Transportation Bill

On August 9, President Bush signed the Transportation Equity Act of 2005 into law.  Provisions within the bill address diesel emissions reductions, including: 

Addition to CMAQ-eligible Projects (Clinton-Inhofe Amendment) (Title I, Subtitle H, Section 1808)

• Makes diesel retrofits on both on-road and off-road vehicles used on construction projects financed by federal funds and located in non-attainment areas eligible for CMAQ funding.
• Defines diesel retrofits as replacement, repowering, rebuilding, and after-treatment.
• Directs EPA to issue guidance on certified and verified emission reduction technologies that can be financed by CMAQ, on the emission reduction effectiveness on the various retrofit technologies, and on the cost effectiveness on the various retrofit technologies.
• Directs states and metropolitan planning organizations (“MPOs”) to give priority in the distribution of CMAQ funds to diesel retrofits (especially where they are required under construction contracts) and other cost-effective emission reduction activities, as well as cost-effective emission congestion mitigation activities which provide air quality benefits.
• Includes a savings clause to ensure that the provision does not inadvertently amend the Clean Air Act or amend the authority of state departments of transportation (“DOTs”) and MPOs.
• DOTs and MPOs wanted EPA to make “conformity credit” available where CMAQ is used to fund retrofits.  EPA agreed in writing to publish guidance by year’s end for state environmental authorities to give such credit.  Getting conformity credit is important to DOTs and MPOs because it will enable them to build more roads in non-attainment areas, and they have never been able to get such credit in the past.
• EPA estimates there are 600,000 off-road vehicles that will be used on construction sites in non-attainment areas, 200,000 of which will be retired, 200,000 of which will be eligible for engine rebuild/repower, and 200,00 will be eligible for after-treatment. The agency believes that about $3 billion of CMAQ funds could be used to retrofit these vehicles.
• EPA has not estimated the number of on-road vehicles that could be retrofitted by CMAQ funds under this provision and the amount of CMAQ funds that could be spent to retrofit on-road vehicles.
• No annual appropriations will be necessary to fund CMAQ as it is funded by the Highway Trust Fund.
• For more information about Clinton and Inhofe’s amendment please see the statement by Senator Clinton as well as an interesting study entitled, Cleaning the Air: Comparing the Cost Effectiveness of Diesel Retrofits vs. Current CMAQ Projects.

HOV Facilities (Title I, Subtitle A, Section 1121)

• Authorizes states to waive the occupancy requirements for “inherently low emission vehicles” used on high-occupancy vehicle (“HOV”) lanes.
• EPA defines “inherently low emission vehicles” as LDV and LTV classes with exhaust emissions which do not exceed LEV exhaust emission standards for NMOG, CO, HCHO, and PM and the ULEV emission standards for NOX.
• States that use this authority are required to establish procedures for enforcing it.

Idling Reduction Facilities in Interstate Right-of–Ways (Title I, Section 1412)

• Permits electrification or other idling reduction facilities and equipment, for use by motor vehicles used for commercial purposes, to be placed in rest and recreation areas, and in safety rest areas, constructed or located on rights-of-way of the Interstate System.
• Allows a fee to be charged for use of parking facilities using idle reduction equipment.

Bus and Bus-Related Facilities and Clean Fuels (Title III, Section 3044)

• Authorizes $250,000 for FY 2006 – FY 2008 and $300,000 for FY 2009 for hybrid diesel-electric buses in San Joaquin Valley

Clean School Bus Program (Title VI, Section 615)

• This is essentially the same provision as that included in the energy bill with the addition of “refueling” as one of the retrofit options. (see details below)

High Priority Projects (Title XVII, Section 1702)

• There are over 6,000 earmarked projects in the Transportation Bill, many of which have diesel-related implications on the West Coast

Alternative Fuel and Alternative Fuel Mixture Credit (Subtitle B, Section 11113, Pages 804-805)

• The alternative fuel credit is allowed against section 4041 liability and is 50 cents per gallon of alternative fuel of alternative fuel or gasoline gallon equivalents of non liquefied alternative fuels sold by the taxpayer for use as a motor fuel in a motor vehicle or motorboat, or so used by the taxpayer.
• For the purpose of this section “alternative fuel” means- liquefied petroleum gas, P Series Fuels, compressed or liquefied natural gas, liquefied hydrogen, any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, and liquid hydrocarbons derived from biomass. Such term does not include ethanol, methanol, or biodiesel.
• The provision is effective for any sale or use for any period after September 30, 2006 and the credits generally expire after September 30, 2009.