produced by adding neat or denatured fuel ethanol to the
gasoline criteria emissions test fuel required for use in model year
2020 and later motor vehicles.
``(e) Test Fuel Equations.--For purposes of--
``(1) testing and calculation procedures under section
206(a) of this Act, the emissions of motor vehicles using the
test fuels described in subsection (a) or (b) shall be based
exclusively on actual measured emissions; and
``(2) fuel economy testing and calculation procedures under
section 32904(c) of title 49, United States Code, the fuel
economy of motor vehicles using the test fuels described in
subsection (a) or (b) shall be determined on an energy-
equivalent basis, calculated by multiplying measured fuel
economy by the ratio of--
``(A) 114,086 British thermal units per gallon;
divided by
``(B) the volumetric energy density of the test
fuel.
``SEC. 263. HIGH-OCTANE VEHICLES.
``(a) Warranty Requirements.--Manufacturers of motor vehicles
described in section 261(b) shall warrant to the ultimate purchaser and
each subsequent purchaser that each such motor vehicle is designed--
``(1) for model years 2026 through 2030--
``(A) to operate with gasoline containing 10 and up
to and including 25 percent ethanol by volume; and
``(B) to meet the design requirements under
subsection (b)(1); and
``(2) for model year 2031 and later model years--
``(A) to operate with gasoline containing 10 and up
to and including 30 percent ethanol by volume; and
``(B) to meet the design requirements under
subsections (b) and (c).
``(b) Design Requirements Before Model Year 2031.--
``(1) Manufacturers.--The manufacturer of a motor vehicle
described in section 261(b) shall design each such motor
vehicle--
``(A) to use gasoline with a 95 research octane
number or higher; and
``(B) to incorporate such devices or elements of
design (including physical or other barriers, devices,
or technological systems) as are determined by the
Administrator to be--
``(i) necessary to prevent the introduction
of gasoline with a research octane number that
is lower than 95 into such motor vehicle; and
``(ii) technically and economically
feasible.
``(2) Fuel retailers.--Any fuel retailer selling gasoline
for use in a motor vehicle described in section 261(b) shall
incorporate into the retailer's dispensing equipment such
devices or elements of design, including physical or other
barriers, devices, or technological systems, as are determined
by the Administrator to be--
``(A) necessary to ensure compatibility with the
motor vehicle design requirements under paragraph (1);
and
``(B) technically and economically feasible.
``(c) Design Requirements for Model Year 2031.--
``(1) Manufacturers.--Beginning in model year 2031, the
manufacturer of a motor vehicle described in section 261(b)
shall design each such motor vehicle--
``(A) to use gasoline with a 98 research octane
number or higher; and
``(B) to incorporate such devices or elements of
design (including physical or other barriers, devices,
or technological systems) as are determined by the
Administrator to be--
``(i) necessary to prevent the introduction
of gasoline with a research octane number that
is lower than 98 into such motor vehicle; and
``(ii) technically and economically
feasible.
``(2) Fuel retailer.--Any fuel retailer selling gasoline
for use in a model year 2031 and later motor vehicle described
in section 261(b) shall incorporate into the retailer's
dispensing equipment such devices or elements of design
(including physical or other barriers, devices, or
technological systems) as are determined by the Administrator
to be--
``(A) necessary to ensure compatibility with the
motor vehicle design requirements under paragraph (1);
and
``(B) technically and economically feasible.
``(3) EPA determination of nationwide availability.--The
requirements of this subsection shall not take effect unless
the Administrator determines that 98 research octane number
gasoline can be made readily available nationwide and publishes
notice of the determination in the Federal Register. Not later
than December 31, 2029, the Administrator shall make a
determination of whether 98 research octane number gasoline can
be made readily available nationwide. If the Administrator
fails to make such determination by the date specified in the
preceding sentence, the Administrator is deemed to have
determined that 98 research octane number gasoline can be made
readily available nationwide. If the Administrator determines
that 98 research octane number gasoline cannot be made readily
available nationwide, the Administrator shall revisit such
determination in the subsequent calendar year and shall
continue to revisit such determination annually unless and
until the Administrator determines that 98 research octane
number gasoline can be made readily available nationwide. If
the Administrator does not revisit such determination for any
calendar year as required by the preceding sentence, the
Administrator is deemed to have determined that 98 research
octane number gasoline can be made readily available
nationwide.
