Next Generation Fuels Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 2434 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 MARCH 30, 2023 Mrs. MILLER-MEEKS (for herself, Ms. BUDZINSKI, Mr. LAHOOD, Ms. CRAIG, Mr. FEENSTRA, Mr. NUNN of Iowa, Mrs. HINSON, Mr. BACON, Mr. KIL- DEE, Mr. CARSON, Mr. COMER, Mr. BOST, Mr. LAWLER, Mr. FLOOD, Mr. FINSTAD, Mrs. MILLER of Illinois, Mr. SORENSEN, Ms. SLOTKIN, Mr. CLEAVER, and Ms. KAPTUR) 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 2023’’. 5 SEC. 2. FINDINGS. 6 Congress finds that— 7 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2434 IH (1) continued increases in new automobile effi- 1 ciency are needed to improve consumer welfare and 2 reduce carbon emissions; 3 (2) the widespread availability of low-carbon, 4 high-octane fuel will allow continued cost-effective 5 improvements in automobile efficiency by enabling 6 increased engine compression ratios; 7 (3) high-octane automobiles and low-carbon 8 fuels are readily available to consumers at little in- 9 cremental cost; 10 (4) ethanol is a cost-effective and low-carbon 11 octane enhancer; 12 (5) the widespread adoption of climate-smart 13 practices and precision technologies by United 14 States corn producers over the past decade have fur- 15 ther reduced the carbon intensity of conventional 16 ethanol; 17 (6) on average, ethanol has been estimated to 18 have lifecycle greenhouse gas emissions that are 46 19 percent lower than average gasoline, with some corn 20 ethanol achieving a 61-percent reduction compared 21 to gasoline; and 22 (7) ethanol has one of the highest blending oc- 23 tane values available in the marketplace. 24 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2434 IH SEC. 3. HIGH-OCTANE VEHICLES. 1 Title II of the Clean Air Act (42 U.S.C. 7521 et seq.) 2 is amended by adding at the end the following: 3 ‘‘PART D—HIGH-OCTANE VEHICLES 4 ‘‘SEC. 261. DEFINITIONS; APPLICABILITY. 5 ‘‘(a) DEFINITIONS.—In this part: 6 ‘‘(1) AUTOMOBILE.—The term ‘automobile’ has 7 the meaning given to the term in section 8 32901(a)(3) of title 49, United States Code. 9 ‘‘(2) MANUFACTURER.—The term ‘manufac- 10 turer’ has the meaning given the term in section 11 216. 12 ‘‘(3) RESEARCH OCTANE NUMBER.—The term 13 ‘research octane number’ has the meaning given the 14 term in section 201 of the Petroleum Marketing 15 Practices Act (15 U.S.C. 2821). 16 ‘‘(b) APPLICABILITY.—This part applies with respect 17 to any motor vehicle that is introduced into commerce 18 that— 19 ‘‘(1) is an automobile; 20 ‘‘(2) uses gasoline for propulsion or any other 21 operation of the motor vehicle, including the engine 22 thereof; and 23 ‘‘(3) is a model year 2028 or later motor vehi- 24 cle. 25 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2434 IH ‘‘SEC. 262. HIGH-OCTANE TEST FUELS. 1 ‘‘(a) E20 CERTIFICATION FUEL.—Except as pro- 2 vided in subsections (b) and (c), manufacturers producing 3 motor vehicles described in section 261(b) shall use a test 4 fuel consisting of gasoline and 19.4 to 20 volume percent 5 ethanol with a minimum 95 research octane number in— 6 ‘‘(1) emissions testing and certification under 7 section 206(a); and 8 ‘‘(2) fuel economy testing and calculation proce- 9 dures under section 32904(c) of title 49, United 10 States Code. 11 ‘‘(b) E25 TO E30 CERTIFICATION FUEL.—As an al- 12 ternative to the test fuel described in subsection (a), man- 13 ufacturers producing motor vehicles described in section 14 261(b) may use a test fuel consisting of gasoline and 24.3 15 to 30 volume percent ethanol with a minimum 98 research 16 octane number in— 17 ‘‘(1) emissions testing and certification under 18 section 206(a); and 19 ‘‘(2) fuel economy testing and calculation proce- 20 dures under section 32904(c) of title 49, United 21 States Code. 22 ‘‘(c) MODEL YEAR 2033 AND LATER MODEL 23 YEARS.—Notwithstanding subsections (a) and (b), begin- 24 ning in model year 2033, manufacturers of motor vehicles 25 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2434 IH described in section 261(b) shall use the gasoline test fuel 1 described in subsection (b) in— 2 ‘‘(1) emissions testing and certification under 3 section 206(a); and 4 ‘‘(2) fuel economy testing and calculation proce- 5 dures under section 32904(c) of title 49, United 6 States Code. 7 ‘‘(d) FORMULATION.