[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 944 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 944
To promote low-carbon, high-octane fuels, to protect public health, and
to improve vehicle efficiency and performance, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 22, 2023
Mr. Grassley (for himself, Ms. Klobuchar, Ms. Ernst, and Ms. Duckworth)
introduced the following bill; which was read twice and referred to the
Committee on Environment and Public Works
_______________________________________________________________________
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 2023''.
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 the term in section 32901(a)(3) of title 49, United
States Code.
``(2) Manufacturer.--The term `manufacturer' has the
meaning given the term in section 216.
``(3) Research octane number.--The term `research octane
number' has the meaning given the term in section 201 of the
Petroleum Marketing Practices Act (15 U.S.C. 2821).
``(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 2028 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); 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); and
``(2) fuel economy testing and calculation procedures under
section 32904(c) of title 49, United States Code.
``(c) Model Year 2033 and Later Model Years.--Notwithstanding
subsections (a) and (b), beginning in model year 2033, 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); 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
2022 and later motor vehicles.
``(e) Test Fuel Equations.--For purposes of--
``(1) testing and calculation procedures under section
206(a), 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, which shall be equal to the product obtained
by multiplying--
``(A) the measured fuel economy; and
``(B) the quotient obtained by dividing--
``(i) 114,086 British thermal units per
gallon; by
``(ii) 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 2028 through 2032--
``(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 2033 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)(1) and (c)(1).
``(b) Design Requirements Before Model Year 2033.--
``(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 that 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 dispensing equipment of the fuel retailer
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 2033.--
``(1) Manufacturers.--Subject to paragraph (3)(B),
beginning in model year 2033, 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 that motor vehicle; and
``(ii) technically and economically
feasible.
``(2) Fuel retailer.--Subject to paragraph (3)(B), any fuel
retailer selling gasoline for use in a motor vehicle described
in section 261(b) that is model year 2033 or later shall
incorporate into the dispensing equipment of the fuel retailer
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.--
``(A) Determination required.--Not later than
December 31, 2031, and not later than each December 31
thereafter until the Administrator determines that 98
research octane number gasoline can be made readily
available nationwide, the Administrator shall--
``(i) determine whether 98 research octane
number gasoline can be made readily available
nationwide; and
``(ii) publish that determination in the
Federal Register.
``(B) Effect.--The requirements of this subsection
shall not take effect until the date on which the
Administrator--
``(i) determines under subparagraph (A)(i)
that 98 research octane number gasoline can be
made readily available nationwide; and
``(ii) publishes that determination under
subparagraph (A)(ii).
``(C) Failure to make determination.--If the
Administrator fails to make a determination under
subparagraph (A) by the applicable date under that
subparagraph, the Administrator shall be deemed to have
determined that 98 research octane number gasoline can
be made readily available nationwide for purposes of
subparagraph (B).
``(d) Violations.--
``(1) Manufacturers.--
``(A) In general.--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.
``(B) Separate offenses.--Any violation described
in subparagraph (A) shall constitute a separate offense
with respect to each motor vehicle.
``(2) Fuel retailer.--
``(A) In general.--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.
``(B) Separate offense.--Any violation described in
subparagraph (A) with respect to dispensing equipment
shall constitute a separate offense with respect to
each unit of dispensing equipment in violation of the
applicable subsection described in that subparagraph.
``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.--
``(1) In general.--Any person who violates this section
shall be subject to a civil penalty of not more than $2,500.
``(2) Separate offenses.--Any violation described in
paragraph (1) shall constitute a separate offense with respect
to--
``(A) each motor vehicle or unit of dispensing
equipment, for purposes of subsections (a)(1) and
(b)(1); and
``(B) 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 that 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 that 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 the person can
demonstrate, through evidence deemed acceptable by the
Administrator, that the 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, 2027, 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 2024 or any subsequent calendar
year, shall offer for sale motor vehicle
gasoline of not less than 95 research octane
number at that retail outlet; or
``(ii) 6 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 those retail outlets.
``(B) 98 research octane number availability.--
Effective January 1, 2032, 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 2030 or any subsequent calendar
year, shall offer for sale motor vehicle
gasoline of not less than 98 research octane
number at that retail outlet; or
``(ii) 6 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 those 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 the 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 that person.
``SEC. 266. REGULATIONS.
``The Administrator shall--
``(1) not later than 1 year after the date of enactment of
the Next Generation Fuels Act of 2023, propose regulations to
carry out this part; and
``(2) not later than 2 years after that 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 the provision of that 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 2028 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 2033 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 2028 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 2033 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 2028 or later
motor vehicle is warrantied to use
gasoline containing up to and including
25 percent ethanol by volume; and
``(II) a model year 2033 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 2028 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, 2026, issue a proposed rule
under subsection (a); and
``(2) not later than July 1, 2027, 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) Definitions.--In this subsection:
``(A) Automotive fuel.--The term `automotive fuel'
has the meaning given the term in section 201 of the
Petroleum Marketing Practices Act (15 U.S.C. 2821).