``(d) Violations.--
``(1) Manufacturers.--Any manufacturer who violates
subsection (b)(1) or (c)(1) shall be subject to a civil penalty
of not more than $5,000 for each offense. Any such violation
shall constitute a separate offense with respect to each motor
vehicle or fuel dispenser.
``(2) Fuel retailer.--Any fuel retailer who violates
subsection (b)(2) or (c)(2) shall be subject to a civil penalty
of not more than $2,500 for each offense. Any such violation
with respect to each dispensing equipment unit shall constitute
a separate offense.
``SEC. 264. MISFUELING.
``(a) Prohibitions Against Tampering and Defeat Devices for Motor
Vehicles.--In lieu of applying section 203(a)(3) with respect to the
requirements of this part, the following shall apply:
``(1) No person shall--
``(A) remove or render inoperative any device or
element of design installed on or in a motor vehicle
pursuant to subsection (b)(1) or (c)(1) of section 263
prior to its sale and delivery to the ultimate
purchaser; or
``(B) knowingly remove or render inoperative any
such device or element of design after such sale and
delivery to the ultimate purchaser.
``(2) No person shall manufacture or sell, or offer to
sell, or install, any part or component intended for use with,
or as part of, any motor vehicle, where--
``(A) a principal effect of the part or component
is to bypass, defeat, or render inoperative any device
or element of design installed on or in a motor vehicle
pursuant to subsection (b)(1) or (c)(1) of section 263;
and
``(B) the person knows or should know that such
part or component is being offered for sale or
installed for such use or put to such use.
``(b) Prohibitions Against Tampering and Defeat Devices for
Dispensing Equipment.--No person shall--
``(1) remove or render inoperative any device or element of
design installed pursuant to subsection (b)(2) or (c)(2) of
section 263; or
``(2) sell, or offer to sell, or incorporate into, any part
or component intended for use with, or as part of, any
dispensing equipment, where--
``(A) a principal effect of the part or component
is to bypass, defeat, or render inoperative any device
or element of design incorporated into dispensing
equipment pursuant to subsection (b)(2) or (c)(2) of
section 263; and
``(B) the person knows or should know that such
part or component is being offered for sale or
incorporated for such use or put to such use.
``(c) Violations.--Any person who violates this section shall be
subject to a civil penalty of not more than $2,500. Any such violation
shall constitute a separate offense with respect to--
``(1) each motor vehicle or dispensing equipment, for
purposes of subsections (a)(1) and (b)(1); and
``(2) each part or component, for purposes of subsections
(a)(2) and (b)(2).
``SEC. 265. OCTANE STANDARD.
``(a) Octane Standard.--
``(1) Prohibition.--
``(A) 95 research octane number marketing.--No
person shall sell motor vehicle gasoline marketed as 95
research octane number unless such gasoline has a
research octane number of 95 or greater.
``(B) 98 research octane number marketing.--No
person shall sell motor vehicle gasoline marketed as 98
research octane number unless such gasoline has a
research octane number of 98 or greater.
``(C) Deemed compliance.--A person, including any
distributor, blender, marketer, reseller, carrier,
retailer, or wholesaler shall be deemed to be in full
compliance with this paragraph if it can demonstrate,
through evidence deemed acceptable by the
Administrator, that such person had reason to believe
in good faith that the motor vehicle gasoline complied
with subparagraph (A) or (B).
``(2) Controls.--
``(A) 95 research octane number availability.--
Effective January 1, 2025, any person that owns,
leases, operates, controls, or supervises--
``(i) a retail outlet at which 200,000 or
more gallons of gasoline were sold during
calendar year 2022 or any subsequent calendar
year, shall offer for sale motor vehicle
gasoline of not less than 95 research octane
number at such outlet; or
``(ii) six or more retail outlets offering
motor vehicle gasoline for sale, shall offer
for sale motor vehicle gasoline of not less
than 95 research octane number at not fewer
than 60 percent of such retail outlets.
``(B) 98 research octane number availability.--
Effective January 1, 2030, any person that owns,
leases, operates, controls, or supervises--
``(i) a retail outlet at which 200,000 or
more gallons of gasoline were sold during
calendar year 2028 or any subsequent calendar
year, shall offer for sale motor vehicle
gasoline of not less than 98 research octane
number at such outlet; or
``(ii) six or more retail outlets offering
motor vehicle fuel for sale, shall offer for
sale motor vehicle gasoline of not less than 98
research octane number at no fewer than 60
percent of such retail outlets.
