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1 1 (February 1, 2023)

handle is hein.crs/govekkl0001 and id is 1 raw text is: Con gressionaI flew rch Service Informing the Iegitive debate since 1914 Updated February 1, 2023 The Diesel Emissions Reduction Act (DERA) Program Emissions from diesel engines-especially particulate matter (PM), nitrogen oxides (NO.), sulfur oxides, and air toxics-have been shown to contribute to air pollution that adversely impacts public health and welfare in the United States. Since 1970, the Clean Air Act (CAA; 42 U.S.C. §§7401 et seq.) has required the federal government to limit these emissions, among others, from new stationary (industrial) sources and new mobile sources. In the decades since, the U.S. Environmental Protection Agency (EPA) has promulgated emission standards for a variety of source categories, including new heavy duty highway and nonroad diesel engines. EPA finalized the most recent set of emission standards for newly manufactured heavy duty highway vehicles and engines in January 2023 (88 FR 4296). The standards require an approximately 80% reduction in NO, emission levels over the previous standards, to begin in model year (MY) 2027. However, because of the long operational lives of diesel engines, millions of older vehicles remain in use. The CAA does not provide EPA the authority to set new emission standards on existing, or legacy, diesel engines. To address these concerns, EPA began a Voluntary Diesel Retrofit Program in 2000 and a Clean School Bus Initiative in 2003, among other programs. Congress enacted the Diesel Emissions Reduction program in the Energy Policy Act of 2005 (EPAct 2005; P.L. 109-58, Title VII, Subtitle G §§791-797; 42 U.S.C. §§16131-16137). It authorized EPA to administer a national and state-level grant and loan program to promote emissions reductions from legacy diesel engines. Through the Diesel Emissions Reduction program (as amended), EPA has provided loans, grants, and rebates to projects that use certified engine configurations and verified technologies, or that develop and commercialize emerging technologies, in order to replace legacy diesel engines. Energy Policy Act of 2005 EPAct 2005 authorized $200.0 million annually for FY2007-FY2011 for the Diesel Emissions Reduction program. Of the funds appropriated, 70% were to be used for national competitive grants and low-cost loans administered by EPA, and 30% were to support loan and grant programs administered by states. Of the funds administered by EPA, the majority was to be provided for the benefit of public fleets, with not less than 90% going to projects using a certified engine configuration or verified technology and not more than 10% for the development and commercialization of emerging technologies. Of the funds administered by the states, a portion was to be allocated in equal shares to each state if all 50 states qualified. If fewer than 50 states qualified, the remaining funds were to be allocated among the qualifying states proportionally based on their population. Under EPAct 2005, EPA was to prioritize projects that (1) maximize public health benefits; (2) are cost-effective; (3) serve areas with the highest population density and the poorest air quality; (4) include a certified engine configuration, verified technology, or emerging technology that has a long expected useful life; (5) maximize the engine's expected useful life; (6) conserve diesel fuel; and (7) use diesel fuel with a sulfur content of 15 parts per million or less. Diesel Emissions Reduction Act of 2010 The Diesel Emissions Reduction Act of 2010 (DERA; P.L. 111-364) amended EPAct 2005 to authorize $100.0 million annually through FY2016 and modify provisions related to the program. DERA defined state to include the District of Columbia and the U.S. territories. The act authorized EPA to offer rebates in addition to grants and loans to eligible entities, including any private individual or entity that owns a diesel vehicle or fleet. It revised the distribution of funds to provide not less than 95% of funds to projects using a certified engine configuration or verified technology and not more than 5% of funds for development and commercialization of emerging technologies. Under the act, EPA was to develop a simplified application process to expedite provision of funds, taking into consideration special circumstances affecting small fleet owners. The act expanded the priority given to applications tat serve areas receiving a disproportionate quantity of air pollution from diesel fleets to include construction sites and schools in addition to truck stops, ports, rail yards, terminals, and distribution centers. In 2020, the DERA program was reauthorized through FY2024, with no other changes, under Division S, Section 101, of the Consolidated Appropriations Act, 2021 (P.L. 116- 260). DERA Programn irmpementation EPA's National Clean Diesel Campaign within the Office of Transportation and Air Quality administers the DERA program. In its DERA Fifth Report to Congress (August 2022), EPA reports that it awarded more than $801.0 million between FY2008 and FY2018 to retrofit or replace 73,700 engines in vehicles, vessels, locomotives, and other equipment. EPA estimates that the program has resulted in the reduction of emissions of NO, by 491,000 tons, PM by 16,800 tons, and carbon dioxide by 5.3 million tons over the lifetime of the affected engines. Further, EPA estimates the total present value of monetized health benefits over the lifetime of the affected engines as $8.0 billion, including up to 850 fewer premature deaths. EPA reports that since the inception of the program, DERA funding requests have exceeded availability by as much as 35:1 for the rebate program and 7:1 for the national grant competition.

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