Senate and House Transportation Sector Provisions (H.R. 4)
Senate

as of April 25, 2002	House

as of August 3, 2001
Corporate Average Fuel Economy (CAFE)	Sec. 801 (S. Amdt 2997)

Provides that DOT should issue regulations setting the maximum feasible levels for CAFE for light trucks (final regulations within 15 months of passage of the Act) and passenger automobiles (proposed regulations within 180 days and final regulations within 2 years of the passage of the act). DOT shall have the increase phased in over not more than 15 model years. DOT is specifically required to conduct an environmental assessment.

Sec. 802 (S. Amdt 2997)

Provides for a bill to be introduced in Congress setting CAFE if DOT fails to issue final regulations by the deadlines provided, with an expedited consideration (only 4 amendments allowable in each House).

Sec. 803 (S. Amdt 2997)

Provides the factors DOT must consider when determining "maximum feasible fuel economy", including technological feasibility, economic practicality, effect of other regulations on fuel economy, need for the U.S. to conserve energy and reduce dependence on imported oil, effects on safety, adverse effects on relative competitiveness of manufacturers, potential for advanced technology vehicles (hybrids and fuel cells), impact on R&D resources due to incurring of near-term costs to comply, and other related issues.

Sec. 811 (S. Amdt 2998)

Exempts pickup trucks from any increases in fuel economy standards.	Sec. 201

Provides that DOT should set fuel economy standards for light trucks for model years 2004-2010 at such levels to save 5 billion gallons of gasoline vs. the current standard (model year 2002) for light trucks.

Sec. 202

DOT should take into account the potential benefits of establishing a weight-based system, with different levels for different weight classes. It should also take into account any recommendations made in the National Academy of Sciences study done for DOT, as well as the relative merits of a weight-based system (safety, conservation, competitiveness, and employment). If a weight-based system is chosen, manufacturers can trade credits within their own light-truck models.

Sec. 207

Requires DOT to have the National Academy of Sciences study reducing, by a significant amount, fuel use for automobiles by 2010. Included within the study are examination of existing Federal laws concerning establishing fuel economy standards; the contributions toward fuel savings to be made by auto manufacturers; the potential of fuel cell technology; and impact on gasoline supplies, the auto industry, motor vehicle safety, and air quality.
Corporate Average Fuel Economy (CAFE) - Dual-
Fuel Vehicle Credit	Sec. 804 (S. Amdt 2997)

Similar to H.R.4, however only extends the period within the U.S. Code section which addresses the maximum increase in CAFE due to dual-fueled vehicles, while H.R.4 also addresses extending the period concerning the calculation of fuel economy of a dual-fuel vehicle.	Section 203

Extends the CAFE benefit to manufacturers of dual fueled vehicles through 2008, an action that had previously been left to a DOT rulemaking under the Alternative Motor Fuels Act of 1988. H.R.4 requires DOT to decide about extending the credit for model years 2009-2012 by September 30, 2004.
Transportation Fuel Efficiency Goals

Section 2004

Sets specific goals for transportation R&D based on various programmatic statements made in budget submissions over the years, as well as new "stretch" goals being proposed by the committee. Goals: For the Transportation Sector, the program should: (1) develop a production prototype passenger automobile that has fuel economy equivalent to 80 mpg of gasoline by 2004; (2) develop class 7 and 8 heavy duty trucks and buses with ultra low emissions and the ability to use an alternative fuel that has an average fuel economy equivalent to (a) 10 mpg of gasoline by 2007; and (b) 13 mpg of gasoline by 2010; (3) develop a production prototype of a passenger automobile with zero equivalent emissions that has an average fuel economy of 100 mpg of gasoline by 2010; and (4) improve, by 2010, the average fuel economy of trucks (a) in classes 1 and 2 by 300%; and (b) in classes 3 through 6 by 200%, compared to the fuel economy as of the date of the enactment of this Act.
Federal Fleet Fuel Economy	Section 821

