Next Generation Fuels Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8371 To promote low-carbon, high-octane fuels, to protect public health, and to improve vehicle efficiency and performance, and for other purposes. IN THE HOUSE OF REPRESENTATIVES SEPTEMBER 24, 2020 Mrs. BUSTOS introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To promote low-carbon, high-octane fuels, to protect public health, and to improve vehicle efficiency and perform- ance, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Next Generation Fuels 4 Act of 2020’’. 5 SEC. 2. TABLE OF CONTENTS. 6 The table of contents of this Act is as follows: 7 Sec. 1. Short title. Sec. 2. Table of contents. TITLE I—LOW-CARBON HIGH-OCTANE FUELS Sec. 101. High-octane certification fuel. VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 8371 IH Sec. 102. Clean octane standard. TITLE II—REGULATORY HARMONIZATION Sec. 201. Reid vapor pressure. Sec. 202. Fuel economy adjustment. Sec. 203. E30. Sec. 204. Replacement of motor vehicle emissions simulator (MOVES) model. TITLE III—INFRASTRUCTURE Sec. 301. High-efficiency vehicles. Sec. 302. Performance standards for new e30 infrastructure. Sec. 303. CAFE and GHG credit generation. TITLE I—LOW-CARBON HIGH- 1 OCTANE FUELS 2 SEC. 101. HIGH-OCTANE CERTIFICATION FUEL. 3 (a) IN GENERAL.—Not later than January 1, 2022, 4 the Administrator of the Environmental Protection Agen- 5 cy shall take such actions as are necessary to allow the 6 use of a certification test fuel described in subsection (b) 7 for purposes of— 8 (1) testing and certification under section 9 206(a) of the Clean Air Act (42 U.S.C. 7525(a)) of 10 motor vehicles described in section 220(a) of the 11 Clean Air Act (as added by section 301 of this Act); 12 and 13 (2) testing and calculation procedures under 14 section 32904(c) of title 49, United States Code, 15 with respect to such motor vehicles. 16 (b) CERTIFICATION TEST FUEL DESCRIBED.—A cer- 17 tification test fuel referred to in subsection (a) shall— 18 (1) have a research octane number of 98; and 19 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 8371 IH (2) be blended by adding sources of octane 1 value that meet the requirements of subsection (c) to 2 the low-level ethanol-gasoline blend test fuel used to 3 certify model year 2020 light-duty vehicles. 4 (c) LOW-CARBON REQUIREMENT.—In carrying out 5 subsection (a), the Administrator of the Environmental 6 Protection Agency shall ensure that the sources of octane 7 value for the certification test fuel allowed under sub- 8 section (a) have average lifecycle greenhouse gas emis- 9 sions, as determined by the Secretary of Energy using the 10 version of the Argonne National Laboratory Greenhouse 11 gases, Regulated Emissions, and Energy use in Transpor- 12 tation (GREET) model in effect as of the date of enact- 13 ment of this Act, that are at least 30 percent less than 14 the baseline lifecycle greenhouse gas emissions. 15 (d) DEFINITIONS.—In this section: 16 (1) BASELINE LIFECYCLE GREENHOUSE GAS 17 EMISSIONS.—The term ‘‘baseline lifecycle green- 18 house gas emissions’’ means the average lifecycle 19 greenhouse gas emissions, as determined by the Ad- 20 ministrator of the Environmental Protection Agency 21 in consultation with the Director of the Argonne Na- 22 tional Laboratory, for unblended gasoline sold or 23 distributed as transportation fuel in 2018. 24 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 8371 IH (2) LIFECYCLE GREENHOUSE GAS EMIS- 1 SIONS.—The term ‘‘lifecycle greenhouse gas emis- 2 sions’’ means the aggregate quantity of greenhouse 3 gas emissions as determined by using the version of 4 the Argonne National Laboratory Greenhouse gases, 5 Regulated Emissions, and Energy use in Transpor- 6 tation (GREET) model as in effect on the date of 7 enactment of this Act. 8 (3) LIGHT-DUTY VEHICLE.—The term ‘‘light- 9 duty vehicle’’ has the meaning given to that term in 10 section 216 of the Clean Air Act (42 U.S.C. 7550). 11 (4) RESEARCH OCTANE NUMBER.—The term 12 ‘‘research octane number’’ has the meaning given 13 such term in section 201 of the Petroleum Mar- 14 keting Practices Act. 15 SEC. 102. CLEAN OCTANE STANDARD. 16 (a) REQUIREMENTS.—Section 211 of the Clean Air 17 Act (42 U.S.C. 7545) is amended— 18 (1) in subsection (d)(1), by striking ‘‘or (o)’’ 19 and inserting ‘‘(o), or (w)’’; 20 (2) in subsection (d)(2), by striking ‘‘or (o)’’ 21 each place it appears and inserting ‘‘(o), or (w)’’; 22 and 23 (3) by inserting at the end the following: 24 ‘‘(w) CLEAN OCTANE STANDARD.