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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS


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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 04, 2000)

Text of this article available as: TXT PDF [Pages S3514-S3543] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DASCHLE (for himself and Mr. Lugar): S. 2503. A bill to amend the Clean Air Act to authorize States to regulate harmful fuel additives and to require fuel to contain fuel made from renewable sources, to amend the Solid Waste Disposal Act to require that at least 85 percent of funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund be distributed to States to carry out cooperative agreements for undertaking corrective action and for enforcement of subtitle I of that act, and for other purposes; to the Committee on Environment and Public Works. renewable fuels act of 2000 Mr. DASCHLE. Mr. President, ten years ago I joined with two distinguished colleagues, then-Senate Majority Leader Bob Dole and Senator Tom Harkin, to introduce the reformulated gasoline (RFG) provision of the 1990 Clean Air Act Amendments. The RFG provision, with its minimum oxygen standard, was adopted in the Senate by the overwhelming vote of 69 to 30 and eventually signed into law by President George Bush. I am proud to say that this program has resulted in substantial improvement in air quality around the country. It also has stimulated increased production and use of renewable ethanol and other oxygenates needed to meet the minimum oxygen standard. Unfortunately, an unanticipated development involving the petroleum- based oxygenate MTBE requires us to re-examine the many benefits of the RFG program. The detection of MTBE in ground water around the country has generated considerable debate in recent months over how to deal with this fuel additive and the oxygen requirement of the reformulated gasoline program. The resolution of this debate will have significant consequences for the environment, for farmers and for the rural economy. The pace of activity to resolve the MTBE issue is accelerating rapidly. Battlelines are being drawn as the state of California and its allies focus on scrapping the oxygen requirement. It is clear that Congress and/or the Clinton administration will respond to the MTBE problem. My focus is on ensuring that that response not only serves the environment, but also retains a prominent place for ethanol--a place that assures long-term, predictable growth of the industry. I believe a comprehensive legislative solution is necessary in this case--one that recognizes and preserves the important air quality benefits of the RFG program, protects water supplies and leads the nation away from greater dependence on imported oil. I have worked for the last year with the ethanol industry, Republican and Democratic colleagues in the Senate, the Governor's Ethanol Coalition, environmental organizations and the administration in search of a solution that gives states the tools they need to address MTBE contamination, ensures the future growth of domestic renewable fuels, and prevents supply shortages and price spikes in the nation's fuels supply. This process has led me to two basic conclusions. First, the MTBE crisis has left the RFG oxygen requirement vulnerable to legislative attack. Those who doubt this conclusion should reflect on the following facts. California refiners have shown that clean-burning gasoline can be produced without oxygen. EPA's Blue Ribbon Panel has recommended that the oxygen requirement be repealed. The RFG oxygen requirement is opposed by a diverse coalition that includes the American Lung Association, the American Petroleum Institute, the New England States Coordinated Air Use Management agency, the State of California and the Natural Resources Defense Council (NRDC). Second, support for the oxygen requirement will weaken over time. Improvements in auto emissions control technology will cause the air quality benefits of oxygen in gasoline to decline and the justification for the RFG oxygen requirement to diminish. As one of the original authors of the reformulated gasoline provisions of the Clean Air Act, I feel something of a proprietary interest in the oxygen requirement. As a legislator, I recognize that circumstances change, and obstinacy should not be allowed to become a barrier to the achievement of important policy goals. Ethanol advocates face a choice between defending the oxygen requirement in the near term, realizing that its days ultimately are numbered, or using the current MTBE debate to guarantee the future growth of the ethanol industry based on important public policy goals, such as energy security, greenhouse gas emissions reductions, and domestic economic growth. In my judgment, providing states with the flexibility to waive the RFG oxygen requirement is a fair tradeoff for the establishment of a renewable fuels standard. It represents the most effective way to achieve the environmental and economic goals of governors and consumers, while putting the ethanol industry on a steady growth path well into the future and promoting ethanol production in new regions of the nation. Therefore, today, with Senator Richard Lugar, I am introducing the Renewable Fuels Act of 2000. Under our [[Page S3515]] legislation, EPA is directed to reduce the use of MTBE to safe levels, and states can obtain waivers from the RFG oxygen requirement and further regulate MTBE if they desire. This will allow the nation to deal with the MTBE contamination issue responsibly and avoid gasoline supply disruptions. The bill also includes provisions protecting the air quality gains that have resulted from the use of oxygenated fuels. To protect market opportunities for renewable fuels, the bill establishes a renewable fuels standard for the nation's gasoline, which begins in 2000 at 1.3 percent--roughly where renewable fuels production stands today--and gradually increases over the next decade to 3.3 percent of the nation's gasoline in 2010. Considering the fact that overall gasoline use is expected to increase over the next decade, this standard will more than triple ethanol use over that period. In meeting that requirement, our legislation stipulates that a gallon of biomass ethanol counts as much as 1.5 gallons of starch-based ethanol, thereby providing a strong incentive for the development of biomass-based ethanol plans throughout the country. It also established a renewable fuels standard for diesel fuels to promote the use of biodiesel. These renewable fuels standards can be met through nationwide credit trading, to allow for the most economomical use of ethanol and biodiesel. For those who are concerned about the potential impact of a drought or other natural disaster on the ability of the renewable fuels industry to supply this market, the legislation allows the EPA Administrator, in consultation with the Secretary of Agriculture, to waive the renewable requirement in any given year upon determination that there is indequate domestic supply or distribution capacity, or that the requirement would severely harm the economic or environment of a State, a region, or the United States. I also intend to work with my colleagues on both sides of the aisle to establish a strategic corn reserve as a complement to the renewable fuel standard. A properly managed strategic corn reserve could serve as the equivalent of the strategic petroleum reserve and ensure stable feedstocks for domestic ethanol producers in the event of weather induced supply interruptions. Taxpayers would benefit as farmers could receive fair market prices, thereby reducing the need for emergency assistance each year. It is important to recognize that under Senator Lugar's and my approach, the oxygen requirement is not waived entirely. States can decide for themselves whether to apply for a waiver from the RFG oxygen requirement. We fully expect that RFG programs that currently are using ethanol and have not experienced MTBE contamination, such as Chicago and Milwaukee, will stay in the program. Moreover, the bill allows any governor to apply to EPA to opt into the RFG program, thus expanding its air quality benefits to new regions of the country. Those areas that remain in the program or opt into it, and use ethanol, will generate credits that can be sold to other regions of the country. Finally, the bill prevents adverse effects on states' highway trust fund tax allocations, with ``hold harmless'' language ensuring that states reporting Federal excise tax receipts on gasoline are not penalized for their ethanol blend sales. Again, my goal in introducing this legislation is both to support states that want to get MTBE out of gasoline and to ensure that this effort does not adversely affect ethanol production. It is also to put into place a program that will grow the ethanol industry steadily over the next decade, thereby assuring the market stability necessary to attract investment in the construction of new plants and significantly increasing the market for corn and biomass. This approach not only will get MTBE out of groundwater; it will do so without backsliding on the air quality improvements generated by the RFG program while increasing corn demand by 600 million bushels per year. Mr. President, since first floating this concept in May of last year, I have heard from numerous stakeholders in this complex debate. The legislative concept that Senator Lugar and I unveil today has been endorsed by diverse interests ranging from the American Coalition for Ethanol (ACE) in Sioux Falls, South Dakota, to the 24-state Governors' Ethanol Coalition, to the Northeast States for Coordinated Air Use Management (NESCAUM) to Mr. Leo Leibowitz, chairman of Getty Petroleum. I believe that we have struck a delicate balance between the interests of farmers, consumers, state regulatory officials, refiners and those concerned about the environment. This plan is a worthy successor to the original 1990 RFG provision, preserving all of the good things it has achieved and rectifying those elements that need fixing. I look forward to working with Senators Smith and Baucus, the chairman and ranking member of the Senate Environment and Public Works Committee, to enact legislation resolving the MTBE issue. I hope that other colleagues will join Senator Lugar and me in support of this legislation. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2503 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 ``Renewable Fuels Act of 2000''. SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL OR PROHIBIT USE OF MTBE. Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended-- (1) in paragraph (1)(A), by striking ``any emission product of such fuel or fuel additive causes, or contributes, to air pollution which may reasonably be anticipated to endanger the public health or welfare,'' and inserting ``the fuel or fuel additive, or an emission product of the fuel or fuel additive, causes or contributes to air, water, or soil pollution that may reasonably be anticipated to endanger the public health or welfare or the environment,''; (2) in paragraph (2)(C), by inserting ``or have other environmental impacts'' after ``emissions''; (3) in paragraph (4)-- (A) in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``(4)(A) Except as otherwise provided in subparagraph (B) or (C),'' and inserting the following: ``(4) Limitation on state authority with respect to fuels and fuel additives.-- ``(A) In general.-- ``(i) Fuels and fuel additives.--Except as otherwise provided in subparagraph (B) or (C) or paragraph (5),''; (C) in subparagraph (A)-- (i) in clause (i) (as designated by subparagraph (B)), by inserting ``or water or soil quality protection'' after ``emission control''; and (ii) by adding at the end the following: ``(ii) MTBE.--Notwithstanding clause (i), except as otherwise provided in subparagraph (B) or (C) or paragraph (5), no State (or political subdivision of a State) may prescribe or attempt to enforce, for the purpose of motor vehicle emission control or water or soil quality protection, any control or prohibition on methyl tertiary butyl ether as a fuel additive in a motor vehicle or motor vehicle engine.''; (D) in subparagraph (B), by inserting ``or water or soil quality protection'' after ``emission control''; and (E) in subparagraph (C)-- (i) in the first sentence-- (I) by inserting ``or water or soil quality protection'' after ``emission control''; and (II) by inserting before the period at the end the following: ``or, if the Administrator grants a petition of the State under paragraph (5)''; and (ii) in the second sentence, by striking ``only if he'' and inserting ``if the Administrator''; and (4) by adding at the end the following: ``(5) State petitions for authority to control or prohibit use of fuels or fuel additives for non-air quality purposes.-- ``(A) In general.--A State seeking to prescribe and enforce a control or prohibition on a fuel or fuel additive for the purpose of water or soil quality protection under paragraph (4)(C) shall submit a petition to the Administrator for authority to take such action. ``(B) Required elements of petition.--A petition submitted under subparagraph (A) shall-- ``(i) include information on-- ``(I) the likely effects of the control or prohibition on fuel availability and price in the affected supply area or region; and ``(II) the improvements in environmental quality or public health or welfare expected to result from the control or prohibition; and ``(ii) demonstrate that the authority is necessary to protect the environment or public health or welfare. [[Page S3516]] ``(C) Action by the administrator.--Not later than 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator shall grant or deny the petition. ``(D) Criteria for granting of petitions.--The Administrator shall grant a petition submitted by a State under subparagraph (A) unless the Administrator finds that-- ``(i) the petition fails to reasonably demonstrate that the authority is necessary to protect the environment or public health or welfare; ``(ii) the control or prohibition is likely to have a substantial and significant adverse effect on fuel availability or price (including a State or regional effect) that clearly outweighs any benefits associated with the control or prohibition; or ``(iii) in the case of a petition submitted by a State seeking the authority primarily to protect water resources, the State has failed to take other appropriate and reasonable actions to prevent contamination of water resources by fuels or fuel additives, such as-- ``(I) adoption of a prohibition on the delivery of gasoline to noncompliant facilities with underground storage tanks; or ``(II) operation of a statewide monitoring and compliance assurance system. ``(E) Effect of failure of administrator to act.--If, by the date that is 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator has not proposed to grant or deny the petition under subparagraph (C), the petition shall be deemed to be granted. ``(F) Procedural requirements.-- ``(i) Inapplicability of certain requirements.--Section 307(d) of this Act and sections 553 through 557 of title 5, United States Code, shall not apply to actions on a petition submitted under subparagraph (A). ``(ii) Public notice and opportunity for comment.--The Administrator shall provide public notice and opportunity for comment with respect to a petition submitted under subparagraph (A). ``(6) Limitation on mtbe content.--The Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce by the refiner, blender, or importer on or after January 1, 2004, in an area has a content of methyl tertiary butyl ether that is at a level that-- ``(A) the Administrator determines may not reasonably be anticipated to endanger natural resources and the public health; and ``(B) does not exceed the annual average volume of methyl tertiary butyl ether per gallon of gasoline used in the area before 1995.''. SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (1)-- (A) 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,''; (B) in the first sentence, by inserting before the period at the end the following: ``and opt-in areas under paragraph (6)''; and (C) by adding at the end the following: ``(B) Adjustment of voc performance standard.-- ``(i) In general.--The Administrator may adjust the volatile organic compounds performance standard promulgated under subparagraph (A) in the case of a fuel formulation that achieves reductions in the quantity of mass emissions of carbon monoxide that are greater than or less than the reductions associated with a reformulated gasoline that contains 2.0 percent oxygen by weight and otherwise meets the requirements of this subsection. ``(ii) Amount of adjustment.--The amount of an adjustment under clause (i) shall be based on the effect on ozone concentrations of the combined reductions in emissions of volatile organic compounds and reductions in emissions of carbon monoxide.''; (2) in paragraph (2)-- (A) in subparagraph (B)-- (i) by striking ``The oxygen'' and inserting the following: ``(i) In general.--The oxygen''; and (ii) by adding at the end the following: ``(ii) Waiver for certain states.--The Administrator shall waive the application of clause (i) for any ozone nonattainment area in a State if the Governor of the State submits for such a waiver an application that-- ``(I) demonstrates that the State is in full compliance with Federal regulations concerning the control and prevention of leaking underground storage tanks; or ``(II) provides a plan that outlines the measures the State will take to fully comply with the underground storage tank regulations by a date not later than 2 years after the receipt of the application of the Governor. ``(iii) Effective date.--A waiver under clause (ii) shall become effective on the later of-- ``(I) January 1 of the calendar year immediately following the calendar year during which the application for the waiver is received; or ``(II) the date that is 180 days after the date on which the application for the waiver is received.''; and (B) by adding at the end the following: ``(E) Aromatics.--The aromatic hydrocarbon content of the gasoline shall not exceed 22 percent by volume.''; (3) in paragraph (3)-- (A) in subparagraph (A)(ii), by striking ``25 percent'' and inserting ``22 percent''; and (B) in subparagraph (B)-- (i) by striking ``Any reduction'' and inserting the following: ``(iii) Treatment of greater reductions.--Any reduction''; and (ii) by adding at the end the following: ``(iv) Anti-backsliding provision.-- ``(I) In general.--Not later than June 1, 2000, the Administrator shall revise performance standards under this subparagraph as necessary to ensure that-- ``(aa) the ozone-forming potential, taking into account all ozone precursors (including volatile organic compounds, oxides of nitrogen, and carbon monoxide), of the aggregate emissions during the high ozone season (as determined by the Administrator) from baseline vehicles when using reformulated gasoline does not exceed the ozone-forming potential of the aggregate emissions during the high ozone season from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasoline sold in calendar year 2000 and subsequent calendar years; and ``(bb) the aggregate emissions of the pollutants specified in subclause (II) from baseline vehicles when using reformulated gasoline do not exceed the aggregate emissions of those pollutants from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasolines sold in calendar year 2000 and subsequent calendar years. ``(II) Specified pollutants.--The pollutants specified in this subclause are-- ``(aa) toxics, categorized by degrees of toxicity; and ``(bb) such other pollutants, including pollutants regulated under section 108, and such precursors to those pollutants, as the Administrator determines by regulation should be controlled to prevent the deterioration of air quality and to achieve attainment of a national ambient air quality standard in 1 or more areas.''; and (4) in paragraph (4)(B)-- (A) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``The Administrator'' and inserting the following: ``(i) In general.--The Administrator''; (C) in clause (i) (as designated by subparagraph (B))-- (i) in subclause (I) (as redesignated by subparagraph (A)), by striking ``, and'' and inserting a semicolon; (ii) in subclause (II) (as redesignated by subparagraph (A))-- (I) by striking ``achieve equivalent'' and inserting the following: ``achieve-- ``(aa) equivalent''; (II) by striking the period at the end and inserting ``; or''; and (III) by adding at the end the following: ``(bb) combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration, as provided in clause (ii)(I), that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3); and''; and (iii) by adding at the end the following: ``(III) achieve equivalent or greater reductions in emissions of toxic air pollutants than are achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3).''; and (D) by adding at the end the following: ``(ii) Carbon monoxide credit.-- ``(I) In general.--In determining whether a fuel formulation or slate of fuel formulations achieves combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3), the Administrator-- ``(aa) shall consider, to the extent appropriate, the change in carbon monoxide emissions from baseline vehicles attributable to an oxygen content in the fuel formulation or slate of fuel formulations that exceeds 2.0 percent by weight; and ``(bb) may consider, to the extent appropriate, the change in carbon monoxide emissions described in item (aa) from vehicles other than baseline vehicles. ``(II) Oxygen credits.--Any excess oxygen content that is taken into consideration in making a determination under subclause (I) may not be used to generate credits under paragraph (7)(A). ``(III) Relation to title i.--Any fuel formulation or slate of fuel formulations that is certified as equivalent or greater under this subparagraph, taking into consideration the combined reductions in emissions of volatile organic compounds and carbon monoxide, shall receive the same volatile organic compounds reduction credit for the purposes of subsections (b)(1) and (c)(2)(B) of section 182 as a fuel meeting the applicable requirements of paragraph (3).''. (b) Reformulated Gasoline Carbon Monoxide Reduction Credit.--Section 182(c)(2)(B) of the Clean Air Act (42 U.S.C. [[Page S3517]] 7511a(c)(2)(B)) is amended by adding at the end the following: ``An adjustment to the volatile organic compound emission reduction requirements under section 211(k)(3)(B)(iv) shall be credited toward the requirement for VOC emissions reductions under this subparagraph.''. SEC. 4. 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 so redesignated)-- (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) Nonclassified areas.-- ``(i) In general.--Upon the application of the Governor of a State, the Administrator shall apply the prohibition specified in paragraph (5) in any area in the State that is not a covered area or an area referred to in subparagraph (A)(i). ``(ii) Publication of application.--As soon as practicable after receipt of an application under clause (i), the Administrator shall publish the application in the Federal Register.''. SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER MOTOR FUELS. (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 Content of Gasoline.-- ``(1) In general.-- ``(A) Regulations.--Not later than September 1, 2000, the Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements of this subsection. ``(B) Renewable content requirements.-- ``(i) In general.--All gasoline sold or introduced into commerce in the United States by a refiner, blender, or importer shall contain, on a quarterly average basis, a quantity of fuel derived from a renewable source (including biomass ethanol) that is not less than the applicable percentage by volume for the quarter. ``(ii) Biomass ethanol.--For the purposes of clause (i), 1 gallon of biomass ethanol shall be considered to be the equivalent of 1.5 gallons of fuel derived from a renewable source. ``(iii) Applicable percentage.--For the purposes of clause (i), the applicable percentage for a quarter of a calendar year shall be determined in accordance with the following table: Applicable percentage of fuel derived from a renewable source: `Calendar year: 2000.........................................................1.3 .... 2001.........................................................1.5 .... 2002.........................................................1.7 .... 2003.........................................................1.9 .... 2004.........................................................2.1 .... 2005.........................................................2.3 .... 2006.........................................................2.5 .... 2007.........................................................2.7 .... 2008.........................................................2.9 .... 2009.........................................................3.1 .... 2010 and thereafter..........................................3.3..... ``(C) Fuel derived from a renewable source.--For the purposes of this subsection, a fuel shall be considered to be derived from a renewable source if the fuel-- ``(i) is produced from grain, starch, oilseeds, or other biomass; and ``(ii) is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle. ``(D) Biomass ethanol.--For the purposes of this subsection, a fuel shall be considered to be biomass ethanol if the fuel is 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 commodities and residues; ``(vi) fibers; ``(vii) animal wastes and other waste materials; and ``(viii) municipal solid waste. ``(E) Credit program.-- ``(i) In general.--The regulations promulgated under this subsection shall provide for the generation of an appropriate amount of credits by a person that refines, blends, or imports gasoline that contains, on a quarterly average basis, a quantity of fuel derived from a renewable source or a quantity of biomass ethanol that is greater than the quantity required under subparagraph (B). ``(ii) Use of credits.--The regulations shall provide that a person that generates the credits may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with subparagraph (B). ``(2) Waivers.-- ``(A) In general.--The Administrator, in consultation with the Secretary of Agriculture, may waive the requirements of paragraph (1)(B) in whole or in part on petition by a State-- ``(i) based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirements 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 or distribution capacity to meet the requirements of paragraph (1)(B). ``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture-- ``(i) shall approve or deny a State petition for a waiver of the requirements of paragraph (1)(B) within 180 days after the date on which the petition is received; but ``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted. ``(C) Termination of waivers.--A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture. ``(D) Oxygen content waivers.--The grant or denial of a waiver under subsection (k)(2)(B) shall not affect the requirements of this subsection. ``(3) Small refiners.--The regulations promulgated by the Administrator under paragraph (1) may provide an exemption, in whole or in part, for small refiners (as defined by the Administrator). ``(4) Guidance for labeling.--After consultation with the Secretary of Agriculture, the Administrator shall issue guidance to the States for labeling, at the point of retail sale-- ``(A) the fuel derived from a renewable source that is contained in the fuel sold; and ``(B) the major fuel additive components of the fuel sold. ``(5) Reports to congress.--Not less often than every 3 years, the Administrator shall submit to Congress a report on-- ``(A) reductions in emissions of criteria air pollutants listed under section 108 that result from implementation of this subsection; and ``(B) in consultation with the Secretary of Energy, greenhouse gas emission reductions that result from implementation of this subsection. ``(p) Renewable Content of Diesel Fuel.-- ``(1) In general.--Not later than September 1, 2000, the Administrator, after consideration of applicable economic and environmental factors, shall promulgate regulations applicable to each refiner, blender, or importer of diesel fuel to ensure that the diesel fuel sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements established by the Administrator under this subsection. ``(2) Elements of program.--To the extent that the Administrator determines it to be appropriate, the Administrator shall by regulation establish a program for diesel fuel that has renewable content requirements similar to the requirements of the program for gasoline under subsection (o) in order to ensure the use of biodiesel fuel.''. (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)'' each place it appears and inserting ``(n), or (o)''; 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)'' each place it appears and inserting ``(n), and (o)''. (c) Prevention of Effects on Highway Apportionments.-- (1) Surface transportation program.--Section 104(b)(3) of title 23, United States Code, is amended by adding at the end the following: ``(C) Determination of estimated tax payments.--For the purpose of determining under subparagraph (A)(iii) the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: [[Page S3518]] ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. (2) Minimum guarantee.--Section 105(f)(1) of title 23, United States Code, is amended-- (A) by striking ``(1) In general.--Before'' and inserting the following: ``(1) In general.-- ``(A) Adjustment.--Before''; and (B) by adding at the end the following: ``(B) Determination of estimated tax payments.--For the purpose of determining under this subsection the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. SEC. 6. UPDATING OF BASELINE YEAR. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (8)-- (A) in subparagraph (A)-- (i) in the first sentence, by striking ``Within 1 year after the enactment of the Clean Air Act Amendments of 1990, the'' and inserting ``The''; and (ii) by striking the second sentence; (B) by striking ``calendar year 1990'' each place it appears and inserting ``calendar year 1999''; and (C) in subparagraph (E), by striking ``such 1990 gasoline'' and inserting ``such 1999 gasoline''; and (2) in subparagraphs (A) and (B)(ii) of paragraph (10), by striking ``1990'' each place it appears and inserting ``1999''. (b) Regulations.--As soon as practicable after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall revise the regulations promulgated under section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) to reflect the amendments made by subsection (a). SEC. 7. LEAKING UNDERGROUND STORAGE TANKS. (a) Trust Fund Distribution.--Section 9004 of the Solid Waste Disposal Act (42 U.S.C. 6991c) is amended by adding at the end the following: ``(f) Trust Fund Distribution.-- ``(1) In general.-- ``(A) Amount and permitted use of distribution.--The Administrator shall distribute to States at least 85 percent of the funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund established by section 9508 of the Internal Revenue Code of 1986 (referred to in this subsection as the `Trust Fund') for each fiscal year for use in paying the reasonable costs, incurred under cooperative agreements with States, of-- ``(i) actions taken by a State under section 9003(h)(7)(A); ``(ii) necessary administrative expenses directly related to corrective action and compensation programs under subsection (c)(1); ``(iii) enforcement by a State or local government of a State program approved under this section or of State or local requirements regulating underground storage tanks that are similar or identical to this subtitle; ``(iv) State or local corrective actions pursuant to regulations promulgated under section 9003(c)(4); or ``(v) corrective action and compensation programs under subsection (c)(1) for releases from underground storage tanks regulated under this subtitle if, as determined by the State in accordance with guidelines developed between the Environmental Protection Agency and the States, the financial resources of an owner or operator (including resources provided by programs under subsection (c)(1)) are not adequate to pay for the cost of a corrective action without significantly impairing the ability of the owner or operator to continue in business. ``(B) Nonpermitted uses.--Funds provided by the Administrator under subparagraph (A) shall not be used by a State to provide financial assistance to an owner or operator to meet the requirements concerning underground storage tanks contained in part 280 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subsection), except as provided in subparagraph (A)(v), or similar requirements in State programs approved under this section or similar State or local provisions. ``(C) Tanks within tribal jurisdiction.--The Administrator, in coordination with Indian tribes, shall-- ``(i) expeditiously develop and implement a strategy to-- ``(I) take necessary corrective action in response to releases from leaking underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe, giving priority to releases that present the greatest threat to human health or the environment; and ``(II) implement and enforce requirements regulating underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe; and ``(ii) not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, submit to Congress a report summarizing the status of implementation of the leaking underground storage tank program located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe. ``(2) Allocation.-- ``(A) Process.--Subject to subparagraph (B), in the case of a State with which the Administrator has entered into a cooperative agreement under section 9003(h)(7)(A), the Administrator shall distribute funds from the Trust Fund to the State using the allocation process developed by the Administrator for such cooperative agreements. ``(B) Revisions to process.--The Administrator may revise the allocation process only after-- ``(i) consulting with State agencies responsible for overseeing corrective action for releases from underground storage tanks and with representatives of owners and operators; and ``(ii) taking into consideration, at a minimum-- ``(I) the total revenue received from each State into the Trust Fund; ``(II) the number of confirmed releases from leaking underground storage tanks in each State; ``(III) the number of notified petroleum storage tanks in each State; ``(IV) the percentage of the population of each State using ground water for any beneficial purpose; ``(V) the evaluation of the program performance of each State; ``(VI) the evaluation of the financial needs of each State; and ``(VII) the evaluation of the ability of each State to use the funds in any year. ``(3) Distributions to state agencies.-- ``(A) In general.--Distributions from the Trust Fund under this subsection shall be made directly to the State agency entering into a cooperative agreement or enforcing the State program. ``(B) Administrative expenses.--A State agency that receives funds under this subsection shall limit the proportion of those funds that are used to pay administrative expenses to a percentage that the State may establish by law. ``(4) Cost recovery prohibition.--Funds provided to States from the Trust Fund to owners or operators for programs under section 9004(c)(1) for releases from underground storage tanks are not subject to cost recovery by the Administrator under section 9003(h)(6). ``(5) Permitted uses.--In addition to uses authorized by other provisions of this subtitle, the Administrator may use funds appropriated to the Environmental Protection Agency from the Trust Fund for enforcement of any regulation promulgated by the Administrator under this subtitle.''. (b) Addition to Trust Fund Purposes.--Section 9508(c)(1) of the Internal Revenue Code of 1986 (relating to expenditures) is amended by striking ``to carry out section 9003(h)'' and all that follows and inserting ``to carry out-- ``(A) section 9003(h) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Superfund Amendments and Reauthorization Act of 1986); and ``(B) section 9004(f) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Renewable Fuels Act of 2000).''. (c) Studies.--Not later than 18 months after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall conduct-- (1) a study to determine the corrosive effects of methyl tertiary butyl ether and other widely used fuels and fuel additives on underground storage tanks; and (2) a study to assess the potential public health and environmental risks associated with the use of aboveground storage tanks and the effectiveness of State and Federal regulations or voluntary standards, in existence as of the time of the study, to provide adequate protection of public health and the environment. (d) Technical Amendments.-- (1) Section 9001(3)(A) of the Solid Waste Disposal Act (42 U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and inserting ``substances''. (2) Section 9003(f)(1) of the Solid Waste Disposal Act (42 U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and (d) of this section'' and inserting ``subsections (c) and (d)''. (3) Section 9004(a) of the Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended in the first sentence by striking ``referred to'' and all that follows and inserting ``referred to in subparagraph (A) or (B), or both, of section 9001(2).''. (4) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 6991d) is amended-- [[Page S3519]] (A) in subsection (a), by striking ``study taking'' and inserting ``study, taking''; (B) in subsection (b)(1), by striking ``relevent'' and inserting ``relevant''; and (C) in subsection (b)(4), by striking ``Evironmental'' and inserting ``Environmental''. SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM. (a) In General.--The Administrator of the Environmental Protection Agency may enter into cooperative agreements with the United States Geological Survey, the Department of Agriculture, States, local governments, private landowners, and other interested parties to establish voluntary pilot projects to protect the water quality of private wells and to provide technical assistance to users of water from private wells. (b) Limitation.