Same.	Section 204

Requires that the fuel economy of new Federal fleet acquisitions increase by 1 mpg by model year 2003 and 3 mpg by model year 2005, relative to a baseline of 1999.
Federal Fleet - Hybrid Vehicles and AFVs	Sec. 805 (S. Amdt 2997)

Requires non-EPAct Federal Fleets to acquire only hybrid-powered light trucks starting in FY2005. Requires Federal fleets that are subject to EPAct to exceed their purchase requirements by acquiring additional light duty alternative fuel or hybrid trucks (not vehicles, as in H.R. 4). In FY 2005 - 2006, 5 percent of light duty trucks must be AFVs or hybrids. In FY 2007 and later, 10

percent of light duty trucks must be AFVs or hybrids. Vehicles purchased under this provision must be in addition to the AFV acquisitions made for purposes of EPAct section 303. Vehicles that are counted for purposes of complying with section 303 of EPAct may not be used to satisfy the 5% and 10% requirement.	Section 205

Requires Federal fleets subject to EPAct to exceed their requirements by acquiring a higher percentage of AFVs than required under EPAct. In FY 2004 and 2005, this requires an additional 5% of newly acquired vehicles to be either AFVs or hybrids. This additional requirement rises to 10% in FY 2006 and thereafter. Therefore, it appears that the overall acquisition percentages must become 80% for 2004-2005 and 85% for 2006 and thereafter, with either AFVs or hybrids being able to be counted in the additional portions above EPAct's original requirement of 75%.

Federal Fleet - Conservation of Petroleum Fuels/Use of Alternative Fuel in Dual-Fuel Vehicles	Section 806 (S. Amdt 2997)

Requires Federal agencies to use only alternative fuel in dual fuel vehicles by January 1, 2009. If not possible, DOT can require at least 50% annual use of alternative fuel (by volume) by January 1, 2009 and 75% by January 1, 2011. Under this situation, must be 100% by January 1, 2013.

After Sec. 819 (S. Amdts. 3008 and 3145)

Each federal agency head must ensure that in areas where ethanol- gasoline blends are competitively priced, Federal agencies purchase ethanol blends (at least 10% ethanol). Also, as of 5 years after the date of enactment, in locations where vehicles are centrally refueled and the fuel is competitively priced, 2% (or higher) biodiesel blends must be purchased, which increases to blends of at least 20% biodiesel after 10 years.

Sec. ___ (S. Amdt. 3078)

Within 180 days of enactment the GSA Administrator must submit a report to Congress detailing efforts by each Federal agency for implementation of procurement policies under E.O. 13101 and E.O. 13149.	Sec. 206

Requires Federal fleets to reduce petroleum consumption starting in FY2003 to a level which reflects total reliance upon alternative fuels by the AFVs acquired in accordance with EPAct requirements by FY2009.
Hybrid Electric and Fuel Cell Vehicles	Sec. 807 (S. Amdt 2997)

Directs DOE to expand its R&D program to emphasize Fuel Cells, Hydrogen Storage, Advanced Vehicle Engine and Emission Control Systems, Advanced Batteries and Power Electronics for Hybrids, Advanced Fuels, and Advanced Materials. Authorizes $225M for FY2003.	None.
Diesel Fueled Vehicles	Sec. 808 (S. Amdt 2997)

Directs DOE to accelerate R&D for improving diesel combustion and aftertreatment technologies. Provides for a goal of compliance with Tier 2 emission standards by 2010 (applying to passenger cars, light trucks, and larger passenger vehicles after model year 2003).	None.
Fuel Cell Demonstration	Sec. 809 (S. Amdt 2997)

Directs DOE and DOD to jointly carry out a program to demonstrate fuel cell technologies developed under each of their individual programs (PNGV/Freedom Car and DOD's R&D). Provides for program to be carried out in cooper- ation with industry, with industry providing at least half the funds.

