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1 [1] (October 11, 2019)

handle is hein.crs/govbbja0001 and id is 1 raw text is: I Congressional Research Service ~Info rming th Vegislative debate since 1914 0 October 11, 2019 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's most recent set of emission standards for newly manufactured heavy duty highway and nonroad diesel engines took effect in 2007 and 2008, respectively. At the time, the standards required a 90% and 95% reduction in emission levels for PM and NO., respectively, over the previous standards. However, because of the long operational lives of diesel engines, millions of pre-2007 engines remain in use. According to EPA's estimates in 2016, 10 million pre-2007 diesel engines remain in use in the United States and 1 million of those engines could still be in use in 2030. The CAA does not provide EPA the authority to set new emission standards on existing, or legacy, diesel engines. To address concerns over legacy diesel engines, 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 million annually for fiscal year (FY) 2007 through 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 (ppm) or less. Diesel Emissions Reduction Act of 2010 The Diesel Emissions Reduction Act (DERA) of 2010 (P.L. 111-364) amended EPAct 2005 to reauthorize funding through FY2016 and modify provisions related to the program. DERA 2010 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. The distribution of funds was revised 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 that 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. DERA Program Implementation EPA's National Clean Diesel Campaign within the Office of Transportation and Air Quality administers the DERA program. In its DERA Fourth Report to Congress (July 2019), EPA reports that it awarded more than $629.0 million between FY2008 and FY2016 to retrofit or replace 67,300 engines in vehicles, vessels, locomotives, and other equipment. EPA estimates the program has resulted in the reduction of emissions of NO, by 474,700 tons, PM by 15,490 tons, and hydrocarbons by 17,700 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 $19.0 billion, including up to 2,300 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. ht tps:!crsreports~cong --ssqg

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