H.R. 1346

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1346 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
2d Session
H. R. 1346

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 14, 2026

Received; read twice and referred to the Committee on Environment and 
Public Works

_______________________________________________________________________

AN ACT

To amend the Clean Air Act with respect to the ethanol waiver for Reid 
Vapor Pressure under that Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. YEAR-ROUND E15 AND RFS REFORM.

(a) Ethanol Waiver.--
(1) Existing waivers.--Section 211(f)(4) of the Clean Air 
Act (42 U.S.C. 7545(f)(4)) is amended--
(A) by striking ``(4) The Administrator, upon'' and 
inserting the following:
``(4) Waivers.--
``(A) In general.--The Administrator, on'';
(B) in subparagraph (A) (as so designated)--
(i) in the first sentence--
(I) by striking ``of this 
subsection'' each place it appears; and
(II) by striking ``if he 
determines'' and inserting ``if the 
Administrator determines''; and
(ii) in the second sentence, by striking 
``The Administrator'' and inserting the 
following:
``(B) Final action.--The Administrator''; and
(C) by adding at the end the following:
``(C) Reid vapor pressure.--A fuel or fuel additive 
may be introduced into commerce if--
``(i)(I) the Administrator determines that 
the fuel or fuel additive is substantially 
similar to a fuel or fuel additive utilized in 
the certification of any model year vehicle 
pursuant to paragraph (1)(A); or
``(II) the fuel or fuel additive has been 
granted a waiver under subparagraph (A) and 
meets all of the conditions of that waiver 
other than any limitation of the waiver with 
respect to the Reid Vapor Pressure of the fuel 
or fuel additive; and
``(ii) the fuel or fuel additive meets all 
other applicable Reid Vapor Pressure 
requirements under subsection (h).''.
(2) Reid vapor pressure limitation.--Section 211(h) of the 
Clean Air Act (42 U.S.C. 7545(h)) is amended--
(A) by striking ``vapor pressure'' each place it 
appears and inserting ``Vapor Pressure'';
(B) in paragraph (4), in the matter preceding 
subparagraph (A), by striking ``10 percent'' and 
inserting ``10 to 15 percent''; and
(C) in paragraph (5)(A)--
(i) by striking ``Upon notification, 
accompanied by'' and inserting ``On receipt of 
a notification that is submitted after the date 
of enactment of the Farm, Food, and National 
Security Act of 2026, and is accompanied by 
appropriate'';
(ii) by striking ``10 percent'' and 
inserting ``10 to 15 percent''; and
(iii) by adding at the end the following: 
``Upon the enactment of the Farm, Food, and 
National Security Act of 2026, any State for 
which the notification from the Governor of a 
State was submitted after January 1, 2022, and 
before the date of enactment of the Farm, Food, 
and National Security Act of 2026 and to which 
the Administrator applied the Reid Vapor 
Pressure limitation established by paragraph 
(1) shall instead have the Reid Vapor Pressure 
limitation established by paragraph (4) apply 
to all fuel blends containing gasoline and 10 
to 15 percent denatured anhydrous ethanol that 
are sold, offered for sale, dispensed, 
supplied, offered for supply, transported, or 
introduced into commerce in the area during the 
high ozone season.''.
(b) Definition of Small Refining Company.--Section 211(o)(1) of the 
Clean Air Act (42 U.S.C. 7545(o)(1)) is amended--
(1) by redesignating subparagraph (L) as subparagraph (M); 
and
(2) by inserting after subparagraph (K) the following:
``(L) Small refining company.--The term `small 
refining company' means a company, entity, or group of 
affiliated entities, including through subsidiaries, 
parent companies, joint ventures, holding companies, 
spin-offs, or other associated corporate or legal 
structures, the daily average aggregate production of 
obligated fuels of which for calendar year 2025 did not 
exceed 75,000 barrels per day across all of the 
facilities of the company, entity, or group of 
affiliated entities that produced transportation fuel 
subject to the requirements of paragraph (2).''.
(c) Termination of Petitions; Adjusted Small Refining Company 
Obligation.--
(1) In general.--Section 211(o)(9) of the Clean Air Act (42 
U.S.C. 7545(o)(9)) is amended--
(A) in subparagraph (B)--
(i) in clause (i), by striking ``A small'' 
and inserting ``Subject to clause (iv), a 
small''; and
(ii) by adding at the end the following:
``(iv) Termination of exemption and 
petitions.--
``(I) In general.--Beginning in 
calendar year 2028, the Administrator 
may not apply or enforce any extension 
of an exemption granted pursuant to a 
petition under this subparagraph or 
otherwise continue to enforce the 
exemption under subparagraph (A) with 
respect to any small refinery.
``(II) Limitation on petitions.--
Notwithstanding any other provision of 
law--
``(aa) no small refinery 
may petition for an extension 