Sec. 824 (S. Amdt 3141)

Within one year of enactment, DOE must develop a plan to enable at least 100,000 hydrogen-fueled fuel cell vehicles to be available annually in the United States by 2010 and thereafter expanding to 2.5 million vehicles by 2020 and thereafter.	None.
Bus Replacement	Sec. 810 (S. Amdt 2997)

Directs DOT to determine the best way for metropolitan and school bus fleets to change over from current diesel technology to fuel cells; hybrid electrics; clean-burning fuels (including agriculture-based biodiesel, natural gas, and ultra-low sulfur diesel); clean diesels; or a combination of these.	None.
HOV Exceptions	Section 812

Similar, but requires the AFV must be operating on alternative fuel at the time, does not extend benefit to hybrids, and does not include emission requirements.

Section 151

Allows states to permit hybrid vehicles and AFVs to use HOV lanes with less than the mandated number of passengers. The vehicles included must also be certified as California Low Emissions Vehicles (for 2002 and later model years) and as meeting EPA's Tier II emissions requirements (for 2004 and later model years).
Data Collection	Section 813

Calls for EIA to conduct a monthly survey of renewable fuels consumption and publish the results. Data includes quantity of fuels produced, cost of production, cost of blending and marketing, quantify of fuels consumed, quantity of fuels imported, and market price data.	None.
Green School Bus Programs	Sections 814-816

Nearly identical. Only major changes are that the Senate bill authorizes DOE and DOT to jointly establish the programs, and that funding of $260M is authorized for FY2003-2006.

Sec. ___ (S. Amdt. 3154)

Redefines the terms idling and ultra-
low sulfur diesel. Adds a new section to encourage each local educational agency that receives federal funds to reduce school bus idling incidences when picking up and unloading students.	Sections 2141-2144

Authorizes DOE to establish a program for awarding grants for demonstration and commercial application of alternative fuel and ultra-low sulfur diesel school buses. Also includes program for development of fuel cell school buses. Authorizes $300 million to DOE for FY2002-2006. Not less than 20% nor more than 25% of funding must be for acquisition of ultra-low sulfur diesel school buses. A maximum of $25 million is to be allocated to fuel cell school buses for FY2002-2006.

Biodiesel Fuel Use Credit	Section 817 (S. Amdt. 3023)

Expands the ability of EPAct covered fleets through 2005 to obtain credit for 100% of their annual requirement by acquiring blends of B20 or higher and allows banking and trading of these credits in future years. (Currently credit for biodiesel in blends of B20 or higher may be used to meet up to 50% of a covered fleet's annual EPAct requirements, and excess biodiesel credits may not be banked or traded.) Within one year of enactment, DOE must issue a report for Congress with recommendations for legislation to extend the temporary credit beyond model year 2005.	Section 153

Allows biodiesel fuel use credits to be tradeable and bankable, just like AFV acquisition credits. It does this by indicating that these credits are now to be considered Section 508 credits, which are tradeable and bankable.
Neighborhood Electric Vehicles	Section 818

This section would allow low speed vehicles (LSVs) that are also Zero Emission Vehicles (ZEVs) to meet the definition of an AFV under EPAct.	None.
Expansion of EPAct Creditable Actions	Sec. ___ (S. Amdt. 3041)

Has 4 parts that amend EPAct:

•	Allows partial to a full credit for each new qualified hybrid vehicle acquired by covered fleet based upon the fuel efficiency and maximum available power of the vehicle. Requires DOE to issue regulations on hybrid credits for Federal fleets.

•	Allows two full credits for acquisition of medium and heavy duty dedicated alternative fuel vehicles.

•	Allows for EPAct credits to be obtained from "substantial investment in alternative fuel infrastructure," meaning one credit for each $25,000 in cash or in-kind services from covered entities

•	Provides for covered entities to obtain one credit for each "substantial contribution" of $15,000 of cash or in-kind services toward acquisition and use of dedicated vehicles by a non-covered entity.	None.
Renewable Content of Motor Fuel / Reduction of Petroleum- Based Fuels	Section 819