--This section does not authorize the issuance of guidance or regulations regarding the use or protection of private wells. Mr. LUGAR. Mr. President, I am pleased to join Senator Daschle in introducing the Renewable Fuels Act of 2000. In July 1999, an independent Blue Ribbon Panel on Oxygenates in Gasoline called for major reductions in the use of MTBE as an additive in gasoline. They did so because of growing evidence and public concerns regarding pollution of drinking water supplies by MTBE. These trends are particularly acute in areas of the country using Reformulated Gasoline. The Reformulated Gasoline Program (RFG) has proven to be a success in reducing smog and has exceeded expectations in reducing dangerous and carcinogenic air toxics in gasoline. The second stage of the Reformulated Gasoline Program (RFG) will commence this summer and will have an even greater effect in reducing ozone pollution and air toxics. Because of concerns regarding water pollution, it is clear that the existing situation regarding MTBE is not tenable. The Governor of California has called for a three year phase out of MTBE in California and the California Air Resources Board has adopted regulations to that effect. Environmental officials from eight Northeastern States have proposed a phase down and a capping of the use of MTBE in gasoline in their states. MTBE is being found in wells in the Midwest even in areas that do not use reformulated gasoline. The Renewable Fuels Act of 2000 will lead to about five billion gallons of ethanol being produced in 2010 compared to one billion, six hundred million gallons today. Under the Act, one gallon of cellulosic ethanol will count for one and one-half gallons of regular ethanol in determining whether a refiner has met the Renewable Fuels Standard in a particular year. We are going to have spikes in oil that will disrupt our economy. It may or may not be able to be controlled. It will happen before 2010. It may happen again next week. Our problem in terms of national security and the security of our whole economy revolves around our dependence on petroleum-based fuels. We must be able to address this challenge. Finding an environmentally sensitive way to resolve the MTBE crisis is an important part of this challenge. It is clear that MTBE is on its way out. The question is what kind of legislation is needed to facilitate its departure and whether that legislation will be based on consideration of all of the environmental and energy and national security issues involved. The Renewable Fuels Act of 2000 will establish a nationwide Renewable Fuels Standard (RFS) that would increase the current use of renewable fuels from 1.3% in 2000 to 3.3% by 2010. Refiners who produced renewable fuels beyond the standard could sell credits to other refiners who chose to under comply with the RFS. This bill would give the EPA Administrator authority to limit or eliminate the use of MTBE in order to protect the public health and the environment. It also gives states the ability to further regulate or eliminate MTBE use if the EPA does not choose to eliminate it. It would also establish strict ``anti backsliding provisions'' to capture all of the air quality benefits of MTBE and ethanol as MTBE is phased down or phased out. The Renewable Fuels Act of 2000 will be good for our economy and our environment. Most important of all, it will facilitate the development of renewable fuels, a development critical to ensuring U.S. national and economic security and stabilizing gas prices. I hope that my colleagues will examine this bill as well as other legislative approaches that would spur the development of renewable fuels such as ethanol, whether derived from corn or other agricultural or plant materials. ______ By Mr. JEFFORDS (for himself, Mr. Rockefeller, Mr. Grassley, Mr. Breaux, Mr. Murkowski, Mr. Stevens, Mr. Bond, Mr. Inouye, Mr. Harkin, Mr. Roberts, Mr. Thomas, Mr. Bingaman, Mr. Edwards, Mr. Conrad, and Mr. Kerrey): S. 2505. A bill to amend title XVIII of the Social Security Act to provide increased assess to health care for medical beneficiaries through telemedicine; to the Committee on Finance. telehealth improvement and modernization act of 2000 Mr. JEFFORDS. Mr. President, today I am pleased to join with my good friend Senator Rockefeller in introducing legislation that will improve upon the federal rules for reimbursement for telemedicine and help to ensure that all of our citizens have access to our great health care system. We are joined by a broad, bipartisan group of senators in this effort. In many ways we have the best health care system in the world. But increasingly fewer and fewer Americans actually have access to it. I recently introduced a tax-credit bill that will help some of these Americans and I anticipate supporting future measures aimed at increasing access to health care services. One important area that demands our attention is the problem of access for rural Americans. More than 25 percent of our Nation's senior citizens live in areas underserved for modern health care services. At the same time, telemedicine has come of age. We have moved beyond the feasibility stage and proven that this technology can provide real benefits to people in rural and underserved regions of our country. In my own State of Vermont, nearly 70 per cent live in rural areas. This is the highest percentage rural population of any state in the nation. In Vermont, specialists in more than twenty-five disciplines from Fletcher Allen Health Care in Burlington are made readily available to patients even in the most rural areas. I want to see this level of service expand and be made available to all Americans. We in Washington have made some good faith attempts to allow for the development of telehealth technologies but we have fallen short. In an effort to restrain the expansion of these programs, the Health Care Financing Administration's interpretation of the laws and its cumbersome rules for reimbursement have all but guaranteed the demise of current programs. Federally-funded telemedicine projects exist in almost every State in the Nation. These projects have proven that cost-effective, high- quality care can be delivered using this technology. The provisions in this bill will help to ensure that this care will be continued when the federal grants end. Why is this legislation needed now? Because current HCFA regulations concerning payment are unworkable in the real world. Less than 6 percent of all telemedicine doctor-patient visits last year provided to Medicare beneficiaries would qualify for reimbursement under HCFA's current guidelines. Now that we have more experience and understand better how telemedicine can be used, it is time to enact several changes to the law so that these programs can thrive and deliver on their promise of providing cost-effective, high-quality healthcare where it is needed the most. Rural healthcare providers and patients are eager for this legislation. Norman Wright, President of the Vermont Association of Hospitals and Health Systems, recognized the potential of Fletcher Allen's telemedicine program by describing it as one that ``provides incredible opportunities for rural providers and their patients because it links them to a network with access to the region's best authorities for any given condition.'' I have indeed heard an outpouring of support from healthcare providers across my own State on this issue. Gerry Davis, Professor of Pulmonary and Critical Care Medicine at Fletcher Allen Health Care, described ``appropriate and fair third party payment for [[Page S3520]] telemedicine'' as ``essential in order to move this process beyond education, and to make the service truly useful for patients in remote locations.'' Telemedicine can be used in so many ways. It can be vital to a pediatrician from a rural area with a sick baby who needs to consult with a neonatologist from a tertiary care hospital in the dead of winter and the middle of the night. It can be also be crucial for a depressed senior citizen who desperately needs mental health services available in their own rural county. And it can be much needed help for a frustrated isolated primary care provider who longs to be able to provide for access to specialty services for her patients in their own community. All of these people need our help. While the changes included in this bill are relatively minor in the context of the Medicare program, the effect will be far-reaching. This legislation will allow us to avoid arbitrarily denying access to health care for our senior citizens and persons with disabilities just because of where they live. It will allow for fair and reasonable reimbursement for services that can be delivered appropriately in this way. It will also encourage the incorporation of telehealth technology in the care plans of home health agencies, an area that has already shown great promise for the future in terms of cost-effective disease management. In summary, it will allow us to begin to release the incredible potential of telemedicine. Mr. President, I urge my colleagues to join us in bringing HCFA's approach to the delivery of health care into the 21st Century. Any Medicare reform must include progress on telemedicine for our Nation's rural areas. Mr. ROCKEFELLER. Mr. President, I am extremely pleased to be here today to introduce the Telemedicine Improvement and Modernization Act with Senator Jeffords and many other of my Senate colleagues. This bill incorporates two issues that I care about passionately--health care and technology. Telemedicine has the potential to bridge the gap that currently exists between patients and providers. More than 25% of our Nation's senior citizens live in areas where speciality care may not be available. In states like my own where there are very few primary care or specialty care resources and travel is difficult, telemedicine is critical to ensuring that people in remote areas are getting health care they need. By expanding access to health care through telemedicine, we also improve the quality of care available to people living in underserved areas. Personally, I believe that we are just beginning to tap the enormous potential of technology to advance quality health care, especially in rural areas. Yet, Medicare's telemedicine program is inefficient in its current form. These inefficiencies threaten the future of telemedicine services. When we first created this program, our knowledge of the potential of this new technology, or its practical applications was very limited. Today we have a much better understanding of how telemedicine actually works. With this new knowledge, we can repair the inefficiencies of the current system and encourage the use of this highly effective health practice. By accomplishing this goal, we can ensure that quality health care is available to all seniors and disabled Americans regardless of where they live. There are 8 main elements of the bill: (1) Eliminating the provider ``fee sharing'' requirement; (2) Eliminating the requirement for a ``telepresenter''; (3) Allowing limited reimbursement for referring clinics to recover the cost of their services; (4) Expanding telemedicine services to all non-MSAs; (5) Expanding telemedicine services to direct patient care, not just professional consultations; (6) Making all providers eligible for HCFA reimbursement for services delivered via telemedicine; (7) Creating a federal demonstration project that permits telemedicine reimbursement for ``store and forward'' consultations (i.e., x-rays that are sent to another facility for consultation); and (8) Permitting telehomecare. While these changes are relatively minor in the context of the Medicare program, the affect will be far-reaching. The modernizations we are proposing will dramatically improve access to quality health care in rural areas. This legislation will allow us to begin to release the incredible potential of telemedicine. On a final note, I'd like to thank Karen Edison for her expertise and determination in working on this bill. Because Karen is a practicing telemedicine physician, she has been invaluable in developing and advancing this cause. Thank you, Mr. President for your time today. I hope all of my colleagues will join with me in passing this important piece of legislation. ______ By Mr. GORTON: S. 2506. A bill to amend title 46, United States Code, with respect to the Federal preemption of State law concerning the regulation of marine and ocean navigation, safety, and transportation by States; to the Committee on Commerce, Science, and Transportation. legislation regarding marine and ocean navigation, safety, and transportation Mr. GORTON. Mr. President, environmental protection and states' rights were dealt a blow on March 6th, when the U.S. Supreme Court decided the case of United States vs. Locke. The Court, noting that even though federal and international laws ``may be insufficient protection,'' invalidated Washington laws, and potentially laws in eleven other states, that provide protections against spills by oil tankers. I disagree with the Court's decision, because I believe that Washington state should be allowed to protect its shores as it sees fit. That is why, today I am pleased to introduce the ``States Prevention of Oil Tanker Spills Act'' (SPOTS)-legislation that will reinstate the right of all states to adopt additional standards beyond existing federal requirements governing the operation, maintenance, equipment, personnel and manning of oil tankers. While this legislation will apply to all shoreline states, it is particularly

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 04, 2000)

Text of this article available as: TXT PDF [Pages S3514-S3543] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DASCHLE (for himself and Mr. Lugar): S. 2503. A bill to amend the Clean Air Act to authorize States to regulate harmful fuel additives and to require fuel to contain fuel made from renewable sources, to amend the Solid Waste Disposal Act to require that at least 85 percent of funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund be distributed to States to carry out cooperative agreements for undertaking corrective action and for enforcement of subtitle I of that act, and for other purposes; to the Committee on Environment and Public Works. renewable fuels act of 2000 Mr. DASCHLE. Mr. President, ten years ago I joined with two distinguished colleagues, then-Senate Majority Leader Bob Dole and Senator Tom Harkin, to introduce the reformulated gasoline (RFG) provision of the 1990 Clean Air Act Amendments. The RFG provision, with its minimum oxygen standard, was adopted in the Senate by the overwhelming vote of 69 to 30 and eventually signed into law by President George Bush. I am proud to say that this program has resulted in substantial improvement in air quality around the country. It also has stimulated increased production and use of renewable ethanol and other oxygenates needed to meet the minimum oxygen standard. Unfortunately, an unanticipated development involving the petroleum- based oxygenate MTBE requires us to re-examine the many benefits of the RFG program. The detection of MTBE in ground water around the country has generated considerable debate in recent months over how to deal with this fuel additive and the oxygen requirement of the reformulated gasoline program. The resolution of this debate will have significant consequences for the environment, for farmers and for the rural economy. The pace of activity to resolve the MTBE issue is accelerating rapidly. Battlelines are being drawn as the state of California and its allies focus on scrapping the oxygen requirement. It is clear that Congress and/or the Clinton administration will respond to the MTBE problem. My focus is on ensuring that that response not only serves the environment, but also retains a prominent place for ethanol--a place that assures long-term, predictable growth of the industry. I believe a comprehensive legislative solution is necessary in this case--one that recognizes and preserves the important air quality benefits of the RFG program, protects water supplies and leads the nation away from greater dependence on imported oil. I have worked for the last year with the ethanol industry, Republican and Democratic colleagues in the Senate, the Governor's Ethanol Coalition, environmental organizations and the administration in search of a solution that gives states the tools they need to address MTBE contamination, ensures the future growth of domestic renewable fuels, and prevents supply shortages and price spikes in the nation's fuels supply. This process has led me to two basic conclusions. First, the MTBE crisis has left the RFG oxygen requirement vulnerable to legislative attack. Those who doubt this conclusion should reflect on the following facts. California refiners have shown that clean-burning gasoline can be produced without oxygen. EPA's Blue Ribbon Panel has recommended that the oxygen requirement be repealed. The RFG oxygen requirement is opposed by a diverse coalition that includes the American Lung Association, the American Petroleum Institute, the New England States Coordinated Air Use Management agency, the State of California and the Natural Resources Defense Council (NRDC). Second, support for the oxygen requirement will weaken over time. Improvements in auto emissions control technology will cause the air quality benefits of oxygen in gasoline to decline and the justification for the RFG oxygen requirement to diminish. As one of the original authors of the reformulated gasoline provisions of the Clean Air Act, I feel something of a proprietary interest in the oxygen requirement. As a legislator, I recognize that circumstances change, and obstinacy should not be allowed to become a barrier to the achievement of important policy goals. Ethanol advocates face a choice between defending the oxygen requirement in the near term, realizing that its days ultimately are numbered, or using the current MTBE debate to guarantee the future growth of the ethanol industry based on important public policy goals, such as energy security, greenhouse gas emissions reductions, and domestic economic growth. In my judgment, providing states with the flexibility to waive the RFG oxygen requirement is a fair tradeoff for the establishment of a renewable fuels standard. It represents the most effective way to achieve the environmental and economic goals of governors and consumers, while putting the ethanol industry on a steady growth path well into the future and promoting ethanol production in new regions of the nation. Therefore, today, with Senator Richard Lugar, I am introducing the Renewable Fuels Act of 2000. Under our [[Page S3515]] legislation, EPA is directed to reduce the use of MTBE to safe levels, and states can obtain waivers from the RFG oxygen requirement and further regulate MTBE if they desire. This will allow the nation to deal with the MTBE contamination issue responsibly and avoid gasoline supply disruptions. The bill also includes provisions protecting the air quality gains that have resulted from the use of oxygenated fuels. To protect market opportunities for renewable fuels, the bill establishes a renewable fuels standard for the nation's gasoline, which begins in 2000 at 1.3 percent--roughly where renewable fuels production stands today--and gradually increases over the next decade to 3.3 percent of the nation's gasoline in 2010. Considering the fact that overall gasoline use is expected to increase over the next decade, this standard will more than triple ethanol use over that period. In meeting that requirement, our legislation stipulates that a gallon of biomass ethanol counts as much as 1.5 gallons of starch-based ethanol, thereby providing a strong incentive for the development of biomass-based ethanol plans throughout the country. It also established a renewable fuels standard for diesel fuels to promote the use of biodiesel. These renewable fuels standards can be met through nationwide credit trading, to allow for the most economomical use of ethanol and biodiesel. For those who are concerned about the potential impact of a drought or other natural disaster on the ability of the renewable fuels industry to supply this market, the legislation allows the EPA Administrator, in consultation with the Secretary of Agriculture, to waive the renewable requirement in any given year upon determination that there is indequate domestic supply or distribution capacity, or that the requirement would severely harm the economic or environment of a State, a region, or the United States. I also intend to work with my colleagues on both sides of the aisle to establish a strategic corn reserve as a complement to the renewable fuel standard. A properly managed strategic corn reserve could serve as the equivalent of the strategic petroleum reserve and ensure stable feedstocks for domestic ethanol producers in the event of weather induced supply interruptions. Taxpayers would benefit as farmers could receive fair market prices, thereby reducing the need for emergency assistance each year. It is important to recognize that under Senator Lugar's and my approach, the oxygen requirement is not waived entirely. States can decide for themselves whether to apply for a waiver from the RFG oxygen requirement. We fully expect that RFG programs that currently are using ethanol and have not experienced MTBE contamination, such as Chicago and Milwaukee, will stay in the program. Moreover, the bill allows any governor to apply to EPA to opt into the RFG program, thus expanding its air quality benefits to new regions of the country. Those areas that remain in the program or opt into it, and use ethanol, will generate credits that can be sold to other regions of the country. Finally, the bill prevents adverse effects on states' highway trust fund tax allocations, with ``hold harmless'' language ensuring that states reporting Federal excise tax receipts on gasoline are not penalized for their ethanol blend sales. Again, my goal in introducing this legislation is both to support states that want to get MTBE out of gasoline and to ensure that this effort does not adversely affect ethanol production. It is also to put into place a program that will grow the ethanol industry steadily over the next decade, thereby assuring the market stability necessary to attract investment in the construction of new plants and significantly increasing the market for corn and biomass. This approach not only will get MTBE out of groundwater; it will do so without backsliding on the air quality improvements generated by the RFG program while increasing corn demand by 600 million bushels per year. Mr. President, since first floating this concept in May of last year, I have heard from numerous stakeholders in this complex debate. The legislative concept that Senator Lugar and I unveil today has been endorsed by diverse interests ranging from the American Coalition for Ethanol (ACE) in Sioux Falls, South Dakota, to the 24-state Governors' Ethanol Coalition, to the Northeast States for Coordinated Air Use Management (NESCAUM) to Mr. Leo Leibowitz, chairman of Getty Petroleum. I believe that we have struck a delicate balance between the interests of farmers, consumers, state regulatory officials, refiners and those concerned about the environment. This plan is a worthy successor to the original 1990 RFG provision, preserving all of the good things it has achieved and rectifying those elements that need fixing. I look forward to working with Senators Smith and Baucus, the chairman and ranking member of the Senate Environment and Public Works Committee, to enact legislation resolving the MTBE issue. I hope that other colleagues will join Senator Lugar and me in support of this legislation. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2503 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 ``Renewable Fuels Act of 2000''. SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL OR PROHIBIT USE OF MTBE. Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended-- (1) in paragraph (1)(A), by striking ``any emission product of such fuel or fuel additive causes, or contributes, to air pollution which may reasonably be anticipated to endanger the public health or welfare,'' and inserting ``the fuel or fuel additive, or an emission product of the fuel or fuel additive, causes or contributes to air, water, or soil pollution that may reasonably be anticipated to endanger the public health or welfare or the environment,''; (2) in paragraph (2)(C), by inserting ``or have other environmental impacts'' after ``emissions''; (3) in paragraph (4)-- (A) in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``(4)(A) Except as otherwise provided in subparagraph (B) or (C),'' and inserting the following: ``(4) Limitation on state authority with respect to fuels and fuel additives.-- ``(A) In general.-- ``(i) Fuels and fuel additives.--Except as otherwise provided in subparagraph (B) or (C) or paragraph (5),''; (C) in subparagraph (A)-- (i) in clause (i) (as designated by subparagraph (B)), by inserting ``or water or soil quality protection'' after ``emission control''; and (ii) by adding at the end the following: ``(ii) MTBE.--Notwithstanding clause (i), except as otherwise provided in subparagraph (B) or (C) or paragraph (5), no State (or political subdivision of a State) may prescribe or attempt to enforce, for the purpose of motor vehicle emission control or water or soil quality protection, any control or prohibition on methyl tertiary butyl ether as a fuel additive in a motor vehicle or motor vehicle engine.''; (D) in subparagraph (B), by inserting ``or water or soil quality protection'' after ``emission control''; and (E) in subparagraph (C)-- (i) in the first sentence-- (I) by inserting ``or water or soil quality protection'' after ``emission control''; and (II) by inserting before the period at the end the following: ``or, if the Administrator grants a petition of the State under paragraph (5)''; and (ii) in the second sentence, by striking ``only if he'' and inserting ``if the Administrator''; and (4) by adding at the end the following: ``(5) State petitions for authority to control or prohibit use of fuels or fuel additives for non-air quality purposes.-- ``(A) In general.--A State seeking to prescribe and enforce a control or prohibition on a fuel or fuel additive for the purpose of water or soil quality protection under paragraph (4)(C) shall submit a petition to the Administrator for authority to take such action. ``(B) Required elements of petition.--A petition submitted under subparagraph (A) shall-- ``(i) include information on-- ``(I) the likely effects of the control or prohibition on fuel availability and price in the affected supply area or region; and ``(II) the improvements in environmental quality or public health or welfare expected to result from the control or prohibition; and ``(ii) demonstrate that the authority is necessary to protect the environment or public health or welfare. [[Page S3516]] ``(C) Action by the administrator.--Not later than 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator shall grant or deny the petition. ``(D) Criteria for granting of petitions.--The Administrator shall grant a petition submitted by a State under subparagraph (A) unless the Administrator finds that-- ``(i) the petition fails to reasonably demonstrate that the authority is necessary to protect the environment or public health or welfare; ``(ii) the control or prohibition is likely to have a substantial and significant adverse effect on fuel availability or price (including a State or regional effect) that clearly outweighs any benefits associated with the control or prohibition; or ``(iii) in the case of a petition submitted by a State seeking the authority primarily to protect water resources, the State has failed to take other appropriate and reasonable actions to prevent contamination of water resources by fuels or fuel additives, such as-- ``(I) adoption of a prohibition on the delivery of gasoline to noncompliant facilities with underground storage tanks; or ``(II) operation of a statewide monitoring and compliance assurance system. ``(E) Effect of failure of administrator to act.--If, by the date that is 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator has not proposed to grant or deny the petition under subparagraph (C), the petition shall be deemed to be granted. ``(F) Procedural requirements.-- ``(i) Inapplicability of certain requirements.--Section 307(d) of this Act and sections 553 through 557 of title 5, United States Code, shall not apply to actions on a petition submitted under subparagraph (A). ``(ii) Public notice and opportunity for comment.--The Administrator shall provide public notice and opportunity for comment with respect to a petition submitted under subparagraph (A). ``(6) Limitation on mtbe content.--The Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce by the refiner, blender, or importer on or after January 1, 2004, in an area has a content of methyl tertiary butyl ether that is at a level that-- ``(A) the Administrator determines may not reasonably be anticipated to endanger natural resources and the public health; and ``(B) does not exceed the annual average volume of methyl tertiary butyl ether per gallon of gasoline used in the area before 1995.''. SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (1)-- (A) 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,''; (B) in the first sentence, by inserting before the period at the end the following: ``and opt-in areas under paragraph (6)''; and (C) by adding at the end the following: ``(B) Adjustment of voc performance standard.-- ``(i) In general.--The Administrator may adjust the volatile organic compounds performance standard promulgated under subparagraph (A) in the case of a fuel formulation that achieves reductions in the quantity of mass emissions of carbon monoxide that are greater than or less than the reductions associated with a reformulated gasoline that contains 2.0 percent oxygen by weight and otherwise meets the requirements of this subsection. ``(ii) Amount of adjustment.--The amount of an adjustment under clause (i) shall be based on the effect on ozone concentrations of the combined reductions in emissions of volatile organic compounds and reductions in emissions of carbon monoxide.''; (2) in paragraph (2)-- (A) in subparagraph (B)-- (i) by striking ``The oxygen'' and inserting the following: ``(i) In general.--The oxygen''; and (ii) by adding at the end the following: ``(ii) Waiver for certain states.--The Administrator shall waive the application of clause (i) for any ozone nonattainment area in a State if the Governor of the State submits for such a waiver an application that-- ``(I) demonstrates that the State is in full compliance with Federal regulations concerning the control and prevention of leaking underground storage tanks; or ``(II) provides a plan that outlines the measures the State will take to fully comply with the underground storage tank regulations by a date not later than 2 years after the receipt of the application of the Governor. ``(iii) Effective date.--A waiver under clause (ii) shall become effective on the later of-- ``(I) January 1 of the calendar year immediately following the calendar year during which the application for the waiver is received; or ``(II) the date that is 180 days after the date on which the application for the waiver is received.''; and (B) by adding at the end the following: ``(E) Aromatics.--The aromatic hydrocarbon content of the gasoline shall not exceed 22 percent by volume.''; (3) in paragraph (3)-- (A) in subparagraph (A)(ii), by striking ``25 percent'' and inserting ``22 percent''; and (B) in subparagraph (B)-- (i) by striking ``Any reduction'' and inserting the following: ``(iii) Treatment of greater reductions.--Any reduction''; and (ii) by adding at the end the following: ``(iv) Anti-backsliding provision.-- ``(I) In general.--Not later than June 1, 2000, the Administrator shall revise performance standards under this subparagraph as necessary to ensure that-- ``(aa) the ozone-forming potential, taking into account all ozone precursors (including volatile organic compounds, oxides of nitrogen, and carbon monoxide), of the aggregate emissions during the high ozone season (as determined by the Administrator) from baseline vehicles when using reformulated gasoline does not exceed the ozone-forming potential of the aggregate emissions during the high ozone season from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasoline sold in calendar year 2000 and subsequent calendar years; and ``(bb) the aggregate emissions of the pollutants specified in subclause (II) from baseline vehicles when using reformulated gasoline do not exceed the aggregate emissions of those pollutants from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasolines sold in calendar year 2000 and subsequent calendar years. ``(II) Specified pollutants.--The pollutants specified in this subclause are-- ``(aa) toxics, categorized by degrees of toxicity; and ``(bb) such other pollutants, including pollutants regulated under section 108, and such precursors to those pollutants, as the Administrator determines by regulation should be controlled to prevent the deterioration of air quality and to achieve attainment of a national ambient air quality standard in 1 or more areas.''; and (4) in paragraph (4)(B)-- (A) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``The Administrator'' and inserting the following: ``(i) In general.--The Administrator''; (C) in clause (i) (as designated by subparagraph (B))-- (i) in subclause (I) (as redesignated by subparagraph (A)), by striking ``, and'' and inserting a semicolon; (ii) in subclause (II) (as redesignated by subparagraph (A))-- (I) by striking ``achieve equivalent'' and inserting the following: ``achieve-- ``(aa) equivalent''; (II) by striking the period at the end and inserting ``; or''; and (III) by adding at the end the following: ``(bb) combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration, as provided in clause (ii)(I), that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3); and''; and (iii) by adding at the end the following: ``(III) achieve equivalent or greater reductions in emissions of toxic air pollutants than are achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3).''; and (D) by adding at the end the following: ``(ii) Carbon monoxide credit.-- ``(I) In general.--In determining whether a fuel formulation or slate of fuel formulations achieves combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3), the Administrator-- ``(aa) shall consider, to the extent appropriate, the change in carbon monoxide emissions from baseline vehicles attributable to an oxygen content in the fuel formulation or slate of fuel formulations that exceeds 2.0 percent by weight; and ``(bb) may consider, to the extent appropriate, the change in carbon monoxide emissions described in item (aa) from vehicles other than baseline vehicles. ``(II) Oxygen credits.--Any excess oxygen content that is taken into consideration in making a determination under subclause (I) may not be used to generate credits under paragraph (7)(A). ``(III) Relation to title i.--Any fuel formulation or slate of fuel formulations that is certified as equivalent or greater under this subparagraph, taking into consideration the combined reductions in emissions of volatile organic compounds and carbon monoxide, shall receive the same volatile organic compounds reduction credit for the purposes of subsections (b)(1) and (c)(2)(B) of section 182 as a fuel meeting the applicable requirements of paragraph (3).''. (b) Reformulated Gasoline Carbon Monoxide Reduction Credit.--Section 182(c)(2)(B) of the Clean Air Act (42 U.S.C. [[Page S3517]] 7511a(c)(2)(B)) is amended by adding at the end the following: ``An adjustment to the volatile organic compound emission reduction requirements under section 211(k)(3)(B)(iv) shall be credited toward the requirement for VOC emissions reductions under this subparagraph.''. SEC. 4. 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 so redesignated)-- (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) Nonclassified areas.-- ``(i) In general.--Upon the application of the Governor of a State, the Administrator shall apply the prohibition specified in paragraph (5) in any area in the State that is not a covered area or an area referred to in subparagraph (A)(i). ``(ii) Publication of application.--As soon as practicable after receipt of an application under clause (i), the Administrator shall publish the application in the Federal Register.''. SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER MOTOR FUELS. (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 Content of Gasoline.-- ``(1) In general.-- ``(A) Regulations.--Not later than September 1, 2000, the Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements of this subsection. ``(B) Renewable content requirements.-- ``(i) In general.--All gasoline sold or introduced into commerce in the United States by a refiner, blender, or importer shall contain, on a quarterly average basis, a quantity of fuel derived from a renewable source (including biomass ethanol) that is not less than the applicable percentage by volume for the quarter. ``(ii) Biomass ethanol.--For the purposes of clause (i), 1 gallon of biomass ethanol shall be considered to be the equivalent of 1.5 gallons of fuel derived from a renewable source. ``(iii) Applicable percentage.--For the purposes of clause (i), the applicable percentage for a quarter of a calendar year shall be determined in accordance with the following table: Applicable percentage of fuel derived from a renewable source: `Calendar year: 2000.........................................................1.3 .... 2001.........................................................1.5 .... 2002.........................................................1.7 .... 2003.........................................................1.9 .... 2004.........................................................2.1 .... 2005.........................................................2.3 .... 2006.........................................................2.5 .... 2007.........................................................2.7 .... 2008.........................................................2.9 .... 2009.........................................................3.1 .... 2010 and thereafter..........................................3.3..... ``(C) Fuel derived from a renewable source.--For the purposes of this subsection, a fuel shall be considered to be derived from a renewable source if the fuel-- ``(i) is produced from grain, starch, oilseeds, or other biomass; and ``(ii) is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle. ``(D) Biomass ethanol.--For the purposes of this subsection, a fuel shall be considered to be biomass ethanol if the fuel is 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 commodities and residues; ``(vi) fibers; ``(vii) animal wastes and other waste materials; and ``(viii) municipal solid waste. ``(E) Credit program.-- ``(i) In general.--The regulations promulgated under this subsection shall provide for the generation of an appropriate amount of credits by a person that refines, blends, or imports gasoline that contains, on a quarterly average basis, a quantity of fuel derived from a renewable source or a quantity of biomass ethanol that is greater than the quantity required under subparagraph (B). ``(ii) Use of credits.--The regulations shall provide that a person that generates the credits may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with subparagraph (B). ``(2) Waivers.-- ``(A) In general.