``(b) Violations.--Any person that violates--
``(1) subsection (a)(1), (a)(2)(A)(i), or (a)(2)(B)(i)
shall be subject to a civil penalty of not more than $25,000
for each day on which such violation continues; and
``(2) subsection (a)(2)(A)(ii) or (a)(2)(B)(ii) shall be
subject to a civil penalty of not more than $2,500 per day for
each retail outlet owned, leased, operated, controlled, or
supervised by such person.
``SEC. 266. REGULATIONS.
``(a) Regulations.--The Administrator shall--
``(1) not later than 12 months after the date of enactment
of the Next Generation Fuels Act of 2021, propose regulations
to carry out this part; and
``(2) not later than 24 months after such date of
enactment, finalize regulations to carry out this part.
``SEC. 267. LIABILITY LIMITATION AND PREEMPTION.
``(a) Limitation of Liability.--A manufacturer of a motor vehicle,
or a gasoline retailer, that is in compliance with the requirements of
this part and the requirements of sections 203(e) and 206 of the
Petroleum Marketing Practices Act, shall not be liable under any
provision of this Act or any other Federal, State, or local law,
including common law, for damages--
``(1) to or caused by a motor vehicle described in section
261(b); and
``(2) that would not have occurred but for the introduction
of gasoline with a research octane number required by this
part.
``(b) Preemption.--No State or any political subdivision of a State
may adopt, continue in effect, or enforce, any provision of law or
regulation--
``(1) requiring motor vehicles to operate using gasoline
with a certain octane content, or the corresponding design of
equipment for dispensing such gasoline into such motor
vehicles, unless such provision of such law or regulation is
the same as the corresponding provision under this part; or
``(2) limiting the concentration of ethanol in motor
vehicle gasoline.
``SEC. 268. CIVIL ACTIONS; ADMINISTRATIVE ASSESSMENT OF CERTAIN
PENALTIES.
``The provisions of subsections (b) and (c) of section 205 shall
apply with respect to a violation of section 263 or 264 to the same
extent and in the same manner as such provisions apply with respect to
a violation of section 203(a)(3).''.
SEC. 4. OCTANE DISCLOSURE.
(a) High-Efficiency Fuels.--Title II of the Petroleum Marketing
Practices Act (15 U.S.C. 2821 et seq.) is amended by adding at the end
the following:
``SEC. 206. HIGH-EFFICIENCY FUEL AND VEHICLE MARKETING REQUIREMENTS.
``(a) Rule.--The Federal Trade Commission shall, by rule, and in
consultation with persons to be regulated under this section, consumer
advocates, and other stakeholders, as appropriate--
``(1) prescribe or revise requirements under this title
relating to the certification, display, and representation of
the automotive fuel rating of an automotive fuel as necessary
to carry out--
``(A) the requirement under subsection (b); and
``(B) any determination made under subsection (c);
``(2) make the determination required under subsection (c);
and
``(3) prescribe requirements under subsection (d).
``(b) Requirement.--The Federal Trade Commission shall require
that, for purposes of this title, beginning on the date that is 180
days after the date on which the Federal Trade Commission issues a
final rule under subsection (a), the automotive fuel rating of an
automotive fuel with a research octane number of 95 or higher be
determined only by the research octane number of such automotive fuel.
``(c) Labeling.--
``(1) In general.--The Federal Trade Commission shall
prescribe requirements--
``(A) as the Federal Trade Commission determines
necessary with respect to a display at the point of
sale to ultimate purchasers of automotive fuel and a
display on a motor vehicle to--
``(i) inform such ultimate purchaser of
such automotive fuel and any purchaser or user
of such motor vehicle that--
``(I) a model year 2026 or later
motor vehicle is only warrantied to use
automotive fuel with a research octane
number of 95 or higher; and
``(II) a model year 2031 or later
motor vehicle is only warrantied to use
automotive fuel with a research octane
number of 98 or higher;
``(ii) provide a warning to such ultimate
purchaser of such automotive fuel and any such
purchaser or user of such motor vehicle, that
the use of automotive fuel with a research
octane number that--
``(I) is lower than 95 in a model
year 2026 or later motor vehicle will
result in reduced fuel economy,
increased exhaust emissions, and
possibly engine damage; and
``(II) is lower than 98 in a model
year 2031 or later motor vehicle will
result in reduced fuel economy,
increased exhaust emissions, and
possibly engine damage; and
``(iii) inform such ultimate purchaser of
such automotive fuel and any purchaser or user
of such motor vehicle that--
``(I) a model year 2026 or later
motor vehicle is warrantied to use
gasoline containing up to and including
25 percent ethanol by volume; and
``(II) a model year 2031 or later
motor vehicle is warrantied to use
gasoline containing up to and including
30 percent ethanol by volume; and
``(B) that are applicable to--
``(i) a manufacturer of a new motor vehicle
(or an entity making a representation in
connection with the sale of such motor vehicle)
with respect to a display on such motor
vehicle; and
``(ii) an automotive fuel retailer, with
respect to a display at the point of sale to an
ultimate purchaser of automotive fuel.
