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West Coast Collaborative: Public-private partnership to reduce diesel emissions
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Energy Bill

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
756-774)

  • Authorizes $200 million each year for FY07 through FY11 ($1 billion over
    five years).
  • 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
    FY10.
  • 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
    FY09-FY10.
  • 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
    guidance.

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
    diesel.
  • 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
    gallons. 
  • 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
    transportation fuels. 
  • 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.

   
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