--The Administrator, in consultation with the Secretary of Agriculture, may waive the requirements of paragraph (1)(B) in whole or in part on petition by a State-- ``(i) based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirements 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 or distribution capacity to meet the requirements of paragraph (1)(B). ``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture-- ``(i) shall approve or deny a State petition for a waiver of the requirements of paragraph (1)(B) within 180 days after the date on which the petition is received; but ``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted. ``(C) Termination of waivers.--A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture. ``(D) Oxygen content waivers.--The grant or denial of a waiver under subsection (k)(2)(B) shall not affect the requirements of this subsection. ``(3) Small refiners.--The regulations promulgated by the Administrator under paragraph (1) may provide an exemption, in whole or in part, for small refiners (as defined by the Administrator). ``(4) Guidance for labeling.--After consultation with the Secretary of Agriculture, the Administrator shall issue guidance to the States for labeling, at the point of retail sale-- ``(A) the fuel derived from a renewable source that is contained in the fuel sold; and ``(B) the major fuel additive components of the fuel sold. ``(5) Reports to congress.--Not less often than every 3 years, the Administrator shall submit to Congress a report on-- ``(A) reductions in emissions of criteria air pollutants listed under section 108 that result from implementation of this subsection; and ``(B) in consultation with the Secretary of Energy, greenhouse gas emission reductions that result from implementation of this subsection. ``(p) Renewable Content of Diesel Fuel.-- ``(1) In general.--Not later than September 1, 2000, the Administrator, after consideration of applicable economic and environmental factors, shall promulgate regulations applicable to each refiner, blender, or importer of diesel fuel to ensure that the diesel fuel sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements established by the Administrator under this subsection. ``(2) Elements of program.--To the extent that the Administrator determines it to be appropriate, the Administrator shall by regulation establish a program for diesel fuel that has renewable content requirements similar to the requirements of the program for gasoline under subsection (o) in order to ensure the use of biodiesel fuel.''. (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)'' each place it appears and inserting ``(n), or (o)''; 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)'' each place it appears and inserting ``(n), and (o)''. (c) Prevention of Effects on Highway Apportionments.-- (1) Surface transportation program.--Section 104(b)(3) of title 23, United States Code, is amended by adding at the end the following: ``(C) Determination of estimated tax payments.--For the purpose of determining under subparagraph (A)(iii) the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: [[Page S3518]] ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. (2) Minimum guarantee.--Section 105(f)(1) of title 23, United States Code, is amended-- (A) by striking ``(1) In general.--Before'' and inserting the following: ``(1) In general.-- ``(A) Adjustment.--Before''; and (B) by adding at the end the following: ``(B) Determination of estimated tax payments.--For the purpose of determining under this subsection the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. SEC. 6. UPDATING OF BASELINE YEAR. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (8)-- (A) in subparagraph (A)-- (i) in the first sentence, by striking ``Within 1 year after the enactment of the Clean Air Act Amendments of 1990, the'' and inserting ``The''; and (ii) by striking the second sentence; (B) by striking ``calendar year 1990'' each place it appears and inserting ``calendar year 1999''; and (C) in subparagraph (E), by striking ``such 1990 gasoline'' and inserting ``such 1999 gasoline''; and (2) in subparagraphs (A) and (B)(ii) of paragraph (10), by striking ``1990'' each place it appears and inserting ``1999''. (b) Regulations.--As soon as practicable after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall revise the regulations promulgated under section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) to reflect the amendments made by subsection (a). SEC. 7. LEAKING UNDERGROUND STORAGE TANKS. (a) Trust Fund Distribution.--Section 9004 of the Solid Waste Disposal Act (42 U.S.C. 6991c) is amended by adding at the end the following: ``(f) Trust Fund Distribution.-- ``(1) In general.-- ``(A) Amount and permitted use of distribution.--The Administrator shall distribute to States at least 85 percent of the funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund established by section 9508 of the Internal Revenue Code of 1986 (referred to in this subsection as the `Trust Fund') for each fiscal year for use in paying the reasonable costs, incurred under cooperative agreements with States, of-- ``(i) actions taken by a State under section 9003(h)(7)(A); ``(ii) necessary administrative expenses directly related to corrective action and compensation programs under subsection (c)(1); ``(iii) enforcement by a State or local government of a State program approved under this section or of State or local requirements regulating underground storage tanks that are similar or identical to this subtitle; ``(iv) State or local corrective actions pursuant to regulations promulgated under section 9003(c)(4); or ``(v) corrective action and compensation programs under subsection (c)(1) for releases from underground storage tanks regulated under this subtitle if, as determined by the State in accordance with guidelines developed between the Environmental Protection Agency and the States, the financial resources of an owner or operator (including resources provided by programs under subsection (c)(1)) are not adequate to pay for the cost of a corrective action without significantly impairing the ability of the owner or operator to continue in business. ``(B) Nonpermitted uses.--Funds provided by the Administrator under subparagraph (A) shall not be used by a State to provide financial assistance to an owner or operator to meet the requirements concerning underground storage tanks contained in part 280 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subsection), except as provided in subparagraph (A)(v), or similar requirements in State programs approved under this section or similar State or local provisions. ``(C) Tanks within tribal jurisdiction.--The Administrator, in coordination with Indian tribes, shall-- ``(i) expeditiously develop and implement a strategy to-- ``(I) take necessary corrective action in response to releases from leaking underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe, giving priority to releases that present the greatest threat to human health or the environment; and ``(II) implement and enforce requirements regulating underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe; and ``(ii) not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, submit to Congress a report summarizing the status of implementation of the leaking underground storage tank program located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe. ``(2) Allocation.-- ``(A) Process.--Subject to subparagraph (B), in the case of a State with which the Administrator has entered into a cooperative agreement under section 9003(h)(7)(A), the Administrator shall distribute funds from the Trust Fund to the State using the allocation process developed by the Administrator for such cooperative agreements. ``(B) Revisions to process.--The Administrator may revise the allocation process only after-- ``(i) consulting with State agencies responsible for overseeing corrective action for releases from underground storage tanks and with representatives of owners and operators; and ``(ii) taking into consideration, at a minimum-- ``(I) the total revenue received from each State into the Trust Fund; ``(II) the number of confirmed releases from leaking underground storage tanks in each State; ``(III) the number of notified petroleum storage tanks in each State; ``(IV) the percentage of the population of each State using ground water for any beneficial purpose; ``(V) the evaluation of the program performance of each State; ``(VI) the evaluation of the financial needs of each State; and ``(VII) the evaluation of the ability of each State to use the funds in any year. ``(3) Distributions to state agencies.-- ``(A) In general.--Distributions from the Trust Fund under this subsection shall be made directly to the State agency entering into a cooperative agreement or enforcing the State program. ``(B) Administrative expenses.--A State agency that receives funds under this subsection shall limit the proportion of those funds that are used to pay administrative expenses to a percentage that the State may establish by law. ``(4) Cost recovery prohibition.--Funds provided to States from the Trust Fund to owners or operators for programs under section 9004(c)(1) for releases from underground storage tanks are not subject to cost recovery by the Administrator under section 9003(h)(6). ``(5) Permitted uses.--In addition to uses authorized by other provisions of this subtitle, the Administrator may use funds appropriated to the Environmental Protection Agency from the Trust Fund for enforcement of any regulation promulgated by the Administrator under this subtitle.''. (b) Addition to Trust Fund Purposes.--Section 9508(c)(1) of the Internal Revenue Code of 1986 (relating to expenditures) is amended by striking ``to carry out section 9003(h)'' and all that follows and inserting ``to carry out-- ``(A) section 9003(h) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Superfund Amendments and Reauthorization Act of 1986); and ``(B) section 9004(f) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Renewable Fuels Act of 2000).''. (c) Studies.--Not later than 18 months after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall conduct-- (1) a study to determine the corrosive effects of methyl tertiary butyl ether and other widely used fuels and fuel additives on underground storage tanks; and (2) a study to assess the potential public health and environmental risks associated with the use of aboveground storage tanks and the effectiveness of State and Federal regulations or voluntary standards, in existence as of the time of the study, to provide adequate protection of public health and the environment. (d) Technical Amendments.-- (1) Section 9001(3)(A) of the Solid Waste Disposal Act (42 U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and inserting ``substances''. (2) Section 9003(f)(1) of the Solid Waste Disposal Act (42 U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and (d) of this section'' and inserting ``subsections (c) and (d)''. (3) Section 9004(a) of the Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended in the first sentence by striking ``referred to'' and all that follows and inserting ``referred to in subparagraph (A) or (B), or both, of section 9001(2).''. (4) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 6991d) is amended-- [[Page S3519]] (A) in subsection (a), by striking ``study taking'' and inserting ``study, taking''; (B) in subsection (b)(1), by striking ``relevent'' and inserting ``relevant''; and (C) in subsection (b)(4), by striking ``Evironmental'' and inserting ``Environmental''. SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM. (a) In General.--The Administrator of the Environmental Protection Agency may enter into cooperative agreements with the United States Geological Survey, the Department of Agriculture, States, local governments, private landowners, and other interested parties to establish voluntary pilot projects to protect the water quality of private wells and to provide technical assistance to users of water from private wells. (b) Limitation.--This section does not authorize the issuance of guidance or regulations regarding the use or protection of private wells. Mr. LUGAR. Mr. President, I am pleased to join Senator Daschle in introducing the Renewable Fuels Act of 2000. In July 1999, an independent Blue Ribbon Panel on Oxygenates in Gasoline called for major reductions in the use of MTBE as an additive in gasoline. They did so because of growing evidence and public concerns regarding pollution of drinking water supplies by MTBE. These trends are particularly acute in areas of the country using Reformulated Gasoline. The Reformulated Gasoline Program (RFG) has proven to be a success in reducing smog and has exceeded expectations in reducing dangerous and carcinogenic air toxics in gasoline. The second stage of the Reformulated Gasoline Program (RFG) will commence this summer and will have an even greater effect in reducing ozone pollution and air toxics. Because of concerns regarding water pollution, it is clear that the existing situation regarding MTBE is not tenable. The Governor of California has called for a three year phase out of MTBE in California and the California Air Resources Board has adopted regulations to that effect. Environmental officials from eight Northeastern States have proposed a phase down and a capping of the use of MTBE in gasoline in their states. MTBE is being found in wells in the Midwest even in areas that do not use reformulated gasoline. The Renewable Fuels Act of 2000 will lead to about five billion gallons of ethanol being produced in 2010 compared to one billion, six hundred million gallons today. Under the Act, one gallon of cellulosic ethanol will count for one and one-half gallons of regular ethanol in determining whether a refiner has met the Renewable Fuels Standard in a particular year. We are going to have spikes in oil that will disrupt our economy. It may or may not be able to be controlled. It will happen before 2010. It may happen again next week. Our problem in terms of national security and the security of our whole economy revolves around our dependence on petroleum-based fuels. We must be able to address this challenge. Finding an environmentally sensitive way to resolve the MTBE crisis is an important part of this challenge. It is clear that MTBE is on its way out. The question is what kind of legislation is needed to facilitate its departure and whether that legislation will be based on consideration of all of the environmental and energy and national security issues involved. The Renewable Fuels Act of 2000 will establish a nationwide Renewable Fuels Standard (RFS) that would increase the current use of renewable fuels from 1.3% in 2000 to 3.3% by 2010. Refiners who produced renewable fuels beyond the standard could sell credits to other refiners who chose to under comply with the RFS. This bill would give the EPA Administrator authority to limit or eliminate the use of MTBE in order to protect the public health and the environment. It also gives states the ability to further regulate or eliminate MTBE use if the EPA does not choose to eliminate it. It would also establish strict ``anti backsliding provisions'' to capture all of the air quality benefits of MTBE and ethanol as MTBE is phased down or phased out. The Renewable Fuels Act of 2000 will be good for our economy and our environment. Most important of all, it will facilitate the development of renewable fuels, a development critical to ensuring U.S. national and economic security and stabilizing gas prices. I hope that my colleagues will examine this bill as well as other legislative approaches that would spur the development of renewable fuels such as ethanol, whether derived from corn or other agricultural or plant materials. ______ By Mr. JEFFORDS (for himself, Mr. Rockefeller, Mr. Grassley, Mr. Breaux, Mr. Murkowski, Mr. Stevens, Mr. Bond, Mr. Inouye, Mr. Harkin, Mr. Roberts, Mr. Thomas, Mr. Bingaman, Mr. Edwards, Mr. Conrad, and Mr. Kerrey): S. 2505. A bill to amend title XVIII of the Social Security Act to provide increased assess to health care for medical beneficiaries through telemedicine; to the Committee on Finance. telehealth improvement and modernization act of 2000 Mr. JEFFORDS. Mr. President, today I am pleased to join with my good friend Senator Rockefeller in introducing legislation that will improve upon the federal rules for reimbursement for telemedicine and help to ensure that all of our citizens have access to our great health care system. We are joined by a broad, bipartisan group of senators in this effort. In many ways we have the best health care system in the world. But increasingly fewer and fewer Americans actually have access to it. I recently introduced a tax-credit bill that will help some of these Americans and I anticipate supporting future measures aimed at increasing access to health care services. One important area that demands our attention is the problem of access for rural Americans. More than 25 percent of our Nation's senior citizens live in areas underserved for modern health care services. At the same time, telemedicine has come of age. We have moved beyond the feasibility stage and proven that this technology can provide real benefits to people in rural and underserved regions of our country. In my own State of Vermont, nearly 70 per cent live in rural areas. This is the highest percentage rural population of any state in the nation. In Vermont, specialists in more than twenty-five disciplines from Fletcher Allen Health Care in Burlington are made readily available to patients even in the most rural areas. I want to see this level of service expand and be made available to all Americans. We in Washington have made some good faith attempts to allow for the development of telehealth technologies but we have fallen short. In an effort to restrain the expansion of these programs, the Health Care Financing Administration's interpretation of the laws and its cumbersome rules for reimbursement have all but guaranteed the demise of current programs. Federally-funded telemedicine projects exist in almost every State in the Nation. These projects have proven that cost-effective, high- quality care can be delivered using this technology. The provisions in this bill will help to ensure that this care will be continued when the federal grants end. Why is this legislation needed now? Because current HCFA regulations concerning payment are unworkable in the real world. Less than 6 percent of all telemedicine doctor-patient visits last year provided to Medicare beneficiaries would qualify for reimbursement under HCFA's current guidelines. Now that we have more experience and understand better how telemedicine can be used, it is time to enact several changes to the law so that these programs can thrive and deliver on their promise of providing cost-effective, high-quality healthcare where it is needed the most. Rural healthcare providers and patients are eager for this legislation. Norman Wright, President of the Vermont Association of Hospitals and Health Systems, recognized the potential of Fletcher Allen's telemedicine program by describing it as one that ``provides incredible opportunities for rural providers and their patients because it links them to a network with access to the region's best authorities for any given condition.'' I have indeed heard an outpouring of support from healthcare providers across my own State on this issue. Gerry Davis, Professor of Pulmonary and Critical Care Medicine at Fletcher Allen Health Care, described ``appropriate and fair third party payment for [[Page S3520]] telemedicine'' as ``essential in order to move this process beyond education, and to make the service truly useful for patients in remote locations.'' Telemedicine can be used in so many ways. It can be vital to a pediatrician from a rural area with a sick baby who needs to consult with a neonatologist from a tertiary care hospital in the dead of winter and the middle of the night. It can be also be crucial for a depressed senior citizen who desperately needs mental health services available in their own rural county. And it can be much needed help for a frustrated isolated primary care provider who longs to be able to provide for access to specialty services for her patients in their own community. All of these people need our help. While the changes included in this bill are relatively minor in the context of the Medicare program, the effect will be far-reaching. This legislation will allow us to avoid arbitrarily denying access to health care for our senior citizens and persons with disabilities just because of where they live. It will allow for fair and reasonable reimbursement for services that can be delivered appropriately in this way. It will also encourage the incorporation of telehealth technology in the care plans of home health agencies, an area that has already shown great promise for the future in terms of cost-effective disease management. In summary, it will allow us to begin to release the incredible potential of telemedicine. Mr. President, I urge my colleagues to join us in bringing HCFA's approach to the delivery of health care into the 21st Century. Any Medicare reform must include progress on telemedicine for our Nation's rural areas. Mr. ROCKEFELLER. Mr. President, I am extremely pleased to be here today to introduce the Telemedicine Improvement and Modernization Act with Senator Jeffords and many other of my Senate colleagues. This bill incorporates two issues that I care about passionately--health care and technology. Telemedicine has the potential to bridge the gap that currently exists between patients and providers. More than 25% of our Nation's senior citizens live in areas where speciality care may not be available. In states like my own where there are very few primary care or specialty care resources and travel is difficult, telemedicine is critical to ensuring that people in remote areas are getting health care they need. By expanding access to health care through telemedicine, we also improve the quality of care available to people living in underserved areas. Personally, I believe that we are just beginning to tap the enormous potential of technology to advance quality health care, especially in rural areas. Yet, Medicare's telemedicine program is inefficient in its current form. These inefficiencies threaten the future of telemedicine services. When we first created this program, our knowledge of the potential of this new technology, or its practical applications was very limited. Today we have a much better understanding of how telemedicine actually works. With this new knowledge, we can repair the inefficiencies of the current system and encourage the use of this highly effective health practice. By accomplishing this goal, we can ensure that quality health care is available to all seniors and disabled Americans regardless of where they live. There are 8 main elements of the bill: (1) Eliminating the provider ``fee sharing'' requirement; (2) Eliminating the requirement for a ``telepresenter''; (3) Allowing limited reimbursement for referring clinics to recover the cost of their services; (4) Expanding telemedicine services to all non-MSAs; (5) Expanding telemedicine services to direct patient care, not just professional consultations; (6) Making all providers eligible for HCFA reimbursement for services delivered via telemedicine; (7) Creating a federal demonstration project that permits telemedicine reimbursement for ``store and forward'' consultations (i.e., x-rays that are sent to another facility for consultation); and (8) Permitting telehomecare. While these changes are relatively minor in the context of the Medicare program, the affect will be far-reaching. The modernizations we are proposing will dramatically improve access to quality health care in rural areas. This legislation will allow us to begin to release the incredible potential of telemedicine. On a final note, I'd like to thank Karen Edison for her expertise and determination in working on this bill. Because Karen is a practicing telemedicine physician, she has been invaluable in developing and advancing this cause. Thank you, Mr. President for your time today. I hope all of my colleagues will join with me in passing this important piece of legislation. ______ By Mr. GORTON: S. 2506. A bill to amend title 46, United States Code, with respect to the Federal preemption of State law concerning the regulation of marine and ocean navigation, safety, and transportation by States; to the Committee on Commerce, Science, and Transportation. legislation regarding marine and ocean navigation, safety, and transportation Mr. GORTON. Mr. President, environmental protection and states' rights were dealt a blow on March 6th, when the U.S. Supreme Court decided the case of United States vs. Locke. The Court, noting that even though federal and international laws ``may be insufficient protection,'' invalidated Washington laws, and potentially laws in eleven other states, that provide protections against spills by oil tankers. I disagree with the Court's decision, because I believe that Washington state should be allowed to protect its shores as it sees fit. That is why, today I am pleased to introduce the ``States Prevention of Oil Tanker Spills Act'' (SPOTS)-legislation that will reinstate the right of all states to adopt additional standards beyond existing federal requirements governing the operation, maintenance, equipment, personnel and manning of oil tankers. While this legislation will apply to all shoreline states, it is pa

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS


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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 04, 2000)

Text of this article available as: TXT PDF [Pages S3514-S3543] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DASCHLE (for himself and Mr. Lugar): S. 2503. A bill to amend the Clean Air Act to authorize States to regulate harmful fuel additives and to require fuel to contain fuel made from renewable sources, to amend the Solid Waste Disposal Act to require that at least 85 percent of funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund be distributed to States to carry out cooperative agreements for undertaking corrective action and for enforcement of subtitle I of that act, and for other purposes; to the Committee on Environment and Public Works. renewable fuels act of 2000 Mr. DASCHLE. Mr. President, ten years ago I joined with two distinguished colleagues, then-Senate Majority Leader Bob Dole and Senator Tom Harkin, to introduce the reformulated gasoline (RFG) provision of the 1990 Clean Air Act Amendments. The RFG provision, with its minimum oxygen standard, was adopted in the Senate by the overwhelming vote of 69 to 30 and eventually signed into law by President George Bush. I am proud to say that this program has resulted in substantial improvement in air quality around the country. It also has stimulated increased production and use of renewable ethanol and other oxygenates needed to meet the minimum oxygen standard. Unfortunately, an unanticipated development involving the petroleum- based oxygenate MTBE requires us to re-examine the many benefits of the RFG program. The detection of MTBE in ground water around the country has generated considerable debate in recent months over how to deal with this fuel additive and the oxygen requirement of the reformulated gasoline program. The resolution of this debate will have significant consequences for the environment, for farmers and for the rural economy. The pace of activity to resolve the MTBE issue is accelerating rapidly. Battlelines are being drawn as the state of California and its allies focus on scrapping the oxygen requirement. It is clear that Congress and/or the Clinton administration will respond to the MTBE problem. My focus is on ensuring that that response not only serves the environment, but also retains a prominent place for ethanol--a place that assures long-term, predictable growth of the industry. I believe a comprehensive legislative solution is necessary in this case--one that recognizes and preserves the important air quality benefits of the RFG program, protects water supplies and leads the nation away from greater dependence on imported oil. I have worked for the last year with the ethanol industry, Republican and Democratic colleagues in the Senate, the Governor's Ethanol Coalition, environmental organizations and the administration in search of a solution that gives states the tools they need to address MTBE contamination, ensures the future growth of domestic renewable fuels, and prevents supply shortages and price spikes in the nation's fuels supply. This process has led me to two basic conclusions. First, the MTBE crisis has left the RFG oxygen requirement vulnerable to legislative attack. Those who doubt this conclusion should reflect on the following facts. California refiners have shown that clean-burning gasoline can be produced without oxygen. EPA's Blue Ribbon Panel has recommended that the oxygen requirement be repealed. The RFG oxygen requirement is opposed by a diverse coalition that includes the American Lung Association, the American Petroleum Institute, the New England States Coordinated Air Use Management agency, the State of California and the Natural Resources Defense Council (NRDC). Second, support for the oxygen requirement will weaken over time. Improvements in auto emissions control technology will cause the air quality benefits of oxygen in gasoline to decline and the justification for the RFG oxygen requirement to diminish. As one of the original authors of the reformulated gasoline provisions of the Clean Air Act, I feel something of a proprietary interest in the oxygen requirement. As a legislator, I recognize that circumstances change, and obstinacy should not be allowed to become a barrier to the achievement of important policy goals. Ethanol advocates face a choice between defending the oxygen requirement in the near term, realizing that its days ultimately are numbered, or using the current MTBE debate to guarantee the future growth of the ethanol industry based on important public policy goals, such as energy security, greenhouse gas emissions reductions, and domestic economic growth. In my judgment, providing states with the flexibility to waive the RFG oxygen requirement is a fair tradeoff for the establishment of a renewable fuels standard. It represents the most effective way to achieve the environmental and economic goals of governors and consumers, while putting the ethanol industry on a steady growth path well into the future and promoting ethanol production in new regions of the nation. Therefore, today, with Senator Richard Lugar, I am introducing the Renewable Fuels Act of 2000. Under our [[Page S3515]] legislation, EPA is directed to reduce the use of MTBE to safe levels, and states can obtain waivers from the RFG oxygen requirement and further regulate MTBE if they desire. This will allow the nation to deal with the MTBE contamination issue responsibly and avoid gasoline supply disruptions. The bill also includes provisions protecting the air quality gains that have resulted from the use of oxygenated fuels. To protect market opportunities for renewable fuels, the bill establishes a renewable fuels standard for the nation's gasoline, which begins in 2000 at 1.3 percent--roughly where renewable fuels production stands today--and gradually increases over the next decade to 3.3 percent of the nation's gasoline in 2010. Considering the fact that overall gasoline use is expected to increase over the next decade, this standard will more than triple ethanol use over that period. In meeting that requirement, our legislation stipulates that a gallon of biomass ethanol counts as much as 1.5 gallons of starch-based ethanol, thereby providing a strong incentive for the development of biomass-based ethanol plans throughout the country. It also established a renewable fuels standard for diesel fuels to promote the use of biodiesel. These renewable fuels standards can be met through nationwide credit trading, to allow for the most economomical use of ethanol and biodiesel. For those who are concerned about the potential impact of a drought or other natural disaster on the ability of the renewable fuels industry to supply this market, the legislation allows the EPA Administrator, in consultation with the Secretary of Agriculture, to waive the renewable requirement in any given year upon determination that there is indequate domestic supply or distribution capacity, or that the requirement would severely harm the economic or environment of a State, a region, or the United States. I also intend to work with my colleagues on both sides of the aisle to establish a strategic corn reserve as a complement to the renewable fuel standard. A properly managed strategic corn reserve could serve as the equivalent of the strategic petroleum reserve and ensure stable feedstocks for domestic ethanol producers in the event of weather induced supply interruptions. Taxpayers would benefit as farmers could receive fair market prices, thereby reducing the need for emergency assistance each year. It is important to recognize that under Senator Lugar's and my approach, the oxygen requirement is not waived entirely. States can decide for themselves whether to apply for a waiver from the RFG oxygen requirement. We fully expect that RFG programs that currently are using ethanol and have not experienced MTBE contamination, such as Chicago and Milwaukee, will stay in the program. Moreover, the bill allows any governor to apply to EPA to opt into the RFG program, thus expanding its air quality benefits to new regions of the country. Those areas that remain in the program or opt into it, and use ethanol, will generate credits that can be sold to other regions of the country. Finally, the bill prevents adverse effects on states' highway trust fund tax allocations, with ``hold harmless'' language ensuring that states reporting Federal excise tax receipts on gasoline are not penalized for their ethanol blend sales. Again, my goal in introducing this legislation is both to support states that want to get MTBE out of gasoline and to ensure that this effort does not adversely affect ethanol production. It is also to put into place a program that will grow the ethanol industry steadily over the next decade, thereby assuring the market stability necessary to attract investment in the construction of new plants and significantly increasing the market for corn and biomass. This approach not only will get MTBE out of groundwater; it will do so without backsliding on the air quality improvements generated by the RFG program while increasing corn demand by 600 million bushels per year. Mr. President, since first floating this concept in May of last year, I have heard from numerous stakeholders in this complex debate. The legislative concept that Senator Lugar and I unveil today has been endorsed by diverse interests ranging from the American Coalition for Ethanol (ACE) in Sioux Falls, South Dakota, to the 24-state Governors' Ethanol Coalition, to the Northeast States for Coordinated Air Use Management (NESCAUM) to Mr. Leo Leibowitz, chairman of Getty Petroleum. I believe that we have struck a delicate balance between the interests of farmers, consumers, state regulatory officials, refiners and those concerned about the environment. This plan is a worthy successor to the original 1990 RFG provision, preserving all of the good things it has achieved and rectifying those elements that need fixing. I look forward to working with Senators Smith and Baucus, the chairman and ranking member of the Senate Environment and Public Works Committee, to enact legislation resolving the MTBE issue. I hope that other colleagues will join Senator Lugar and me in support of this legislation. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2503 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 ``Renewable Fuels Act of 2000''. SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL OR PROHIBIT USE OF MTBE. Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended-- (1) in paragraph (1)(A), by striking ``any emission product of such fuel or fuel additive causes, or contributes, to air pollution which may reasonably be anticipated to endanger the public health or welfare,'' and inserting ``the fuel or fuel additive, or an emission product of the fuel or fuel additive, causes or contributes to air, water, or soil pollution that may reasonably be anticipated to endanger the public health or welfare or the environment,''; (2) in paragraph (2)(C), by inserting ``or have other environmental impacts'' after ``emissions''; (3) in paragraph (4)-- (A) in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``(4)(A) Except as otherwise provided in subparagraph (B) or (C),'' and inserting the following: ``(4) Limitation on state authority with respect to fuels and fuel additives.-- ``(A) In general.-- ``(i) Fuels and fuel additives.--Except as otherwise provided in subparagraph (B) or (C) or paragraph (5),''; (C) in subparagraph (A)-- (i) in clause (i) (as designated by subparagraph (B)), by inserting ``or water or soil quality protection'' after ``emission control''; and (ii) by adding at the end the following: ``(ii) MTBE.--Notwithstanding clause (i), except as otherwise provided in subparagraph (B) or (C) or paragraph (5), no State (or political subdivision of a State) may prescribe or attempt to enforce, for the purpose of motor vehicle emission control or water or soil quality protection, any control or prohibition on methyl tertiary butyl ether as a fuel additive in a motor vehicle or motor vehicle engine.''; (D) in subparagraph (B), by inserting ``or water or soil quality protection'' after ``emission control''; and (E) in subparagraph (C)-- (i) in the first sentence-- (I) by inserting ``or water or soil quality protection'' after ``emission control''; and (II) by inserting before the period at the end the following: ``or, if the Administrator grants a petition of the State under paragraph (5)''; and (ii) in the second sentence, by striking ``only if he'' and inserting ``if the Administrator''; and (4) by adding at the end the following: ``(5) State petitions for authority to control or prohibit use of fuels or fuel additives for non-air quality purposes.-- ``(A) In general.--A State seeking to prescribe and enforce a control or prohibition on a fuel or fuel additive for the purpose of water or soil quality protection under paragraph (4)(C) shall submit a petition to the Administrator for authority to take such action. ``(B) Required elements of petition.--A petition submitted under subparagraph (A) shall-- ``(i) include information on-- ``(I) the likely effects of the control or prohibition on fuel availability and price in the affected supply area or region; and ``(II) the improvements in environmental quality or public health or welfare expected to result from the control or prohibition; and ``(ii) demonstrate that the authority is necessary to protect the environment or public health or welfare. [[Page S3516]] ``(C) Action by the administrator.