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