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Oil prices are climbing and Congress is seeking solutions. Diesel emissions, especially from buses, are becoming the target of environmental lawsuits. The State of California has issued regulations requiring transit operators to switch to alternatives to conventional diesel-fueled buses. Congress authorized $200 million as part of the 1998 Transportation Equity Act for the 21st Century (TEA-21) as an incentive for cleaner alternatives to conventional diesel buses. Federal attention to the problem of diesel buses is increasing. Congressman Jerrold Nadler (D-NY) and Congressman Brian Bilbray (R-CA) have each introduced legislation, H.R. 3326 and H.R. 3376 respectively, that restrict the use of federal funds for conventional diesel buses. In addition, the U.S. Department of Energy is soliciting comments on whether they should require transit bus operators to switch to alternative fuels. What is going to happen? The use of alternatives to diesel fuel, in particular for transit buses, was explored in detail in this briefing.

To address the web of issues that surround diesel buses and clean alternatives, the briefing featured Members of Congress and experts from around the country. Panelists included:

Representative James Oberstar (D-MN), ranking minority member of the House Transportation and Infrastructure Committee;

Representative Jerrold Nadler (D-NY), sponsor of H.R. 3326, the Cleaner Buses for Cleaner Cities Act;

Richard Cromwell, chairman, Alternative Fuels Committee, American Public Transit Association (APTA) and director, Sunline Transit in Thousand Palms, CA; and

Ruth Horton, program manager, Energy Efficiency Services, New York State Energy Research and Development Authority (NYSERDA).

The recent increase in oil prices has kicked off a round of Congressional hearings and a search for solutions. On the supply side, suggested solutions include pressuring OPEC to increase oil production significantly, drawing down the Strategic Petroleum Reserves, increasing domestic production and off-shore oil drilling, and opening up wilderness areas for expanded domestic production. On the demand side, there are calls for increases in efficiency, conservation and alternative fuels and technologies. Transit buses present unique opportunities to introduce alternative fuels and advanced technologies because of their prevalence in Clean Air Act "non-attainment" areas, their centralized fueling stations and their operation predominately by government entities.

Diesel vehicles are a leading source of particulate matter, which is why they have become an increasing focus of public health agencies. Numerous studies show that particulate matter is perhaps the most damaging of regulated criteria pollutants leading to tens of thousands of premature deaths. The U.S. Environmental Protection Agency is promulgating new standards for heavy-duty vehicles and diesel fuel. Last month, California adopted a rule to require many transit operators to switch from diesel to cleaner alternatives. And environmental justice advocates are opposing concentration of diesel transit depots in low-income areas.

Alternatives to diesel-fueled buses abound, such as the use of natural gas, electric, hybrid and fuel cell driven buses. The primary issue -- as stated in a December 1999 report by the General Accounting Office on the use of alternative fuels in transit buses -- is making these and other alternatives cost competitive. But some transit operators have succeeded in making their use of alternative fuels and technologies economically viable -- why? A review of some of the success stories will be presented at the briefing.

Federal funding to address the problem already exists, but much of the designated funding is going to diesel buses instead of cleaner alternatives as envisioned under the law. As part of TEA-21, Congress passed the Clean Fuels Formula Grant Program. This program authorizes up to $200 million annually in funding for cleaner alternatives to conventional diesel buses. The statute allows broad discretion to transit operators to use the money for the full variety of fuels and technologies, infrastructure or maintenance, full cost of cleaner alternative-fueled buses or incremental costs beyond diesel bus purchase price. However, much of the Clean Fuel Formula Grant program funds have been earmarked for individual conventional diesel projects instead of cleaner alternatives as specified in TEA-21.

This briefing is part of EESI’s activities in support of Earth Day 2000!