``(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 the term in section
280.12 of title 40, Code of Federal Regulations (as in
effect on the date of enactment of this subsection).
``(2) Performance standards.--The Administrator shall, not
later than January 1, 2026, 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, 2026, to require that those systems be compatible with
automotive fuel consisting of gasoline and at least 40 percent
ethanol by volume.
``(3) Compatibility.--An owner or operator 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--
``(A) to contain regulated substances leaked from
the primary containment system until the regulated
substances are detected and removed; and
``(B) to prevent the release of regulated
substances to the environment at any time during the
operational life of the underground storage tank
system.''.
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--
``(A) to have satisfied any testing regulations promulgated
under this subsection; and
``(B) to be immediately eligible for registration under
subsection (b) without further testing.''.
(b) Reid Vapor Pressure Waiver.--
(1) Existing waivers.--Section 211(f)(4) of the Clean Air
Act (42 U.S.C. 7545(f)(4)) is amended--
(A) by striking ``(4) The Administrator, upon'' and
inserting the following:
``(4) Waivers.--
``(A) In general.--The Administrator, on'';
(B) in subparagraph (A) (as so designated)--
(i) in the first sentence--
(I) by striking ``of this
subsection'' each place it appears; and
(II) by striking ``if he
determines'' and inserting ``if the
Administrator determines''; and
(ii) in the second sentence--
(I) by striking ``such an
application'' and inserting ``an
application described in subparagraph
(A)''; and
(II) by striking ``The
Administrator'' and inserting the
following:
``(B) Final action.--The Administrator''; and
(C) by adding at the end the following:
``(C) Reid vapor pressure.--A fuel or fuel additive
may be introduced into commerce if--
``(i)(I) the Administrator determines that
the fuel or fuel additive is substantially
similar to a fuel or fuel additive utilized in
the certification of any model year vehicle
pursuant to paragraph (1)(A); or
``(II) the fuel or fuel additive
has been granted a waiver under
subparagraph (A) and meets all of the
conditions of that waiver other than
any limitation of the waiver with
respect to the Reid Vapor Pressure of
the fuel or fuel additive; and
``(ii) the fuel or fuel additive meets all
other applicable Reid Vapor Pressure
requirements under subsection (h).''.
(2) Reid vapor pressure limitation.--Section 211(h) of the
Clean Air Act (42 U.S.C. 7545(h)) is amended--
(A) by striking ``vapor pressure'' each place it
appears and inserting ``Vapor Pressure'';
(B) in paragraph (4), in the matter preceding
subparagraph (A), by inserting ``or more'' after ``10
percent''; and
(C) in paragraph (5)(A)--
(i) by striking ``Upon notification,
accompanied by'' and inserting ``On receipt of
a notification that is submitted before January
1, 2022, or after the date of enactment of the
Next Generation Fuels Act of 2023, and is
accompanied by appropriate''; and
(ii) 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) by striking the subsection designation and all that
follows through ``Effective upon'' in subparagraph (B) and
inserting the following:
``(f)(1) Effective upon'';
(2) by striking paragraph (3) and inserting the following:
``(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 subparagraph (A) of paragraph (4) (as designated by
subsection (b)(1)(A)), in the first sentence, by striking ``or
(3)''.
SEC. 8. CLEAN OCTANE STANDARD.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended--
(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) Definitions.--In this subsection:
``(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 2023.
``(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 most
recent version of the Argonne National Laboratory
Greenhouse gases, Regulated Emissions, and Energy use
in Technologies (GREET) model.
``(C) Research octane number.--The term `research
octane number' has the meaning given the term in
section 201 of the Petroleum Marketing Practices Act
(15 U.S.C. 2821).
``(2) Aromatics.--
``(A) Annual average limitation.--Effective
beginning on January 1, 2027, 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) 2027 cap.--Effective beginning on January 1,
2027, 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) 2032 cap.--Effective beginning on January 1,
2032, 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.--
``(i) In general.--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.
``(ii) Requirements.--Any adjustment under
clause (i) 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.--Regulations promulgated
under clause (i) shall allow for the generation
of tradeable credits to meet the requirement of
subparagraph (A), but any credits shall expire
after not more than 5 years.
``(iii) Initial regulations.--Not later
than January 1, 2027, the Administrator shall
promulgate final regulations under clause (i).
``(3) Low-carbon octane.--
``(A) Prohibition.--Effective beginning on January
1, 2027, 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 most recent version of the Argonne
National Laboratory Greenhouse gases, Regulated
Emissions, and Energy use in Technologies (GREET)
model) 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.--Regulations promulgated
under clause (i) 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, 2026, the Administrator shall
promulgate final regulations under clause
(i).''.