under this subparagraph with 
respect to any calendar year 
after calendar year 2027;
``(bb) the Administrator 
may not consider any petition 
for an extension under this 
subparagraph, with respect to 
any calendar year, that is 
submitted after July 1, 2028; 
and
``(cc) to the maximum 
extent practicable, the 
Administrator shall, not later 
than October 1, 2028, act on 
all outstanding petitions.'';
(B) by redesignating subparagraphs (C) and (D) as 
subparagraphs (D) and (E), respectively; and
(C) by inserting after subparagraph (B) the 
following:
``(C) Adjusted compliance requirements for small 
refining companies.--
``(i) In general.--Beginning in calendar 
year 2028, the Administrator shall, subject to 
clause (ii), reduce the compliance requirements 
of each small refining company under paragraph 
(2) by 75 percent.
``(ii) No subsequent redesignation.--If the 
average aggregate daily production of obligated 
fuels of a small refining company exceeds the 
limit described in paragraph (1)(L) in calendar 
year 2026 or any subsequent calendar year, the 
small refining company shall no longer be 
eligible for the adjusted compliance 
requirements under clause (i) during that 
calendar year or any subsequent calendar year, 
regardless of whether the average aggregate 
daily production of obligated fuels of the 
small refining company drops below that limit 
again.''.
(2) Savings provision.--Nothing in this Act or an amendment 
made by this Act affects any remedy available to a small 
refinery (as defined in paragraph (1) of section 211(o) of the 
Clean Air Act (42 U.S.C. 7545(o))) with respect to petitions 
for extensions of exemptions under paragraph (9) of that 
section and, for purposes of the application of such extensions 
and the review of the denial of such petitions, section 
211(o)(9) of the Clean Air Act (42 U.S.C. 7545(o)(9)) shall be 
applied as in effect on the day before the date of enactment of 
this Act.
(d) Generation of Credits by Small Refineries Under the Renewable 
Fuel Program.--Section 211(o)(9) of the Clean Air Act (42 U.S.C. 
7545(o)(9)) is further amended by adding at the end the following:
``(F) Credits generated for 2016-2018 compliance 
years.--
``(i) Rule.--For any small refinery 
described in clause (ii) or (iii), the credits 
described in the respective clause shall be--
``(I) returned to the small 
refinery and, notwithstanding paragraph 
(5)(C), deemed eligible for future 
compliance years; or
``(II) applied as a credit in the 
EPA Moderated Transaction System (EMTS) 
account of the small refinery.
``(ii) Compliance years 2016 and 2017.--
Clause (i) applies with respect to any small 
refinery that--
``(I) retired credits generated for 
compliance years 2016 or 2017; and
``(II) submitted a petition under 
subparagraph (B)(i) for that compliance 
year that remained outstanding as of 
December 1, 2022.
``(iii) Compliance year 2018.--In addition 
to small refineries described in clause (ii), 
clause (i) applies with respect to any small 
refinery--
``(I) that submitted a petition 
under subparagraph (B)(i) for 
compliance year 2018 by September 1, 
2019;
``(II) that retired credits 
generated for compliance year 2018 as 
part of the compliance demonstration of 
the small refinery for compliance year 
2018 by March 31, 2019; and
``(III) for which--
``(aa) the petition 
remained outstanding as of 
December 1, 2022; or
``(bb) the Administrator 
denied the petition as of July 
1, 2022, and has not returned 
the retired credits as of 
December 1, 2022.''.
(e) Prohibition on Reallocation of Obligated Volumes.--Section 
211(o)(9) of the Clean Air Act (42 U.S.C. 7545(o)(9)) is further 
amended by adding at the end the following:
``(G) Prohibition on reallocation.--For the purpose 
of making the determinations in paragraph (2)(B)(ii), 
for calendar year 2028 and each calendar year 
thereafter, the Administrator may not reallocate to 
other persons any renewable fuel obligation applicable 
to a small refining company the compliance requirements 
of which were reduced pursuant to subparagraph (C).''.
(f) Fuel Infrastructure Rulemaking.--
(1) In general.--Not later than 18 months after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall, after a period of notice and public 
comment, finalize a rule modifying the regulations of the 
Environmental Protection Agency under the Clean Air Act (42 
U.S.C. 7401 et seq.) and the Solid Waste Disposal Act (42 
U.S.C. 6901 et seq.) (commonly known as the ``Resource 
Conservation and Recovery Act of 1976'') relating to the sale 
and distribution of gasoline-ethanol blends that contain 
greater than 10 volume percent ethanol and less than or equal 
to 15 volume percent ethanol.
(2) Requirement.--In finalizing the rule required under 
paragraph (1), the Administrator of the Environmental 
Protection Agency shall modify the E15 fuel dispenser labeling 
requirements and the underground storage tank regulations of 
the Environmental Protection Agency with respect to 