--Not later than 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator shall grant or deny the petition. ``(D) Criteria for granting of petitions.--The Administrator shall grant a petition submitted by a State under subparagraph (A) unless the Administrator finds that-- ``(i) the petition fails to reasonably demonstrate that the authority is necessary to protect the environment or public health or welfare; ``(ii) the control or prohibition is likely to have a substantial and significant adverse effect on fuel availability or price (including a State or regional effect) that clearly outweighs any benefits associated with the control or prohibition; or ``(iii) in the case of a petition submitted by a State seeking the authority primarily to protect water resources, the State has failed to take other appropriate and reasonable actions to prevent contamination of water resources by fuels or fuel additives, such as-- ``(I) adoption of a prohibition on the delivery of gasoline to noncompliant facilities with underground storage tanks; or ``(II) operation of a statewide monitoring and compliance assurance system. ``(E) Effect of failure of administrator to act.--If, by the date that is 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator has not proposed to grant or deny the petition under subparagraph (C), the petition shall be deemed to be granted. ``(F) Procedural requirements.-- ``(i) Inapplicability of certain requirements.--Section 307(d) of this Act and sections 553 through 557 of title 5, United States Code, shall not apply to actions on a petition submitted under subparagraph (A). ``(ii) Public notice and opportunity for comment.--The Administrator shall provide public notice and opportunity for comment with respect to a petition submitted under subparagraph (A). ``(6) Limitation on mtbe content.--The Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce by the refiner, blender, or importer on or after January 1, 2004, in an area has a content of methyl tertiary butyl ether that is at a level that-- ``(A) the Administrator determines may not reasonably be anticipated to endanger natural resources and the public health; and ``(B) does not exceed the annual average volume of methyl tertiary butyl ether per gallon of gasoline used in the area before 1995.''. SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (1)-- (A) 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,''; (B) in the first sentence, by inserting before the period at the end the following: ``and opt-in areas under paragraph (6)''; and (C) by adding at the end the following: ``(B) Adjustment of voc performance standard.-- ``(i) In general.--The Administrator may adjust the volatile organic compounds performance standard promulgated under subparagraph (A) in the case of a fuel formulation that achieves reductions in the quantity of mass emissions of carbon monoxide that are greater than or less than the reductions associated with a reformulated gasoline that contains 2.0 percent oxygen by weight and otherwise meets the requirements of this subsection. ``(ii) Amount of adjustment.--The amount of an adjustment under clause (i) shall be based on the effect on ozone concentrations of the combined reductions in emissions of volatile organic compounds and reductions in emissions of carbon monoxide.''; (2) in paragraph (2)-- (A) in subparagraph (B)-- (i) by striking ``The oxygen'' and inserting the following: ``(i) In general.--The oxygen''; and (ii) by adding at the end the following: ``(ii) Waiver for certain states.--The Administrator shall waive the application of clause (i) for any ozone nonattainment area in a State if the Governor of the State submits for such a waiver an application that-- ``(I) demonstrates that the State is in full compliance with Federal regulations concerning the control and prevention of leaking underground storage tanks; or ``(II) provides a plan that outlines the measures the State will take to fully comply with the underground storage tank regulations by a date not later than 2 years after the receipt of the application of the Governor. ``(iii) Effective date.--A waiver under clause (ii) shall become effective on the later of-- ``(I) January 1 of the calendar year immediately following the calendar year during which the application for the waiver is received; or ``(II) the date that is 180 days after the date on which the application for the waiver is received.''; and (B) by adding at the end the following: ``(E) Aromatics.--The aromatic hydrocarbon content of the gasoline shall not exceed 22 percent by volume.''; (3) in paragraph (3)-- (A) in subparagraph (A)(ii), by striking ``25 percent'' and inserting ``22 percent''; and (B) in subparagraph (B)-- (i) by striking ``Any reduction'' and inserting the following: ``(iii) Treatment of greater reductions.--Any reduction''; and (ii) by adding at the end the following: ``(iv) Anti-backsliding provision.-- ``(I) In general.--Not later than June 1, 2000, the Administrator shall revise performance standards under this subparagraph as necessary to ensure that-- ``(aa) the ozone-forming potential, taking into account all ozone precursors (including volatile organic compounds, oxides of nitrogen, and carbon monoxide), of the aggregate emissions during the high ozone season (as determined by the Administrator) from baseline vehicles when using reformulated gasoline does not exceed the ozone-forming potential of the aggregate emissions during the high ozone season from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasoline sold in calendar year 2000 and subsequent calendar years; and ``(bb) the aggregate emissions of the pollutants specified in subclause (II) from baseline vehicles when using reformulated gasoline do not exceed the aggregate emissions of those pollutants from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasolines sold in calendar year 2000 and subsequent calendar years. ``(II) Specified pollutants.--The pollutants specified in this subclause are-- ``(aa) toxics, categorized by degrees of toxicity; and ``(bb) such other pollutants, including pollutants regulated under section 108, and such precursors to those pollutants, as the Administrator determines by regulation should be controlled to prevent the deterioration of air quality and to achieve attainment of a national ambient air quality standard in 1 or more areas.''; and (4) in paragraph (4)(B)-- (A) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``The Administrator'' and inserting the following: ``(i) In general.--The Administrator''; (C) in clause (i) (as designated by subparagraph (B))-- (i) in subclause (I) (as redesignated by subparagraph (A)), by striking ``, and'' and inserting a semicolon; (ii) in subclause (II) (as redesignated by subparagraph (A))-- (I) by striking ``achieve equivalent'' and inserting the following: ``achieve-- ``(aa) equivalent''; (II) by striking the period at the end and inserting ``; or''; and (III) by adding at the end the following: ``(bb) combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration, as provided in clause (ii)(I), that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3); and''; and (iii) by adding at the end the following: ``(III) achieve equivalent or greater reductions in emissions of toxic air pollutants than are achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3).''; and (D) by adding at the end the following: ``(ii) Carbon monoxide credit.-- ``(I) In general.--In determining whether a fuel formulation or slate of fuel formulations achieves combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3), the Administrator-- ``(aa) shall consider, to the extent appropriate, the change in carbon monoxide emissions from baseline vehicles attributable to an oxygen content in the fuel formulation or slate of fuel formulations that exceeds 2.0 percent by weight; and ``(bb) may consider, to the extent appropriate, the change in carbon monoxide emissions described in item (aa) from vehicles other than baseline vehicles. ``(II) Oxygen credits.--Any excess oxygen content that is taken into consideration in making a determination under subclause (I) may not be used to generate credits under paragraph (7)(A). ``(III) Relation to title i.--Any fuel formulation or slate of fuel formulations that is certified as equivalent or greater under this subparagraph, taking into consideration the combined reductions in emissions of volatile organic compounds and carbon monoxide, shall receive the same volatile organic compounds reduction credit for the purposes of subsections (b)(1) and (c)(2)(B) of section 182 as a fuel meeting the applicable requirements of paragraph (3).''. (b) Reformulated Gasoline Carbon Monoxide Reduction Credit.--Section 182(c)(2)(B) of the Clean Air Act (42 U.S.C. [[Page S3517]] 7511a(c)(2)(B)) is amended by adding at the end the following: ``An adjustment to the volatile organic compound emission reduction requirements under section 211(k)(3)(B)(iv) shall be credited toward the requirement for VOC emissions reductions under this subparagraph.''. SEC. 4. 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 so redesignated)-- (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) Nonclassified areas.-- ``(i) In general.--Upon the application of the Governor of a State, the Administrator shall apply the prohibition specified in paragraph (5) in any area in the State that is not a covered area or an area referred to in subparagraph (A)(i). ``(ii) Publication of application.--As soon as practicable after receipt of an application under clause (i), the Administrator shall publish the application in the Federal Register.''. SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER MOTOR FUELS. (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 Content of Gasoline.-- ``(1) In general.-- ``(A) Regulations.--Not later than September 1, 2000, the Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements of this subsection. ``(B) Renewable content requirements.-- ``(i) In general.--All gasoline sold or introduced into commerce in the United States by a refiner, blender, or importer shall contain, on a quarterly average basis, a quantity of fuel derived from a renewable source (including biomass ethanol) that is not less than the applicable percentage by volume for the quarter. ``(ii) Biomass ethanol.--For the purposes of clause (i), 1 gallon of biomass ethanol shall be considered to be the equivalent of 1.5 gallons of fuel derived from a renewable source. ``(iii) Applicable percentage.--For the purposes of clause (i), the applicable percentage for a quarter of a calendar year shall be determined in accordance with the following table: Applicable percentage of fuel derived from a renewable source: `Calendar year: 2000.........................................................1.3 .... 2001.........................................................1.5 .... 2002.........................................................1.7 .... 2003.........................................................1.9 .... 2004.........................................................2.1 .... 2005.........................................................2.3 .... 2006.........................................................2.5 .... 2007.........................................................2.7 .... 2008.........................................................2.9 .... 2009.........................................................3.1 .... 2010 and thereafter..........................................3.3..... ``(C) Fuel derived from a renewable source.--For the purposes of this subsection, a fuel shall be considered to be derived from a renewable source if the fuel-- ``(i) is produced from grain, starch, oilseeds, or other biomass; and ``(ii) is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle. ``(D) Biomass ethanol.--For the purposes of this subsection, a fuel shall be considered to be biomass ethanol if the fuel is 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 commodities and residues; ``(vi) fibers; ``(vii) animal wastes and other waste materials; and ``(viii) municipal solid waste. ``(E) Credit program.-- ``(i) In general.--The regulations promulgated under this subsection shall provide for the generation of an appropriate amount of credits by a person that refines, blends, or imports gasoline that contains, on a quarterly average basis, a quantity of fuel derived from a renewable source or a quantity of biomass ethanol that is greater than the quantity required under subparagraph (B). ``(ii) Use of credits.--The regulations shall provide that a person that generates the credits may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with subparagraph (B). ``(2) Waivers.-- ``(A) In general.--The Administrator, in consultation with the Secretary of Agriculture, may waive the requirements of paragraph (1)(B) in whole or in part on petition by a State-- ``(i) based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirements 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 or distribution capacity to meet the requirements of paragraph (1)(B). ``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture-- ``(i) shall approve or deny a State petition for a waiver of the requirements of paragraph (1)(B) within 180 days after the date on which the petition is received; but ``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted. ``(C) Termination of waivers.--A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture. ``(D) Oxygen content waivers.--The grant or denial of a waiver under subsection (k)(2)(B) shall not affect the requirements of this subsection. ``(3) Small refiners.--The regulations promulgated by the Administrator under paragraph (1) may provide an exemption, in whole or in part, for small refiners (as defined by the Administrator). ``(4) Guidance for labeling.--After consultation with the Secretary of Agriculture, the Administrator shall issue guidance to the States for labeling, at the point of retail sale-- ``(A) the fuel derived from a renewable source that is contained in the fuel sold; and ``(B) the major fuel additive components of the fuel sold. ``(5) Reports to congress.--Not less often than every 3 years, the Administrator shall submit to Congress a report on-- ``(A) reductions in emissions of criteria air pollutants listed under section 108 that result from implementation of this subsection; and ``(B) in consultation with the Secretary of Energy, greenhouse gas emission reductions that result from implementation of this subsection. ``(p) Renewable Content of Diesel Fuel.-- ``(1) In general.--Not later than September 1, 2000, the Administrator, after consideration of applicable economic and environmental factors, shall promulgate regulations applicable to each refiner, blender, or importer of diesel fuel to ensure that the diesel fuel sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements established by the Administrator under this subsection. ``(2) Elements of program.--To the extent that the Administrator determines it to be appropriate, the Administrator shall by regulation establish a program for diesel fuel that has renewable content requirements similar to the requirements of the program for gasoline under subsection (o) in order to ensure the use of biodiesel fuel.''. (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)'' each place it appears and inserting ``(n), or (o)''; 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)'' each place it appears and inserting ``(n), and (o)''. (c) Prevention of Effects on Highway Apportionments.-- (1) Surface transportation program.--Section 104(b)(3) of title 23, United States Code, is amended by adding at the end the following: ``(C) Determination of estimated tax payments.--For the purpose of determining under subparagraph (A)(iii) the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: [[Page S3518]] ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. (2) Minimum guarantee.--Section 105(f)(1) of title 23, United States Code, is amended-- (A) by striking ``(1) In general.--Before'' and inserting the following: ``(1) In general.-- ``(A) Adjustment.--Before''; and (B) by adding at the end the following: ``(B) Determination of estimated tax payments.--For the purpose of determining under this subsection the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. SEC. 6. UPDATING OF BASELINE YEAR. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (8)-- (A) in subparagraph (A)-- (i) in the first sentence, by striking ``Within 1 year after the enactment of the Clean Air Act Amendments of 1990, the'' and inserting ``The''; and (ii) by striking the second sentence; (B) by striking ``calendar year 1990'' each place it appears and inserting ``calendar year 1999''; and (C) in subparagraph (E), by striking ``such 1990 gasoline'' and inserting ``such 1999 gasoline''; and (2) in subparagraphs (A) and (B)(ii) of paragraph (10), by striking ``1990'' each place it appears and inserting ``1999''. (b) Regulations.--As soon as practicable after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall revise the regulations promulgated under section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) to reflect the amendments made by subsection (a). SEC. 7. LEAKING UNDERGROUND STORAGE TANKS. (a) Trust Fund Distribution.--Section 9004 of the Solid Waste Disposal Act (42 U.S.C. 6991c) is amended by adding at the end the following: ``(f) Trust Fund Distribution.-- ``(1) In general.-- ``(A) Amount and permitted use of distribution.--The Administrator shall distribute to States at least 85 percent of the funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund established by section 9508 of the Internal Revenue Code of 1986 (referred to in this subsection as the `Trust Fund') for each fiscal year for use in paying the reasonable costs, incurred under cooperative agreements with States, of-- ``(i) actions taken by a State under section 9003(h)(7)(A); ``(ii) necessary administrative expenses directly related to corrective action and compensation programs under subsection (c)(1); ``(iii) enforcement by a State or local government of a State program approved under this section or of State or local requirements regulating underground storage tanks that are similar or identical to this subtitle; ``(iv) State or local corrective actions pursuant to regulations promulgated under section 9003(c)(4); or ``(v) corrective action and compensation programs under subsection (c)(1) for releases from underground storage tanks regulated under this subtitle if, as determined by the State in accordance with guidelines developed between the Environmental Protection Agency and the States, the financial resources of an owner or operator (including resources provided by programs under subsection (c)(1)) are not adequate to pay for the cost of a corrective action without significantly impairing the ability of the owner or operator to continue in business. ``(B) Nonpermitted uses.--Funds provided by the Administrator under subparagraph (A) shall not be used by a State to provide financial assistance to an owner or operator to meet the requirements concerning underground storage tanks contained in part 280 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subsection), except as provided in subparagraph (A)(v), or similar requirements in State programs approved under this section or similar State or local provisions. ``(C) Tanks within tribal jurisdiction.--The Administrator, in coordination with Indian tribes, shall-- ``(i) expeditiously develop and implement a strategy to-- ``(I) take necessary corrective action in response to releases from leaking underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe, giving priority to releases that present the greatest threat to human health or the environment; and ``(II) implement and enforce requirements regulating underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe; and ``(ii) not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, submit to Congress a report summarizing the status of implementation of the leaking underground storage tank program located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe. ``(2) Allocation.-- ``(A) Process.--Subject to subparagraph (B), in the case of a State with which the Administrator has entered into a cooperative agreement under section 9003(h)(7)(A), the Administrator shall distribute funds from the Trust Fund to the State using the allocation process developed by the Administrator for such cooperative agreements. ``(B) Revisions to process.--The Administrator may revise the allocation process only after-- ``(i) consulting with State agencies responsible for overseeing corrective action for releases from underground storage tanks and with representatives of owners and operators; and ``(ii) taking into consideration, at a minimum-- ``(I) the total revenue received from each State into the Trust Fund; ``(II) the number of confirmed releases from leaking underground storage tanks in each State; ``(III) the number of notified petroleum storage tanks in each State; ``(IV) the percentage of the population of each State using ground water for any beneficial purpose; ``(V) the evaluation of the program performance of each State; ``(VI) the evaluation of the financial needs of each State; and ``(VII) the evaluation of the ability of each State to use the funds in any year. ``(3) Distributions to state agencies.-- ``(A) In general.--Distributions from the Trust Fund under this subsection shall be made directly to the State agency entering into a cooperative agreement or enforcing the State program. ``(B) Administrative expenses.--A State agency that receives funds under this subsection shall limit the proportion of those funds that are used to pay administrative expenses to a percentage that the State may establish by law. ``(4) Cost recovery prohibition.--Funds provided to States from the Trust Fund to owners or operators for programs under section 9004(c)(1) for releases from underground storage tanks are not subject to cost recovery by the Administrator under section 9003(h)(6). ``(5) Permitted uses.--In addition to uses authorized by other provisions of this subtitle, the Administrator may use funds appropriated to the Environmental Protection Agency from the Trust Fund for enforcement of any regulation promulgated by the Administrator under this subtitle.''. (b) Addition to Trust Fund Purposes.--Section 9508(c)(1) of the Internal Revenue Code of 1986 (relating to expenditures) is amended by striking ``to carry out section 9003(h)'' and all that follows and inserting ``to carry out-- ``(A) section 9003(h) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Superfund Amendments and Reauthorization Act of 1986); and ``(B) section 9004(f) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Renewable Fuels Act of 2000).''. (c) Studies.--Not later than 18 months after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall conduct-- (1) a study to determine the corrosive effects of methyl tertiary butyl ether and other widely used fuels and fuel additives on underground storage tanks; and (2) a study to assess the potential public health and environmental risks associated with the use of aboveground storage tanks and the effectiveness of State and Federal regulations or voluntary standards, in existence as of the time of the study, to provide adequate protection of public health and the environment. (d) Technical Amendments.-- (1) Section 9001(3)(A) of the Solid Waste Disposal Act (42 U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and inserting ``substances''. (2) Section 9003(f)(1) of the Solid Waste Disposal Act (42 U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and (d) of this section'' and inserting ``subsections (c) and (d)''. (3) Section 9004(a) of the Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended in the first sentence by striking ``referred to'' and all that follows and inserting ``referred to in subparagraph (A) or (B), or both, of section 9001(2).''. (4) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 6991d) is amended-- [[Page S3519]] (A) in subsection (a), by striking ``study taking'' and inserting ``study, taking''; (B) in subsection (b)(1), by striking ``relevent'' and inserting ``relevant''; and (C) in subsection (b)(4), by striking ``Evironmental'' and inserting ``Environmental''. SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM. (a) In General.--The Administrator of the Environmental Protection Agency may enter into cooperative agreements with the United States Geological Survey, the Department of Agriculture, States, local governments, private landowners, and other interested parties to establish voluntary pilot projects to protect the water quality of private wells and to provide technical assistance to users of water from private wells. (b) Limitation.--This section does not authorize the issuance of guidance or regulations regarding the use or protection of private wells. Mr. LUGAR. Mr. President, I am pleased to join Senator Daschle in introducing the Renewable Fuels Act of 2000. In July 1999, an independent Blue Ribbon Panel on Oxygenates in Gasoline called for major reductions in the use of MTBE as an additive in gasoline. They did so because of growing evidence and public concerns regarding pollution of drinking water supplies by MTBE. These trends are particularly acute in areas of the country using Reformulated Gasoline. The Reformulated Gasoline Program (RFG) has proven to be a success in reducing smog and has exceeded expectations in reducing dangerous and carcinogenic air toxics in gasoline. The second stage of the Reformulated Gasoline Program (RFG) will commence this summer and will have an even greater effect in reducing ozone pollution and air toxics. Because of concerns regarding water pollution, it is clear that the existing situation regarding MTBE is not tenable. The Governor of California has called for a three year phase out of MTBE in California and the California Air Resources Board has adopted regulations to that effect. Environmental officials from eight Northeastern States have proposed a phase down and a capping of the use of MTBE in gasoline in their states. MTBE is being found in wells in the Midwest even in areas that do not use reformulated gasoline. The Renewable Fuels Act of 2000 will lead to about five billion gallons of ethanol being produced in 2010 compared to one billion, six hundred million gallons today. Under the Act, one gallon of cellulosic ethanol will count for one and one-half gallons of regular ethanol in determining whether a refiner has met the Renewable Fuels Standard in a particular year. We are going to have spikes in oil that will disrupt our economy. It may or may not be able to be controlled. It will happen before 2010. It may happen again next week. Our problem in terms of national security and the security of our whole economy revolves around our dependence on petroleum-based fuels. We must be able to address this challenge. Finding an environmentally sensitive way to resolve the MTBE crisis is an important part of this challenge. It is clear that MTBE is on its way out. The question is what kind of legislation is needed to facilitate its departure and whether that legislation will be based on consideration of all of the environmental and energy and national security issues involved. The Renewable Fuels Act of 2000 will establish a nationwide Renewable Fuels Standard (RFS) that would increase the current use of renewable fuels from 1.3% in 2000 to 3.3% by 2010. Refiners who produced renewable fuels beyond the standard could sell credits to other refiners who chose to under comply with the RFS. This bill would give the EPA Administrator authority to limit or eliminate the use of MTBE in order to protect the public health and the environment. It also gives states the ability to further regulate or eliminate MTBE use if the EPA does not choose to eliminate it. It would also establish strict ``anti backsliding provisions'' to capture all of the air quality benefits of MTBE and ethanol as MTBE is phased down or phased out. The Renewable Fuels Act of 2000 will be good for our economy and our environment. Most important of all, it will facilitate the development of renewable fuels, a development critical to ensuring U.S. national and economic security and stabilizing gas prices. I hope that my colleagues will examine this bill as well as other legislative approaches that would spur the development of renewable fuels such as ethanol, whether derived from corn or other agricultural or plant materials. ______ By Mr. JEFFORDS (for himself, Mr. Rockefeller, Mr. Grassley, Mr. Breaux, Mr. Murkowski, Mr. Stevens, Mr. Bond, Mr. Inouye, Mr. Harkin, Mr. Roberts, Mr. Thomas, Mr. Bingaman, Mr. Edwards, Mr. Conrad, and Mr. Kerrey): S. 2505. A bill to amend title XVIII of the Social Security Act to provide increased assess to health care for medical beneficiaries through telemedicine; to the Committee on Finance. telehealth improvement and modernization act of 2000 Mr. JEFFORDS. Mr. President, today I am pleased to join with my good friend Senator Rockefeller in introducing legislation that will improve upon the federal rules for reimbursement for telemedicine and help to ensure that all of our citizens have access to our great health care system. We are joined by a broad, bipartisan group of senators in this effort. In many ways we have the best health care system in the world. But increasingly fewer and fewer Americans actually have access to it. I recently introduced a tax-credit bill that will help some of these Americans and I anticipate supporting future measures aimed at increasing access to health care services. One important area that demands our attention is the problem of access for rural Americans. More than 25 percent of our Nation's senior citizens live in areas underserved for modern health care services. At the same time, telemedicine has come of age. We have moved beyond the feasibility stage and proven that this technology can provide real benefits to people in rural and underserved regions of our country. In my own State of Vermont, nearly 70 per cent live in rural areas. This is the highest percentage rural population of any state in the nation. In Vermont, specialists in more than twenty-five disciplines from Fletcher Allen Health Care in Burlington are made readily available to patients even in the most rural areas. I want to see this level of service expand and be made available to all Americans. We in Washington have made some good faith attempts to allow for the development of telehealth technologies but we have fallen short. In an effort to restrain the expansion of these programs, the Health Care Financing Administration's interpretation of the laws and its cumbersome rules for reimbursement have all but guaranteed the demise of current programs. Federally-funded telemedicine projects exist in almost every State in the Nation. These projects have proven that cost-effective, high- quality care can be delivered using this technology. The provisions in this bill will help to ensure that this care will be continued when the federal grants end. Why is this legislation needed now? Because current HCFA regulations concerning payment are unworkable in the real world. Less than 6 percent of all telemedicine doctor-patient visits last year provided to Medicare beneficiaries would qualify for reimbursement under HCFA's current guidelines. Now that we have more experience and understand better how telemedicine can be used, it is time to enact several changes to the law so that these programs can thrive and deliver on their promise of providing cost-effective, high-quality healthcare where it is needed the most. Rural healthcare providers and patients are eager for this legislation. Norman Wright, President of the Vermont Association of Hospitals and Health Systems, recognized the potential of Fletcher Allen's telemedicine program by describing it as one that ``provides incredible opportunities for rural providers and their patients because it links them to a network with access to the region's best authorities for any given condition.'' I have indeed heard an outpouring of support from healthcare providers across my own State on this issue. Gerry Davis, Professor of Pulmonary and Critical Care Medicine at Fletcher Allen Health Care, described ``appropriate and fair third party payment for [[Page S3520]] telemedicine'' as ``essential in order to move this process beyond education, and to make the service truly useful for patients in remote locations.'' Telemedicine can be used in so many ways. It can be vital to a pediatrician from a rural area with a sick baby who needs to consult with a neonatologist from a tertiary care hospital in the dead of winter and the middle of the night. It can be also be crucial for a depressed senior citizen who desperately needs mental health services available in their own rural county. And it can be much needed help for a frustrated isolated primary care provider who longs to be able to provide for access to specialty services for her patients in their own community. All of these people need our help. While the changes included in this bill are relatively minor in the context of the Medicare program, the effect will be far-reaching. This legislation will allow us to avoid arbitrarily denying access to health care for our senior citizens and persons with disabilities just because of where they live. It will allow for fair and reasonable reimbursement for services that can be delivered appropriately in this way. It will also encourage the incorporation of telehealth technology in the care plans of home health agencies, an area that has already shown great promise for the future in terms of cost-effective disease management. In summary, it will allow us to begin to release the incredible potential of telemedicine. Mr. President, I urge my colleagues to join us in bringing HCFA's approach to the delivery of health care into the 21st Century. Any Medicare reform must include progress on telemedicine for our Nation's rural areas. Mr. ROCKEFELLER. Mr. President, I am extremely pleased to be here today to introduce the Telemedicine Improvement and Modernization Act with Senator Jeffords and many other of my Senate colleagues. This bill incorporates two issues that I care about passionately--health care and technology. Telemedicine has the potential to bridge the gap that currently exists between patients and providers. More than 25% of our Nation's senior citizens live in areas where speciality care may not be available. In states like my own where there are very few primary care or specialty care resources and travel is difficult, telemedicine is critical to ensuring that people in remote areas are getting health care they need. By expanding access to health care through telemedicine, we also improve the quality of care available to people living in underserved areas. Personally, I believe that we are just beginning to tap the enormous potential of technology to advance quality health care, especially in rural areas. Yet, Medicare's telemedicine program is inefficient in its current form. These inefficiencies threaten the future of telemedicine services. When we first created this program, our knowledge of the potential of this new technology, or its practical applications was very limited. Today we have a much better understanding of how telemedicine actually works. With this new knowledge, we can repair the inefficiencies of the current system and encourage the use of this highly effective health practice. By accomplishing this goal, we can ensure that quality health care is available to all seniors and disabled Americans regardless of where they live. There are 8 main elements of the bill: (1) Eliminating the provider ``fee sharing'' requirement; (2) Eliminating the requirement for a ``telepresenter''; (3) Allowing limited reimbursement for referring clinics to recover the cost of their services; (4) Expanding telemedicine services to all non-MSAs; (5) Expanding telemedicine services to direct patient care, not just professional consultations; (6) Making all providers eligible for HCFA reimbursement for services delivered via telemedicine; (7) Creating a federal demonstration project that permits telemedicine reimbursement for ``store and forward'' consultations (i.e., x-rays that are sent to another facility for consultation); and (8) Permitting telehomecare. While these changes are relatively minor in the context of the Medicare program, the affect will be far-reaching. The modernizations we are proposing will dramatically improve access to quality health care in rural areas. This legislation will allow us to begin to release the incredible potential of telemedicine. On a final note, I'd like to thank Karen Edison for her expertise and determination in working on this bill. Because Karen is a practicing telemedicine physician, she has been invaluable in developing and advancing this cause. Thank you, Mr. President for your time today. I hope all of my colleagues will join with me in passing this important piece of legislation. ______ By Mr. GORTON: S. 2506. A bill to amend title 46, United States Code, with respect to the Federal preemption of State law concerning the regulation of marine and ocean navigation, safety, and transportation by States; to the Committee on Commerce, Science, and Transportation. legislation regarding marine and ocean navigation, safety, and transportation Mr. GORTON. Mr. President, environmental protection and states' rights were dealt a blow on March 6th, when the U.S. Supreme Court decided the case of United States vs. Locke. The Court, noting that even though federal and international laws ``may be insufficient protection,'' invalidated Washington laws, and potentially laws in eleven other states, that provide protections against spills by oil tankers. I disagree with the Court's decision, because I believe that Washington state should be allowed to protect its shores as it sees fit. That is why, today I am pleased to introduce the ``States Prevention of Oil Tanker Spills Act'' (SPOTS)-legislation that will reinstate the right of all states to adopt additional standards beyond existing federal requirements governing the operation, maintenance, equipment, personnel and manning of oil tankers. While this legislation will apply to all shoreline states, it is particularly

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 04, 2000)

