As this report will highlight, the impact that the various state fuel programs have on the transportation fuels market is complex. EPA and DOE have completed several boutique fuelsreports in the past five years that address many of the issues identified in Section 1541(c) of the Act. The most recent report, published in June of this year, provides important information and insightson the relevant issues under Section 1541(c), however, it also illustrates that boutique fuel issues are only a part of the broader issue of distinct fuel types, including additional renewable, diesel, andheating oil fuels. In order to develop appropriate legislative recommendations, the impacts on airquality, fuel fungibility, availability and supply, cost, price, and other factors have to be fully evaluated, taking into consideration supply and environmental issues beyond the boutique fuel subset. Given the conclusions of the past boutique fuel studies, a broader evaluation, as described inSection 1509 of the Act (the Fuel Harmonization Study), is required to develop recommendations for a Federal fuels system or legislative changes. This Report will address the requirements of the narrower in scope Section 1541(c) by providing an overview of the status of state boutique fuel programs. Specifically, this report describes important regulatory and legislative changes that have or will soon change the landscape of the broader transportation fuels market and summarizes othercritical market factors that have had a significant influence on the United States (U.S.) transportation fuels sector. Furthermore, it provides a plan that EPA and DOE will follow to conduct a morecomprehensive assessment of the impacts of varying transportation fuels programs.