[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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    \6\Id.
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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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2023   2024   2025   2026   2027   2028   2029   2030   2031   2032   2033  2023-2028  2023-2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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

    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

           *       *       *       *       *       *       *



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''.

           *       *       *       *       *       *       *


TITLE I--ENERGY EFFICIENCY

           *       *       *       *       *       *       *



                     TITLE VII--VEHICLES AND FUELS


Subtitle A--Existing Programs

           *       *       *       *       *       *       *



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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