``(2) Considerations.--In prescribing requirements under
paragraph (1), the Federal Trade Commission shall ensure that
such requirements are designed to be--
``(A) understandable to--
``(i) the ultimate purchaser of automotive
fuel; and
``(ii) any purchaser or user of a model
year 2026 or later motor vehicle; and
``(B) cost effective for automotive fuel retailers.
``(d) Deadlines.--The Federal Trade Commission shall--
``(1) not later than January 1, 2024, issue a proposed rule
under subsection (a); and
``(2) not later than July 1, 2025, issue a final rule under
subsection (a).''.
(b) Enforcement.--Section 203(e) of the Petroleum Marketing
Practices Act (15 U.S.C. 2823(e)) is amended--
(1) by striking ``or a rule prescribed'' and inserting ``a
rule prescribed''; and
(2) by striking ``of such section.'' and inserting ``of
section 202, or a rule prescribed under section 206.''.
(c) Table of Contents Amendment.--The table of contents for the
Petroleum Marketing Practices Act (15 U.S.C. 2801 et seq.) is amended
by inserting after the item relating to section 205 the following:
``Sec. 206. High-efficiency fuel and vehicle marketing requirements.''.
SEC. 5. ADVERTISEMENT OF PRICE OF HIGH-OCTANE AUTOMOTIVE FUEL.
(a) In General.--It shall be unlawful for any person to sell or
offer for sale, at retail, automotive fuel with a research octane
number (as such terms are defined in section 201 of the Petroleum
Marketing Practices Act (15 U.S.C. 2821)) of 95 or greater unless such
person displays, in a manner specified in the rules promulgated under
subsection (b), the total price per gallon of such fuel on any sign on
which such person displays the price of the most-sold grade of
automotive fuel of such person.
(b) Rulemaking.--
(1) In general.--Not later than 24 months after the date of
enactment of this Act, the Federal Trade Commission shall
promulgate, in accordance with section 553 of title 5, United
States Code, any rules necessary for the implementation and
enforcement of this section.
(2) Contents.--Such rules--
(A) shall define ``retail'' and ``most-sold'' for
the purposes of this section;
(B) shall specify the manner in which the price of
automotive fuel with a research octane number of 95 or
greater must be displayed in order to comply with
subsection (a); and
(C) shall be consistent with the requirements for
declaring unfair acts or practices in section 5(n) of
the Federal Trade Commission Act (15 U.S.C. 45(n)).
(c) Enforcement.--A violation of subsection (a) shall be treated as
a violation of a rule defining an unfair or deceptive act or practice
prescribed under section 18(a)(1)(B) of the Federal Trade Commission
Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission shall
enforce this section in the same manner, by the same means, and with
the same jurisdiction, powers, and duties as though all applicable
terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41
et seq.) were incorporated into and made part of this section.
SEC. 6. E40 RETAIL INFRASTRUCTURE STANDARD.
Section 9003 of the Solid Waste Disposal Act (42 U.S.C. 6991b) is
amended by adding at the end the following:
``(k) E40-Compatible Retail Infrastructure Systems.--
``(1) In general.--The Administrator shall, not later than
January 1, 2024, issue or revise, as necessary, performance
standards for underground storage tank systems and dispenser
systems that are brought into use on or after January 1, 2024,
to require that such systems be compatible with automotive fuel
consisting of gasoline and at least 40 percent ethanol by
volume.
