Alternative Fuels U.S. Environmental Protection Agency Deborah Adler Presented at the National Parks Transportation Conference June 4, 1999 1

EPA Goals Improve Air Quality Increase vehicle efficiency Decrease greenhouse gas emissions Multiple pathways - vehicle, fuel, VMT One part of integrated “3E” goals 2

Why Alternative Fuels? Greatest potential to meet these multiple goals Lower ozone precursors and toxics Reduce or eliminate particulates More efficient, due to chemical properties Can be produced from domestic, non-petroleum, renewable feedstocks 3

Barriers to Alt Fuel Use Very low gasoline prices Extensive petroleum infrastructure Lower energy density relative to gasoline, diesel Gasoline vehicles continue to be able to meet tighter emission standards especially with use of RFG less costly, less risky 4

Reducing the Barriers Many coordinated efforts needed Federal fleet programs Public, private Continue to build infrastructure Offer incentives (SIP credits, tax credits) Provide benefit models Public outreach, education What can EPA do to help remove the barriers? Support the federal fleet programs. Work on EO, CFF, EPACT, private fleet rule Real need for more infrastructure - help our regions, help the states, contribute Hearing that people want SIP credit current tax credits, more we could offer? Models as tools that can be used to quantitatively demonstrate the very real environmental benefits of AFVs - MOBILE, lifecycle, fleet modeling (VMEP) Public perception - AQ benefit is not automatic, etc mechanics, fuel handlers, drivers, etc. 5

AF Vehicle Objectives Vehicles which meet tighter standards: ULEV, ILEV, ZEV Advanced technologies - PNGV Role in proposed Tier 2 standards Alternative Fuels/Vehicles which are: Dedicated Clean Efficient Renewable The vehicles EPA promotes. Feel that to warrant such a dramatic societal change, these new fuels need to offer significant benefits. Not just clean as gasoline, cleaner. Advanced technology that takes full advantage of the positive attributes of alternative fuels, like octane, etc. Tier 2??? 6

AF Vehicle Programs NLEV PNGV Clean Fuel Fleets Federal fleet acquisitions EPACT, Exec. Order Certification issues New technologies, improved procedures Voluntary Measures  SIP Credits These are the alt fuel vehicle programs offered by EPA. Fleet acquisitions - intraAgency task force CERT Issues - EG Biodiesel, tampering, etc. 7

PNGV Ultra efficient and clean 4SDI engines optimized for renewable alcohol fuel 4SDI in hybrid applications 4SDI with diesel, + aftertreatment Demonstrate ultra efficient and clean 4SDI engines optimized for gasoline Clean Diesel Engines (CIDI) EPA is a partner in PNGV Our work includes alt fuel efforts emphasis is on these 8

Clean Fuel Fleet Program Mandated by Clean Air Act Encourages AFV Market Began in September 1998 Eligible CO, Ozone non-attainment areas - currently 4 Cities (soon 5?) Requires % of new vehicle purchases of LDV and HDV to be ILEV Intended to significantly promote alt fuels Offers greater opportunities for AFVs Small impact, most eligible cities have opted out but some are considering opting in again 3 Objectives of the program: 1. Reduce vehicle emissions in NA areas (long term goal, as vehicle #s increase) 2. Promote improved vehicle emissions control technology. Getting there, with greater vehicle selection, adv tech coming fast 3. Support infrastructure development for clean fuels - needs work 9

Energy Policy Act Enacted in 1992 Public fleet purchase requirements EV income tax credit 10% of of purchase price, up to $4,000 pro-rated beginning in 2002, expires 2005 Tax deduction for refueling sites 10

EPA Fuel Programs Reformulated Gasoline Tier 2 Proposal On-going implementation issues (e.g. MTBE) Transition to Phase 2 beginning Jan. 2000 Tier 2 Proposal Proposed lower sulfur levels in gasoline ANPRM seeking comment on need for lower sulfur levels in diesel fuel Low-greenhouse gas Fuels Exploring policy options Evaluate/develop cost eff biomass-based fuels RFG Continuing Phase II FACA meetings Vehicle testing program is complete with no performance problems public focus groups were done to help determine appropriate message and outreach needed 11

OMS Alternative Fuel Team Goal: to advance the use of environmentally beneficial alternative fuels and vehicles Objectives: Coord. AF efforts, internally, externally Promote and support AF use Unify EPA efforts and message Develop policies and programs promoting AF Coop with, and influence, other Agencies developing AF policies Formed one year ago Cross-Divisional, with reps from all OMS Divisions 12

Team Efforts Workshops EPA AF vehicle acquisitions Modeling Infrastructure EPA AF vehicle acquisitions ‘Green Cities’ Pilot program Low-GHG fuels initiative Fuel Composition Survey Outreach, education efforts 13

We want to hear from you! Web page: www.epa.gov/oms/fuels Deborah Adler (734) 214-4223 Adler.deborah@epa.gov Christine Hawk (202) 564-9672 Hawk.christine@epa.gov 14