On August 8, 2005 the President signed the Energy
Policy Act of 2005 into law. The Act contains several provisions
related to diesel emission reductions.
Diesel Emissions Reduction (originally
the Voinovich bill) (Title VII, Subtitle G, Sections 791-797, Pages
- Authorizes $200 million each year for FY07 through FY11 ($1 billion over
- Directs the Administrator of the EPA to establish a new program
to significantly reduce diesel emissions in terms of “tons” and
diesel emission exposure particularly in “poor air quality
areas” as designated by EPA.
- Requires that 70% of the funds made available under the program
be used to provide grants and low-cost revolving loans to regional,
state, local, tribal, and port authorities for the purpose of installing
diesel retrofits (defined as “certified engine configurations
or verified technologies”).
- Requires that 30% of the funds made available under the program
be awarded to states for the purpose of funding their own state grant
and loan programs to significantly reduce diesel emissions by financing
the installation of diesel retrofits.
- Up to two-thirds of the funds made available to states must be
allocated equally among states that apply to EPA for funding and
whose applications are approved, with the remaining one-third made
available to states that match their federal funding.
Efficient Hybrid and Advanced Diesel Vehicles (Title
VII, Subtitle B, Part 1, Section 712, Pages 692-693)
- Directs the Secretary of Energy to establish a new program to provide
grants to automobile manufacturers to encourage domestic production of efficient
hybrid and advanced diesel vehicles.
- Authorizes “sums as may be necessary” to carry out
the program from FY06 through FY15.
Advanced Vehicles Pilot Program (Title VII, Subtitle
B, Part 2, Section 721, Pages 693-700)
- Authorizes $200 million “to remain available until expended” in
competitive grants to be administered under the Clean Cities Coalition to
fund state and local governments and MTAs (public/private partnerships are
eligible) for alternative fuel vehicles, fuel cell vehicles, hybrid vehicles,
ULSD vehicles, infrastructure and operation and maintenance.
Clean School Bus USA Program (Title VII, Subtitle
C, Section 741, Pages 703-713)
- Authorizes $55 million each year for FY06 and FY07 ($110 million over
two years) and “sums that may be necessary” for FY08 through
- Directs the Administrator of EPA to establish a new program for
awarding to school districts and their bus contractors grants for
the purpose of retrofitting (i.e., repowering, after-treatment, engine
remanufacturing) or replacing existing school buses.
- EPA retains substantial discretion to decide which grant applications
to fund and what technologies to deploy.
Diesel Truck Retrofits and Fleet Modification Program (Title
VII, Subtitle C, Section 742, Pages 713-717)
- Authorizes $20 million for FY06, $35 million for FY07, $45 million for
FY08 ($100 million over three years), and “sums as may be necessary” for
- Directs the Administrator of EPA to establish a new program to
award grants to state and local governments and their agencies to
replace or retrofit (an undefined term) heavy-duty diesel vehicles
used for the transportation of cargo especially in port areas and
for major hauling operations.
Diesel Fueled Vehicles (Title VII, Subtitle D,
Section 754, Pages 723-725)
- Directs the Secretary of Energy to accelerate efforts to improve diesel
combustion and after-treatment technologies to meet the Tier II emission
standards and the 2007 Heavy Duty Diesel Rule standards.
- Directs the Secretary of Energy to develop the next generation
of low emission, high-efficiency diesel engine technologies including
homogenous charge compression ignition technology.
- No specific authorization.
Reduction of Engine Idling (Title VII, Subtitle
D, Section 756, Pages 729-738)
- Authorizes $19.5 million for 2006, $30 million for 2007, $45 million
for 2008 (total of $94.5 million) for heavy-duty vehicle idle reduction
and energy conservation technologies through the EPA SmartWay Transport
Partnership over three years
- Authorizes $10 million for 2006, $15 million for 2007, $20 million
for 2008 (total of $45 million) for locomotive idle reduction and
energy conservation technologies through the EPA SmartWay Transport
Partnership over three years
Amendments to the Biomass Research and Development Act of
2000 (Title IX, Subtitle D, Section 941, Pages 868-884)
- Authorizes $200 million for 10 years (FY 2006-2015) to develop technologies
and processes necessary for abundant commercial production of biobased fuels
at prices competitive with fossil fuels and a diversity of sustainable domestic
sources of biomass for conversion to biobased fuels and biobased products.
- Of the funds authorized, approximately 20% will be directed toward
feedstock production, 45% toward overcoming recalcitrance of cellulosic
biomass, 30% toward product diversification, and 5% for strategic
Alternative Motor Vehicles and Fuels Incentives (Title
XIII, Subtitle D, Section 1341, Pages 1391-1426)
- Establishes a Fuel Economy Credit and a Conservation Credit for taxpayers
who purchase an advanced lean burn technology motor vehicle.
- An “advanced lean burn technology motor vehicle” is
defined as a passenger automobile or light truck with an internal
combustion engine that is designed to operate primarily using
more air than necessary, incorporates direct injection, achieves
at least 125% of the 2002 model year city fuel economy, meets BIN
Tier II for vehicles below 6,000 pounds, and meets BIN 8 Tier II
for vehicles between 6,000 and 8,500 pounds. This covers clean
- The Fuel Economy Credit is $400 for a vehicle with 125% of the
2002 base fuel economy and increases by $400 increments as fuel
economy increases in increments of 25% over the 2002 level.
- The Conservation Credit ranges between $250 to $1,000 based upon
the life-time fuel savings in the range of 1,200 gallons to 3,000
- The credits are phased out for vehicles purchased from a particular
manufacturer after the manufacturer sells 60,000 vehicles, with
the credit reduced by 50% in the first two calendar quarters after
the 60,000th vehicle is sold and 25% for the next two calendar quarters.
- The credits are in effect for 2006 through 2010.
- New Qualified
Alternative Fuel Motor Vehicle Credit amounts to the applicable
percentage (50% plus 30% if the vehicle meets the most stringent
standards under the CAA for that make and model year) of incremental
cost (excess for the MSRP over the price for a gasoline or diesel
of same model not exceeding a specified dollar amount which varies
by vehicle weight) of any new qualified alternative fueled vehicle
placed in service by the taxpayer.
Advanced Biofuel Technologies Program (Title XV,
Subtitle A, Section 1514, Pages 1558-1560)
- Authorizes EPA to spend $110 million/year for 5 years (2005 to
2009) on biofuels technology development.
- EPA, in consultation with USDA and the Biomass Research and Development
Technical Advisory Committee, is authorized to establish a program
to demonstrate advanced technologies for the production of alternative
- Priority shall be given to projects that enhance geographic diversity
of alternative fuels and utilize feedstocks that represent 10% or
less of ethanol or biodiesel fuel production in the US during the
previous fiscal year.