Amends the Clean Air Act to revise the renewable fuel program by: (1) requiring the Administrator of the Environmental Protection Agency (EPA) to ensure that transportation fuel sold or introduced into commerce in the United States, on an annual average basis, contains at least the applicable volume of "next generation biofuel" (currently "cellulosic biofuel"); and (2) replacing the term "cellulosic biofuel" with "next generation biofuel." Defines "next generation biofuel" to mean: (1) renewable fuel that is derived from any cellulose, hemicellulose, lignin, or algae that is derived from renewable biomass; or (2) nonethanol renewable fuel that is derived from renewable biomass.
Directs the Administrator to allow states that enact a law that elects to not participate in the applicable volume of renewable to not so participate, other than the applicable volumes of renewable fuel required for advanced biofuel, next generation biofuel, and biomass-based diesel.