Text of this article available as: TXT PDF [Pages S3514-S3543] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DASCHLE (for himself and Mr. Lugar): S. 2503. A bill to amend the Clean Air Act to authorize States to regulate harmful fuel additives and to require fuel to contain fuel made from renewable sources, to amend the Solid Waste Disposal Act to require that at least 85 percent of funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund be distributed to States to carry out cooperative agreements for undertaking corrective action and for enforcement of subtitle I of that act, and for other purposes; to the Committee on Environment and Public Works. renewable fuels act of 2000 Mr. DASCHLE. Mr. President, ten years ago I joined with two distinguished colleagues, then-Senate Majority Leader Bob Dole and Senator Tom Harkin, to introduce the reformulated gasoline (RFG) provision of the 1990 Clean Air Act Amendments. The RFG provision, with its minimum oxygen standard, was adopted in the Senate by the overwhelming vote of 69 to 30 and eventually signed into law by President George Bush. I am proud to say that this program has resulted in substantial improvement in air quality around the country. It also has stimulated increased production and use of renewable ethanol and other oxygenates needed to meet the minimum oxygen standard. Unfortunately, an unanticipated development involving the petroleum- based oxygenate MTBE requires us to re-examine the many benefits of the RFG program. The detection of MTBE in ground water around the country has generated considerable debate in recent months over how to deal with this fuel additive and the oxygen requirement of the reformulated gasoline program. The resolution of this debate will have significant consequences for the environment, for farmers and for the rural economy. The pace of activity to resolve the MTBE issue is accelerating rapidly. Battlelines are being drawn as the state of California and its allies focus on scrapping the oxygen requirement. It is clear that Congress and/or the Clinton administration will respond to the MTBE problem. My focus is on ensuring that that response not only serves the environment, but also retains a prominent place for ethanol--a place that assures long-term, predictable growth of the industry. I believe a comprehensive legislative solution is necessary in this case--one that recognizes and preserves the important air quality benefits of the RFG program, protects water supplies and leads the nation away from greater dependence on imported oil. I have worked for the last year with the ethanol industry, Republican and Democratic colleagues in the Senate, the Governor's Ethanol Coalition, environmental organizations and the administration in search of a solution that gives states the tools they need to address MTBE contamination, ensures the future growth of domestic renewable fuels, and prevents supply shortages and price spikes in the nation's fuels supply. This process has led me to two basic conclusions. First, the MTBE crisis has left the RFG oxygen requirement vulnerable to legislative attack. Those who doubt this conclusion should reflect on the following facts. California refiners have shown that clean-burning gasoline can be produced without oxygen. EPA's Blue Ribbon Panel has recommended that the oxygen requirement be repealed. The RFG oxygen requirement is opposed by a diverse coalition that includes the American Lung Association, the American Petroleum Institute, the New England States Coordinated Air Use Management agency, the State of California and the Natural Resources Defense Council (NRDC). Second, support for the oxygen requirement will weaken over time. Improvements in auto emissions control technology will cause the air quality benefits of oxygen in gasoline to decline and the justification for the RFG oxygen requirement to diminish. As one of the original authors of the reformulated gasoline provisions of the Clean Air Act, I feel something of a proprietary interest in the oxygen requirement. As a legislator, I recognize that circumstances change, and obstinacy should not be allowed to become a barrier to the achievement of important policy goals. Ethanol advocates face a choice between defending the oxygen requirement in the near term, realizing that its days ultimately are numbered, or using the current MTBE debate to guarantee the future growth of the ethanol industry based on important public policy goals, such as energy security, greenhouse gas emissions reductions, and domestic economic growth. In my judgment, providing states with the flexibility to waive the RFG oxygen requirement is a fair tradeoff for the establishment of a renewable fuels standard. It represents the most effective way to achieve the environmental and economic goals of governors and consumers, while putting the ethanol industry on a steady growth path well into the future and promoting ethanol production in new regions of the nation. Therefore, today, with Senator Richard Lugar, I am introducing the Renewable Fuels Act of 2000. Under our [[Page S3515]] legislation, EPA is directed to reduce the use of MTBE to safe levels, and states can obtain waivers from the RFG oxygen requirement and further regulate MTBE if they desire. This will allow the nation to deal with the MTBE contamination issue responsibly and avoid gasoline supply disruptions. The bill also includes provisions protecting the air quality gains that have resulted from the use of oxygenated fuels. To protect market opportunities for renewable fuels, the bill establishes a renewable fuels standard for the nation's gasoline, which begins in 2000 at 1.3 percent--roughly where renewable fuels production stands today--and gradually increases over the next decade to 3.3 percent of the nation's gasoline in 2010. Considering the fact that overall gasoline use is expected to increase over the next decade, this standard will more than triple ethanol use over that period. In meeting that requirement, our legislation stipulates that a gallon of biomass ethanol counts as much as 1.5 gallons of starch-based ethanol, thereby providing a strong incentive for the development of biomass-based ethanol plans throughout the country. It also established a renewable fuels standard for diesel fuels to promote the use of biodiesel. These renewable fuels standards can be met through nationwide credit trading, to allow for the most economomical use of ethanol and biodiesel. For those who are concerned about the potential impact of a drought or other natural disaster on the ability of the renewable fuels industry to supply this market, the legislation allows the EPA Administrator, in consultation with the Secretary of Agriculture, to waive the renewable requirement in any given year upon determination that there is indequate domestic supply or distribution capacity, or that the requirement would severely harm the economic or environment of a State, a region, or the United States. I also intend to work with my colleagues on both sides of the aisle to establish a strategic corn reserve as a complement to the renewable fuel standard. A properly managed strategic corn reserve could serve as the equivalent of the strategic petroleum reserve and ensure stable feedstocks for domestic ethanol producers in the event of weather induced supply interruptions. Taxpayers would benefit as farmers could receive fair market prices, thereby reducing the need for emergency assistance each year. It is important to recognize that under Senator Lugar's and my approach, the oxygen requirement is not waived entirely. States can decide for themselves whether to apply for a waiver from the RFG oxygen requirement. We fully expect that RFG programs that currently are using ethanol and have not experienced MTBE contamination, such as Chicago and Milwaukee, will stay in the program. Moreover, the bill allows any governor to apply to EPA to opt into the RFG program, thus expanding its air quality benefits to new regions of the country. Those areas that remain in the program or opt into it, and use ethanol, will generate credits that can be sold to other regions of the country. Finally, the bill prevents adverse effects on states' highway trust fund tax allocations, with ``hold harmless'' language ensuring that states reporting Federal excise tax receipts on gasoline are not penalized for their ethanol blend sales. Again, my goal in introducing this legislation is both to support states that want to get MTBE out of gasoline and to ensure that this effort does not adversely affect ethanol production. It is also to put into place a program that will grow the ethanol industry steadily over the next decade, thereby assuring the market stability necessary to attract investment in the construction of new plants and significantly increasing the market for corn and biomass. This approach not only will get MTBE out of groundwater; it will do so without backsliding on the air quality improvements generated by the RFG program while increasing corn demand by 600 million bushels per year. Mr. President, since first floating this concept in May of last year, I have heard from numerous stakeholders in this complex debate. The legislative concept that Senator Lugar and I unveil today has been endorsed by diverse interests ranging from the American Coalition for Ethanol (ACE) in Sioux Falls, South Dakota, to the 24-state Governors' Ethanol Coalition, to the Northeast States for Coordinated Air Use Management (NESCAUM) to Mr. Leo Leibowitz, chairman of Getty Petroleum. I believe that we have struck a delicate balance between the interests of farmers, consumers, state regulatory officials, refiners and those concerned about the environment. This plan is a worthy successor to the original 1990 RFG provision, preserving all of the good things it has achieved and rectifying those elements that need fixing. I look forward to working with Senators Smith and Baucus, the chairman and ranking member of the Senate Environment and Public Works Committee, to enact legislation resolving the MTBE issue. I hope that other colleagues will join Senator Lugar and me in support of this legislation. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2503 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 ``Renewable Fuels Act of 2000''. SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL OR PROHIBIT USE OF MTBE. Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended-- (1) in paragraph (1)(A), by striking ``any emission product of such fuel or fuel additive causes, or contributes, to air pollution which may reasonably be anticipated to endanger the public health or welfare,'' and inserting ``the fuel or fuel additive, or an emission product of the fuel or fuel additive, causes or contributes to air, water, or soil pollution that may reasonably be anticipated to endanger the public health or welfare or the environment,''; (2) in paragraph (2)(C), by inserting ``or have other environmental impacts'' after ``emissions''; (3) in paragraph (4)-- (A) in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``(4)(A) Except as otherwise provided in subparagraph (B) or (C),'' and inserting the following: ``(4) Limitation on state authority with respect to fuels and fuel additives.-- ``(A) In general.-- ``(i) Fuels and fuel additives.--Except as otherwise provided in subparagraph (B) or (C) or paragraph (5),''; (C) in subparagraph (A)-- (i) in clause (i) (as designated by subparagraph (B)), by inserting ``or water or soil quality protection'' after ``emission control''; and (ii) by adding at the end the following: ``(ii) MTBE.--Notwithstanding clause (i), except as otherwise provided in subparagraph (B) or (C) or paragraph (5), no State (or political subdivision of a State) may prescribe or attempt to enforce, for the purpose of motor vehicle emission control or water or soil quality protection, any control or prohibition on methyl tertiary butyl ether as a fuel additive in a motor vehicle or motor vehicle engine.''; (D) in subparagraph (B), by inserting ``or water or soil quality protection'' after ``emission control''; and (E) in subparagraph (C)-- (i) in the first sentence-- (I) by inserting ``or water or soil quality protection'' after ``emission control''; and (II) by inserting before the period at the end the following: ``or, if the Administrator grants a petition of the State under paragraph (5)''; and (ii) in the second sentence, by striking ``only if he'' and inserting ``if the Administrator''; and (4) by adding at the end the following: ``(5) State petitions for authority to control or prohibit use of fuels or fuel additives for non-air quality purposes.-- ``(A) In general.--A State seeking to prescribe and enforce a control or prohibition on a fuel or fuel additive for the purpose of water or soil quality protection under paragraph (4)(C) shall submit a petition to the Administrator for authority to take such action. ``(B) Required elements of petition.--A petition submitted under subparagraph (A) shall-- ``(i) include information on-- ``(I) the likely effects of the control or prohibition on fuel availability and price in the affected supply area or region; and ``(II) the improvements in environmental quality or public health or welfare expected to result from the control or prohibition; and ``(ii) demonstrate that the authority is necessary to protect the environment or public health or welfare. [[Page S3516]] ``(C) Action by the administrator.--Not later than 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator shall grant or deny the petition. ``(D) Criteria for granting of petitions.--The Administrator shall grant a petition submitted by a State under subparagraph (A) unless the Administrator finds that-- ``(i) the petition fails to reasonably demonstrate that the authority is necessary to protect the environment or public health or welfare; ``(ii) the control or prohibition is likely to have a substantial and significant adverse effect on fuel availability or price (including a State or regional effect) that clearly outweighs any benefits associated with the control or prohibition; or ``(iii) in the case of a petition submitted by a State seeking the authority primarily to protect water resources, the State has failed to take other appropriate and reasonable actions to prevent contamination of water resources by fuels or fuel additives, such as-- ``(I) adoption of a prohibition on the delivery of gasoline to noncompliant facilities with underground storage tanks; or ``(II) operation of a statewide monitoring and compliance assurance system. ``(E) Effect of failure of administrator to act.--If, by the date that is 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator has not proposed to grant or deny the petition under subparagraph (C), the petition shall be deemed to be granted. ``(F) Procedural requirements.-- ``(i) Inapplicability of certain requirements.--Section 307(d) of this Act and sections 553 through 557 of title 5, United States Code, shall not apply to actions on a petition submitted under subparagraph (A). ``(ii) Public notice and opportunity for comment.--The Administrator shall provide public notice and opportunity for comment with respect to a petition submitted under subparagraph (A). ``(6) Limitation on mtbe content.--The Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce by the refiner, blender, or importer on or after January 1, 2004, in an area has a content of methyl tertiary butyl ether that is at a level that-- ``(A) the Administrator determines may not reasonably be anticipated to endanger natural resources and the public health; and ``(B) does not exceed the annual average volume of methyl tertiary butyl ether per gallon of gasoline used in the area before 1995.''. SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (1)-- (A) 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,''; (B) in the first sentence, by inserting before the period at the end the following: ``and opt-in areas under paragraph (6)''; and (C) by adding at the end the following: ``(B) Adjustment of voc performance standard.-- ``(i) In general.--The Administrator may adjust the volatile organic compounds performance standard promulgated under subparagraph (A) in the case of a fuel formulation that achieves reductions in the quantity of mass emissions of carbon monoxide that are greater than or less than the reductions associated with a reformulated gasoline that contains 2.0 percent oxygen by weight and otherwise meets the requirements of this subsection. ``(ii) Amount of adjustment.--The amount of an adjustment under clause (i) shall be based on the effect on ozone concentrations of the combined reductions in emissions of volatile organic compounds and reductions in emissions of carbon monoxide.''; (2) in paragraph (2)-- (A) in subparagraph (B)-- (i) by striking ``The oxygen'' and inserting the following: ``(i) In general.--The oxygen''; and (ii) by adding at the end the following: ``(ii) Waiver for certain states.--The Administrator shall waive the application of clause (i) for any ozone nonattainment area in a State if the Governor of the State submits for such a waiver an application that-- ``(I) demonstrates that the State is in full compliance with Federal regulations concerning the control and prevention of leaking underground storage tanks; or ``(II) provides a plan that outlines the measures the State will take to fully comply with the underground storage tank regulations by a date not later than 2 years after the receipt of the application of the Governor. ``(iii) Effective date.--A waiver under clause (ii) shall become effective on the later of-- ``(I) January 1 of the calendar year immediately following the calendar year during which the application for the waiver is received; or ``(II) the date that is 180 days after the date on which the application for the waiver is received.''; and (B) by adding at the end the following: ``(E) Aromatics.--The aromatic hydrocarbon content of the gasoline shall not exceed 22 percent by volume.''; (3) in paragraph (3)-- (A) in subparagraph (A)(ii), by striking ``25 percent'' and inserting ``22 percent''; and (B) in subparagraph (B)-- (i) by striking ``Any reduction'' and inserting the following: ``(iii) Treatment of greater reductions.--Any reduction''; and (ii) by adding at the end the following: ``(iv) Anti-backsliding provision.-- ``(I) In general.--Not later than June 1, 2000, the Administrator shall revise performance standards under this subparagraph as necessary to ensure that-- ``(aa) the ozone-forming potential, taking into account all ozone precursors (including volatile organic compounds, oxides of nitrogen, and carbon monoxide), of the aggregate emissions during the high ozone season (as determined by the Administrator) from baseline vehicles when using reformulated gasoline does not exceed the ozone-forming potential of the aggregate emissions during the high ozone season from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasoline sold in calendar year 2000 and subsequent calendar years; and ``(bb) the aggregate emissions of the pollutants specified in subclause (II) from baseline vehicles when using reformulated gasoline do not exceed the aggregate emissions of those pollutants from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasolines sold in calendar year 2000 and subsequent calendar years. ``(II) Specified pollutants.--The pollutants specified in this subclause are-- ``(aa) toxics, categorized by degrees of toxicity; and ``(bb) such other pollutants, including pollutants regulated under section 108, and such precursors to those pollutants, as the Administrator determines by regulation should be controlled to prevent the deterioration of air quality and to achieve attainment of a national ambient air quality standard in 1 or more areas.''; and (4) in paragraph (4)(B)-- (A) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``The Administrator'' and inserting the following: ``(i) In general.--The Administrator''; (C) in clause (i) (as designated by subparagraph (B))-- (i) in subclause (I) (as redesignated by subparagraph (A)), by striking ``, and'' and inserting a semicolon; (ii) in subclause (II) (as redesignated by subparagraph (A))-- (I) by striking ``achieve equivalent'' and inserting the following: ``achieve-- ``(aa) equivalent''; (II) by striking the period at the end and inserting ``; or''; and (III) by adding at the end the following: ``(bb) combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration, as provided in clause (ii)(I), that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3); and''; and (iii) by adding at the end the following: ``(III) achieve equivalent or greater reductions in emissions of toxic air pollutants than are achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3).''; and (D) by adding at the end the following: ``(ii) Carbon monoxide credit.-- ``(I) In general.--In determining whether a fuel formulation or slate of fuel formulations achieves combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3), the Administrator-- ``(aa) shall consider, to the extent appropriate, the change in carbon monoxide emissions from baseline vehicles attributable to an oxygen content in the fuel formulation or slate of fuel formulations that exceeds 2.0 percent by weight; and ``(bb) may consider, to the extent appropriate, the change in carbon monoxide emissions described in item (aa) from vehicles other than baseline vehicles. ``(II) Oxygen credits.--Any excess oxygen content that is taken into consideration in making a determination under subclause (I) may not be used to generate credits under paragraph (7)(A). ``(III) Relation to title i.--Any fuel formulation or slate of fuel formulations that is certified as equivalent or greater under this subparagraph, taking into consideration the combined reductions in emissions of volatile organic compounds and carbon monoxide, shall receive the same volatile organic compounds reduction credit for the purposes of subsections (b)(1) and (c)(2)(B) of section 182 as a fuel meeting the applicable requirements of paragraph (3).''. (b) Reformulated Gasoline Carbon Monoxide Reduction Credit.--Section 182(c)(2)(B) of the Clean Air Act (42 U.S.C. [[Page S3517]] 7511a(c)(2)(B)) is amended by adding at the end the following: ``An adjustment to the volatile organic compound emission reduction requirements under section 211(k)(3)(B)(iv) shall be credited toward the requirement for VOC emissions reductions under this subparagraph.''. SEC. 4. 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 so redesignated)-- (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) Nonclassified areas.-- ``(i) In general.--Upon the application of the Governor of a State, the Administrator shall apply the prohibition specified in paragraph (5) in any area in the State that is not a covered area or an area referred to in subparagraph (A)(i). ``(ii) Publication of application.--As soon as practicable after receipt of an application under clause (i), the Administrator shall publish the application in the Federal Register.''. SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER MOTOR FUELS. (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 Content of Gasoline.-- ``(1) In general.-- ``(A) Regulations.--Not later than September 1, 2000, the Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements of this subsection. ``(B) Renewable content requirements.-- ``(i) In general.--All gasoline sold or introduced into commerce in the United States by a refiner, blender, or importer shall contain, on a quarterly average basis, a quantity of fuel derived from a renewable source (including biomass ethanol) that is not less than the applicable percentage by volume for the quarter. ``(ii) Biomass ethanol.--For the purposes of clause (i), 1 gallon of biomass ethanol shall be considered to be the equivalent of 1.5 gallons of fuel derived from a renewable source. ``(iii) Applicable percentage.--For the purposes of clause (i), the applicable percentage for a quarter of a calendar year shall be determined in accordance with the following table: Applicable percentage of fuel derived from a renewable source: `Calendar year: 2000.........................................................1.3 .... 2001.........................................................1.5 .... 2002.........................................................1.7 .... 2003.........................................................1.9 .... 2004.........................................................2.1 .... 2005.........................................................2.3 .... 2006.........................................................2.5 .... 2007.........................................................2.7 .... 2008.........................................................2.9 .... 2009.........................................................3.1 .... 2010 and thereafter..........................................3.3..... ``(C) Fuel derived from a renewable source.--For the purposes of this subsection, a fuel shall be considered to be derived from a renewable source if the fuel-- ``(i) is produced from grain, starch, oilseeds, or other biomass; and ``(ii) is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle. ``(D) Biomass ethanol.--For the purposes of this subsection, a fuel shall be considered to be biomass ethanol if the fuel is 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 commodities and residues; ``(vi) fibers; ``(vii) animal wastes and other waste materials; and ``(viii) municipal solid waste. ``(E) Credit program.-- ``(i) In general.--The regulations promulgated under this subsection shall provide for the generation of an appropriate amount of credits by a person that refines, blends, or imports gasoline that contains, on a quarterly average basis, a quantity of fuel derived from a renewable source or a quantity of biomass ethanol that is greater than the quantity required under subparagraph (B). ``(ii) Use of credits.--The regulations shall provide that a person that generates the credits may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with subparagraph (B). ``(2) Waivers.-- ``(A) In general.--The Administrator, in consultation with the Secretary of Agriculture, may waive the requirements of paragraph (1)(B) in whole or in part on petition by a State-- ``(i) based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirements 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 or distribution capacity to meet the requirements of paragraph (1)(B). ``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture-- ``(i) shall approve or deny a State petition for a waiver of the requirements of paragraph (1)(B) within 180 days after the date on which the petition is received; but ``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted. ``(C) Termination of waivers.--A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture. ``(D) Oxygen content waivers.--The grant or denial of a waiver under subsection (k)(2)(B) shall not affect the requirements of this subsection. ``(3) Small refiners.--The regulations promulgated by the Administrator under paragraph (1) may provide an exemption, in whole or in part, for small refiners (as defined by the Administrator). ``(4) Guidance for labeling.--After consultation with the Secretary of Agriculture, the Administrator shall issue guidance to the States for labeling, at the point of retail sale-- ``(A) the fuel derived from a renewable source that is contained in the fuel sold; and ``(B) the major fuel additive components of the fuel sold. ``(5) Reports to congress.--Not less often than every 3 years, the Administrator shall submit to Congress a report on-- ``(A) reductions in emissions of criteria air pollutants listed under section 108 that result from implementation of this subsection; and ``(B) in consultation with the Secretary of Energy, greenhouse gas emission reductions that result from implementation of this subsection. ``(p) Renewable Content of Diesel Fuel.-- ``(1) In general.--Not later than September 1, 2000, the Administrator, after consideration of applicable economic and environmental factors, shall promulgate regulations applicable to each refiner, blender, or importer of diesel fuel to ensure that the diesel fuel sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements established by the Administrator under this subsection. ``(2) Elements of program.--To the extent that the Administrator determines it to be appropriate, the Administrator shall by regulation establish a program for diesel fuel that has renewable content requirements similar to the requirements of the program for gasoline under subsection (o) in order to ensure the use of biodiesel fuel.''. (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)'' each place it appears and inserting ``(n), or (o)''; 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)'' each place it appears and inserting ``(n), and (o)''. (c) Prevention of Effects on Highway Apportionments.-- (1) Surface transportation program.--Section 104(b)(3) of title 23, United States Code, is amended by adding at the end the following: ``(C) Determination of estimated tax payments.--For the purpose of determining under subparagraph (A)(iii) the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: [[Page S3518]] ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. (2) Minimum guarantee.--Section 105(f)(1) of title 23, United States Code, is amended-- (A) by striking ``(1) In general.--Before'' and inserting the following: ``(1) In general.-- ``(A) Adjustment.--Before''; and (B) by adding at the end the following: ``(B) Determination of estimated tax payments.--For the purpose of determining under this subsection the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. SEC. 6. UPDATING OF BASELINE YEAR. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (8)-- (A) in subparagraph (A)-- (i) in the first sentence, by striking ``Within 1 year after the enactment of the Clean Air Act Amendments of 1990, the'' and inserting ``The''; and (ii) by striking the second sentence; (B) by striking ``calendar year 1990'' each place it appears and inserting ``calendar year 1999''; and (C) in subparagraph (E), by striking ``such 1990 gasoline'' and inserting ``such 1999 gasoline''; and (2) in subparagraphs (A) and (B)(ii) of paragraph (10), by striking ``1990'' each place it appears and inserting ``1999''. (b) Regulations.--As soon as practicable after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall revise the regulations promulgated under section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) to reflect the amendments made by subsection (a). SEC. 7. LEAKING UNDERGROUND STORAGE TANKS. (a) Trust Fund Distribution.--Section 9004 of the Solid Waste Disposal Act (42 U.S.C. 6991c) is amended by adding at the end the following: ``(f) Trust Fund Distribution.-- ``(1) In general.-- ``(A) Amount and permitted use of distribution.--The Administrator shall distribute to States at least 85 percent of the funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund established by section 9508 of the Internal Revenue Code of 1986 (referred to in this subsection as the `Trust Fund') for each fiscal year for use in paying the reasonable costs, incurred under cooperative agreements with States, of-- ``(i) actions taken by a State under section 9003(h)(7)(A); ``(ii) necessary administrative expenses directly related to corrective action and compensation programs under subsection (c)(1); ``(iii) enforcement by a State or local government of a State program approved under this section or of State or local requirements regulating underground storage tanks that are similar or identical to this subtitle; ``(iv) State or local corrective actions pursuant to regulations promulgated under section 9003(c)(4); or ``(v) corrective action and compensation programs under subsection (c)(1) for releases from underground storage tanks regulated under this subtitle if, as determined by the State in accordance with guidelines developed between the Environmental Protection Agency and the States, the financial resources of an owner or operator (including resources provided by programs under subsection (c)(1)) are not adequate to pay for the cost of a corrective action without significantly impairing the ability of the owner or operator to continue in business. ``(B) Nonpermitted uses.--Funds provided by the Administrator under subparagraph (A) shall not be used by a State to provide financial assistance to an owner or operator to meet the requirements concerning underground storage tanks contained in part 280 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subsection), except as provided in subparagraph (A)(v), or similar requirements in State programs approved under this section or similar State or local provisions. ``(C) Tanks within tribal jurisdiction.--The Administrator, in coordination with Indian tribes, shall-- ``(i) expeditiously develop and implement a strategy to-- ``(I) take necessary corrective action in response to releases from leaking underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe, giving priority to releases that present the greatest threat to human health or the environment; and ``(II) implement and enforce requirements regulating underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe; and ``(ii) not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, submit to Congress a report summarizing the status of implementation of the leaking underground storage tank program located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe. ``(2) Allocation.-- ``(A) Process.--Subject to subparagraph (B), in the case of a State with which the Administrator has entered into a cooperative agreement under section 9003(h)(7)(A), the Administrator shall distribute funds from the Trust Fund to the State using the allocation process developed by the Administrator for such cooperative agreements. ``(B) Revisions to process.--The Administrator may revise the allocation process only after-- ``(i) consulting with State agencies responsible for overseeing corrective action for releases from underground storage tanks and with representatives of owners and operators; and ``(ii) taking into consideration, at a minimum-- ``(I) the total revenue received from each State into the Trust Fund; ``(II) the number of confirmed releases from leaking underground storage tanks in each State; ``(III) the number of notified petroleum storage tanks in each State; ``(IV) the percentage of the population of each State using ground water for any beneficial purpose; ``(V) the evaluation of the program performance of each State; ``(VI) the evaluation of the financial needs of each State; and ``(VII) the evaluation of the ability of each State to use the funds in any year. ``(3) Distributions to state agencies.-- ``(A) In general.--Distributions from the Trust Fund under this subsection shall be made directly to the State agency entering into a cooperative agreement or enforcing the State program. ``(B) Administrative expenses.--A State agency that receives funds under this subsection shall limit the proportion of those funds that are used to pay administrative expenses to a percentage that the State may establish by law. ``(4) Cost recovery prohibition.--Funds provided to States from the Trust Fund to owners or operators for programs under section 9004(c)(1) for releases from underground storage tanks are not subject to cost recovery by the Administrator under section 9003(h)(6). ``(5) Permitted uses.--In addition to uses authorized by other provisions of this subtitle, the Administrator may use funds appropriated to the Environmental Protection Agency from the Trust Fund for enforcement of any regulation promulgated by the Administrator under this subtitle.''. (b) Addition to Trust Fund Purposes.--Section 9508(c)(1) of the Internal Revenue Code of 1986 (relating to expenditures) is amended by striking ``to carry out section 9003(h)'' and all that follows and inserting ``to carry out-- ``(A) section 9003(h) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Superfund Amendments and Reauthorization Act of 1986); and ``(B) section 9004(f) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Renewable Fuels Act of 2000).''. (c) Studies.--Not later than 18 months after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall conduct-- (1) a study to determine the corrosive effects of methyl tertiary butyl ether and other widely used fuels and fuel additives on underground storage tanks; and (2) a study to assess the potential public health and environmental risks associated with the use of aboveground storage tanks and the effectiveness of State and Federal regulations or voluntary standards, in existence as of the time of the study, to provide adequate protection of public health and the environment. (d) Technical Amendments.-- (1) Section 9001(3)(A) of the Solid Waste Disposal Act (42 U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and inserting ``substances''. (2) Section 9003(f)(1) of the Solid Waste Disposal Act (42 U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and (d) of this section'' and inserting ``subsections (c) and (d)''. (3) Section 9004(a) of the Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended in the first sentence by striking ``referred to'' and all that follows and inserting ``referred to in subparagraph (A) or (B), or both, of section 9001(2).''. (4) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 6991d) is amended-- [[Page S3519]] (A) in subsection (a), by striking ``study taking'' and inserting ``study, taking''; (B) in subsection (b)(1), by striking ``relevent'' and inserting ``relevant''; and (C) in subsection (b)(4), by striking ``Evironmental'' and inserting ``Environmental''. SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM. (a) In General.--The Administrator of the Environmental Protection Agency may enter into cooperative agreements with the United States Geological Survey, the Department of Agriculture, States, local governments, private landowners, and other interested parties to establish voluntary pilot projects to protect the water quality of private wells and to provide technical assistance to users of water from private wells. (b) Limitation.