Senate Report 118-100 - DIESEL EMISSIONS REDUCTION ACT OF 2023

[Senate Report 118-100]
[From the U.S. Government Publishing Office]

Calendar No. 178

118th Congress } { Report
SENATE
1st Session } { 118-100

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DIESEL EMISSIONS REDUCTION ACT OF 2023

_______

September 29 (Legislative day of September 22), 2023.--Ordered to be
printed

_______

Mr. Carper, from the Committee on Environment and Public Works,
submitted the following

R E P O R T

[To accompany S. 2195]

[Including cost estimate of the Congressional Budget Office]

The Committee on Environment and Public Works, to which was
referred the bill (S. 2195) to amend the Energy Policy Act of
2005 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 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. The DERA program generally targets older, dirtier,
diesel engines that lack modern emissions control systems to be
upgraded with new technologies, such as vehicle and/or engine
replacements with new diesel, alternative fuel, and zero
emissions engines or idle reduction technologies. Funding
opportunities for diesel emissions reduction projects are
provided through an annual appropriation by Congress to the
DERA program. The U.S. Environmental Protection Agency (EPA)
administers the DERA program within the Office of
Transportation and Air Quality. EPA awarded the first DERA
grants in 2008 and continues to award DERA grants and rebates
each fiscal year.
The DERA program has been reauthorized twice. In January
2011, Congress reauthorized DERA through fiscal year 2016 and
gave EPA 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. In 2020, Congress reauthorized DERA under the
Consolidated Appropriations Act of 2021 for up to $100 million
annually through fiscal year 2024, with no further changes made
to the program.\1\
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\1\Congressional Research Service, The Diesel Emissions Reduction
Act (DERA) Program, IF11331 (Feb. 1, 2023) (https://
crsreports.congress.gov/product/pdf/IF/IF11331).
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Emissions from diesel engines--especially particulate
matter (PM), nitrogen oxides (NOX), sulfur oxides,
and air toxics--have been shown to contribute to air pollution
that adversely impacts public health and welfare in the United
States.\2\ Diesel engines currently coming off the
manufacturing line are now sixty times cleaner than they were a
few decades ago. However, the nearly eight million legacy
diesel engines already in use continue to emit large amounts of
PM and NOX.\3\ Exposure to diesel exhaust can lead
to serious health conditions such as asthma and respiratory
illnesses and can worsen existing heart and lung disease,
especially in children and the elderly. These conditions can
result in increased numbers of emergency room visits, hospital
admissions, absences from work and school, and premature
deaths.\4\
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\2\Id.
\3\United States Environmental Protection Agency, Diesel Emissions
Reduction Act (DERA) Fifth Report to Congress (Aug. 2022) (https://
nepis.epa.gov/Exe/ ZyPDF.cgi?Dockey=P1015S8Q.pdf).
\4\United States Environmental Protection Agency, Learn About
Impacts of Diesel Exhaust and the Diesel Emissions Reduction Act (DERA)
(May 2023) (https://www.epa.gov/dera/learn-about-impacts-diesel-
exhaust-and-diesel-emissions-reduction-act-
dera#::text=Human%20Health%20%2D%20
Exposure%20to%20diesel,in%20children%20and%20the%20elderly).
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EPA has submitted five reports to Congress highlighting the
benefits of DERA funding. According to the agency's last
report, EPA awarded more than $801 million in DERA funds
between fiscal year 2008 and fiscal year 2018 to retrofit or
replace 73,700 engines in vehicles, vessels, locomotives, and
other equipment. Over the same time, lifetime emission
reductions attributable to DERA funding totaled 16,800 tons of
PM and 491,000 tons of NOX. Additionally, EPA
estimates that the total lifetime value of PM-related health
benefits attributed to these reduced emissions range from $8
billion to $8.6 billion and account for approximately 850 fewer
premature deaths over this same period.\5\
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\5\Id.
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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 a total of 54 percent of projects awarded
in fiscal years 2008 to 2018 were located in areas with these
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 addition, EPA estimates that DERA projects awarded
from fiscal years 2008 to 2018 would reduce 5,307,100 tons of
carbon dioxide over the lifetime of the affected engines. These
projects also saved over 500 million gallons of diesel through
the implementation of idle reduction and fuel-efficient
technologies.
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 agency's last
report to Congress, each federal dollar invested in diesel
emissions reduction projects has leveraged an average of $2.10
in funding from other government agencies, private
organizations, industries, and nonprofit organizations to
amplify project results.
Demand and need for the DERA program will continue. Despite
the program's success, EPA has estimated that over 1 million
older, higher-emitting diesel engines will remain in use by the
end of the decade in 2030.\6\ In fiscal years 2017 and 2018,
grant and rebate applications requested $170 million more in
funds than available from DERA appropriations. These funding
requests highlight the continued strong interest in using the
DERA program to reduce diesel emissions and incentivize fleet
turnover. S. 2195 answers this demand by authorizing the
program through fiscal year 2029, which will help to ensure a
continuation of the successful DERA program and its associated
benefits.
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Objectives of the Legislation

The purpose of the bill is to reauthorize the Diesel
Emissions Reduction Act program through fiscal year 2029,
without changing the current authorization level of $100
million per year.

Section-by-Section Analysis

Section 1. Short title

This section states that the Act may be cited as the
``Diesel Emissions Reduction Act of 2023''.

Sec. 2. Reauthorization of Diesel Emissions Reduction Program

This section extends the authorization of the program
through fiscal year 2029.

Legislative History

On June 22, 2023, Senator Carper introduced S. 2195, the
Diesel Emissions Reduction Act of 2023. Senators Capito,
Booker, and Barrasso were original cosponsors. Additional
cosponsors include Senator Cardin. The bill was referred to the
Committee on Environment and Public Works.

Hearings

No committee hearings were held on S. 2195.

Rollcall Votes

On July 26, 2023, the Committee on Environment and Public
Works met to consider S. 2195. 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. 2195
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. 2195 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:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

S. 2195--Diesel Emissions Reduction Act of 2023

S. 2195 would authorize the appropriation of $100 million
for each of fiscal years 2025 through 2029 for the
Environmental Protection Agency to provide grants and rebates
to state, local, and tribal governments for programs that
reduce emissions from diesel engines. In 2023, $100 million was
appropriated for those purposes and under current law $100
million is authorized to be appropriated for 2024.
Assuming appropriation of the specified amounts and using
historical spending patterns for those activities, CBO
estimates that implementing the bill would cost $320 million
over the 2023-2038 period and $180 million after 2028.
The costs of the legislation, detailed in Table 1, fall
within budget function 300 (natural resources and environment).

TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 2195
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By fiscal year, millions of dollars--
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2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2023-2028 2023-2033
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Authorization........................................ 0 0 100 100 100 100 100 0 0 0 0 400 500
Estimated Outlays.................................... 0 0 30 90 100 100 100 70 10 0 0 320 500
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The CBO staff contact for this estimate is Aurora Swanson.
The estimate was reviewed by Christina Hawley Anthony, Deputy
Director of 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:

Changes in Existing Law

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ENERGY POLICY ACT OF 2005

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SECTION 1. [42 U.S.C. 15801 NOTE] SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Energy
Policy Act of 2005''.

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TITLE I--ENERGY EFFICIENCY

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TITLE VII--VEHICLES AND FUELS

Subtitle A--Existing Programs

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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 [2024] 2029, to remain available until expended.

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