compatibility with gasoline-ethanol blends.
(g) Exemption for At-risk Qualifying Small Refineries.--Section 
211(o)(9) of the Clean Air Act (42 U.S.C. 7545(o)(9)) is further 
amended by adding at the end the following:
``(H) Exemption for at-risk qualifying small 
refineries.--
``(i) In general.--Beginning in calendar 
year 2028, not later than December 31 of a 
calendar year, a qualifying small refinery may 
petition the Administrator for an exemption 
from compliance with the requirements of 
paragraph (2) for such calendar year for the 
reason of the imminent risk of closure, 
permanent idling, or conversion to a renewable 
fuel production facility.
``(ii) Matters included in petitions.--In 
submitting a petition for an exemption under 
clause (i), a qualifying small refinery shall 
include in such petition the following:
``(I) Information demonstrating 
that--
``(aa) the qualifying small 
refinery is at imminent risk of 
closure, permanent idling, or 
conversion to a renewable fuel 
production facility;
``(bb) such risk is solely 
caused by the cost of 
compliance with the 
requirements of paragraph (2); 
and
``(cc) the ownership of the 
qualifying small refinery has 
not changed after the date of 
enactment of this paragraph.
``(II) An attestation, executed by 
a senior corporate officer (or any 
equivalent position) with direct 
responsibility for the applicable 
operations of the qualifying small 
refinery, certifying that the 
information included under subclause 
(I) is correct.
``(iii) Public disclosure.--Any petition 
submitted under this subparagraph, including 
any information, attestation, or other 
supporting documentation included in such a 
petition--
``(I) shall not be eligible for 
treatment as confidential business 
information for purposes of section 
114(c) or any other provision of law; 
and
``(II) shall be made publicly 
available by the Administrator not 
later than 30 days after the date of 
such submission.
``(iv) Deadline for action on petitions.--
The Administrator shall act on any petition 
submitted by a qualifying small refinery for an 
exemption under this subparagraph not later 
than 90 days after the date of receipt of the 
petition.
``(v) Administrator determination.--The 
Administrator may grant an exemption under this 
subparagraph only upon a determination by the 
Administrator that the petition submitted for 
the exemption adequately demonstrates the 
matters specified in items (aa) through (cc) of 
clause (ii)(I) and includes the attestation 
described in clause (ii)(II).
``(vi) Scope and duration.--An exemption 
granted for a qualifying small refinery under 
this subparagraph--
``(I) may exempt the qualifying 
small refinery from compliance with the 
requirements of paragraph (2) in whole 
or in part;
``(II) may only exempt the 
qualifying small refinery from 
compliance with the requirements of 
paragraph (2) to the extent necessary 
to prevent the closure, permanent 
idling, or conversion described in 
clause (i); and
``(III) shall only apply with 
respect to the calendar year for which 
the petition for the exemption is 
submitted.
``(vii) Exempted volumes.--
``(I) In general.--In acting on 
petitions submitted by qualifying small 
refineries for exemptions under this 
subparagraph, the Administrator may not 
exempt, in total, renewable fuel 
obligations for qualifying small 
refineries such that the total volume 
of renewable fuel so exempted exceeds 
the relevant volume cap for the 
applicable calendar year described in 
subclause (II).
``(II) Volume cap.--The volume cap 
described in this subclause is--
``(aa) for calendar year 
2028, the volume of all 
renewable fuel, including 
advanced biofuel, cellulosic 
biofuel, biomass-based diesel, 
and conventional biofuel, that 
the Administrator determines 
has, in total, an energy 
content equal to the energy 
content of 150 million gallons 
of conventional biofuel; and
``(bb) for each calendar 
year after calendar year 2028, 
the volume of renewable fuel 
determined under item (aa), as 
adjusted by the Administrator 
in direct proportion to any 
changes to the applicable 
volume of renewable fuel 
established for the calendar 
year under paragraph (2)(B)(ii) 
as compared to the applicable 
volume of renewable fuel 
established for calendar year 
2028.
``(viii) Qualifying small refinery 
defined.--In this subparagraph, the term 
`qualifying small refinery' means a small 
refinery--
``(I) that received an extension of 
an exemption under paragraph (9); or
``(II)(aa) for which the average 
aggregate daily crude oil throughput 
for a calendar year (as determined by 
dividing the aggregate throughput for 
the calendar year by the number of days 
in the calendar year) does not exceed 
10,000 barrels; and
``(bb) that began production on or 
after January 1, 2007, and before 
January 1, 2026.''.

Passed the House of Representatives May 13, 2026.

Attest:

KEVIN F. MCCUMBER,

Clerk.