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The National Clean Bus Network

December 2003 Clean Bus Update

Environmental and Energy Study Institute     Carol Werner, Executive Director


 Clean Bus Highlights

  • Legislative Update
    • TEA-21 Reauthorization
    • Energy Bill
    • FY’04 Appropriations
  • California Proposes Changes to Urban Bus Emission Regulations
  • Preliminary List for New Ozone Non-Attainment Areas Now Available
  • Federal Clean Bus Spending in 2001 Favored Natural Gas

 LEGISLATIVE UPDATE

 TEA-21 (Transportation Equity Act for the 21st Century) Reauthorization

On November 12th the Senate Environment and Public Works Committee proceeded with reauthorization of TEA-21 highway, highway safety and research programs. The Senate now awaits action by the Banking Housing and Urban Affairs Committee, responsible for the transit portions of the bill, and the Finance Committee, responsible for the revenue portions of the bill. The committee approved reauthorization of the Congestion Mitigation and Air Quality (CMAQ) Improvement Program, providing 13.05 billion in total funding for fiscal years 2004 to 2009, an increase of 60 percent over TEA-21. The bill also makes alternative fuel purchases eligible for CMAQ dollars. Environmental groups have argued that the proposed CMAQ funding increases are inadequate and that with new areas coming into non-attainment, this additional demand for CMAQ dollars will dilute the proposed funding increases, creating a lack of resources for some areas. These groups propose that CMAQ funding should be doubled over previous levels.

 The Senate Banking Committee Chairman Richard Shelby (R-AL) has said his committee will not meet to consider transit provisions of the bill until some agreement has been reached on overall financing. Senate Finance Committee leaders have proposed a bonding scheme, to which the White House is opposed. Committee leaders in the House support a gas tax increase, but House Majority Leader Tom Delay (R-TX), Speaker Dennis Hastert (R-IL) and the White House are also opposed to this. A compromise will likely be reached that will include a combination of revenue mechanisms. The House and Senate have until February 29 to come to agreement on a final bill for the President’s signature. If the deadlock on funding and other issues continues into late February, Congress will likely delay reauthorization a second time by passing a second extension of TEA-21.

 Meanwhile, the bipartisan leadership of the House Transportation and Infrastructure Committee released draft language for its TEA-21 reauthorization proposal, dubbed “TEA-LU,” the “Transportation Equity Act: A Legacy for Users.” The proposal would reauthorize the Clean Fuels Formula Grant Program (Sec. 5308) and the Advanced Vehicle Technologies Program (Sec. 5506), two initiatives critical to support the deployment and development of cleaner heavy-duty vehicles. The Committee will likely consider the bill in early February.

 Energy Bill

Most Senate Democrats and moderate Republicans narrowly blocked a vote on final passage of the comprehensive energy bill (HR 6) in late November, citing MTBE liability provisions, anti-environment provisions and bloated tax credits for fossil energy producers. The bill includes many provisions that would support clean bus deployment and development. It would provide multiple EPACT credits for medium and heavy-duty vehicles and would provide $200 million in competitive grants to Clean Cities Coalitions, establish a 5-year fuel cell bus demonstration program, and fund a clean school bus program, diesel retrofit program and a fuel cell school bus program. The Senate leadership is looking for two more votes to halt debate on the conference report already passed by the House. They will likely take it up after consideration of the FY ’04 Omnibus Appropriations bill in late January, but transportation reauthorization and election-year wrangling may limit chances that the bill will pass without significant changes.

 FY ’04 Transportation Appropriations

The Senate failed to vote on the $328 billion Omnibus appropriations bill before departing for winter recess. The bill, which is a stand-in for seven FY ’04 appropriations bills not yet sent to the President, would fund the Departments of Agriculture, Commerce, Transportation, Treasury, the EPA and other agencies and departments. It provides at least $25 million in earmarks for clean bus-related projects and would fund transit-related programs at $7.3 billion, an increase of $130 million over FY’03 spending levels. It would significantly boost highway spending to $33.8 billion, an increase of $6.3 billion over the FY’03 guaranteed amount. It once again diverts funding for the Clean Fuels Formula Grant Program to the Capital Grants Program, under which designated non-attainment and maintenance areas for Clean Air Act standards can receive a 90 percent federal funding match for clean fuel and alternative fuel vehicle-related equipment. Senate Majority Leader Bill Frist (R-TN) is expected to immediately request a final vote on the bill on Jan 20th when the Senate returns to session.

 California Proposes Changes to Urban Bus Emission Regulations

Engine manufacturers have asked the California Air Resources Board (CARB) to modify California’s diesel engine standards for model years 2004 to 2006 and for model year 2007, citing their need to focus on national diesel engine standards. Given these demands, the Air Resources Board does not expect any diesel urban bus engines certified to the California standards until 2010. However, alternative fuel urban buses are being certified and should be readily available. Because the existing urban bus standards prevent the purchase of cleaner diesel engines for six years, CARB staff is concerned that emissions will remain higher if the standards for future model years are not modified. The CARB held two workshops in early December on proposed modifications to the fleet rule and to the engine standards.

 More information is available online at http://www.arb.ca.gov/msprog/bus/bus.htm

 Preliminary List of New Ozone Non-Attainment Areas Now Available

 On December 4, the Environmental Protection Agency made public a preliminary list of regions both states and tribal nations have identified as likely non-attainment areas for the new 8-hour ozone standard. The EPA is working with these groups to formalize by April 15, 2004 the list of states that will fall under federal requirements to reduce their mobile and stationary emissions. The preliminary list identifies 29 additional states with new non-attainment areas under the new standard.

 More information is available online at http://www.epa.gov/ozonedesignations

 Federal Clean Bus Spending in 2001 Favored Natural Gas

In Fiscal Year 2002, the Federal Transit Administration obligated a total of $434.6 million for clean bus purchases. This includes the purchase of vehicles powered by compressed natural gas, liquefied natural gas, propane, electric battery, fuel cell, hybrid-electric, dual mode and other fuel types. This amount is equal to about 39 percent of FTA-supported bus purchases. Of this total, $361.6 million went to natural gas and propane-powered buses, an amount equal to more than 83 percent of FTA's clean bus spending. The Capital Investment and Formula Grants Programs provide a significant amount of funding for metropolitan areas to purchases buses and bus-related equipment. Non-attainment and maintenance areas that purchase clean fuel and alternative fuel vehicle-related infrastructure to meet Clean Air Act requirements can receive a 90 percent federal match for these purchases with funds provided under these programs.


The Clean Bus Update is a monthly periodical providing an overview of current program and policy activities related to the deployment of low-polluting, energy efficient buses in the United States. Topics include technology developments, clean vehicle deployment, energy consumption, the environment, government policy, and public health. The National Clean Bus Network is an informal coalition of public and private sector organizations working to increase the use of cleaner bus technologies. The National Clean Bus Network is a free resource to all clean bus stakeholders. Please feel free to email Ray Minjares at rminjares@eesi.org with questions, comments or suggestions. You may also visit our website at www.eesi.org.

 

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