``(2) Compatibility.--Owner and operators may demonstrate
the compatibility of an underground storage tank system with
automotive fuel containing any concentration of ethanol through
the use of a secondary containment system that is able to--
``(A) contain regulated substances leaked from the
primary containment system until they are detected and
removed; and
``(B) prevent the release of regulated substances
to the environment at any time during the operational
life of the underground storage tank system.
``(3) Definitions.--In this subsection:
``(A) Automotive fuel.--The term `automotive fuel'
has the meaning given such term in section 201(6) of
the Petroleum Marketing Practices Act (15 U.S.C.
2821(6)).
``(B) Compatible.--The term `compatible' means, to
the extent feasible, certified by a nationally
recognized testing laboratory recognized by the
Occupational Safety and Health Administration in
accordance with section 1910.7 of title 29, Code of
Federal Regulations (or any successor regulations) to
maintain system performance throughout the operational
life of the dispenser system.
``(C) Dispenser system.--The term `dispenser
system' has the meaning given such term in section
280.12 of title 40, Code of Federal Regulations (as in
effect on the date of enactment of this subsection).''.
SEC. 7. REGISTRATION TESTING, REID VAPOR PRESSURE, AND SUBSTANTIALLY
SIMILAR WAIVERS.
(a) Registration Testing Waiver.--Section 211(e) of the Clean Air
Act (42 U.S.C. 7545(e)) is amended by adding at the end the following:
``(4) Fuels consisting of gasoline and no more than 30 percent
ethanol by volume that meet the requirements of subsection (f)(3) shall
be deemed to have satisfied any testing regulations promulgated under
this subsection and to be immediately eligible for registration under
subsection (b) without further testing.''.
(b) Reid Vapor Pressure Waiver.--Section 211(h) of the Clean Air
Act (42 U.S.C. 7545(h)) is amended--
(1) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by
inserting ``or more'' after ``10 percent''; and
(B) in subparagraph (C), by striking ``additional
alcohol or''; and
(2) in paragraph (5)(A), by inserting ``or more'' after
``10 percent''.
(c) Substantially Similar Waiver.--Section 211(f) of the Clean Air
Act (42 U.S.C. 7545(f)) is amended--
(1) in paragraph (1)--
(A) by striking subparagraph (A); and
(B) in subparagraph (B), by striking ``(B)'';
(2) by amending paragraph (3) to read as follows:
``(3) Fuels consisting of gasoline and ethanol may be introduced
into commerce under this subsection for use in motor vehicles described
in section 261(b), provided that the finished fuel--
``(A) does not exceed the warranted ethanol levels
described in section 263(a);
``(B) meets the physical and chemical criteria specified by
ASTM International Standard D4814-20 for gasoline with 15
percent ethanol; and
``(C) consists solely of carbon, hydrogen, oxygen, and
sulfur, excepting any impurities present at trace levels that
are gaseous upon combustion.''; and
(3) in paragraph (4), by striking ``or (3)''.
SEC. 8. CLEAN OCTANE STANDARD.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by--
(1) in subsection (d)--
(A) in paragraph (1), by striking ``or (o)'' each
place it appears and inserting ``(o), or (w)''; and
(B) in paragraph (2), by striking ``and (o)'' each
place it appears and inserting ``(o), and (w)''; and
(2) by adding at the end the following:
``(w) Clean Octane Standard.--
``(1) Aromatics.--
``(A) Annual average limitation.--Effective
beginning on January 1, 2025, it shall be unlawful for
refiners or importers to sell motor vehicle gasoline
that contains, on an average annual basis, an aromatic
hydrocarbon concentration in excess of 17.5 percent by
volume.
``(B) 2025 cap.--Effective beginning on January 1,
2025, it shall be unlawful for refiners or importers to
sell motor vehicle gasoline that contains an aromatic
hydrocarbon concentration in excess of 30 percent by
volume.
``(C) 2030 cap.--Effective beginning on January 1,
2030, it shall be unlawful for refiners or importers to
sell motor vehicle gasoline that contains an aromatic
hydrocarbon content in excess of 25 percent by volume.
``(D) Oxygenate adjustment for gasoline
blendstock.--For purposes of compliance with this
paragraph, the aromatics volume of motor vehicle
gasoline produced as blendstock for oxygenate blending
may be adjusted based on the specified type and amount
of oxygenate required to be added downstream. Any such
adjustment shall be made through--
``(i) the preparation of a hand blend
containing oxygenate; or
``(ii) any other method deemed acceptable
to the Administrator.