Beginning in 2003, refiners, blenders or importers in Petroleum Administration for Defense Districts (PADDs) II, III. or IV, will be required to blend renewable fuel. The total amount required to be blended by all covered entities would be 2 billion gallons in 2003, increasing to 5 billion gallons by 2012, and then maintaining the percentage of the market that 5 billion gallons represents in 2012 during 2013 and thereafter. Transferrable credits may be generated by those who exceed requirements. States may petition EPA, in consultation with USDA and DOE, to reduce the national quantity of renewable fuel required. Individual states may also apply for annual waivers and small refiners are exempt from the renewable requirements. Eases Reid Vapor Pressure (RVP) requirements for ethanol-blended fuels.	Section 604

Provides for a joint DOE/EPA study on requiring motor vehicle fuel sold starting in calendar year 2002 include a quantity (unspecified) of renewable fuel.
Advanced Idle Elimination Systems	Section 823

Directs DOE, in consultation with DOT, to analyze potential fuel savings from reducing idling of heavy-duty vehicles. (NOTE: Language actually says "...potential fuel savings resulting from long duration idling of main drive engines in heavy-duty vehicles.") After completing the study, DOE may issue regulations to require installation of idling reduction systems on all newly manufactured heavy duty vehicles. As used here, heavy duty means anything over 8500 lb GVWR. Long duration idling means over 15 minutes, but not due to traffic or other impediments.	Section 162

Requires EPA to grant emissions credits for reduction of idling by vehicles (trucks, trains, buses, boats, automobiles, and recreational vehicles) through stationary systems which provide heating, A/C, and electricity. Such systems are defined as located at truck stops and other places where vehicles park for extended periods (greater than 1 hour) and idle.
Elimination of Oxygen Content Requirement for Reformulated Gasoline	Section 834

Eliminates the oxygen content requirement for RFG (from the Clean Air Act) starting 270 days after enactment of this act. Directs EPA to establish, for each refinery or importer, standards for toxic air pollutants form the use of RFG that maintain the average emissions levels from RFG produced or distributed during 1999 and 2000.

Section 836

Directs EPA within 4 years of this act to analyze the changes in emissions and air quality due to the implementation of the changes in this act.	None.
Fuel System Requirements Harmonization Study	Section 839

Requires EPA and DOE to jointly conduct a study looking at national and local requirements for fuels to determine the effect of varying requirements on supply, quantity, and price; achievement of air quality goals and related environmental and public health protection standards and goals; domestic refineries, fuel distribution system, and industry investment in new capacity; emissions from vehicles, refineries, and fuel handling facilities; feasibility of developing national or regional fuel slates; and incentives and national standards necessary to promote cleaner burning motor fuels. A report is required by June 1, 2006, and is to include recommendations for actions to improve air quality, reduce consumer and producer costs, and increase supply liquidity.	None.
Mobile to Stationary Source Trading	None.	Section 154

Calls for review by EPA of its policies regarding the use of mobile to stationary source trading of emission credits under the Clean Air Act and if such policies could be used to increase use of alternative fuel and advanced technology vehicles.
Review of Regulations to Eliminate Barriers to Emerging

Energy Technology	None.	Section 161

Requires each Federal agency to carry out a review of its regulations and standards to determine those that act as a barrier to market entry for emerging energy-efficient technologies.
Oil Bypass Filtration Technology	None	Section 163

Requires a study of oil bypass filtration technology to be conducted jointly by DOE and EPA. A report to Congress is required (within 6 months) which must address the feasibility of using the technology in Federal fleets.
Telecommuting	None.	Section 165

Requires DOE, in consultation with the Federal Communications Commission and the National Telecommunications and Information Administration of the Department of Commerce (NTIA), to conduct a study of the energy conservation implications of the widespread adoption of telecommuting in the United States.
AFV Acceleration Act of 2001	None.	Sections 2101-2105

Directs DOE to establish a pilot demonstration program for AFVs and ultra-low sulfur diesel vehicles in local government, state government, and transit operator fleets. Includes infrastructure. Provides for no more than 15 grants, with the Federal Government providing no more than 50% of the funding (and between 20 and 25% for ultra-low sulfur diesel projects) and with no applicant receiving more than $20 million. Total authorizations for the program are $200 million. Applicants may carry out projects in partnership with both public and private entities.
Alternative Fuel and Advanced Technology Tax Incentives	See Appendix A	See Appendix A