[Senate Report 116-39]
[From the U.S. Government Publishing Office]
Calendar No. 71
116th Congress } { Report
SENATE
1st Session } { 116-39
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DIESEL EMISSIONS REDUCTION ACT OF 2019
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May 13, 2019.--Ordered to be printed
_______
Mr. Barrasso, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
[To accompany S. 747]
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, to which was
referred the bill (S. 747) to reauthorize the diesel emissions
reduction program, and for other purposes, having considered
the same, reports favorably thereon without amendment and
recommends that the bill do pass.
General Statement and Background
Established pursuant to the Energy Policy Act of 2005, the
Diesel Emissions Reduction Act (DERA) is a voluntary program
that incentivizes vehicle, engine and equipment owners to
retrofit existing heavy-duty diesel vehicles, engines and
equipment with new technology, or replace vehicles, engines and
equipment through the disbursal of federal and state grants and
rebates. Diesel engines are reliable and efficient, but older
ones emit significant amounts of exhaust including particulate
matter (PM) and nitrogen oxides (NOX), which can
harm human health. Initially a grant program, the Environmental
Protection Agency (EPA) started awarding the first DERA grants
in 2008 with the purpose of reducing diesel exhaust from older
engines. In January 2011, DERA was reauthorized through fiscal
year (FY) 2016 and the EPA was given the authority to offer
rebates in addition to grants pursuant to the Diesel Emissions
Reduction Act of 2010. EPA started the first rebate program in
2012 targeting school bus replacement.
The DERA program is administered by EPA's National Clean
Diesel Campaign within the Office of Transportation and Air
Quality. According to the agency's last report to Congress,\1\
the DERA program is considered one of the most cost-effective
federal clean air programs. EPA has estimated that from FY 2008
through FY 2016, DERA upgraded almost 67,300 vehicles or pieces
of equipment. Over the same time, the lifetime emission
reductions attributable to DERA funding totaled 15,490 tons of
PM and 472,700 tons of NOX. The DERA program also
has the benefit of reducing greenhouse gas emissions. EPA
estimates the program reduced carbon dioxide emissions by more
than 5 million tons and black carbon emissions by 11,620 tons
from FY 2008 to FY 2016.\2\
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\1\United States Environmental Protection Agency, ``Third Report to
Congress: Highlights From the Diesel Emission Reduction Program'' (Feb.
2016).
\2\Information was provided by EPA at Committee's request.
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Part of the program's success is its focus on areas that
need it most. DERA grants have increasingly been awarded to
areas that are in nonattainment for PM or ozone, thereby
maximizing benefits and overall effectiveness. EPA's last
report reveals that 81 percent of projects awarded are located
in areas with air quality challenges. Prioritization of goods
movement projects have proven especially beneficial for
communities located next to ports, rail yards and distribution
centers that are disproportionately impacted by higher levels
of diesel exhaust.
The DERA program's benefits are far-reaching and cost-
effective. DERA grant recipients can tailor projects to the
needs of targeted communities with benefits continuing long
after the project period closes. DERA funding has impacted a
variety of sectors and supported many clean diesel technologies
spurring market innovation. According to the EPA's latest
report, each federal dollar invested in DERA has leveraged as
much as $3 from non-federal sources, such as other government
agencies, private organizations, industry, and nonprofit
organizations. Further, the agency continues to focus on
maximizing DERA's cost-effectiveness in terms of the
distribution of funds.
Demand and necessity for the DERA program will continue.
Despite the program's success, according to EPA's last report
to Congress, approximately 10.3 million older diesel engines
remain in use. EPA estimates that by 2030 over 1 million older,
higher-emitting diesel engines will still be in use. As DERA is
the only EPA program focused on providing health benefits from
the reduction of diesel exhaust, the demand from fleet owners
has far exceeded DERA's available funds. In fact, funding
requests for the National Clean Diesel Rebate Program exceeded
awards by as much as 35:1 and requests in the national grant
competitions exceeded availability by 7:1. S. 747 answers this
demand by authorizing the program through FY 2024, which will
ensure a continuation of the successful DERA program and its
associated benefits.