SEC. 9. NEW FUEL EFFECTS STUDY.
(a) Fuel Effects Study.--
(1) Study required.--Subject to subsection (b), the
Administrator of the Environmental Protection Agency (referred
to in this section as the ``Administrator'') 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.
(2) Requirements.--In designing and conducting the study
under paragraph (1), the Administrator shall--
(A) select test fuels that--
(i) reflect a range of ethanol
concentrations between 0 and at least 25
percent by volume; and
(ii) are representative of fuels that are
widely available on the date of enactment of
this Act or reasonably could be available
regionally or nationally, taking into account
fuel refinery operations and economics,
including the cost of reformate;
(B) select test vehicles that are representative of
vehicles of recent model years as of the date of
enactment of this Act that include relevant
technologies that are, or reasonably may come to be, in
widespread use;
(C) measure emission products of combustion
including, at a minimum--
(i) particulate matter of 2.5 micrometers
in diameter or less;
(ii) ultrafine particulate matter of 0.1
micrometers in diameter or less;
(iii) nitrogen oxides;
(iv) total hydrocarbons;
(v) nonmethane organic gas;
(vi) carbon monoxide;
(vii) benzene;
(viii) toluene;
(ix) ethylbenzene;
(x) xylene;
(xi) 1,3-butadiene;
(xii) ethanol; and
(xiii) polycyclic aromatic hydrocarbons,
including at a minimum benzo(a)pyrene;
(D) measure the tendency of measured emissions to
form secondary organic aerosols and any other relevant
secondary air pollution; and
(E) 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
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 under subsection (a) until the
Secretary of Energy certifies in writing that the design of the
study complies with the requirements of subsection (a).
SEC. 10. DUAL-FUELED AUTOMOBILE DEFAULT UTILIZATION FACTOR.
(a) In General.--Section 32905 of title 49, United States Code, is
amended by striking subsection (b) and inserting the following:
``(b) Dual-Fueled Automobiles.--
``(1) Fuel economy.--Except as provided in subsection (d)
or section 32904(a)(2)--
``(A) for any model of dual-fueled automobile
manufactured by a manufacturer in model years 1993
through 2020, the Administrator of the Environmental
Protection Agency shall measure the fuel economy for
that model by dividing 1.0 by the sum of--
``(i) 0.5 divided by the fuel economy
measured under section 32904(c) when operating
the model on gasoline or diesel fuel; and
``(ii) 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
``(B) subject to paragraph (3), for any model of
dual-fueled automobile manufactured by a manufacturer
in model year 2023 or later, the Administrator of the
Environmental Protection Agency shall measure the fuel
economy for that model by dividing 1.0 by the sum of--
``(i) 0.79 divided by the fuel economy
measured under section 32904(c) when operating
the model on gasoline or diesel fuel; and
``(ii) 0.21 divided by the fuel economy
measured under subsection (a) when operating
the model on alternative fuel, which is deemed
to contain 0.15 gallon of fuel.
``(2) Greenhouse gas emissions.--For any model of dual-
fueled automobile manufactured by a manufacturer in model year
2023 or later, the Administrator of the Environmental
Protection Agency shall measure the greenhouse gas emissions
for that model, which shall be the sum obtained by adding--
``(A) the product obtained by multiplying--
``(i) the measured greenhouse gas emissions
on the alternative fuel;
``(ii) the fuel content of the alternative
fuel, which is deemed to be 0.15; and
``(iii) 0.21; and
``(B) the product obtained by multiplying 0.79 and
the measured greenhouse gas emissions on gasoline or
diesel fuel, as applicable.
``(3) Higher utilization factor for new models.--A
manufacturer may demonstrate that a higher utilization factor
applies to any model of dual-fueled automobile manufactured by
the manufacturer in model year 2025 or later.''.
(b) Testing Procedures.--Section 206 of the Clean Air Act (42
U.S.C. 7525) is amended by adding at the end the following:
``(i) Requirement To Update Test Procedures.--Not later than July
1, 2024, the Administrator shall amend the test procedures promulgated
under this section to be in accordance with section 32905(b)(1)(B) of
title 49, United States Code.''.
SEC. 11. TRANSFERS OF CREDITS FOR EXCEEDING AVERAGE FUEL ECONOMY
STANDARDS.
Section 32903(g) of title 49, United States Code, is amended by
striking paragraph (3) and inserting the following:
``(3) Maximum increase.--The maximum increase in any
compliance category attributable to transferred credits is--
``(A) for model year 2023, 4.0 miles per gallon;
and
``(B) for model year 2024 and subsequent model
years, 6.0 miles per gallon.''.
<all>