—The test fuels described in 8 subsections (a) and (b) shall be produced by adding neat 9 or denatured fuel ethanol to the gasoline criteria emissions 10 test fuel required for use in model year 2022 and later 11 motor vehicles. 12 ‘‘(e) TEST FUEL EQUATIONS.—For purposes of— 13 ‘‘(1) testing and calculation procedures under 14 section 206(a), the emissions of motor vehicles using 15 the test fuels described in subsection (a) or (b) shall 16 be based exclusively on actual measured emissions; 17 and 18 ‘‘(2) fuel economy testing and calculation proce- 19 dures under section 32904(c) of title 49, United 20 States Code, the fuel economy of motor vehicles 21 using the test fuels described in subsection (a) or (b) 22 shall be determined on an energy-equivalent basis, 23 which shall be equal to the product obtained by mul- 24 tiplying— 25 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2434 IH ‘‘(A) the measured fuel economy; and 1 ‘‘(B) the quotient obtained by dividing— 2 ‘‘(i) 114,086 British thermal units per 3 gallon; by 4 ‘‘(ii) the volumetric energy density of 5 the test fuel. 6 ‘‘SEC. 263. HIGH-OCTANE VEHICLES. 7 ‘‘(a) WARRANTY REQUIREMENTS.—Manufacturers of 8 motor vehicles described in section 261(b) shall warrant 9 to the ultimate purchaser and each subsequent purchaser 10 that each such motor vehicle is designed— 11 ‘‘(1) for model years 2028 through 2032— 12 ‘‘(A) to operate with gasoline containing 13 10 and up to and including 25 percent ethanol 14 by volume; and 15 ‘‘(B) to meet the design requirements 16 under subsection (b)(1); and 17 ‘‘(2) for model year 2033 and later model 18 years— 19 ‘‘(A) to operate with gasoline containing 20 10 and up to and including 30 percent ethanol 21 by volume; and 22 ‘‘(B) to meet the design requirements 23 under subsections (b)(1) and (c)(1). 24 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 2434 IH ‘‘(b) DESIGN REQUIREMENTS BEFORE MODEL YEAR 1 2033.— 2 ‘‘(1) MANUFACTURERS.—The manufacturer of 3 a motor vehicle described in section 261(b) shall de- 4 sign each such motor vehicle— 5 ‘‘(A) to use gasoline with a 95 research oc- 6 tane number or higher; and 7 ‘‘(B) to incorporate such devices or ele- 8 ments of design (including physical or other 9 barriers, devices, or technological systems) as 10 are determined by the Administrator to be— 11 ‘‘(i) necessary to prevent the introduc- 12 tion of gasoline with a research octane 13 number that is lower than 95 into that 14 motor vehicle; and 15 ‘‘(ii) technically and economically fea- 16 sible. 17 ‘‘(2) FUEL RETAILERS.—Any fuel retailer sell- 18 ing gasoline for use in a motor vehicle described in 19 section 261(b) shall incorporate into the dispensing 20 equipment of the fuel retailer such devices or ele- 21 ments of design (including physical or other barriers, 22 devices, or technological systems) as are determined 23 by the Administrator to be— 24 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 2434 IH ‘‘(A) necessary to ensure compatibility with 1 the motor vehicle design requirements under 2 paragraph (1); and 3 ‘‘(B) technically and economically feasible. 4 ‘‘(c) DESIGN REQUIREMENTS FOR MODEL YEAR 5 2033.— 6 ‘‘(1) MANUFACTURERS.—Subject to paragraph 7 (3)(B), beginning in model year 2033, the manufac- 8 turer of a motor vehicle described in section 261(b) 9 shall design each such motor vehicle— 10 ‘‘(A) to use gasoline with a 98 research oc- 11 tane number or higher; and 12 ‘‘(B) to incorporate such devices or ele- 13 ments of design (including physical or other 14 barriers, devices, or technological systems) as 15 are determined by the Administrator to be— 16 ‘‘(i) necessary to prevent the introduc- 17 tion of gasoline with a research octane 18 number that is lower than 98 into that 19 motor vehicle; and 20 ‘‘(ii) technically and economically fea- 21 sible. 22 ‘‘(2) FUEL RETAILER.—Subject to paragraph 23 (3)(B), any fuel retailer selling gasoline for use in a 24 motor vehicle described in section 261(b) that is 25 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 2434 IH model year 2033 or later shall incorporate into the 1 dispensing equipment of the fuel retailer such de- 2 vices or elements of design (including physical or 3 other barriers, devices, or technological systems) as 4 are determined by the Administrator to be— 5 ‘‘(A) necessary to ensure compatibility with 6 the motor vehicle design requirements under 7 paragraph (1); and 8 ‘‘(B) technically and economically feasible. 