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Summary

Alternative fuels and advanced technology vehicles are seen by proponents as integral to improving urban air quality, decreasing dependence on foreign oil, and reducing emissions of greenhouse gases. However, major barriers?especially economics?currently prevent the widespread use of these fuels and technologies. Because of these barriers, and the potential benefits, there is continued congressional interest in providing incentives and other support for their development and commercialization. The 111th Congress is likely to discuss alternative fuels and advanced technology vehicles as it addresses several topics. These include: 1) the potential for supporting their development and deployment through economic stimulus legislation; 2) their role in any federal policy to address climate change; and 3) their role in federal energy policy. The 111th Congress may also play an oversight role in the development of regulations including: the Environmental Protection Agency?s implementation of the renewable fuel standard enacted in 2005, and expanded in 2007; the Department of Transportation?s implementation of new fuel economy standards enacted in 2007; and the Department of Agriculture?s implementation of a new Farm Bill enacted in 2008. In the 110th Congress, alternative fuels and advanced technology vehicles received a good deal of attention, especially in discussions over U.S. energy security. In his January 24, 2007, State of the Union Address, President Bush called for the increased use of renewable and alternative motor fuels to 35 billion gallons annually by 2017. U.S. consumption was roughly five billion gallons in 2006. Therefore, such an initiative would mean a seven-fold increase in the use of these fuels over 11 years. On December 19, 2007, President Bush signed the Energy Independence and Security Act of 2007 (EISA, P.L. 110-140). EISA requires an increase in renewable fuel consumption to 9.0 billion gallons in 2008 and 36 billion gallons in 2022. Further within the 36- billion-gallon requirement, by 2022 the law mandates the use of 21 billion gallons of ?advanced biofuels,? defined as fuel derived from renewable biomass other than corn starch, with 50% lower lifecycle greenhouse gas emissions compared to petroleum fuels. The 110th Congress also enacted the Food, Conservation, and Energy Act of 2008 (2008 Farm Bill, P.L. 110-246)?which expanded and extended incentives for biofuels?as well as the Emergency Economic Stabilization Act of 2008 (EESA, P.L. 110-343)?which modified existing fuel tax credits, and established a tax credit for the purchase of plug-in vehicles. The 109th Congress enacted the Energy Policy Act of 2005 (EPAct 2005, P.L. 109-58), which contains many provisions relevant to alternative fuels and advanced technology vehicles. Among its provisions, the act expanded existing tax incentives for the purchase of advanced vehicles, authorized R&D funding for hydrogen fuel and fuel cells, and required that the nationwide gasoline supply contain a minimum amount of ethanol or other renewable fuel. EPAct 2005 was signed by President Bush on August 8, 2005. This report supersedes CRS Report RL33564, Alternative Fuels and Advanced Technology Vehicles: Issues in Congress, by Brent D. Yacobucci.

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