— 25 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 8371 IH ‘‘(1) AROMATICS.— 1 ‘‘(A) ANNUAL AVERAGE LIMITATION.—Ef- 2 fective January 1, 2023, no refiner or importer 3 shall sell motor vehicle gasoline that contains, 4 on an average annual basis, an aromatic hydro- 5 carbon content in excess of 17.5 percent. 6 ‘‘(B) CAP.—Effective January 1, 2023, no 7 person shall sell motor vehicle gasoline that 8 contains an aromatic hydrocarbon content in 9 excess of 17.5 percent. 10 ‘‘(C) REGULATIONS.— 11 ‘‘(i) PROMULGATION.—The Adminis- 12 trator of the Environmental Protection 13 Agency shall promulgate regulations to im- 14 plement this paragraph. Not later than 15 January 1, 2023, the Administrator shall 16 promulgate final regulations under the pre- 17 ceding sentence. 18 ‘‘(ii) TRADEABLE CREDITS.—The reg- 19 ulations to implement this paragraph 20 shall— 21 ‘‘(I) allow for the generation of 22 tradeable credits to meet the require- 23 ment of subparagraph (A); and 24 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 8371 IH ‘‘(II) provide that any such cred- 1 its shall expire after not more than 5 2 years. 3 ‘‘(2) CLEAN OCTANE.— 4 ‘‘(A) PROHIBITION.—Effective January 1, 5 2023, no refiner or importer shall introduce any 6 source of octane value into motor vehicle gaso- 7 line with a research octane number of 98 or 8 higher unless such source of octane value has 9 average lifecycle greenhouse gas emissions, as 10 determined by the Secretary of Energy using 11 the version of the Argonne National Laboratory 12 Greenhouse gases, Regulated Emissions, and 13 Energy use in Transportation (GREET) model 14 in effect as of the date of enactment of the 15 Next Generation Fuels Act of 2020, that are at 16 least 30 percent less than the baseline lifecycle 17 greenhouse gas emissions. 18 ‘‘(B) REGULATIONS.— 19 ‘‘(i) PROMULGATION.—The Adminis- 20 trator of the Environmental Protection 21 Agency shall promulgate regulations to im- 22 plement this paragraph. Not later than 23 January 1, 2023, the Administrator shall 24 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 8371 IH promulgate final regulations under the pre- 1 ceding sentence. 2 ‘‘(ii) CONTENTS.—The regulations to 3 implement this paragraph shall— 4 ‘‘(I) determine the baseline 5 lifecycle greenhouse gas emissions for 6 purposes of this paragraph; 7 ‘‘(II) determine the average 8 lifecycle greenhouse gas emissions of 9 sources of octane value for purposes 10 of this paragraph; and 11 ‘‘(III) ensure that the require- 12 ments of this paragraph are met. 13 ‘‘(3) DEFINITIONS.—In this subsection, the 14 terms ‘baseline lifecycle greenhouse gas emissions’, 15 ‘lifecycle greenhouse gas emissions’, and ‘research 16 octane number’ have the meanings given to those 17 terms in section 101 of the Next Generation Fuels 18 Act of 2020.’’. 19 (b) REFORMULATED GASOLINE.—Clause (ii) of sec- 20 tion 211(k)(3)(A) of the Clean Air Act is (42 U.S.C. 21 7545(k)(3)(A)) is amended to read as follows: 22 ‘‘(ii) AROMATICS.—The aromatic hy- 23 drocarbon content of the reformulated gas- 24 oline— 25 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 8371 IH ‘‘(I) shall not exceed 25 percent 1 by volume; and 2 ‘‘(II) beginning January 1, 2023, 3 shall not exceed 17.5 percent by vol- 4 ume.’’. 5 TITLE II—REGULATORY 6 HARMONIZATION 7 SEC. 201. REID VAPOR PRESSURE. 8 (a) REID VAPOR PRESSURE LIMITATION.—Section 9 211(h) of the Clean Air Act (42 U.S.C. 7545(h)) is 10 amended— 11 (1) in paragraph (4)— 12 (A) in the matter preceding subparagraph 13 (A), by inserting ‘‘or more’’ after ‘‘10 percent’’; 14 and 15 (B) in subparagraph (C), by striking ‘‘ad- 16 ditional alcohol or’’; and 17 (2) in paragraph (5)(A), by inserting ‘‘or more’’ 18 after ‘‘10 percent’’. 19 (b) EXISTING WAIVERS.—Section 211(f)(4) of the 20 Clean Air Act (42 U.S.C. 7545(f)(4)) is amended— 21 (1) by striking ‘‘The Administrator, upon’’ and 22 inserting ‘‘(A) The Administrator, upon’’; and 23 (2) by adding at the end the following: 24 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 8371 IH ‘‘(B) A fuel or fuel additive with respect to which a 1 waiver has been granted in accordance with subparagraph 2 (A) prior to January 1, 2019, and that meets all of the 3 conditions of that waiver, other than the waiver’s limits 4 for Reid vapor pressure, may be introduced into commerce 5 if the fuel or fuel additive meets all other applicable Reid 6 vapor pressure requirements.’’. 