Administered by

IRS

Authority

Established by the Energy Improvement and Extension Act of 2008 (P.L. 110-343), Division B, Title II, §206(a).

Annual Funding

Joint Committee on Taxation (JCT) estimated budget effect for FY2018: $17 million⁷

Scheduled Termination

No expiration date⁸

Description

Section 4053 of the U.S. tax code exempts certain vehicle idling reduction devices from the federal excise tax on heavy trucks and trailers. Eligible devices are determined by the Administrator by the Administrator of the EPA in consultation with the Secretary of Energy and the Secretary of Transportation. Qualified Applicant(s) Sel ers of Transportation.

Qualified Applicant(s)

Sellers or users or heavy trucks, trailers, or tractors Applicable Devices or tractors

Applicable Fuel/Technology

Devices that have been identified as reducing idling of a heavy truck or trailer at a motor Fuel/Technology vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary24 For More Information See parked or remain stationary⁹

For More Information

See IRS Publication 510; and the Alternative Fuels Data Center's (AFDC's) ; and AFDC’s web page for the Idle Reduction Equipment Excise Tax Exemption. For a list of eligible devices, see the U.S. Environmental Protection Agency's (EPA'Agency’s (EPA’s) web page "“Learn About Federal Excise Tax Exemption.” Related CRS Reports None Fuel/Infrastructure Incentives—General Motor Fuel Excise Taxes25 Administered by Internal Revenue Service (IRS) Authority Most motor fuels taxes (some of which were initial y Learn About Federal Excise Tax Exemption."

Related CRS Reports

None

Administered by

Internal Revenue Service (IRS)

Authority

Most motor fuels taxes (some of which were initially enacted in 1932) were included in the Highway Revenue Act of 1956 (P.L. 84-627) primarily to support the Highway Trust Fund, except for the tax on compressed natural gas, which was enacted in 1993 21 26 U.S.C. §4053(9). 22 JCT has not estimated this expenditure for FY2020-FY2024. When enacted, this provision was estimated to reduce federal tax revenue by $95 million from FY2009-FY2018. U.S. Congress, Joint Committee on T axation, “Estimated Budget Effects of the ‘Energy Improvement and Extension Act of 2008 ,’” 110th Cong., 2nd sess., September 23, 2008, JCX-70-08R (Washington, DC: GPO, 2008). Cost estimates for provisions that reduce excise tax liability are not regularly provided by JCT . 23 T he excise tax on heavy trucks and trailers against which this credit may be claimed is set to expire on October 1, 2022. 24 Some idling reduction devices may not fit the description of advanced vehicle technologies as defined in this report. 25 26 U.S.C. §4081 and 26 U.S.C. §4041. Congressional Research Service 8 link to page 13 link to page 15 link to page 15 link to page 16 link to page 16 link to page 16 Alternative Fuel and Advanced Vehicle Technology Incentives natural gas, which was enacted in 1993 (Omnibus Budget Reconciliation Act of 1993; P.L. 103-66). Taxes that support the Highway Trust Fund have been extended numerous times, most recently through September September 30, 2022, by the Fixing America's ’s Surface Transportation (FAST) Act (P.L. 114-94).¹¹

Annual Funding

JCT estimated tax expenditure for FY2017-FY2021: N/A¹²

Scheduled Termination

4.3 cents per gallon of the gasoline/diesel ).26 Annual Revenue Congressional Budget Office (CBO) revenue projection for FY2021: $33.5 bil ion for all fuels; CBO projection for FY2021-FY2025: $176.0 bil ion.27 Scheduled 4.3 cents per gal on of the gasoline/diesel fuel tax is permanent; the rest of the motor Termination fuels taxes expire on September 30, 2022, when major highway-related taxes expire.