While the DERA program has generally been a success, minor
changes to the program are appropriate to make implementation
more equitable across the country. In the past, EPA has denied
state requests for funding for reasons not directly tied to a
statutory or regulatory requirement. Current law does not
explicitly state that EPA must recognize differing diesel
vehicle, engine, equipment or fleet use concerns that may occur
(especially between large metropolitan areas and less populated
areas) when funding DERA projects through the national or state
program. S. 747 would clarify that in implementing both the
national competitive program and the state-administered
program, EPA must recognize that typical diesel vehicle,
engine, equipment and fleet use differs across the country. For
example, equipment in less populated areas such as Wyoming may
have a longer expected useful life than in more populated
areas.
In addition, S. 747 makes funding of the DERA program more
equitable. Under current law, all states are eligible for equal
funding shares under the state-administered program. If states
choose not to participate in the state-administered program,
their shares of funding are distributed to participating states
on a population-weighted basis, which disadvantages less-
populated states. Any funding given to participating states
that is not used by a state is then reallocated to the national
competitive program. S. 747 would require all money left over
from the state-administered program (whether for a state that
chooses not to participate or allocated to a state but unused)
to be reallocated to the national competitive program.
Objectives of the Legislation
The bill reauthorizes the Diesel Emissions Reduction Act
program through FY 2024. The bill also makes it clear that EPA
must recognize differences in how vehicles, engines, equipment,
and fleets are used across the country and equalizes funding
opportunities for all states.
Section-by-Section Analysis
Section 1. Short title
This section states that the Act may be cited as the
``Diesel Emissions Reduction Act of 2019''.
Section 2. Reauthorization of diesel emissions reduction program
This section extends the authorization of the program
through fiscal year 2024.
Section 3. Recognizing differences in diesel vehicle, engine,
equipment, and fleet use
This section changes current law to make it clear that EPA
must recognize that there are differing diesel vehicle, engine,
equipment or fleet use concerns in different areas of the
country as the agency funds DERA projects. Section 3(a)
clarifies that in prioritizing projects for funding under the
national competitive program, EPA must ``recogniz[e]
differences in typical vehicle, engine, equipment, and fleet
use.'' Section 3(b) commits the agency to ``recognition, for
purposes of implementing this section, of differences in
typical vehicle, engine, equipment, and fleet use throughout
the United States, including expected useful life'' in guidance
that the agency issues to states to assist in preparing funding
applications under the state-administered program.
Section 4. Reallocation of unused state funds
Section 4 changes current law by requiring all money left
over from the state-administered program (whether for a state
that chooses not to participate or allocated to a state but
unused) would be reallocated to the national competitive
program.
Legislative History
On March 12, 2019, Senator Carper introduced S. 747, the
Diesel Emissions Reduction Act of 2019. Senators Inhofe,
Barrasso, Whitehouse, Sullivan, Booker, Capito, Gillibrand,
Cramer, and Van Hollen were original cosponsors. The bill was
referred to the Committee on Environment and Public Works.
The text of S. 747 is nearly identical to the text of S.
1447, the Diesel Emissions Reduction Act of 2017. Senator
Carper introduced S. 1447 on June 27, 2017. Senators Inhofe,
Barrasso, and Whitehouse were original cosponsors. The EPW
Committee reported S. 1447 by voice vote on July 12, 2017.
Hearings
A committee hearing was held on S. 747 on March 13, 2019.
Rollcall Votes
On April 10, 2019, the Committee on Environment and Public
Works met to consider S. 747. The bill was ordered favorably
reported without amendment by voice vote. No roll call votes
were taken.
Regulatory Impact Statement
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee finds that S. 747
does not create any additional regulatory burdens, nor will it
cause any adverse impact on the personal privacy of
individuals.
Mandates Assessment
In compliance with the Unfunded Mandates Reform Act of 1995
(Public Law 104-4), the Committee notes that the Congressional
Budget Office found, S. 747 contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates
Reform Act (UMRA) and would impose no costs on state, local, or
tribal governments.
Cost of Legislation
Section 403 of the Congressional Budget and Impoundment
Control Act requires that a statement of the cost of the
reported bill, prepared by the Congressional Budget Office, be
included in the report. That statement follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 26, 2019.
Hon. John Barrasso,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 747, the Diesel
Emissions Reduction Act of 2019.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Stephen
Rabent.