--This section does not authorize the issuance of guidance or regulations regarding the use or protection of private wells. Mr. LUGAR. Mr. President, I am pleased to join Senator Daschle in introducing the Renewable Fuels Act of 2000. In July 1999, an independent Blue Ribbon Panel on Oxygenates in Gasoline called for major reductions in the use of MTBE as an additive in gasoline. They did so because of growing evidence and public concerns regarding pollution of drinking water supplies by MTBE. These trends are particularly acute in areas of the country using Reformulated Gasoline. The Reformulated Gasoline Program (RFG) has proven to be a success in reducing smog and has exceeded expectations in reducing dangerous and carcinogenic air toxics in gasoline. The second stage of the Reformulated Gasoline Program (RFG) will commence this summer and will have an even greater effect in reducing ozone pollution and air toxics. Because of concerns regarding water pollution, it is clear that the existing situation regarding MTBE is not tenable. The Governor of California has called for a three year phase out of MTBE in California and the California Air Resources Board has adopted regulations to that effect. Environmental officials from eight Northeastern States have proposed a phase down and a capping of the use of MTBE in gasoline in their states. MTBE is being found in wells in the Midwest even in areas that do not use reformulated gasoline. The Renewable Fuels Act of 2000 will lead to about five billion gallons of ethanol being produced in 2010 compared to one billion, six hundred million gallons today. Under the Act, one gallon of cellulosic ethanol will count for one and one-half gallons of regular ethanol in determining whether a refiner has met the Renewable Fuels Standard in a particular year. We are going to have spikes in oil that will disrupt our economy. It may or may not be able to be controlled. It will happen before 2010. It may happen again next week. Our problem in terms of national security and the security of our whole economy revolves around our dependence on petroleum-based fuels. We must be able to address this challenge. Finding an environmentally sensitive way to resolve the MTBE crisis is an important part of this challenge. It is clear that MTBE is on its way out. The question is what kind of legislation is needed to facilitate its departure and whether that legislation will be based on consideration of all of the environmental and energy and national security issues involved. The Renewable Fuels Act of 2000 will establish a nationwide Renewable Fuels Standard (RFS) that would increase the current use of renewable fuels from 1.3% in 2000 to 3.3% by 2010. Refiners who produced renewable fuels beyond the standard could sell credits to other refiners who chose to under comply with the RFS. This bill would give the EPA Administrator authority to limit or eliminate the use of MTBE in order to protect the public health and the environment. It also gives states the ability to further regulate or eliminate MTBE use if the EPA does not choose to eliminate it. It would also establish strict ``anti backsliding provisions'' to capture all of the air quality benefits of MTBE and ethanol as MTBE is phased down or phased out. The Renewable Fuels Act of 2000 will be good for our economy and our environment. Most important of all, it will facilitate the development of renewable fuels, a development critical to ensuring U.S. national and economic security and stabilizing gas prices. I hope that my colleagues will examine this bill as well as other legislative approaches that would spur the development of renewable fuels such as ethanol, whether derived from corn or other agricultural or plant materials. ______ By Mr. JEFFORDS (for himself, Mr. Rockefeller, Mr. Grassley, Mr. Breaux, Mr. Murkowski, Mr. Stevens, Mr. Bond, Mr. Inouye, Mr. Harkin, Mr. Roberts, Mr. Thomas, Mr. Bingaman, Mr. Edwards, Mr. Conrad, and Mr. Kerrey): S. 2505. A bill to amend title XVIII of the Social Security Act to provide increased assess to health care for medical beneficiaries through telemedicine; to the Committee on Finance. telehealth improvement and modernization act of 2000 Mr. JEFFORDS. Mr. President, today I am pleased to join with my good friend Senator Rockefeller in introducing legislation that will improve upon the federal rules for reimbursement for telemedicine and help to ensure that all of our citizens have access to our great health care system. We are joined by a broad, bipartisan group of senators in this effort. In many ways we have the best health care system in the world. But increasingly fewer and fewer Americans actually have access to it. I recently introduced a tax-credit bill that will help some of these Americans and I anticipate supporting future measures aimed at increasing access to health care services. One important area that demands our attention is the problem of access for rural Americans. More than 25 percent of our Nation's senior citizens live in areas underserved for modern health care services. At the same time, telemedicine has come of age. We have moved beyond the feasibility stage and proven that this technology can provide real benefits to people in rural and underserved regions of our country. In my own State of Vermont, nearly 70 per cent live in rural areas. This is the highest percentage rural population of any state in the nation. In Vermont, specialists in more than twenty-five disciplines from Fletcher Allen Health Care in Burlington are made readily available to patients even in the most rural areas. I want to see this level of service expand and be made available to all Americans. We in Washington have made some good faith attempts to allow for the development of telehealth technologies but we have fallen short. In an effort to restrain the expansion of these programs, the Health Care Financing Administration's interpretation of the laws and its cumbersome rules for reimbursement have all but guaranteed the demise of current programs. Federally-funded telemedicine projects exist in almost every State in the Nation. These projects have proven that cost-effective, high- quality care can be delivered using this technology. The provisions in this bill will help to ensure that this care will be continued when the federal grants end. Why is this legislation needed now? Because current HCFA regulations concerning payment are unworkable in the real world. Less than 6 percent of all telemedicine doctor-patient visits last year provided to Medicare beneficiaries would qualify for reimbursement under HCFA's current guidelines. Now that we have more experience and understand better how telemedicine can be used, it is time to enact several changes to the law so that these programs can thrive and deliver on their promise of providing cost-effective, high-quality healthcare where it is needed the most. Rural healthcare providers and patients are eager for this legislation. Norman Wright, President of the Vermont Association of Hospitals and Health Systems, recognized the potential of Fletcher Allen's telemedicine program by describing it as one that ``provides incredible opportunities for rural providers and their patients because it links them to a network with access to the region's best authorities for any given condition.'' I have indeed heard an outpouring of support from healthcare providers across my own State on this issue. Gerry Davis, Professor of Pulmonary and Critical Care Medicine at Fletcher Allen Health Care, described ``appropriate and fair third party payment for [[Page S3520]] telemedicine'' as ``essential in order to move this process beyond education, and to make the service truly useful for patients in remote locations.'' Telemedicine can be used in so many ways. It can be vital to a pediatrician from a rural area with a sick baby who needs to consult with a neonatologist from a tertiary care hospital in the dead of winter and the middle of the night. It can be also be crucial for a depressed senior citizen who desperately needs mental health services available in their own rural county. And it can be much needed help for a frustrated isolated primary care provider who longs to be able to provide for access to specialty services for her patients in their own community. All of these people need our help. While the changes included in this bill are relatively minor in the context of the Medicare program, the effect will be far-reaching. This legislation will allow us to avoid arbitrarily denying access to health care for our senior citizens and persons with disabilities just because of where they live. It will allow for fair and reasonable reimbursement for services that can be delivered appropriately in this way. It will also encourage the incorporation of telehealth technology in the care plans of home health agencies, an area that has already shown great promise for the future in terms of cost-effective disease management. In summary, it will allow us to begin to release the incredible potential of telemedicine. Mr. President, I urge my colleagues to join us in bringing HCFA's approach to the delivery of health care into the 21st Century. Any Medicare reform must include progress on telemedicine for our Nation's rural areas. Mr. ROCKEFELLER. Mr. President, I am extremely pleased to be here today to introduce the Telemedicine Improvement and Modernization Act with Senator Jeffords and many other of my Senate colleagues. This bill incorporates two issues that I care about passionately--health care and technology. Telemedicine has the potential to bridge the gap that currently exists between patients and providers. More than 25% of our Nation's senior citizens live in areas where speciality care may not be available. In states like my own where there are very few primary care or specialty care resources and travel is difficult, telemedicine is critical to ensuring that people in remote areas are getting health care they need. By expanding access to health care through telemedicine, we also improve the quality of care available to people living in underserved areas. Personally, I believe that we are just beginning to tap the enormous potential of technology to advance quality health care, especially in rural areas. Yet, Medicare's telemedicine program is inefficient in its current form. These inefficiencies threaten the future of telemedicine services. When we first created this program, our knowledge of the potential of this new technology, or its practical applications was very limited. Today we have a much better understanding of how telemedicine actually works. With this new knowledge, we can repair the inefficiencies of the current system and encourage the use of this highly effective health practice. By accomplishing this goal, we can ensure that quality health care is available to all seniors and disabled Americans regardless of where they live. There are 8 main elements of the bill: (1) Eliminating the provider ``fee sharing'' requirement; (2) Eliminating the requirement for a ``telepresenter''; (3) Allowing limited reimbursement for referring clinics to recover the cost of their services; (4) Expanding telemedicine services to all non-MSAs; (5) Expanding telemedicine services to direct patient care, not just professional consultations; (6) Making all providers eligible for HCFA reimbursement for services delivered via telemedicine; (7) Creating a federal demonstration project that permits telemedicine reimbursement for ``store and forward'' consultations (i.e., x-rays that are sent to another facility for consultation); and (8) Permitting telehomecare. While these changes are relatively minor in the context of the Medicare program, the affect will be far-reaching. The modernizations we are proposing will dramatically improve access to quality health care in rural areas. This legislation will allow us to begin to release the incredible potential of telemedicine. On a final note, I'd like to thank Karen Edison for her expertise and determination in working on this bill. Because Karen is a practicing telemedicine physician, she has been invaluable in developing and advancing this cause. Thank you, Mr. President for your time today. I hope all of my colleagues will join with me in passing this important piece of legislation. ______ By Mr. GORTON: S. 2506. A bill to amend title 46, United States Code, with respect to the Federal preemption of State law concerning the regulation of marine and ocean navigation, safety, and transportation by States; to the Committee on Commerce, Science, and Transportation. legislation regarding marine and ocean navigation, safety, and transportation Mr. GORTON. Mr. President, environmental protection and states' rights were dealt a blow on March 6th, when the U.S. Supreme Court decided the case of United States vs. Locke. The Court, noting that even though federal and international laws ``may be insufficient protection,'' invalidated Washington laws, and potentially laws in eleven other states, that provide protections against spills by oil tankers. I disagree with the Court's decision, because I believe that Washington state should be allowed to protect its shores as it sees fit. That is why, today I am pleased to introduce the ``States Prevention of Oil Tanker Spills Act'' (SPOTS)-legislation that will reinstate the right of all states to adopt additional standards beyond existing federal requirements governing the operation, maintenance, equipment, personnel and manning of oil tankers. While this legislation will apply to all shoreline states, it is pa

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 04, 2000)

Text of this article available as: TXT PDF [Pages S3514-S3543] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DASCHLE (for himself and Mr. Lugar): S. 2503. A bill to amend the Clean Air Act to authorize States to regulate harmful fuel additives and to require fuel to contain fuel made from renewable sources, to amend the Solid Waste Disposal Act to require that at least 85 percent of funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund be distributed to States to carry out cooperative agreements for undertaking corrective action and for enforcement of subtitle I of that act, and for other purposes; to the Committee on Environment and Public Works. renewable fuels act of 2000 Mr. DASCHLE. Mr. President, ten years ago I joined with two distinguished colleagues, then-Senate Majority Leader Bob Dole and Senator Tom Harkin, to introduce the reformulated gasoline (RFG) provision of the 1990 Clean Air Act Amendments. The RFG provision, with its minimum oxygen standard, was adopted in the Senate by the overwhelming vote of 69 to 30 and eventually signed into law by President George Bush. I am proud to say that this program has resulted in substantial improvement in air quality around the country. It also has stimulated increased production and use of renewable ethanol and other oxygenates needed to meet the minimum oxygen standard. Unfortunately, an unanticipated development involving the petroleum- based oxygenate MTBE requires us to re-examine the many benefits of the RFG program. The detection of MTBE in ground water around the country has generated considerable debate in recent months over how to deal with this fuel additive and the oxygen requirement of the reformulated gasoline program. The resolution of this debate will have significant consequences for the environment, for farmers and for the rural economy. The pace of activity to resolve the MTBE issue is accelerating rapidly. Battlelines are being drawn as the state of California and its allies focus on scrapping the oxygen requirement. It is clear that Congress and/or the Clinton administration will respond to the MTBE problem. My focus is on ensuring that that response not only serves the environment, but also retains a prominent place for ethanol--a place that assures long-term, predictable growth of the industry. I believe a comprehensive legislative solution is necessary in this case--one that recognizes and preserves the important air quality benefits of the RFG program, protects water supplies and leads the nation away from greater dependence on imported oil. I have worked for the last year with the ethanol industry, Republican and Democratic colleagues in the Senate, the Governor's Ethanol Coalition, environmental organizations and the administration in search of a solution that gives states the tools they need to address MTBE contamination, ensures the future growth of domestic renewable fuels, and prevents supply shortages and price spikes in the nation's fuels supply. This process has led me to two basic conclusions. First, the MTBE crisis has left the RFG oxygen requirement vulnerable to legislative attack. Those who doubt this conclusion should reflect on the following facts. California refiners have shown that clean-burning gasoline can be produced without oxygen. EPA's Blue Ribbon Panel has recommended that the oxygen requirement be repealed. The RFG oxygen requirement is opposed by a diverse coalition that includes the American Lung Association, the American Petroleum Institute, the New England States Coordinated Air Use Management agency, the State of California and the Natural Resources Defense Council (NRDC). Second, support for the oxygen requirement will weaken over time. Improvements in auto emissions control technology will cause the air quality benefits of oxygen in gasoline to decline and the justification for the RFG oxygen requirement to diminish. As one of the original authors of the reformulated gasoline provisions of the Clean Air Act, I feel something of a proprietary interest in the oxygen requirement. As a legislator, I recognize that circumstances change, and obstinacy should not be allowed to become a barrier to the achievement of important policy goals. Ethanol advocates face a choice between defending the oxygen requirement in the near term, realizing that its days ultimately are numbered, or using the current MTBE debate to guarantee the future growth of the ethanol industry based on important public policy goals, such as energy security, greenhouse gas emissions reductions, and domestic economic growth. In my judgment, providing states with the flexibility to waive the RFG oxygen requirement is a fair tradeoff for the establishment of a renewable fuels standard. It represents the most effective way to achieve the environmental and economic goals of governors and consumers, while putting the ethanol industry on a steady growth path well into the future and promoting ethanol production in new regions of the nation. Therefore, today, with Senator Richard Lugar, I am introducing the Renewable Fuels Act of 2000. Under our [[Page S3515]] legislation, EPA is directed to reduce the use of MTBE to safe levels, and states can obtain waivers from the RFG oxygen requirement and further regulate MTBE if they desire. This will allow the nation to deal with the MTBE contamination issue responsibly and avoid gasoline supply disruptions. The bill also includes provisions protecting the air quality gains that have resulted from the use of oxygenated fuels. To protect market opportunities for renewable fuels, the bill establishes a renewable fuels standard for the nation's gasoline, which begins in 2000 at 1.3 percent--roughly where renewable fuels production stands today--and gradually increases over the next decade to 3.3 percent of the nation's gasoline in 2010. Considering the fact that overall gasoline use is expected to increase over the next decade, this standard will more than triple ethanol use over that period. In meeting that requirement, our legislation stipulates that a gallon of biomass ethanol counts as much as 1.5 gallons of starch-based ethanol, thereby providing a strong incentive for the development of biomass-based ethanol plans throughout the country. It also established a renewable fuels standard for diesel fuels to promote the use of biodiesel. These renewable fuels standards can be met through nationwide credit trading, to allow for the most economomical use of ethanol and biodiesel. For those who are concerned about the potential impact of a drought or other natural disaster on the ability of the renewable fuels industry to supply this market, the legislation allows the EPA Administrator, in consultation with the Secretary of Agriculture, to waive the renewable requirement in any given year upon determination that there is indequate domestic supply or distribution capacity, or that the requirement would severely harm the economic or environment of a State, a region, or the United States. I also intend to work with my colleagues on both sides of the aisle to establish a strategic corn reserve as a complement to the renewable fuel standard. A properly managed strategic corn reserve could serve as the equivalent of the strategic petroleum reserve and ensure stable feedstocks for domestic ethanol producers in the event of weather induced supply interruptions. Taxpayers would benefit as farmers could receive fair market prices, thereby reducing the need for emergency assistance each year. It is important to recognize that under Senator Lugar's and my approach, the oxygen requirement is not waived entirely. States can decide for themselves whether to apply for a waiver from the RFG oxygen requirement. We fully expect that RFG programs that currently are using ethanol and have not experienced MTBE contamination, such as Chicago and Milwaukee, will stay in the program. Moreover, the bill allows any governor to apply to EPA to opt into the RFG program, thus expanding its air quality benefits to new regions of the country. Those areas that remain in the program or opt into it, and use ethanol, will generate credits that can be sold to other regions of the country. Finally, the bill prevents adverse effects on states' highway trust fund tax allocations, with ``hold harmless'' language ensuring that states reporting Federal excise tax receipts on gasoline are not penalized for their ethanol blend sales. Again, my goal in introducing this legislation is both to support states that want to get MTBE out of gasoline and to ensure that this effort does not adversely affect ethanol production. It is also to put into place a program that will grow the ethanol industry steadily over the next decade, thereby assuring the market stability necessary to attract investment in the construction of new plants and significantly increasing the market for corn and biomass. This approach not only will get MTBE out of groundwater; it will do so without backsliding on the air quality improvements generated by the RFG program while increasing corn demand by 600 million bushels per year. Mr. President, since first floating this concept in May of last year, I have heard from numerous stakeholders in this complex debate. The legislative concept that Senator Lugar and I unveil today has been endorsed by diverse interests ranging from the American Coalition for Ethanol (ACE) in Sioux Falls, South Dakota, to the 24-state Governors' Ethanol Coalition, to the Northeast States for Coordinated Air Use Management (NESCAUM) to Mr. Leo Leibowitz, chairman of Getty Petroleum. I believe that we have struck a delicate balance between the interests of farmers, consumers, state regulatory officials, refiners and those concerned about the environment. This plan is a worthy successor to the original 1990 RFG provision, preserving all of the good things it has achieved and rectifying those elements that need fixing. I look forward to working with Senators Smith and Baucus, the chairman and ranking member of the Senate Environment and Public Works Committee, to enact legislation resolving the MTBE issue. I hope that other colleagues will join Senator Lugar and me in support of this legislation. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2503 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 ``Renewable Fuels Act of 2000''. SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL OR PROHIBIT USE OF MTBE. Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended-- (1) in paragraph (1)(A), by striking ``any emission product of such fuel or fuel additive causes, or contributes, to air pollution which may reasonably be anticipated to endanger the public health or welfare,'' and inserting ``the fuel or fuel additive, or an emission product of the fuel or fuel additive, causes or contributes to air, water, or soil pollution that may reasonably be anticipated to endanger the public health or welfare or the environment,''; (2) in paragraph (2)(C), by inserting ``or have other environmental impacts'' after ``emissions''; (3) in paragraph (4)-- (A) in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``(4)(A) Except as otherwise provided in subparagraph (B) or (C),'' and inserting the following: ``(4) Limitation on state authority with respect to fuels and fuel additives.-- ``(A) In general.-- ``(i) Fuels and fuel additives.--Except as otherwise provided in subparagraph (B) or (C) or paragraph (5),''; (C) in subparagraph (A)-- (i) in clause (i) (as designated by subparagraph (B)), by inserting ``or water or soil quality protection'' after ``emission control''; and (ii) by adding at the end the following: ``(ii) MTBE.--Notwithstanding clause (i), except as otherwise provided in subparagraph (B) or (C) or paragraph (5), no State (or political subdivision of a State) may prescribe or attempt to enforce, for the purpose of motor vehicle emission control or water or soil quality protection, any control or prohibition on methyl tertiary butyl ether as a fuel additive in a motor vehicle or motor vehicle engine.''; (D) in subparagraph (B), by inserting ``or water or soil quality protection'' after ``emission control''; and (E) in subparagraph (C)-- (i) in the first sentence-- (I) by inserting ``or water or soil quality protection'' after ``emission control''; and (II) by inserting before the period at the end the following: ``or, if the Administrator grants a petition of the State under paragraph (5)''; and (ii) in the second sentence, by striking ``only if he'' and inserting ``if the Administrator''; and (4) by adding at the end the following: ``(5) State petitions for authority to control or prohibit use of fuels or fuel additives for non-air quality purposes.-- ``(A) In general.--A State seeking to prescribe and enforce a control or prohibition on a fuel or fuel additive for the purpose of water or soil quality protection under paragraph (4)(C) shall submit a petition to the Administrator for authority to take such action. ``(B) Required elements of petition.--A petition submitted under subparagraph (A) shall-- ``(i) include information on-- ``(I) the likely effects of the control or prohibition on fuel availability and price in the affected supply area or region; and ``(II) the improvements in environmental quality or public health or welfare expected to result from the control or prohibition; and ``(ii) demonstrate that the authority is necessary to protect the environment or public health or welfare. [[Page S3516]] ``(C) Action by the administrator.--Not later than 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator shall grant or deny the petition. ``(D) Criteria for granting of petitions.--The Administrator shall grant a petition submitted by a State under subparagraph (A) unless the Administrator finds that-- ``(i) the petition fails to reasonably demonstrate that the authority is necessary to protect the environment or public health or welfare; ``(ii) the control or prohibition is likely to have a substantial and significant adverse effect on fuel availability or price (including a State or regional effect) that clearly outweighs any benefits associated with the control or prohibition; or ``(iii) in the case of a petition submitted by a State seeking the authority primarily to protect water resources, the State has failed to take other appropriate and reasonable actions to prevent contamination of water resources by fuels or fuel additives, such as-- ``(I) adoption of a prohibition on the delivery of gasoline to noncompliant facilities with underground storage tanks; or ``(II) operation of a statewide monitoring and compliance assurance system. ``(E) Effect of failure of administrator to act.--If, by the date that is 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator has not proposed to grant or deny the petition under subparagraph (C), the petition shall be deemed to be granted. ``(F) Procedural requirements.-- ``(i) Inapplicability of certain requirements.--Section 307(d) of this Act and sections 553 through 557 of title 5, United States Code, shall not apply to actions on a petition submitted under subparagraph (A). ``(ii) Public notice and opportunity for comment.--The Administrator shall provide public notice and opportunity for comment with respect to a petition submitted under subparagraph (A). ``(6) Limitation on mtbe content.--The Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce by the refiner, blender, or importer on or after January 1, 2004, in an area has a content of methyl tertiary butyl ether that is at a level that-- ``(A) the Administrator determines may not reasonably be anticipated to endanger natural resources and the public health; and ``(B) does not exceed the annual average volume of methyl tertiary butyl ether per gallon of gasoline used in the area before 1995.''. SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (1)-- (A) 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,''; (B) in the first sentence, by inserting before the period at the end the following: ``and opt-in areas under paragraph (6)''; and (C) by adding at the end the following: ``(B) Adjustment of voc performance standard.-- ``(i) In general.--The Administrator may adjust the volatile organic compounds performance standard promulgated under subparagraph (A) in the case of a fuel formulation that achieves reductions in the quantity of mass emissions of carbon monoxide that are greater than or less than the reductions associated with a reformulated gasoline that contains 2.0 percent oxygen by weight and otherwise meets the requirements of this subsection. ``(ii) Amount of adjustment.--The amount of an adjustment under clause (i) shall be based on the effect on ozone concentrations of the combined reductions in emissions of volatile organic compounds and reductions in emissions of carbon monoxide.''; (2) in paragraph (2)-- (A) in subparagraph (B)-- (i) by striking ``The oxygen'' and inserting the following: ``(i) In general.--The oxygen''; and (ii) by adding at the end the following: ``(ii) Waiver for certain states.--The Administrator shall waive the application of clause (i) for any ozone nonattainment area in a State if the Governor of the State submits for such a waiver an application that-- ``(I) demonstrates that the State is in full compliance with Federal regulations concerning the control and prevention of leaking underground storage tanks; or ``(II) provides a plan that outlines the measures the State will take to fully comply with the underground storage tank regulations by a date not later than 2 years after the receipt of the application of the Governor. ``(iii) Effective date.--A waiver under clause (ii) shall become effective on the later of-- ``(I) January 1 of the calendar year immediately following the calendar year during which the application for the waiver is received; or ``(II) the date that is 180 days after the date on which the application for the waiver is received.''; and (B) by adding at the end the following: ``(E) Aromatics.--The aromatic hydrocarbon content of the gasoline shall not exceed 22 percent by volume.''; (3) in paragraph (3)-- (A) in subparagraph (A)(ii), by striking ``25 percent'' and inserting ``22 percent''; and (B) in subparagraph (B)-- (i) by striking ``Any reduction'' and inserting the following: ``(iii) Treatment of greater reductions.--Any reduction''; and (ii) by adding at the end the following: ``(iv) Anti-backsliding provision.-- ``(I) In general.--Not later than June 1, 2000, the Administrator shall revise performance standards under this subparagraph as necessary to ensure that-- ``(aa) the ozone-forming potential, taking into account all ozone precursors (including volatile organic compounds, oxides of nitrogen, and carbon monoxide), of the aggregate emissions during the high ozone season (as determined by the Administrator) from baseline vehicles when using reformulated gasoline does not exceed the ozone-forming potential of the aggregate emissions during the high ozone season from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasoline sold in calendar year 2000 and subsequent calendar years; and ``(bb) the aggregate emissions of the pollutants specified in subclause (II) from baseline vehicles when using reformulated gasoline do not exceed the aggregate emissions of those pollutants from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasolines sold in calendar year 2000 and subsequent calendar years. ``(II) Specified pollutants.--The pollutants specified in this subclause are-- ``(aa) toxics, categorized by degrees of toxicity; and ``(bb) such other pollutants, including pollutants regulated under section 108, and such precursors to those pollutants, as the Administrator determines by regulation should be controlled to prevent the deterioration of air quality and to achieve attainment of a national ambient air quality standard in 1 or more areas.''; and (4) in paragraph (4)(B)-- (A) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``The Administrator'' and inserting the following: ``(i) In general.--The Administrator''; (C) in clause (i) (as designated by subparagraph (B))-- (i) in subclause (I) (as redesignated by subparagraph (A)), by striking ``, and'' and inserting a semicolon; (ii) in subclause (II) (as redesignated by subparagraph (A))-- (I) by striking ``achieve equivalent'' and inserting the following: ``achieve-- ``(aa) equivalent''; (II) by striking the period at the end and inserting ``; or''; and (III) by adding at the end the following: ``(bb) combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration, as provided in clause (ii)(I), that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3); and''; and (iii) by adding at the end the following: ``(III) achieve equivalent or greater reductions in emissions of toxic air pollutants than are achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3).''; and (D) by adding at the end the following: ``(ii) Carbon monoxide credit.-- ``(I) In general.--In determining whether a fuel formulation or slate of fuel formulations achieves combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3), the Administrator-- ``(aa) shall consider, to the extent appropriate, the change in carbon monoxide emissions from baseline vehicles attributable to an oxygen content in the fuel formulation or slate of fuel formulations that exceeds 2.0 percent by weight; and ``(bb) may consider, to the extent appropriate, the change in carbon monoxide emissions described in item (aa) from vehicles other than baseline vehicles. ``(II) Oxygen credits.--Any excess oxygen content that is taken into consideration in making a determination under subclause (I) may not be used to generate credits under paragraph (7)(A). ``(III) Relation to title i.--Any fuel formulation or slate of fuel formulations that is certified as equivalent or greater under this subparagraph, taking into consideration the combined reductions in emissions of volatile organic compounds and carbon monoxide, shall receive the same volatile organic compounds reduction credit for the purposes of subsections (b)(1) and (c)(2)(B) of section 182 as a fuel meeting the applicable requirements of paragraph (3).''. (b) Reformulated Gasoline Carbon Monoxide Reduction Credit.--Section 182(c)(2)(B) of the Clean Air Act (42 U.S.C. [[Page S3517]] 7511a(c)(2)(B)) is amended by adding at the end the following: ``An adjustment to the volatile organic compound emission reduction requirements under section 211(k)(3)(B)(iv) shall be credited toward the requirement for VOC emissions reductions under this subparagraph.''. SEC. 4. 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 so redesignated)-- (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) Nonclassified areas.-- ``(i) In general.--Upon the application of the Governor of a State, the Administrator shall apply the prohibition specified in paragraph (5) in any area in the State that is not a covered area or an area referred to in subparagraph (A)(i). ``(ii) Publication of application.--As soon as practicable after receipt of an application under clause (i), the Administrator shall publish the application in the Federal Register.''. SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER MOTOR FUELS. (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 Content of Gasoline.-- ``(1) In general.-- ``(A) Regulations.--Not later than September 1, 2000, the Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements of this subsection. ``(B) Renewable content requirements.-- ``(i) In general.--All gasoline sold or introduced into commerce in the United States by a refiner, blender, or importer shall contain, on a quarterly average basis, a quantity of fuel derived from a renewable source (including biomass ethanol) that is not less than the applicable percentage by volume for the quarter. ``(ii) Biomass ethanol.--For the purposes of clause (i), 1 gallon of biomass ethanol shall be considered to be the equivalent of 1.5 gallons of fuel derived from a renewable source. ``(iii) Applicable percentage.--For the purposes of clause (i), the applicable percentage for a quarter of a calendar year shall be determined in accordance with the following table: Applicable percentage of fuel derived from a renewable source: `Calendar year: 2000.........................................................1.3 .... 2001.........................................................1.5 .... 2002.........................................................1.7 .... 2003.........................................................1.9 .... 2004.........................................................2.1 .... 2005.........................................................2.3 .... 2006.........................................................2.5 .... 2007.........................................................2.7 .... 2008.........................................................2.9 .... 2009.........................................................3.1 .... 2010 and thereafter..........................................3.3..... ``(C) Fuel derived from a renewable source.--For the purposes of this subsection, a fuel shall be considered to be derived from a renewable source if the fuel-- ``(i) is produced from grain, starch, oilseeds, or other biomass; and ``(ii) is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle. ``(D) Biomass ethanol.--For the purposes of this subsection, a fuel shall be considered to be biomass ethanol if the fuel is 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 commodities and residues; ``(vi) fibers; ``(vii) animal wastes and other waste materials; and ``(viii) municipal solid waste. ``(E) Credit program.-- ``(i) In general.--The regulations promulgated under this subsection shall provide for the generation of an appropriate amount of credits by a person that refines, blends, or imports gasoline that contains, on a quarterly average basis, a quantity of fuel derived from a renewable source or a quantity of biomass ethanol that is greater than the quantity required under subparagraph (B). ``(ii) Use of credits.--The regulations shall provide that a person that generates the credits may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with subparagraph (B). ``(2) Waivers.-- ``(A) In general.--The Administrator, in consultation with the Secretary of Agriculture, may waive the requirements of paragraph (1)(B) in whole or in part on petition by a State-- ``(i) based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirements 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 or distribution capacity to meet the requirements of paragraph (1)(B). ``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture-- ``(i) shall approve or deny a State petition for a waiver of the requirements of paragraph (1)(B) within 180 days after the date on which the petition is received; but ``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted. ``(C) Termination of waivers.--A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture. ``(D) Oxygen content waivers.--The grant or denial of a waiver under subsection (k)(2)(B) shall not affect the requirements of this subsection. ``(3) Small refiners.--The regulations promulgated by the Administrator under paragraph (1) may provide an exemption, in whole or in part, for small refiners (as defined by the Administrator). ``(4) Guidance for labeling.