[Senate Report 114-284]
[From the U.S. Government Publishing Office]
Calendar No. 525
114th Congress } { Report
SENATE
2d Session } { 114-284
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DIESEL EMISSIONS REDUCTION ACT OF 2016
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June 21, 2016.--Ordered to be printed
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Mr. Inhofe, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
[To accompany S. 2816]
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, to which was
referred the bill (S. 2816) to reauthorize the diesel emissions
reduction program, 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 equipment and vehicle owners to retrofit
existing heavy-duty diesel vehicles and engines with new
technology, or replace 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 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 2016 and the EPA was given the
authority to offer rebates in addition to grants pursuant to
the Diesel Emissions Reduction Act of 2010. The EPA started the
first rebate program in 2012 targeting school bus replacement.
The DERA program is administered by the Environmental
Protection Agency's (EPA) National Clean Diesel Campaign within
the Office of Transportation and Air Quality. According to the
agency's latest report,\1\ the DERA program is considered one
of the most cost-effective federal clean air programs. DERA has
upgraded nearly 73,000 vehicles or pieces of equipment and
saved over 450 million gallons of fuel. EPA estimates that
total lifetime emission reductions achieved through DERA
funding are 14,700 tons of PM and 335,200 tons of
NOX and have created up to $12.6 billion of health
benefits.
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\1\United States Environmental Protection Agency, ``Third Report to
Congress: Highlights From the Diesel Emission Reduction Program,''
February 2016 available at: https://www.epa.gov/sites/production/files/
2016-03/documents/420r16004.pdf.
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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 both PM or ozone thereby
maximizing benefits and overall effectiveness. EPA's latest
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. In 2013 and 2014, EPA offered $10 million
for ports-only Request for Proposals that resulted in the
replacement or retrofit upgrades to hundreds of engines
operating at or around ports.
The DERA program 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 other government agencies, private
organizations, industry, and nonprofit organizations. Further,
the agency has improved cost-effectiveness by refining the
Requests for Proposal requirements and by lowering the amount
of funding for individual projects in which the vehicle or
fleet owner derives an economic benefit.
Demand and necessity for the DERA program will continue.
Despite the program's success, approximately 10.3 million older
diesel engines remain in use and the EPA estimates that by 2030
over 1 million older higher emitting diesel engines will still
be in use. As DERA is the only Federal 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 were exceeded by as much as 35:1 and requests
for the national grant competitions exceeded availability by
7:1.
S. 2816 answers this demand by authorizing the program
through 2021, which will ensure a continuation of the
successful DERA program and its associated benefits.
Objectives of the Legislation
The bill reauthorizes the Diesel Emissions Reduction Act
program through 2021.
Section-by-Section Analysis
Section 1. Short title
This Act may be cited as the ``Diesel Emissions Reduction
Act of 2016''.
SEC. 2. Reauthorization of Diesel Emissions Reduction Program
Section 797(a) of the Energy Policy Act of 2005 (42 U.S.C.
16137(a)) is amended by striking `2016' and inserting ``2021''.
Legislative History
On April 19, 2016, Senator Carper, introduced S. 2816, the
Diesel Emissions Reduction Act. Senators Inhofe, Capito and
Boxer, were original cosponsors of the legislation. The bill
was then referred to the Senate Committee on Environment and
Public Works.
On May 18, 2016, the Senate Committee on Environment and
Public Works conducted a business meeting to consider S. 2816.
The bill was favorably reported out of Committee by voice vote.
Hearings
No committee hearings were held on S. 2816.
Rollcall Votes
The Committee on Environment and Public Works met to
consider S. 2816 on May 18, 2016. The bill was ordered
favorably reported by voice vote. No rollcall votes were taken.
Regulatory Impact Statement
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the committee makes evaluation of
the regulatory impact of the reported bill.
The bill 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. 2816 contains no intergovernmental or
private-sector mandates as defined in 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:
June 14, 2016.
Hon. Jim Inhofe,
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. 2816, the Diesel
Emissions Reduction Act of 2016.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jon Sperl.
Sincerely,
Keith Hall.
Enclosure.
S. 2816--Diesel Emissions Reduction Act of 2016
S. 2816 would authorize the appropriation of $100 million
annually through 2021 for the Environmental Protection Agency
to provide grants for projects that reduce emissions from
diesel engines. Assuming appropriation of the authorized
amounts, CBO estimates that implementing S. 2816 would cost
$480 million over the 2017-2021 period.
Pay-as-you-go procedures do not apply to this legislation
because enacting it would not affect direct spending or
revenues. CBO estimates that enacting S. 2816 would not
increase net direct spending or on-budget deficits in any of
the four consecutive 10-year periods beginning in 2027.
S. 2816 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.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 2816 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
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By fiscal year, in millions of dollars--
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2017 2018 2019 2020 2021 2017-2021
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INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level..................................... 100 100 100 100 100 500
Estimated Outlays....................................... 85 95 100 100 100 480
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Basis of estimate: For this estimate, CBO assumes that S.
2816 will be enacted near the end of fiscal year 2016, that the
specified amounts will be appropriated in each year starting in
2017, and that outlays will follow historical spending patterns
for the program. The program received an appropriation of $50
million in fiscal year 2016.
Pay-As-You-Go considerations: None.
Increase in long-term deficit and direct spending: CBO
estimates that enacting S. 2816 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2027.
Intergovernmental and private-sector impact: S. 2816
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal costs: Jon Sperl; Impact on
state, local, and tribal governments: Jon Sperl; Impact on the
private sector: Amy Petz.
Estimate approved 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. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.
(a) In General.--* * *
* * * * * * *
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] 2021, to remain available until expended.
(b) Management and Oversight.--The Administrator may use not
more than 1 percent of the amounts made available under
subsection (a) for each fiscal year for management and
oversight purposes.
* * * * * * *