``(E) Regulations.--
``(i) In general.--The Administrator shall
promulgate regulations to implement this
paragraph.
``(ii) Contents.--Such regulations shall
allow for the generation of tradeable credits
to meet the requirement of subparagraph (A),
but any credits shall expire after not more
than five years.
``(iii) Initial regulations.--Not later
than January 1, 2025, the Administrator shall
promulgate final regulations under clause (i).
``(2) Low-carbon octane.--
``(A) Prohibition.--Effective beginning on January
1, 2025, no refiner or importer shall introduce into
commerce motor vehicle gasoline with a research octane
number of 95 or higher except through the use of a fuel
additive that has average lifecycle greenhouse gas
emissions that (as determined by the Secretary of
Energy using the version of the Argonne National
Laboratory Greenhouse gases, Regulated Emissions, and
Energy use in Transportation (GREET) model in effect as
of the date of enactment of the Next Generation Fuels
Act of 2021) are at least 40 percent less than baseline
lifecycle greenhouse gas emissions.
``(B) Regulations.--
``(i) In general.--The Administrator shall
promulgate regulations to implement this
paragraph.
``(ii) Contents.--Such regulations shall--
``(I) determine the baseline
lifecycle greenhouse gas emissions for
purposes of this paragraph;
``(II) determine the average
lifecycle greenhouse gas emissions of
sources of octane value for purposes of
this paragraph; and
``(III) ensure that the
requirements of this paragraph are met.
``(iii) Initial regulations.--Not later
than January 1, 2024, the Administrator shall
promulgate final regulations under clause (i).
``(3) Definitions.--
``(A) Baseline lifecycle greenhouse gas
emissions.--The term `baseline lifecycle greenhouse gas
emissions' means the average lifecycle greenhouse gas
emissions, as determined by the Administrator, in
consultation with the Director of the Argonne National
Laboratory, for unblended gasoline sold or distributed
as transportation fuel in 2021.
``(B) Lifecycle greenhouse gas emissions.--The term
`lifecycle greenhouse gas emissions' means the
aggregate quantity of greenhouse gas emissions as
determined by the Secretary of Energy using the version
of the Argonne National Laboratory Greenhouse gases,
Regulated Emissions, and Energy use in Transportation
(GREET) model in effect as of on the date of enactment
of the Next Generation Fuels Act of 2021.
``(C) Research octane number.--The term `research
octane number' has the meaning given to such term in
section 201 of the Petroleum Marketing Practices
Act.''.
SEC. 9. NEW FUEL EFFECTS STUDY.
(a) Fuel Effects Study.--Subject to subsection (b), the
Administrator of the Environmental Protection Agency shall carry out a
study of the emissions effects of ethanol-blended fuels in light-duty
vehicles and light-duty trucks, for the purpose of updating the Motor
Vehicle Emission Simulator modeling system. In designing and conducting
such study, the Administrator shall--
(1) select test fuels that--
(A) reflect a range of ethanol concentrations
between 0 and at least 25 percent by volume; and
(B) are representative of fuels that are widely
available today or reasonably could be available
regionally or nationally, taking into account fuel
refinery operations and economics, including the cost
of reformate;
(2) select test vehicles that are representative of recent-
model-year vehicles that include relevant technologies that
are, or reasonably may come to be, in widespread use;
(3) measure emission products of combustion including, at a
minimum--
(A) particulate matter of 2.5 micrometers in
diameter or less;
(B) ultrafine particulate matter of 0.1 micrometers
in diameter or less;
(C) nitrogen oxides;
(D) total hydrocarbons;
(E) nonmethane organic gas;
(F) carbon monoxide;
(G) benzene;
(H) toluene;
(I) ethylbenzene;
(J) xylene;
(K) 1,3-butadiene;
(L) ethanol; and
(M) polycyclic aromatic hydrocarbons, including at
a minimum benzo(a)pyrene;
(4) measure the tendency of measured emissions to form
secondary organic aerosols and any other relevant secondary air
pollution; and
(5) consult with the Secretary of Energy, the Secretary of
Agriculture, and the Secretary of Transportation (or their
delegates).
(b) Certification by Secretary of Energy.--The Administrator of the
Environmental Protection Agency shall--
(1) provide the proposed design of the study under
subsection (a) to the Secretary of Energy for review; and
(2) not commence the study until the Secretary of Energy
certifies in writing that such design complies with the
requirements of subsection (a).