9 ‘‘(3) EPA DETERMINATION OF NATIONWIDE 10 AVAILABILITY.— 11 ‘‘(A) DETERMINATION REQUIRED.—Not 12 later than December 31, 2031, and not later 13 than each December 31 thereafter until the Ad- 14 ministrator determines that 98 research octane 15 number gasoline can be made readily available 16 nationwide, the Administrator shall— 17 ‘‘(i) determine whether 98 research 18 octane number gasoline can be made read- 19 ily available nationwide; and 20 ‘‘(ii) publish that determination in the 21 Federal Register. 22 ‘‘(B) EFFECT.—The requirements of this 23 subsection shall not take effect until the date 24 on which the Administrator— 25 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 2434 IH ‘‘(i) determines under subparagraph 1 (A)(i) that 98 research octane number gas- 2 oline can be made readily available nation- 3 wide; and 4 ‘‘(ii) publishes that determination 5 under subparagraph (A)(ii). 6 ‘‘(C) FAILURE TO MAKE DETERMINA- 7 TION.—If the Administrator fails to make a de- 8 termination under subparagraph (A) by the ap- 9 plicable date under that subparagraph, the Ad- 10 ministrator shall be deemed to have determined 11 that 98 research octane number gasoline can be 12 made readily available nationwide for purposes 13 of subparagraph (B). 14 ‘‘(d) VIOLATIONS.— 15 ‘‘(1) MANUFACTURERS.— 16 ‘‘(A) IN GENERAL.—Any manufacturer 17 who violates subsection (b)(1) or (c)(1) shall be 18 subject to a civil penalty of not more than 19 $5,000 for each offense. 20 ‘‘(B) SEPARATE OFFENSES.—Any violation 21 described in subparagraph (A) shall constitute 22 a separate offense with respect to each motor 23 vehicle. 24 ‘‘(2) FUEL RETAILER.— 25 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 2434 IH ‘‘(A) IN GENERAL.—Any fuel retailer who 1 violates subsection (b)(2) or (c)(2) shall be sub- 2 ject to a civil penalty of not more than $2,500 3 for each offense. 4 ‘‘(B) SEPARATE OFFENSE.—Any violation 5 described in subparagraph (A) with respect to 6 dispensing equipment shall constitute a sepa- 7 rate offense with respect to each unit of dis- 8 pensing equipment in violation of the applicable 9 subsection described in that subparagraph. 10 ‘‘SEC. 264. MISFUELING. 11 ‘‘(a) PROHIBITIONS AGAINST TAMPERING AND DE- 12 FEAT DEVICES FOR MOTOR VEHICLES.—In lieu of apply- 13 ing section 203(a)(3) with respect to the requirements of 14 this part, the following shall apply: 15 ‘‘(1) No person shall— 16 ‘‘(A) remove or render inoperative any de- 17 vice or element of design installed on or in a 18 motor vehicle pursuant to subsection (b)(1) or 19 (c)(1) of section 263 prior to its sale and deliv- 20 ery to the ultimate purchaser; or 21 ‘‘(B) knowingly remove or render inoper- 22 ative any such device or element of design after 23 such sale and delivery to the ultimate pur- 24 chaser. 25 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 2434 IH ‘‘(2) No person shall manufacture or sell, or 1 offer to sell, or install, any part or component in- 2 tended for use with, or as part of, any motor vehicle, 3 where— 4 ‘‘(A) a principal effect of the part or com- 5 ponent is to bypass, defeat, or render inoper- 6 ative any device or element of design installed 7 on or in a motor vehicle pursuant to subsection 8 (b)(1) or (c)(1) of section 263; and 9 ‘‘(B) the person knows or should know 10 that such part or component is being offered 11 for sale or installed for such use or put to such 12 use. 13 ‘‘(b) PROHIBITIONS AGAINST TAMPERING AND DE- 14 FEAT DEVICES FOR DISPENSING EQUIPMENT.—No per- 15 son shall— 16 ‘‘(1) remove or render inoperative any device or 17 element of design installed pursuant to subsection 18 (b)(2) or (c)(2) of section 263; or 19 ‘‘(2) sell, or offer to sell, or incorporate into, 20 any part or component intended for use with, or as 21 part of, any dispensing equipment, where— 22 ‘‘(A) a principal effect of the part or com- 23 ponent is to bypass, defeat, or render inoper- 24 ative any device or element of design incor- 25 VerDate Sep 11 2014 05:21 Apr 12, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2434.IH H2434 kjohnson on DSK79L0C42PROD with BILLS 13 •HR 2434 IH porated into dispensing equipment pursuant to 1 subsection (b)(2) or (c)(2) of section 263; and 2 ‘‘(B) the person knows or should know 3 that such p [Text truncated for display. 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