Sincerely,
Keith Hall,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 747 would authorize the appropriation of $100 million
annually through 2024 for the Environmental Protection Agency
(EPA) to provide grants and rebates for projects and state
programs that reduce emissions from diesel engines. The bill
also would require EPA to provide guidance to states about
technical differences in vehicles, engines, equipment, and
vehicle fleet use. Finally, the bill would direct that funds
not allocated to state diesel programs be reallocated to
projects for retrofitting vehicles. In 2019, $87 million was
appropriated for those purposes.
Assuming appropriation of the specified amounts, CBO
estimates that implementing the bill would cost $410 million
over the 2020-2024 period and $90 million after 2024 (see Table
1). The costs of the legislation fall within budget function
300 (natural resources and environment).
TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 747
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By fiscal year, millions of dollars--
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2019a 2020 2021 2022 2023 2024 2019-2024
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Estimated Authorization.................. 100 100 100 100 100 100 500
Estimated Outlays........................ 0 25 85 100 100 100 410
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aS. 747 would authorize appropriations totaling $100 million for 2019. CBO does not estimate any outlays for
those authorizations because appropriations for 2019 have already been provided.
The CBO staff contact for this estimate is Stephen Rabent.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Changes in Existing Law
In compliance with section 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill
as reported are shown as follows: Existing law proposed to be
omitted is enclosed in [black brackets], new matter is printed
in italic, existing law in which no change is proposed is shown
in roman:
* * * * * * *
ENERGY POLICY ACT OF 2005
* * * * * * *
SEC. 2. [42 U.S.C. 15801] DEFINITIONS.
Except as otherwise provided, in this Act:
(1) Department.-- * * *
* * * * * * *
SEC. 792. [42 U.S.C. 16132] NATIONAL GRANT, REBATE, AND LOAN PROGRAMS.
(a) In General.-- * * *
* * * * * * *
(c) Applications.--
(1) Expedited process.-- * * *
* * * * * * *
(4) Priority.-- In providing a grant, rebate, or loan
under this section, the Administrator shall give
highest priority to proposed projects that, as
determined by the Administrator--
(A) * * *
* * * * * * *
(D) include a certified engine configuration,
verified technology, or emerging technology
that has a long expected useful life ,
recognizing differences in typical vehicle,
engine, equipment, and fleet use throughout the
United States;
* * * * * * *
SEC. 793. [42 U.S.C. 16133] STATE GRANT, REBATE, AND LOAN PROGRAMS.
(a) In General.-- Subject to the availability of adequate
appropriations, the Administrator shall use 30 percent of the
funds made available for a fiscal year under this subtitle to
support grant, rebate, and loan programs administered by States
that are designed to achieve significant reductions in diesel
emissions.
(b) Applications.-- The Administrator shall--
(1) provide to States guidance for use in applying
for grant, rebate, or loan funds under this section,
including information regarding--
(A) the process and forms for applications;
(B) permissible uses of funds received[; and]
;
* * * * * * *
(D) the recognition, for purposes of
implementing this section, of differences in
typical vehicle, engine, equipment, and fleet
use throughout the United States, including
expected useful life; and
* * * * * * *
(c) Allocation of Funds.--
(1) In general.-- For each fiscal year, the
Administrator shall allocate among States for which
applications are approved by the Administrator under
subsection (b)(2)(B) funds made available to carry out
this section for the fiscal year.
(2) Allocation.--
(A) In general.-- * * *
* * * * * * *
(C) Reallocation.-- If any State does not
qualify for an allocation under this paragraph,
the share of funds otherwise allocated for that
State under this paragraph shall be reallocated
[to each remaining qualified State in an amount
equal to the product obtained by multiplying--
(i) the proportion that the
population of the State bears to the
population of all States described in
paragraph (1); by
(ii) the amount otherwise allocatable
to the nonqualifying State under this
paragraph] to carry out section 792.
* * * * * * *
SEC. 797. [42 U.S.C. 16137] AUTHORIZATION OF APPROPRIATIONS.
(a) In General.-- There is authorized to be appropriated to
carry out this subtitle $100,000,000 for each of fiscal years
2012 through [2016] 2024, to remain available until expended.
* * * * * * *
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