Removes authority of the Administrator of the Environmental Protection Agency to waive the reformulated gasoline oxygen content requirement for an ozone nonattainment area.
Directs the Administrator to promulgate regulations permitting a person who refines, blends, or imports and certifies gasoline with an oxygen content exceeding the minimum to take a volatility credit, based on the gasoline's ozone forming potential, to offset applicable Reid Vapor Pressure levels requirements.
Requires Federal agency fleet vehicles to be certified as capable of using ethanol and to use ethanol wherever economically feasible.
Amends the Internal Revenue Code with respect to the small ethanol producer credit to: (1) authorize credit allocation among a cooperative's patrons; (2) increase the gallon capacity for eligible producers; (3) make the credit a non-passive income credit; and (4) remove the credit from the alcohol fuel credit gross income inclusion.