--After consultation with the Secretary of Agriculture, the Administrator shall issue guidance to the States for labeling, at the point of retail sale-- ``(A) the fuel derived from a renewable source that is contained in the fuel sold; and ``(B) the major fuel additive components of the fuel sold. ``(5) Reports to congress.--Not less often than every 3 years, the Administrator shall submit to Congress a report on-- ``(A) reductions in emissions of criteria air pollutants listed under section 108 that result from implementation of this subsection; and ``(B) in consultation with the Secretary of Energy, greenhouse gas emission reductions that result from implementation of this subsection. ``(p) Renewable Content of Diesel Fuel.-- ``(1) In general.--Not later than September 1, 2000, the Administrator, after consideration of applicable economic and environmental factors, shall promulgate regulations applicable to each refiner, blender, or importer of diesel fuel to ensure that the diesel fuel sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements established by the Administrator under this subsection. ``(2) Elements of program.--To the extent that the Administrator determines it to be appropriate, the Administrator shall by regulation establish a program for diesel fuel that has renewable content requirements similar to the requirements of the program for gasoline under subsection (o) in order to ensure the use of biodiesel fuel.''. (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)'' each place it appears and inserting ``(n), or (o)''; 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)'' each place it appears and inserting ``(n), and (o)''. (c) Prevention of Effects on Highway Apportionments.-- (1) Surface transportation program.--Section 104(b)(3) of title 23, United States Code, is amended by adding at the end the following: ``(C) Determination of estimated tax payments.--For the purpose of determining under subparagraph (A)(iii) the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: [[Page S3518]] ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. (2) Minimum guarantee.--Section 105(f)(1) of title 23, United States Code, is amended-- (A) by striking ``(1) In general.--Before'' and inserting the following: ``(1) In general.-- ``(A) Adjustment.--Before''; and (B) by adding at the end the following: ``(B) Determination of estimated tax payments.--For the purpose of determining under this subsection the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. SEC. 6. UPDATING OF BASELINE YEAR. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (8)-- (A) in subparagraph (A)-- (i) in the first sentence, by striking ``Within 1 year after the enactment of the Clean Air Act Amendments of 1990, the'' and inserting ``The''; and (ii) by striking the second sentence; (B) by striking ``calendar year 1990'' each place it appears and inserting ``calendar year 1999''; and (C) in subparagraph (E), by striking ``such 1990 gasoline'' and inserting ``such 1999 gasoline''; and (2) in subparagraphs (A) and (B)(ii) of paragraph (10), by striking ``1990'' each place it appears and inserting ``1999''. (b) Regulations.--As soon as practicable after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall revise the regulations promulgated under section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) to reflect the amendments made by subsection (a). SEC. 7. LEAKING UNDERGROUND STORAGE TANKS. (a) Trust Fund Distribution.--Section 9004 of the Solid Waste Disposal Act (42 U.S.C. 6991c) is amended by adding at the end the following: ``(f) Trust Fund Distribution.-- ``(1) In general.-- ``(A) Amount and permitted use of distribution.--The Administrator shall distribute to States at least 85 percent of the funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund established by section 9508 of the Internal Revenue Code of 1986 (referred to in this subsection as the `Trust Fund') for each fiscal year for use in paying the reasonable costs, incurred under cooperative agreements with States, of-- ``(i) actions taken by a State under section 9003(h)(7)(A); ``(ii) necessary administrative expenses directly related to corrective action and compensation programs under subsection (c)(1); ``(iii) enforcement by a State or local government of a State program approved under this section or of State or local requirements regulating underground storage tanks that are similar or identical to this subtitle; ``(iv) State or local corrective actions pursuant to regulations promulgated under section 9003(c)(4); or ``(v) corrective action and compensation programs under subsection (c)(1) for releases from underground storage tanks regulated under this subtitle if, as determined by the State in accordance with guidelines developed between the Environmental Protection Agency and the States, the financial resources of an owner or operator (including resources provided by programs under subsection (c)(1)) are not adequate to pay for the cost of a corrective action without significantly impairing the ability of the owner or operator to continue in business. ``(B) Nonpermitted uses.--Funds provided by the Administrator under subparagraph (A) shall not be used by a State to provide financial assistance to an owner or operator to meet the requirements concerning underground storage tanks contained in part 280 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subsection), except as provided in subparagraph (A)(v), or similar requirements in State programs approved under this section or similar State or local provisions. ``(C) Tanks within tribal jurisdiction.--The Administrator, in coordination with Indian tribes, shall-- ``(i) expeditiously develop and implement a strategy to-- ``(I) take necessary corrective action in response to releases from leaking underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe, giving priority to releases that present the greatest threat to human health or the environment; and ``(II) implement and enforce requirements regulating underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe; and ``(ii) not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, submit to Congress a report summarizing the status of implementation of the leaking underground storage tank program located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe. ``(2) Allocation.-- ``(A) Process.--Subject to subparagraph (B), in the case of a State with which the Administrator has entered into a cooperative agreement under section 9003(h)(7)(A), the Administrator shall distribute funds from the Trust Fund to the State using the allocation process developed by the Administrator for such cooperative agreements. ``(B) Revisions to process.--The Administrator may revise the allocation process only after-- ``(i) consulting with State agencies responsible for overseeing corrective action for releases from underground storage tanks and with representatives of owners and operators; and ``(ii) taking into consideration, at a minimum-- ``(I) the total revenue received from each State into the Trust Fund; ``(II) the number of confirmed releases from leaking underground storage tanks in each State; ``(III) the number of notified petroleum storage tanks in each State; ``(IV) the percentage of the population of each State using ground water for any beneficial purpose; ``(V) the evaluation of the program performance of each State; ``(VI) the evaluation of the financial needs of each State; and ``(VII) the evaluation of the ability of each State to use the funds in any year. ``(3) Distributions to state agencies.-- ``(A) In general.--Distributions from the Trust Fund under this subsection shall be made directly to the State agency entering into a cooperative agreement or enforcing the State program. ``(B) Administrative expenses.--A State agency that receives funds under this subsection shall limit the proportion of those funds that are used to pay administrative expenses to a percentage that the State may establish by law. ``(4) Cost recovery prohibition.--Funds provided to States from the Trust Fund to owners or operators for programs under section 9004(c)(1) for releases from underground storage tanks are not subject to cost recovery by the Administrator under section 9003(h)(6). ``(5) Permitted uses.--In addition to uses authorized by other provisions of this subtitle, the Administrator may use funds appropriated to the Environmental Protection Agency from the Trust Fund for enforcement of any regulation promulgated by the Administrator under this subtitle.''. (b) Addition to Trust Fund Purposes.--Section 9508(c)(1) of the Internal Revenue Code of 1986 (relating to expenditures) is amended by striking ``to carry out section 9003(h)'' and all that follows and inserting ``to carry out-- ``(A) section 9003(h) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Superfund Amendments and Reauthorization Act of 1986); and ``(B) section 9004(f) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Renewable Fuels Act of 2000).''. (c) Studies.--Not later than 18 months after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall conduct-- (1) a study to determine the corrosive effects of methyl tertiary butyl ether and other widely used fuels and fuel additives on underground storage tanks; and (2) a study to assess the potential public health and environmental risks associated with the use of aboveground storage tanks and the effectiveness of State and Federal regulations or voluntary standards, in existence as of the time of the study, to provide adequate protection of public health and the environment. (d) Technical Amendments.-- (1) Section 9001(3)(A) of the Solid Waste Disposal Act (42 U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and inserting ``substances''. (2) Section 9003(f)(1) of the Solid Waste Disposal Act (42 U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and (d) of this section'' and inserting ``subsections (c) and (d)''. (3) Section 9004(a) of the Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended in the first sentence by striking ``referred to'' and all that follows and inserting ``referred to in subparagraph (A) or (B), or both, of section 9001(2).''. (4) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 6991d) is amended-- [[Page S3519]] (A) in subsection (a), by striking ``study taking'' and inserting ``study, taking''; (B) in subsection (b)(1), by striking ``relevent'' and inserting ``relevant''; and (C) in subsection (b)(4), by striking ``Evironmental'' and inserting ``Environmental''. SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM. (a) In General.--The Administrator of the Environmental Protection Agency may enter into cooperative agreements with the United States Geological Survey, the Department of Agriculture, States, local governments, private landowners, and other interested parties to establish voluntary pilot projects to protect the water quality of private wells and to provide technical assistance to users of water from private wells. (b) Limitation.--This section does not authorize the issuance of guidance or regulations regarding the use or protection of private wells. Mr. LUGAR. Mr. President, I am pleased to join Senator Daschle in introducing the Renewable Fuels Act of 2000. In July 1999, an independent Blue Ribbon Panel on Oxygenates in Gasoline called for major reductions in the use of MTBE as an additive in gasoline. They did so because of growing evidence and public concerns regarding pollution of drinking water supplies by MTBE. These trends are particularly acute in areas of the country using Reformulated Gasoline. The Reformulated Gasoline Program (RFG) has proven to be a success in reducing smog and has exceeded expectations in reducing dangerous and carcinogenic air toxics in gasoline. The second stage of the Reformulated Gasoline Program (RFG) will commence this summer and will have an even greater effect in reducing ozone pollution and air toxics. Because of concerns regarding water pollution, it is clear that the existing situation regarding MTBE is not tenable. The Governor of California has called for a three year phase out of MTBE in California and the California Air Resources Board has adopted regulations to that effect. Environmental officials from eight Northeastern States have proposed a phase down and a capping of the use of MTBE in gasoline in their states. MTBE is being found in wells in the Midwest even in areas that do not use reformulated gasoline. The Renewable Fuels Act of 2000 will lead to about five billion gallons of ethanol being produced in 2010 compared to one billion, six hundred million gallons today. Under the Act, one gallon of cellulosic ethanol will count for one and one-half gallons of regular ethanol in determining whether a refiner has met the Renewable Fuels Standard in a particular year. We are going to have spikes in oil that will disrupt our economy. It may or may not be able to be controlled. It will happen before 2010. It may happen again next week. Our problem in terms of national security and the security of our whole economy revolves around our dependence on petroleum-based fuels. We must be able to address this challenge. Finding an environmentally sensitive way to resolve the MTBE crisis is an important part of this challenge. It is clear that MTBE is on its way out. The question is what kind of legislation is needed to facilitate its departure and whether that legislation will be based on consideration of all of the environmental and energy and national security issues involved. The Renewable Fuels Act of 2000 will establish a nationwide Renewable Fuels Standard (RFS) that would increase the current use of renewable fuels from 1.3% in 2000 to 3.3% by 2010. Refiners who produced renewable fuels beyond the standard could sell credits to other refiners who chose to under comply with the RFS. This bill would give the EPA Administrator authority to limit or eliminate the use of MTBE in order to protect the public health and the environment. It also gives states the ability to further regulate or eliminate MTBE use if the EPA does not choose to eliminate it. It would also establish strict ``anti backsliding provisions'' to capture all of the air quality benefits of MTBE and ethanol as MTBE is phased down or phased out. The Renewable Fuels Act of 2000 will be good for our economy and our environment. Most important of all, it will facilitate the development of renewable fuels, a development critical to ensuring U.S. national and economic security and stabilizing gas prices. I hope that my colleagues will examine this bill as well as other legislative approaches that would spur the development of renewable fuels such as ethanol, whether derived from corn or other agricultural or plant materials. ______ By Mr. JEFFORDS (for himself, Mr. Rockefeller, Mr. Grassley, Mr. Breaux, Mr. Murkowski, Mr. Stevens, Mr. Bond, Mr. Inouye, Mr. Harkin, Mr. Roberts, Mr. Thomas, Mr. Bingaman, Mr. Edwards, Mr. Conrad, and Mr. Kerrey): S. 2505. A bill to amend title XVIII of the Social Security Act to provide increased assess to health care for medical beneficiaries through telemedicine; to the Committee on Finance. telehealth improvement and modernization act of 2000 Mr. JEFFORDS. Mr. President, today I am pleased to join with my good friend Senator Rockefeller in introducing legislation that will improve upon the federal rules for reimbursement for telemedicine and help to ensure that all of our citizens have access to our great health care system. We are joined by a broad, bipartisan group of senators in this effort. In many ways we have the best health care system in the world. But increasingly fewer and fewer Americans actually have access to it. I recently introduced a tax-credit bill that will help some of these Americans and I anticipate supporting future measures aimed at increasing access to health care services. One important area that demands our attention is the problem of access for rural Americans. More than 25 percent of our Nation's senior citizens live in areas underserved for modern health care services. At the same time, telemedicine has come of age. We have moved beyond the feasibility stage and proven that this technology can provide real benefits to people in rural and underserved regions of our country. In my own State of Vermont, nearly 70 per cent live in rural areas. This is the highest percentage rural population of any state in the nation. In Vermont, specialists in more than twenty-five disciplines from Fletcher Allen Health Care in Burlington are made readily available to patients even in the most rural areas. I want to see this level of service expand and be made available to all Americans. We in Washington have made some good faith attempts to allow for the development of telehealth technologies but we have fallen short. In an effort to restrain the expansion of these programs, the Health Care Financing Administration's interpretation of the laws and its cumbersome rules for reimbursement have all but guaranteed the demise of current programs. Federally-funded telemedicine projects exist in almost every State in the Nation. These projects have proven that cost-effective, high- quality care can be delivered using this technology. The provisions in this bill will help to ensure that this care will be continued when the federal grants end. Why is this legislation needed now? Because current HCFA regulations concerning payment are unworkable in the real world. Less than 6 percent of all telemedicine doctor-patient visits last year provided to Medicare beneficiaries would qualify for reimbursement under HCFA's current guidelines. Now that we have more experience and understand better how telemedicine can be used, it is time to enact several changes to the law so that these programs can thrive and deliver on their promise of providing cost-effective, high-quality healthcare where it is needed the most. Rural healthcare providers and patients are eager for this legislation. Norman Wright, President of the Vermont Association of Hospitals and Health Systems, recognized the potential of Fletcher Allen's telemedicine program by describing it as one that ``provides incredible opportunities for rural providers and their patients because it links them to a network with access to the region's best authorities for any given condition.'' I have indeed heard an outpouring of support from healthcare providers across my own State on this issue. Gerry Davis, Professor of Pulmonary and Critical Care Medicine at Fletcher Allen Health Care, described ``appropriate and fair third party payment for [[Page S3520]] telemedicine'' as ``essential in order to move this process beyond education, and to make the service truly useful for patients in remote locations.'' Telemedicine can be used in so many ways. It can be vital to a pediatrician from a rural area with a sick baby who needs to consult with a neonatologist from a tertiary care hospital in the dead of winter and the middle of the night. It can be also be crucial for a depressed senior citizen who desperately needs mental health services available in their own rural county. And it can be much needed help for a frustrated isolated primary care provider who longs to be able to provide for access to specialty services for her patients in their own community. All of these people need our help. While the changes included in this bill are relatively minor in the context of the Medicare program, the effect will be far-reaching. This legislation will allow us to avoid arbitrarily denying access to health care for our senior citizens and persons with disabilities just because of where they live. It will allow for fair and reasonable reimbursement for services that can be delivered appropriately in this way. It will also encourage the incorporation of telehealth technology in the care plans of home health agencies, an area that has already shown great promise for the future in terms of cost-effective disease management. In summary, it will allow us to begin to release the incredible potential of telemedicine. Mr. President, I urge my colleagues to join us in bringing HCFA's approach to the delivery of health care into the 21st Century. Any Medicare reform must include progress on telemedicine for our Nation's rural areas. Mr. ROCKEFELLER. Mr. President, I am extremely pleased to be here today to introduce the Telemedicine Improvement and Modernization Act with Senator Jeffords and many other of my Senate colleagues. This bill incorporates two issues that I care about passionately--health care and technology. Telemedicine has the potential to bridge the gap that currently exists between patients and providers. More than 25% of our Nation's senior citizens live in areas where speciality care may not be available. In states like my own where there are very few primary care or specialty care resources and travel is difficult, telemedicine is critical to ensuring that people in remote areas are getting health care they need. By expanding access to health care through telemedicine, we also improve the quality of care available to people living in underserved areas. Personally, I believe that we are just beginning to tap the enormous potential of technology to advance quality health care, especially in rural areas. Yet, Medicare's telemedicine program is inefficient in its current form. These inefficiencies threaten the future of telemedicine services. When we first created this program, our knowledge of the potential of this new technology, or its practical applications was very limited. Today we have a much better understanding of how telemedicine actually works. With this new knowledge, we can repair the inefficiencies of the current system and encourage the use of this highly effective health practice. By accomplishing this goal, we can ensure that quality health care is available to all seniors and disabled Americans regardless of where they live. There are 8 main elements of the bill: (1) Eliminating the provider ``fee sharing'' requirement; (2) Eliminating the requirement for a ``telepresenter''; (3) Allowing limited reimbursement for referring clinics to recover the cost of their services; (4) Expanding telemedicine services to all non-MSAs; (5) Expanding telemedicine services to direct patient care, not just professional consultations; (6) Making all providers eligible for HCFA reimbursement for services delivered via telemedicine; (7) Creating a federal demonstration project that permits telemedicine reimbursement for ``store and forward'' consultations (i.e., x-rays that are sent to another facility for consultation); and (8) Permitting telehomecare. While these changes are relatively minor in the context of the Medicare program, the affect will be far-reaching. The modernizations we are proposing will dramatically improve access to quality health care in rural areas. This legislation will allow us to begin to release the incredible potential of telemedicine. On a final note, I'd like to thank Karen Edison for her expertise and determination in working on this bill. Because Karen is a practicing telemedicine physician, she has been invaluable in developing and advancing this cause. Thank you, Mr. President for your time today. I hope all of my colleagues will join with me in passing this important piece of legislation. ______ By Mr. GORTON: S. 2506. A bill to amend title 46, United States Code, with respect to the Federal preemption of State law concerning the regulation of marine and ocean navigation, safety, and transportation by States; to the Committee on Commerce, Science, and Transportation. legislation regarding marine and ocean navigation, safety, and transportation Mr. GORTON. Mr. President, environmental protection and states' rights were dealt a blow on March 6th, when the U.S. Supreme Court decided the case of United States vs. Locke. The Court, noting that even though federal and international laws ``may be insufficient protection,'' invalidated Washington laws, and potentially laws in eleven other states, that provide protections against spills by oil tankers. I disagree with the Court's decision, because I believe that Washington state should be allowed to protect its shores as it sees fit. That is why, today I am pleased to introduce the ``States Prevention of Oil Tanker Spills Act'' (SPOTS)-legislation that will reinstate the right of all states to adopt additional standards beyond existing federal requirements governing the operation, maintenance, equipment, personnel and manning of oil tankers. While this legislation will apply to all shoreline states, it is particularly

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - May 04, 2000)

Text of this article available as: TXT PDF [Pages S3514-S3543] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. DASCHLE (for himself and Mr. Lugar): S. 2503. A bill to amend the Clean Air Act to authorize States to regulate harmful fuel additives and to require fuel to contain fuel made from renewable sources, to amend the Solid Waste Disposal Act to require that at least 85 percent of funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund be distributed to States to carry out cooperative agreements for undertaking corrective action and for enforcement of subtitle I of that act, and for other purposes; to the Committee on Environment and Public Works. renewable fuels act of 2000 Mr. DASCHLE. Mr. President, ten years ago I joined with two distinguished colleagues, then-Senate Majority Leader Bob Dole and Senator Tom Harkin, to introduce the reformulated gasoline (RFG) provision of the 1990 Clean Air Act Amendments. The RFG provision, with its minimum oxygen standard, was adopted in the Senate by the overwhelming vote of 69 to 30 and eventually signed into law by President George Bush. I am proud to say that this program has resulted in substantial improvement in air quality around the country. It also has stimulated increased production and use of renewable ethanol and other oxygenates needed to meet the minimum oxygen standard. Unfortunately, an unanticipated development involving the petroleum- based oxygenate MTBE requires us to re-examine the many benefits of the RFG program. The detection of MTBE in ground water around the country has generated considerable debate in recent months over how to deal with this fuel additive and the oxygen requirement of the reformulated gasoline program. The resolution of this debate will have significant consequences for the environment, for farmers and for the rural economy. The pace of activity to resolve the MTBE issue is accelerating rapidly. Battlelines are being drawn as the state of California and its allies focus on scrapping the oxygen requirement. It is clear that Congress and/or the Clinton administration will respond to the MTBE problem. My focus is on ensuring that that response not only serves the environment, but also retains a prominent place for ethanol--a place that assures long-term, predictable growth of the industry. I believe a comprehensive legislative solution is necessary in this case--one that recognizes and preserves the important air quality benefits of the RFG program, protects water supplies and leads the nation away from greater dependence on imported oil. I have worked for the last year with the ethanol industry, Republican and Democratic colleagues in the Senate, the Governor's Ethanol Coalition, environmental organizations and the administration in search of a solution that gives states the tools they need to address MTBE contamination, ensures the future growth of domestic renewable fuels, and prevents supply shortages and price spikes in the nation's fuels supply. This process has led me to two basic conclusions. First, the MTBE crisis has left the RFG oxygen requirement vulnerable to legislative attack. Those who doubt this conclusion should reflect on the following facts. California refiners have shown that clean-burning gasoline can be produced without oxygen. EPA's Blue Ribbon Panel has recommended that the oxygen requirement be repealed. The RFG oxygen requirement is opposed by a diverse coalition that includes the American Lung Association, the American Petroleum Institute, the New England States Coordinated Air Use Management agency, the State of California and the Natural Resources Defense Council (NRDC). Second, support for the oxygen requirement will weaken over time. Improvements in auto emissions control technology will cause the air quality benefits of oxygen in gasoline to decline and the justification for the RFG oxygen requirement to diminish. As one of the original authors of the reformulated gasoline provisions of the Clean Air Act, I feel something of a proprietary interest in the oxygen requirement. As a legislator, I recognize that circumstances change, and obstinacy should not be allowed to become a barrier to the achievement of important policy goals. Ethanol advocates face a choice between defending the oxygen requirement in the near term, realizing that its days ultimately are numbered, or using the current MTBE debate to guarantee the future growth of the ethanol industry based on important public policy goals, such as energy security, greenhouse gas emissions reductions, and domestic economic growth. In my judgment, providing states with the flexibility to waive the RFG oxygen requirement is a fair tradeoff for the establishment of a renewable fuels standard. It represents the most effective way to achieve the environmental and economic goals of governors and consumers, while putting the ethanol industry on a steady growth path well into the future and promoting ethanol production in new regions of the nation. Therefore, today, with Senator Richard Lugar, I am introducing the Renewable Fuels Act of 2000. Under our [[Page S3515]] legislation, EPA is directed to reduce the use of MTBE to safe levels, and states can obtain waivers from the RFG oxygen requirement and further regulate MTBE if they desire. This will allow the nation to deal with the MTBE contamination issue responsibly and avoid gasoline supply disruptions. The bill also includes provisions protecting the air quality gains that have resulted from the use of oxygenated fuels. To protect market opportunities for renewable fuels, the bill establishes a renewable fuels standard for the nation's gasoline, which begins in 2000 at 1.3 percent--roughly where renewable fuels production stands today--and gradually increases over the next decade to 3.3 percent of the nation's gasoline in 2010. Considering the fact that overall gasoline use is expected to increase over the next decade, this standard will more than triple ethanol use over that period. In meeting that requirement, our legislation stipulates that a gallon of biomass ethanol counts as much as 1.5 gallons of starch-based ethanol, thereby providing a strong incentive for the development of biomass-based ethanol plans throughout the country. It also established a renewable fuels standard for diesel fuels to promote the use of biodiesel. These renewable fuels standards can be met through nationwide credit trading, to allow for the most economomical use of ethanol and biodiesel. For those who are concerned about the potential impact of a drought or other natural disaster on the ability of the renewable fuels industry to supply this market, the legislation allows the EPA Administrator, in consultation with the Secretary of Agriculture, to waive the renewable requirement in any given year upon determination that there is indequate domestic supply or distribution capacity, or that the requirement would severely harm the economic or environment of a State, a region, or the United States. I also intend to work with my colleagues on both sides of the aisle to establish a strategic corn reserve as a complement to the renewable fuel standard. A properly managed strategic corn reserve could serve as the equivalent of the strategic petroleum reserve and ensure stable feedstocks for domestic ethanol producers in the event of weather induced supply interruptions. Taxpayers would benefit as farmers could receive fair market prices, thereby reducing the need for emergency assistance each year. It is important to recognize that under Senator Lugar's and my approach, the oxygen requirement is not waived entirely. States can decide for themselves whether to apply for a waiver from the RFG oxygen requirement. We fully expect that RFG programs that currently are using ethanol and have not experienced MTBE contamination, such as Chicago and Milwaukee, will stay in the program. Moreover, the bill allows any governor to apply to EPA to opt into the RFG program, thus expanding its air quality benefits to new regions of the country. Those areas that remain in the program or opt into it, and use ethanol, will generate credits that can be sold to other regions of the country. Finally, the bill prevents adverse effects on states' highway trust fund tax allocations, with ``hold harmless'' language ensuring that states reporting Federal excise tax receipts on gasoline are not penalized for their ethanol blend sales. Again, my goal in introducing this legislation is both to support states that want to get MTBE out of gasoline and to ensure that this effort does not adversely affect ethanol production. It is also to put into place a program that will grow the ethanol industry steadily over the next decade, thereby assuring the market stability necessary to attract investment in the construction of new plants and significantly increasing the market for corn and biomass. This approach not only will get MTBE out of groundwater; it will do so without backsliding on the air quality improvements generated by the RFG program while increasing corn demand by 600 million bushels per year. Mr. President, since first floating this concept in May of last year, I have heard from numerous stakeholders in this complex debate. The legislative concept that Senator Lugar and I unveil today has been endorsed by diverse interests ranging from the American Coalition for Ethanol (ACE) in Sioux Falls, South Dakota, to the 24-state Governors' Ethanol Coalition, to the Northeast States for Coordinated Air Use Management (NESCAUM) to Mr. Leo Leibowitz, chairman of Getty Petroleum. I believe that we have struck a delicate balance between the interests of farmers, consumers, state regulatory officials, refiners and those concerned about the environment. This plan is a worthy successor to the original 1990 RFG provision, preserving all of the good things it has achieved and rectifying those elements that need fixing. I look forward to working with Senators Smith and Baucus, the chairman and ranking member of the Senate Environment and Public Works Committee, to enact legislation resolving the MTBE issue. I hope that other colleagues will join Senator Lugar and me in support of this legislation. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2503 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 ``Renewable Fuels Act of 2000''. SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL OR PROHIBIT USE OF MTBE. Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended-- (1) in paragraph (1)(A), by striking ``any emission product of such fuel or fuel additive causes, or contributes, to air pollution which may reasonably be anticipated to endanger the public health or welfare,'' and inserting ``the fuel or fuel additive, or an emission product of the fuel or fuel additive, causes or contributes to air, water, or soil pollution that may reasonably be anticipated to endanger the public health or welfare or the environment,''; (2) in paragraph (2)(C), by inserting ``or have other environmental impacts'' after ``emissions''; (3) in paragraph (4)-- (A) in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``(4)(A) Except as otherwise provided in subparagraph (B) or (C),'' and inserting the following: ``(4) Limitation on state authority with respect to fuels and fuel additives.-- ``(A) In general.-- ``(i) Fuels and fuel additives.--Except as otherwise provided in subparagraph (B) or (C) or paragraph (5),''; (C) in subparagraph (A)-- (i) in clause (i) (as designated by subparagraph (B)), by inserting ``or water or soil quality protection'' after ``emission control''; and (ii) by adding at the end the following: ``(ii) MTBE.--Notwithstanding clause (i), except as otherwise provided in subparagraph (B) or (C) or paragraph (5), no State (or political subdivision of a State) may prescribe or attempt to enforce, for the purpose of motor vehicle emission control or water or soil quality protection, any control or prohibition on methyl tertiary butyl ether as a fuel additive in a motor vehicle or motor vehicle engine.''; (D) in subparagraph (B), by inserting ``or water or soil quality protection'' after ``emission control''; and (E) in subparagraph (C)-- (i) in the first sentence-- (I) by inserting ``or water or soil quality protection'' after ``emission control''; and (II) by inserting before the period at the end the following: ``or, if the Administrator grants a petition of the State under paragraph (5)''; and (ii) in the second sentence, by striking ``only if he'' and inserting ``if the Administrator''; and (4) by adding at the end the following: ``(5) State petitions for authority to control or prohibit use of fuels or fuel additives for non-air quality purposes.-- ``(A) In general.--A State seeking to prescribe and enforce a control or prohibition on a fuel or fuel additive for the purpose of water or soil quality protection under paragraph (4)(C) shall submit a petition to the Administrator for authority to take such action. ``(B) Required elements of petition.--A petition submitted under subparagraph (A) shall-- ``(i) include information on-- ``(I) the likely effects of the control or prohibition on fuel availability and price in the affected supply area or region; and ``(II) the improvements in environmental quality or public health or welfare expected to result from the control or prohibition; and ``(ii) demonstrate that the authority is necessary to protect the environment or public health or welfare. [[Page S3516]] ``(C) Action by the administrator.--Not later than 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator shall grant or deny the petition. ``(D) Criteria for granting of petitions.--The Administrator shall grant a petition submitted by a State under subparagraph (A) unless the Administrator finds that-- ``(i) the petition fails to reasonably demonstrate that the authority is necessary to protect the environment or public health or welfare; ``(ii) the control or prohibition is likely to have a substantial and significant adverse effect on fuel availability or price (including a State or regional effect) that clearly outweighs any benefits associated with the control or prohibition; or ``(iii) in the case of a petition submitted by a State seeking the authority primarily to protect water resources, the State has failed to take other appropriate and reasonable actions to prevent contamination of water resources by fuels or fuel additives, such as-- ``(I) adoption of a prohibition on the delivery of gasoline to noncompliant facilities with underground storage tanks; or ``(II) operation of a statewide monitoring and compliance assurance system. ``(E) Effect of failure of administrator to act.