7 SEC. 202. FUEL ECONOMY ADJUSTMENT. 8 For purposes of fuel economy testing and calculation 9 procedures under section 32904(c) of title 49, United 10 States Code, the fuel economy of motor vehicles using a 11 certification test fuel allowed under section 101 of this Act 12 shall be determined on an energy-equivalent basis, cal- 13 culated by multiplying fuel economy (as measured under 14 such section 32904(c) without regard to this section) by 15 the ratio of— 16 (1) 114,086 British thermal units per gallon; 17 divided by 18 (2) the volumetric energy density of such test 19 fuel. 20 SEC. 203. E30. 21 Section 211(f)(4) of the Clean Air Act (42 U.S.C. 22 7545(f)(4)), as amended by section 201(b) of this Act, is 23 further amended by adding at the end the following: 24 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 8371 IH ‘‘(C) Beginning January 1, 2022, a fuel with a con- 1 centration of ethanol that is more than 15 percent and 2 not more than 30 percent, shall be deemed to have re- 3 ceived a waiver in accordance with subparagraph (A).’’. 4 SEC. 204. REPLACEMENT OF MOTOR VEHICLE EMISSIONS 5 SIMULATOR (MOVES) MODEL. 6 Section 211(q)(2) of the Clean Air Act (42 U.S.C. 7 7545) is amended— 8 (1) by striking ‘‘For purposes of this section’’ 9 and inserting the following: 10 ‘‘(A) INITIAL MODEL.—For purposes of 11 this section’’; and 12 (2) by adding at the end of the following: 13 ‘‘(B) NEW MODEL.—Not later than 24 14 months after the date of enactment of the Next 15 Generation Fuels Act of 2020, the Adminis- 16 trator shall develop and finalize an emissions 17 model based on appropriate test fuels and 18 methods to replace the emissions model under 19 subparagraph (A). 20 ‘‘(C) DEFINITION.—For purposes of sub- 21 paragraph (B), the term ‘appropriate test fuels 22 and methods’ means test fuels and methods 23 that rely on commercially available fuel and ac- 24 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 8371 IH curately reflect the profile of higher ethanol 1 blends.’’. 2 TITLE III—INFRASTRUCTURE 3 SEC. 301. HIGH-EFFICIENCY VEHICLES. 4 (a) IN GENERAL.—Part A of title II of the Clean Air 5 Act (42 U.S.C. 7521 et seq.) is amended by adding at 6 the end the following new section: 7 ‘‘SEC. 220. OCTANE SPECIFICATION. 8 ‘‘(a) APPLICABILITY.—This section applies with re- 9 spect to any motor vehicle (other than a motorcycle) that 10 is introduced into commerce that— 11 ‘‘(1) is a light-duty vehicle or light-duty truck; 12 ‘‘(2) is a model year 2024 or later motor vehi- 13 cle; and 14 ‘‘(3) uses gasoline for propulsion or any other 15 operation of the motor vehicle, including the engine 16 thereof. 17 ‘‘(b) WARRANTY REQUIREMENTS.—The manufac- 18 turer of a motor vehicle described in subsection (a) shall 19 warrant to the ultimate purchaser and each subsequent 20 purchaser that each such motor vehicle is designed— 21 ‘‘(1) to operate with gasoline containing up to 22 and including 30 percent ethanol; and 23 ‘‘(2) to meet the design requirements under 24 subsection (c). 25 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 8371 IH ‘‘(c) DESIGN REQUIREMENTS.—The manufacturer of 1 a motor vehicle described in subsection (a) shall design 2 each such motor vehicle— 3 ‘‘(1) to operate using gasoline that has a re- 4 search octane number (as defined in section 101 of 5 the Next Generation Fuels Act of 2020) of 98 or 6 higher; and 7 ‘‘(2) to improve fuel economy connected to the 8 use of gasoline that has a research octane number 9 (as defined in section 101 of the Next Generation 10 Fuels Act of 2020) of 98 or higher. 11 ‘‘(d) ENFORCEMENT.— 12 ‘‘(1) VIOLATIONS.—Any manufacturer who vio- 13 lates subsection (b) or (c) shall be subject to a civil 14 penalty of not more than $25,000. Any such viola- 15 tion shall constitute a separate offense with respect 16 to each motor vehicle. 17 ‘‘(2) CIVIL ACTIONS; ADMINISTRATIVE ASSESS- 18 MENT OF CERTAIN PENALTIES.—The provisions of 19 subsections (b) and (c) of section 205 shall apply 20 with respect to a violation of subsection (b) or (c) 21 of this section to the same extent and in the same 22 manner as such provisions apply with respect to a 23 violation of section 203(a)(3). 24 VerDate Sep 11 2014 04:31 Oct 16, 2020 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H8371.IH H8371 kjohnson on DSK79L0C42PROD with BILLS 13 •HR 8371 IH ‘‘(e) CONSULTATION.—In promulgating regulations 1 to carry out this section, the [Text truncated for display. Full text available on Congress.gov.]