SEC. 10. DUAL-FUELED AUTOMOBILE DEFAULT UTILIZATION FACTOR.
(a) In General.--Section 32905(b) of title 49, United States Code,
is amended to read as follows:
``(b) Duel Fueled Automobiles.--Except as provided in subsection
(d) of this section or section 32904(a)(2) of this title--
``(1) for any model of dual-fueled automobile manufactured
by a manufacturer in model years 1993 through 2019, the
Administrator of the Environmental Protection Agency shall
measure the fuel economy for that model by dividing 1.0 by the
sum of--
``(A) 0.5 divided by the fuel economy measured
under section 32904(c) of this title when operating the
model on gasoline or diesel fuel; and
``(B) 0.5 divided by the fuel economy--
``(i) measured under subsection (a) when
operating the model on alternative fuel; or
``(ii) measured based on the fuel content
of B20 when operating the model on B20, which
is deemed to contain 0.15 gallon of fuel; and
``(2) for any model of dual-fueled automobile manufactured
by a manufacturer in model year 2023 or later, the
Administrator shall measure the fuel economy for that model by
dividing 1.0 by the sum of--
``(A) 0.79 divided by the fuel economy measured
under section 32904(c) of this title when operating the
model on gasoline or diesel fuel; and
``(B) 0.21 divided by the fuel economy measured
under subsection (a) when operating the model on
alternative fuel.
A manufacturer may demonstrate that a higher utilization factor
applies to any model of dual-fueled automobile manufactured by
such manufacturer in model year 2023 or later.''.
(b) Exclusion From Limit on Maximum Increase in Average Fuel
Economy Attributable to Dual-Fueled Automobiles.--Section 32906 of
title 49, United States Code, is amended by adding at the end the
following:
``(c) Exclusion.--Subsection (a) shall not apply to the fuel
economy of dual-fueled automobiles measured under section
32905(b)(2).''.
(c) Testing Procedures.--Section 206(h) of the Clean Air Act (42
U.S.C. 7525(h)) is amended by adding at the end the following: ``Not
later than July 1, 2022, the Administrator shall amend the test
procedures under this section in accordance with section 32905(b)(2) of
title 49, United States Code.''.
SEC. 11. TRANSFERS OF CREDITS FOR EXCEEDING AVERAGE FUEL ECONOMY
STANDARDS.
Section 32903(g)(3) of title 49, United States Code, is amended to
read as follows:
``(3) Maximum increase.--The maximum increase in any
compliance category attributable to transferred credits is--
``(A) for model year 2021, 4.0 miles per gallon;
and
``(B) for model year 2022 and subsequent model
years, 6.0 miles per gallon.''.
SEC. 12. EXTENSION AND EXPANSION OF ALTERNATIVE FUEL VEHICLE REFUELING
PROPERTY CREDIT.
(a) In General.--Section 30C of the Internal Revenue Code of 1986
is amended--
(1) by amending subsection (c) to read as follows:
``(c) Definitions.--For purposes of this section--
``(1) Qualified alternative fuel vehicle refueling
property.--The term `qualified alternative fuel vehicle
refueling property' means any property (not including a
building and its structural components) if--
``(A) such property is of a character subject to
the allowance for depreciation,
``(B) the original use of such property begins with
the taxpayer, and is not used as the principal
residence (within the meaning of section 121) of the
taxpayer, and
``(C) such property is used--
``(i) for the storage or dispensing of a
qualifying fuel into the fuel tank of a motor
vehicle propelled by such fuel, but only if the
storage or dispensing of the fuel is at the
point where such fuel is delivered into the
fuel tank of the motor vehicle, or
``(ii) for the recharging of motor vehicles
propelled by electricity, but only if such
property is located at the point where the
motor vehicles are recharged.
``(2) Qualifying fuel.--The term `qualifying fuel' means--
``(A) any fuel at least 50 percent of the volume of
which consists of natural gas, compressed natural gas,
liquified natural gas, liquefied petroleum gas, or
hydrogen, or
``(B) any fuel mixture at least 20 percent of the
volume of which consists of ethanol or biodiesel,
without regard to any denaturant or kerosene used in
such mixture.''; and
(2) in subsection (g), by striking ``December 31, 2021''
and inserting ``December 31, 2027''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
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