--If, by the date that is 180 days after the date of receipt of a petition submitted under subparagraph (A), the Administrator has not proposed to grant or deny the petition under subparagraph (C), the petition shall be deemed to be granted. ``(F) Procedural requirements.-- ``(i) Inapplicability of certain requirements.--Section 307(d) of this Act and sections 553 through 557 of title 5, United States Code, shall not apply to actions on a petition submitted under subparagraph (A). ``(ii) Public notice and opportunity for comment.--The Administrator shall provide public notice and opportunity for comment with respect to a petition submitted under subparagraph (A). ``(6) Limitation on mtbe content.--The Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce by the refiner, blender, or importer on or after January 1, 2004, in an area has a content of methyl tertiary butyl ether that is at a level that-- ``(A) the Administrator determines may not reasonably be anticipated to endanger natural resources and the public health; and ``(B) does not exceed the annual average volume of methyl tertiary butyl ether per gallon of gasoline used in the area before 1995.''. SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (1)-- (A) 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,''; (B) in the first sentence, by inserting before the period at the end the following: ``and opt-in areas under paragraph (6)''; and (C) by adding at the end the following: ``(B) Adjustment of voc performance standard.-- ``(i) In general.--The Administrator may adjust the volatile organic compounds performance standard promulgated under subparagraph (A) in the case of a fuel formulation that achieves reductions in the quantity of mass emissions of carbon monoxide that are greater than or less than the reductions associated with a reformulated gasoline that contains 2.0 percent oxygen by weight and otherwise meets the requirements of this subsection. ``(ii) Amount of adjustment.--The amount of an adjustment under clause (i) shall be based on the effect on ozone concentrations of the combined reductions in emissions of volatile organic compounds and reductions in emissions of carbon monoxide.''; (2) in paragraph (2)-- (A) in subparagraph (B)-- (i) by striking ``The oxygen'' and inserting the following: ``(i) In general.--The oxygen''; and (ii) by adding at the end the following: ``(ii) Waiver for certain states.--The Administrator shall waive the application of clause (i) for any ozone nonattainment area in a State if the Governor of the State submits for such a waiver an application that-- ``(I) demonstrates that the State is in full compliance with Federal regulations concerning the control and prevention of leaking underground storage tanks; or ``(II) provides a plan that outlines the measures the State will take to fully comply with the underground storage tank regulations by a date not later than 2 years after the receipt of the application of the Governor. ``(iii) Effective date.--A waiver under clause (ii) shall become effective on the later of-- ``(I) January 1 of the calendar year immediately following the calendar year during which the application for the waiver is received; or ``(II) the date that is 180 days after the date on which the application for the waiver is received.''; and (B) by adding at the end the following: ``(E) Aromatics.--The aromatic hydrocarbon content of the gasoline shall not exceed 22 percent by volume.''; (3) in paragraph (3)-- (A) in subparagraph (A)(ii), by striking ``25 percent'' and inserting ``22 percent''; and (B) in subparagraph (B)-- (i) by striking ``Any reduction'' and inserting the following: ``(iii) Treatment of greater reductions.--Any reduction''; and (ii) by adding at the end the following: ``(iv) Anti-backsliding provision.-- ``(I) In general.--Not later than June 1, 2000, the Administrator shall revise performance standards under this subparagraph as necessary to ensure that-- ``(aa) the ozone-forming potential, taking into account all ozone precursors (including volatile organic compounds, oxides of nitrogen, and carbon monoxide), of the aggregate emissions during the high ozone season (as determined by the Administrator) from baseline vehicles when using reformulated gasoline does not exceed the ozone-forming potential of the aggregate emissions during the high ozone season from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasoline sold in calendar year 2000 and subsequent calendar years; and ``(bb) the aggregate emissions of the pollutants specified in subclause (II) from baseline vehicles when using reformulated gasoline do not exceed the aggregate emissions of those pollutants from baseline vehicles when using reformulated gasoline that complies with the regulations that were in effect on January 1, 2000, and were applicable to reformulated gasolines sold in calendar year 2000 and subsequent calendar years. ``(II) Specified pollutants.--The pollutants specified in this subclause are-- ``(aa) toxics, categorized by degrees of toxicity; and ``(bb) such other pollutants, including pollutants regulated under section 108, and such precursors to those pollutants, as the Administrator determines by regulation should be controlled to prevent the deterioration of air quality and to achieve attainment of a national ambient air quality standard in 1 or more areas.''; and (4) in paragraph (4)(B)-- (A) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately to reflect the amendments made by this paragraph; (B) by striking ``The Administrator'' and inserting the following: ``(i) In general.--The Administrator''; (C) in clause (i) (as designated by subparagraph (B))-- (i) in subclause (I) (as redesignated by subparagraph (A)), by striking ``, and'' and inserting a semicolon; (ii) in subclause (II) (as redesignated by subparagraph (A))-- (I) by striking ``achieve equivalent'' and inserting the following: ``achieve-- ``(aa) equivalent''; (II) by striking the period at the end and inserting ``; or''; and (III) by adding at the end the following: ``(bb) combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration, as provided in clause (ii)(I), that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3); and''; and (iii) by adding at the end the following: ``(III) achieve equivalent or greater reductions in emissions of toxic air pollutants than are achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3).''; and (D) by adding at the end the following: ``(ii) Carbon monoxide credit.-- ``(I) In general.--In determining whether a fuel formulation or slate of fuel formulations achieves combined reductions in emissions of ozone forming volatile organic compounds and carbon monoxide that result in a reduction in ozone concentration that is equivalent to or greater than the reduction in ozone concentration achieved by a reformulated gasoline meeting the applicable requirements of paragraph (3), the Administrator-- ``(aa) shall consider, to the extent appropriate, the change in carbon monoxide emissions from baseline vehicles attributable to an oxygen content in the fuel formulation or slate of fuel formulations that exceeds 2.0 percent by weight; and ``(bb) may consider, to the extent appropriate, the change in carbon monoxide emissions described in item (aa) from vehicles other than baseline vehicles. ``(II) Oxygen credits.--Any excess oxygen content that is taken into consideration in making a determination under subclause (I) may not be used to generate credits under paragraph (7)(A). ``(III) Relation to title i.--Any fuel formulation or slate of fuel formulations that is certified as equivalent or greater under this subparagraph, taking into consideration the combined reductions in emissions of volatile organic compounds and carbon monoxide, shall receive the same volatile organic compounds reduction credit for the purposes of subsections (b)(1) and (c)(2)(B) of section 182 as a fuel meeting the applicable requirements of paragraph (3).''. (b) Reformulated Gasoline Carbon Monoxide Reduction Credit.--Section 182(c)(2)(B) of the Clean Air Act (42 U.S.C. [[Page S3517]] 7511a(c)(2)(B)) is amended by adding at the end the following: ``An adjustment to the volatile organic compound emission reduction requirements under section 211(k)(3)(B)(iv) shall be credited toward the requirement for VOC emissions reductions under this subparagraph.''. SEC. 4. 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 so redesignated)-- (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) Nonclassified areas.-- ``(i) In general.--Upon the application of the Governor of a State, the Administrator shall apply the prohibition specified in paragraph (5) in any area in the State that is not a covered area or an area referred to in subparagraph (A)(i). ``(ii) Publication of application.--As soon as practicable after receipt of an application under clause (i), the Administrator shall publish the application in the Federal Register.''. SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER MOTOR FUELS. (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 Content of Gasoline.-- ``(1) In general.-- ``(A) Regulations.--Not later than September 1, 2000, the Administrator shall promulgate regulations applicable to each refiner, blender, or importer of gasoline to ensure that gasoline sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements of this subsection. ``(B) Renewable content requirements.-- ``(i) In general.--All gasoline sold or introduced into commerce in the United States by a refiner, blender, or importer shall contain, on a quarterly average basis, a quantity of fuel derived from a renewable source (including biomass ethanol) that is not less than the applicable percentage by volume for the quarter. ``(ii) Biomass ethanol.--For the purposes of clause (i), 1 gallon of biomass ethanol shall be considered to be the equivalent of 1.5 gallons of fuel derived from a renewable source. ``(iii) Applicable percentage.--For the purposes of clause (i), the applicable percentage for a quarter of a calendar year shall be determined in accordance with the following table: Applicable percentage of fuel derived from a renewable source: `Calendar year: 2000.........................................................1.3 .... 2001.........................................................1.5 .... 2002.........................................................1.7 .... 2003.........................................................1.9 .... 2004.........................................................2.1 .... 2005.........................................................2.3 .... 2006.........................................................2.5 .... 2007.........................................................2.7 .... 2008.........................................................2.9 .... 2009.........................................................3.1 .... 2010 and thereafter..........................................3.3..... ``(C) Fuel derived from a renewable source.--For the purposes of this subsection, a fuel shall be considered to be derived from a renewable source if the fuel-- ``(i) is produced from grain, starch, oilseeds, or other biomass; and ``(ii) is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle. ``(D) Biomass ethanol.--For the purposes of this subsection, a fuel shall be considered to be biomass ethanol if the fuel is 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 commodities and residues; ``(vi) fibers; ``(vii) animal wastes and other waste materials; and ``(viii) municipal solid waste. ``(E) Credit program.-- ``(i) In general.--The regulations promulgated under this subsection shall provide for the generation of an appropriate amount of credits by a person that refines, blends, or imports gasoline that contains, on a quarterly average basis, a quantity of fuel derived from a renewable source or a quantity of biomass ethanol that is greater than the quantity required under subparagraph (B). ``(ii) Use of credits.--The regulations shall provide that a person that generates the credits may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with subparagraph (B). ``(2) Waivers.-- ``(A) In general.--The Administrator, in consultation with the Secretary of Agriculture, may waive the requirements of paragraph (1)(B) in whole or in part on petition by a State-- ``(i) based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirements 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 or distribution capacity to meet the requirements of paragraph (1)(B). ``(B) Petitions for waivers.--The Administrator, in consultation with the Secretary of Agriculture-- ``(i) shall approve or deny a State petition for a waiver of the requirements of paragraph (1)(B) within 180 days after the date on which the petition is received; but ``(ii) may extend that period for up to 60 additional days to provide for public notice and opportunity for comment and for consideration of the comments submitted. ``(C) Termination of waivers.--A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture. ``(D) Oxygen content waivers.--The grant or denial of a waiver under subsection (k)(2)(B) shall not affect the requirements of this subsection. ``(3) Small refiners.--The regulations promulgated by the Administrator under paragraph (1) may provide an exemption, in whole or in part, for small refiners (as defined by the Administrator). ``(4) Guidance for labeling.--After consultation with the Secretary of Agriculture, the Administrator shall issue guidance to the States for labeling, at the point of retail sale-- ``(A) the fuel derived from a renewable source that is contained in the fuel sold; and ``(B) the major fuel additive components of the fuel sold. ``(5) Reports to congress.--Not less often than every 3 years, the Administrator shall submit to Congress a report on-- ``(A) reductions in emissions of criteria air pollutants listed under section 108 that result from implementation of this subsection; and ``(B) in consultation with the Secretary of Energy, greenhouse gas emission reductions that result from implementation of this subsection. ``(p) Renewable Content of Diesel Fuel.-- ``(1) In general.--Not later than September 1, 2000, the Administrator, after consideration of applicable economic and environmental factors, shall promulgate regulations applicable to each refiner, blender, or importer of diesel fuel to ensure that the diesel fuel sold or introduced into commerce in the United States by the refiner, blender, or importer complies with the renewable content requirements established by the Administrator under this subsection. ``(2) Elements of program.--To the extent that the Administrator determines it to be appropriate, the Administrator shall by regulation establish a program for diesel fuel that has renewable content requirements similar to the requirements of the program for gasoline under subsection (o) in order to ensure the use of biodiesel fuel.''. (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)'' each place it appears and inserting ``(n), or (o)''; 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)'' each place it appears and inserting ``(n), and (o)''. (c) Prevention of Effects on Highway Apportionments.-- (1) Surface transportation program.--Section 104(b)(3) of title 23, United States Code, is amended by adding at the end the following: ``(C) Determination of estimated tax payments.--For the purpose of determining under subparagraph (A)(iii) the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: [[Page S3518]] ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. (2) Minimum guarantee.--Section 105(f)(1) of title 23, United States Code, is amended-- (A) by striking ``(1) In general.--Before'' and inserting the following: ``(1) In general.-- ``(A) Adjustment.--Before''; and (B) by adding at the end the following: ``(B) Determination of estimated tax payments.--For the purpose of determining under this subsection the estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund (other than the Mass Transit Account) in a fiscal year, the amount paid into the Highway Trust Fund with respect to the sale of gasohol or other fuels containing alcohol by reason of the tax imposed by section 4041 (relating to special fuels) or 4081 (relating to gasoline) of the Internal Revenue Code of 1986 shall be treated as being equal to the amount that would have been so imposed with respect to that sale without regard to the reduction in revenues resulting from the application of the regulations promulgated under section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) and the following provisions of the Internal Revenue Code of 1986: ``(i) Section 4041(b)(2) (relating to exemption for qualified methanol and ethanol fuel). ``(ii) Section 4041(k) (relating to fuels containing alcohol). ``(iii) Section 4041(m) (relating to certain alcohol fuels). ``(iv) Section 4081(c) (relating to reduced rate on gasoline mixed with alcohol).''. SEC. 6. UPDATING OF BASELINE YEAR. (a) In General.--Section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) is amended-- (1) in paragraph (8)-- (A) in subparagraph (A)-- (i) in the first sentence, by striking ``Within 1 year after the enactment of the Clean Air Act Amendments of 1990, the'' and inserting ``The''; and (ii) by striking the second sentence; (B) by striking ``calendar year 1990'' each place it appears and inserting ``calendar year 1999''; and (C) in subparagraph (E), by striking ``such 1990 gasoline'' and inserting ``such 1999 gasoline''; and (2) in subparagraphs (A) and (B)(ii) of paragraph (10), by striking ``1990'' each place it appears and inserting ``1999''. (b) Regulations.--As soon as practicable after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall revise the regulations promulgated under section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) to reflect the amendments made by subsection (a). SEC. 7. LEAKING UNDERGROUND STORAGE TANKS. (a) Trust Fund Distribution.--Section 9004 of the Solid Waste Disposal Act (42 U.S.C. 6991c) is amended by adding at the end the following: ``(f) Trust Fund Distribution.-- ``(1) In general.-- ``(A) Amount and permitted use of distribution.--The Administrator shall distribute to States at least 85 percent of the funds appropriated to the Environmental Protection Agency from the Leaking Underground Storage Tank Trust Fund established by section 9508 of the Internal Revenue Code of 1986 (referred to in this subsection as the `Trust Fund') for each fiscal year for use in paying the reasonable costs, incurred under cooperative agreements with States, of-- ``(i) actions taken by a State under section 9003(h)(7)(A); ``(ii) necessary administrative expenses directly related to corrective action and compensation programs under subsection (c)(1); ``(iii) enforcement by a State or local government of a State program approved under this section or of State or local requirements regulating underground storage tanks that are similar or identical to this subtitle; ``(iv) State or local corrective actions pursuant to regulations promulgated under section 9003(c)(4); or ``(v) corrective action and compensation programs under subsection (c)(1) for releases from underground storage tanks regulated under this subtitle if, as determined by the State in accordance with guidelines developed between the Environmental Protection Agency and the States, the financial resources of an owner or operator (including resources provided by programs under subsection (c)(1)) are not adequate to pay for the cost of a corrective action without significantly impairing the ability of the owner or operator to continue in business. ``(B) Nonpermitted uses.--Funds provided by the Administrator under subparagraph (A) shall not be used by a State to provide financial assistance to an owner or operator to meet the requirements concerning underground storage tanks contained in part 280 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subsection), except as provided in subparagraph (A)(v), or similar requirements in State programs approved under this section or similar State or local provisions. ``(C) Tanks within tribal jurisdiction.--The Administrator, in coordination with Indian tribes, shall-- ``(i) expeditiously develop and implement a strategy to-- ``(I) take necessary corrective action in response to releases from leaking underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe, giving priority to releases that present the greatest threat to human health or the environment; and ``(II) implement and enforce requirements regulating underground storage tanks located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe; and ``(ii) not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, submit to Congress a report summarizing the status of implementation of the leaking underground storage tank program located wholly within the exterior boundaries of an Indian reservation or other area within the jurisdiction of an Indian tribe. ``(2) Allocation.-- ``(A) Process.--Subject to subparagraph (B), in the case of a State with which the Administrator has entered into a cooperative agreement under section 9003(h)(7)(A), the Administrator shall distribute funds from the Trust Fund to the State using the allocation process developed by the Administrator for such cooperative agreements. ``(B) Revisions to process.--The Administrator may revise the allocation process only after-- ``(i) consulting with State agencies responsible for overseeing corrective action for releases from underground storage tanks and with representatives of owners and operators; and ``(ii) taking into consideration, at a minimum-- ``(I) the total revenue received from each State into the Trust Fund; ``(II) the number of confirmed releases from leaking underground storage tanks in each State; ``(III) the number of notified petroleum storage tanks in each State; ``(IV) the percentage of the population of each State using ground water for any beneficial purpose; ``(V) the evaluation of the program performance of each State; ``(VI) the evaluation of the financial needs of each State; and ``(VII) the evaluation of the ability of each State to use the funds in any year. ``(3) Distributions to state agencies.-- ``(A) In general.--Distributions from the Trust Fund under this subsection shall be made directly to the State agency entering into a cooperative agreement or enforcing the State program. ``(B) Administrative expenses.--A State agency that receives funds under this subsection shall limit the proportion of those funds that are used to pay administrative expenses to a percentage that the State may establish by law. ``(4) Cost recovery prohibition.--Funds provided to States from the Trust Fund to owners or operators for programs under section 9004(c)(1) for releases from underground storage tanks are not subject to cost recovery by the Administrator under section 9003(h)(6). ``(5) Permitted uses.--In addition to uses authorized by other provisions of this subtitle, the Administrator may use funds appropriated to the Environmental Protection Agency from the Trust Fund for enforcement of any regulation promulgated by the Administrator under this subtitle.''. (b) Addition to Trust Fund Purposes.--Section 9508(c)(1) of the Internal Revenue Code of 1986 (relating to expenditures) is amended by striking ``to carry out section 9003(h)'' and all that follows and inserting ``to carry out-- ``(A) section 9003(h) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Superfund Amendments and Reauthorization Act of 1986); and ``(B) section 9004(f) of the Solid Waste Disposal Act (as in effect on the date of enactment of the Renewable Fuels Act of 2000).''. (c) Studies.--Not later than 18 months after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall conduct-- (1) a study to determine the corrosive effects of methyl tertiary butyl ether and other widely used fuels and fuel additives on underground storage tanks; and (2) a study to assess the potential public health and environmental risks associated with the use of aboveground storage tanks and the effectiveness of State and Federal regulations or voluntary standards, in existence as of the time of the study, to provide adequate protection of public health and the environment. (d) Technical Amendments.-- (1) Section 9001(3)(A) of the Solid Waste Disposal Act (42 U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and inserting ``substances''. (2) Section 9003(f)(1) of the Solid Waste Disposal Act (42 U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and (d) of this section'' and inserting ``subsections (c) and (d)''. (3) Section 9004(a) of the Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended in the first sentence by striking ``referred to'' and all that follows and inserting ``referred to in subparagraph (A) or (B), or both, of section 9001(2).''. (4) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 6991d) is amended-- [[Page S3519]] (A) in subsection (a), by striking ``study taking'' and inserting ``study, taking''; (B) in subsection (b)(1), by striking ``relevent'' and inserting ``relevant''; and (C) in subsection (b)(4), by striking ``Evironmental'' and inserting ``Environmental''. SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM. (a) In General.--The Administrator of the Environmental Protection Agency may enter into cooperative agreements with the United States Geological Survey, the Department of Agriculture, States, local governments, private landowners, and other interested parties to establish voluntary pilot projects to protect the water quality of private wells and to provide technical assistance to users of water from private wells. (b) Limitation.--This section does not authorize the issuance of guidance or regulations regarding the use or protection of private wells. Mr. LUGAR. Mr. President, I am pleased to join Senator Daschle in introducing the Renewable Fuels Act of 2000. In July 1999, an independent Blue Ribbon Panel on Oxygenates in Gasoline called for major reductions in the use of MTBE as an additive in gasoline. They did so because of growing evidence and public concerns regarding pollution of drinking water supplies by MTBE. These trends are particularly acute in areas of the country using Reformulated Gasoline. The Reformulated Gasoline Program (RFG) has proven to be a success in reducing smog and has exceeded expectations in reducing dangerous and carcinogenic air toxics in gasoline. The second stage of the Reformulated Gasoline Program (RFG) will commence this summer and will have an even greater effect in reducing ozone pollution and air toxics. Because of concerns regarding water pollution, it is clear that the existing situation regarding MTBE is not tenable. The Governor of California has called for a three year phase out of MTBE in California and the California Air Resources Board has adopted regulations to that effect. Environmental officials from eight Northeastern States have proposed a phase down and a capping of the use of MTBE in gasoline in their states. MTBE is being found in wells in the Midwest even in areas that do not use reformulated gasoline. The Renewable Fuels Act of 2000 will lead to about five billion gallons of ethanol being produced in 2010 compared to one billion, six hundred million gallons today. Under the Act, one gallon of cellulosic ethanol will count for one and one-half gallons of regular ethanol in determining whether a refiner has met the Renewable Fuels Standard in a particular year. We are going to have spikes in oil that will disrupt our economy. It may or may not be able to be controlled. It will happen before 2010. It may happen again next week. Our problem in terms of national security and the security of our whole economy revolves around our dependence on petroleum-based fuels. We must be able to address this challenge. Finding an environmentally sensitive way to resolve the MTBE crisis is an important part of this challenge. It is clear that MTBE is on its way out. The question is what kind of legislation is needed to facilitate its departure and whether that legislation will be based on consideration of all of the environmental and energy and national security issues involved. The Renewable Fuels Act of 2000 will establish a nationwide Renewable Fuels Standard (RFS) that would increase the current use of renewable fuels from 1.3% in 2000 to 3.3% by 2010. Refiners who produced renewable fuels beyond the standard could sell credits to other refiners who chose to under comply with the RFS. This bill would give the EPA Administrator authority to limit or eliminate the use of MTBE in order to protect the public health and the environment. It also gives states the ability to further regulate or eliminate MTBE use if the EPA does not choose to eliminate it. It would also establish strict ``anti backsliding provisions'' to capture all of the air quality benefits of MTBE and ethanol as MTBE is phased down or phased out. The Renewable Fuels Act of 2000 will be good for our economy and our environment. Most important of all, it will facilitate the development of renewable fuels, a development critical to ensuring U.S. national and economic security and stabilizing gas prices. I hope that my colleagues will examine this bill as well as other legislative approaches that would spur the development of renewable fuels such as ethanol, whether derived from corn or other agricultural or plant materials. ______ By Mr. JEFFORDS (for himself, Mr. Rockefeller, Mr. Grassley, Mr. Breaux, Mr. Murkowski, Mr. Stevens, Mr. Bond, Mr. Inouye, Mr. Harkin, Mr. Roberts, Mr. Thomas, Mr. Bingaman, Mr. Edwards, Mr. Conrad, and Mr. Kerrey): S. 2505. A bill to amend title XVIII of the Social Security Act to provide increased assess to health care for medical beneficiaries through telemedicine; to the Committee on Finance. telehealth improvement and modernization act of 2000 Mr. JEFFORDS. Mr. President, today I am pleased to join with my good friend Senator Rockefeller in introducing legislation that will improve upon the federal rules for reimbursement for telemedicine and help to ensure that all of our citizens have access to our great health care system. We are joined by a broad, bipartisan group of senators in this effort. In many ways we have the best health care system in the world. But increasingly fewer and fewer Americans actually have access to it. I recently introduced a tax-credit bill that will help some of these Americans and I anticipate supporting future measures aimed at increasing access to health care services. One important area that demands our attention is the problem of access for rural Americans. More than 25 percent of our Nation's senior citizens live in areas underserved for modern health care services. At the same time, telemedicine has come of age. We have moved beyond the feasibility stage and proven that this technology can provide real benefits to people in rural and underserved regions of our country. In my own State of Vermont, nearly 70 per cent live in rural areas. This is the highest percentage rural population of any state in the nation. In Vermont, specialists in more than twenty-five disciplines from Fletcher Allen Health Care in Burlington are made readily available to patients even in the most rural areas. I want to see this level of service expand and be made available to all Americans. We in Washington have made some good faith attempts to allow for the development of telehealth technologies but we have fallen short. In an effort to restrain the expansion of these programs, the Health Care Financing Administration's interpretation of the laws and its cumbersome rules for reimbursement have all but guaranteed the demise of current programs. Federally-funded telemedicine projects exist in almost every State in the Nation. These projects have proven that cost-effective, high- quality care can be delivered using this technology. The provisions in this bill will help to ensure that this care will be continued when the federal grants end. Why is this legislation needed now? Because current HCFA regulations concerning payment are unworkable in the real world. Less than 6 percent of all telemedicine doctor-patient visits last year provided to Medicare beneficiaries would qualify for reimbursement under HCFA's current guidelines. Now that we have more experience and understand better how telemedicine can be used, it is time to enact several changes to the law so that these programs can thrive and deliver on their promise of providing cost-effective, high-quality healthcare where it is needed the most. Rural healthcare providers and patients are eager for this legislation. Norman Wright, President of the Vermont Association of Hospitals and Health Systems, recognized the potential of Fletcher Allen's telemedicine program by describing it as one that ``provides incredible opportunities for rural providers and their patients because it links them to a network with access to the region's best authorities for any given condition.'' I have indeed heard an outpouring of support from healthcare providers across my own State on this issue. Gerry Davis, Professor of Pulmonary and Critical Care Medicine at Fletcher Allen Health Care, described ``appropriate and fair third party payment for [[Page S3520]] telemedicine'' as ``essential in order to move this process beyond education, and to make the service truly useful for patients in remote locations.'' Telemedicine can be used in so many ways. It can be vital to a pediatrician from a rural area with a sick baby who needs to consult with a neonatologist from a tertiary care hospital in the dead of winter and the middle of the night. It can be also be crucial for a depressed senior citizen who desperately needs mental health services available in their own rural county. And it can be much needed help for a frustrated isolated primary care provider who longs to be able to provide for access to specialty services for her patients in their own community. All of these people need our help. While the changes included in this bill are relatively minor in the context of the Medicare program, the effect will be far-reaching. This legislation will allow us to avoid arbitrarily denying access to health care for our senior citizens and persons with disabilities just because of where they live. It will allow for fair and reasonable reimbursement for services that can be delivered appropriately in this way. It will also encourage the incorporation of telehealth technology in the care plans of home health agencies, an area that has already shown great promise for the future in terms of cost-effective disease management. In summary, it will allow us to begin to release the incredible potential of telemedicine. Mr. President, I urge my colleagues to join us in bringing HCFA's approach to the delivery of health care into the 21st Century. Any Medicare reform must include progress on telemedicine for our Nation's rural areas. Mr. ROCKEFELLER. Mr. President, I am extremely pleased to be here today to introduce the Telemedicine Improvement and Modernization Act with Senator Jeffords and many other of my Senate colleagues. This bill incorporates two issues that I care about passionately--health care and technology. Telemedicine has the potential to bridge the gap that currently exists between patients and providers. More than 25% of our Nation's senior citizens live in areas where speciality care may not be available. In states like my own where there are very few primary care or specialty care resources and travel is difficult, telemedicine is critical to ensuring that people in remote areas are getting health care they need. By expanding access to health care through telemedicine, we also improve the quality of care available to people living in underserved areas. Personally, I believe that we are just beginning to tap the enormous potential of technology to advance quality health care, especially in rural areas. Yet, Medicare's telemedicine program is inefficient in its current form. These inefficiencies threaten the future of telemedicine services. When we first created this program, our knowledge of the potential of this new technology, or its practical applications was very limited. Today we have a much better understanding of how telemedicine actually works. With this new knowledge, we can repair the inefficiencies of the current system and encourage the use of this highly effective health practice. By accomplishing this goal, we can ensure that quality health care is available to all seniors and disabled Americans regardless of where they live. There are 8 main elements of the bill: (1) Eliminating the provider ``fee sharing'' requirement; (2) Eliminating the requirement for a ``telepresenter''; (3) Allowing limited reimbursement for referring clinics to recover the cost of their services; (4) Expanding telemedicine services to all non-MSAs; (5) Expanding telemedicine services to direct patient care, not just professional consultations; (6) Making all providers eligible for HCFA reimbursement for services delivered via telemedicine; (7) Creating a federal demonstration project that permits telemedicine reimbursement for ``store and forward'' consultations (i.e., x-rays that are sent to another facility for consultation); and (8) Permitting telehomecare. While these changes are relatively minor in the context of the Medicare program, the affect will be far-reaching. The modernizations we are proposing will dramatically improve access to quality health care in rural areas. This legislation will allow us to begin to release the incredible potential of telemedicine. On a final note, I'd like to thank Karen Edison for her expertise and determination in working on this bill. Because Karen is a practicing telemedicine physician, she has been invaluable in developing and advancing this cause. Thank you, Mr. President for your time today. I hope all of my colleagues will join with me in passing this important piece of legislation. ______ By Mr. GORTON: S. 2506. A bill to amend title 46, United States Code, with respect to the Federal preemption of State law concerning the regulation of marine and ocean navigation, safety, and transportation by States; to the Committee on Commerce, Science, and Transportation. legislation regarding marine and ocean navigation, safety, and transportation Mr. GORTON. Mr. President, environmental protection and states' rights were dealt a blow on March 6th, when the U.S. Supreme Court decided the case of United States vs. Locke. The Court, noting that even though federal and international laws ``may be insufficient protection,'' invalidated Washington laws, and potentially laws in eleven other states, that provide protections against spills by oil tankers. I disagree with the Court's decision, because I believe that Washington state should be allowed to protect its shores as it sees fit. That is why, today I am pleased to introduce the ``States Prevention of Oil Tanker Spills Act'' (SPOTS)-legislation that will reinstate the right of all states to adopt additional standards beyond existing federal requirements governing the operation, maintenance, equipment, personnel and manning of oil tankers. While this legislation will apply to all shoreline states, it is pa

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