Description

Description Taxes vary by fuel: gasoline, 18.4 cents per gallongal on; diesel fuel, 24.4 cents per gallon; gal on; biodiesel, 24.4 cents per gallongal on; ethanol, 18.4 cents per gallongal on; P-series fuels, 18.4 cents per gal on; hydrogen (gaseous hydrogen is not subject to the excise tax)per gallon; hydrogen, 18.4 cents per gallongal on equivalent; liquefied petroleum gas (LPG), 18.3 cents per gallongal on equivalent; compressed compressed natural gas (CNG), 18.3 cents per gallongal on equivalent; liquefied natural gas (LNG), 24.3 cents per gallongal on equivalent. Alternative fuel tax credits are or were available against many of these.28 Electricity and gaseous hydrogen are not taxed as motor fuels. Qualified Applicant(s) Sel ers of applicable fuels Applicable Gasoline, diesel, liquefied hydrogen, liquefied petroleum gas, liquefied natural gas, Fuel/Technology compressed natural gas, ethanol, and methanol. (Electricity and gaseous hydrogen are not subject to the tax.) For More Information See against many of these.¹³ Electricity for electric vehicles is untaxed. These exemptions/credits effectively incentivize selected fuels/vehicles relative to conventional options.

Qualified Applicant(s)

Manufacturers who produce applicable fuel types¹⁴

Applicable Fuel/Technology

Gasoline, diesel, hydrogen, liquefied petroleum gas, liquefied natural gas, compressed natural gas, ethanol and methanol (electricity is exempt)

For More Information

See IRS publication 510, Excise Taxes; and Federal Highway Administration, Funding Federal- aid Highways, Appendix K. Related CRS Reports CRS Report R44674, Funding and Financing Highways and Public Transportation, by Robert S. Kirk and Wil iam J. Mal ett Incentives for Alternative Fuel and Alternative Fuel Mixtures29 Administered by IRS Authority Established by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU; P.L. 109-59); amended by the Tax Technical Corrections Act of 2007 (P.L. 110-172). The temporary excise tax credits for alternative fuels and alternative fuel mixtures have expired and subsequently been extended retroactively on multiple occasions, most recently through 2021 by the Consolidated Appropriations Act, 2021 (P.L. 116-260). Annual Funding JCT estimated budget effect for FY2021: $204 mil ion. JCT estimated budget effect for FY2021-FY2025: $279 mil ion.30 Termination Date December 31, 2021 Description The Alternative Fuel Excise Tax Credit is a 50-cents-per gal on excise tax credit for certain alternative fuels used as fuel in a motor vehicle, motor boat, or airplane, and a 26 T axes dedicated to the Highway T rust Fund (HT F), and authority to place those taxes into the HTF and to spend funds out of the HT F all have expiration dates. Congress may opt to extend these dates or allow the tax credits to expire. 27 For FY2021, CBO estimates $23.2 billion in revenue from “gasoline and gasoline blendstocks,” including ethanol; $10.2 billion from “diesel fuel and kerosene,” including biodiesel and renewable diesel; and $0.1 billion from “other motor fuels,” including other alternative fuels. Congressional Budget Office, The Budget and Economic Outlook: 2021 to 2031 - Data Supplem ent, Washington, DC, February 2021, p. T able 5, http://www.cbo.gov/publication/56970. 28 See the sections below on “ Incentives for Alternative Fuel and Alternative Fuel Mixtures,” “Biodiesel or Renewable Diesel Mixture Excise T ax Credit and Income T ax Credit ,” “ Small Agri-Biodiesel Producer Credit ,” and “ Second Generation Biofuel Producer Credit .” 29 26 U.S.C. §6426(d), 26 U.S.C. 6426(e), and 26 U.S.C. 6427(e). 30 U.S. Congress, Joint Committee on T axation, “ Estimated Budget Effects of the Revenue Provisions Contained in the ‘Consolidated Appropriation Act, 2021,’” 116th Cong., 2nd sess., December 21, 2020, JCX-24-20 (Washington, DC: GPO, 2020). Congressional Research Service 9 Alternative Fuel and Advanced Vehicle Technology Incentives related provision establishing a 50-cents-per-gal on credit for alternative fuels mixed with a traditional fuel (gasoline, diesel, or kerosene) for use as a fuel. Qualified Applicant(s) Taxpayers who sel qualifying fuel types for use as a motor fuel or taxpayers who so use the qualifying fuel. Applicable Liquefied petroleum gas, P Series fuels, compressed or liquefied natural gas, any liquefied Fuel/Technology fuel derived from coal or peat, liquefied hydrocarbons derived from biomass, liquefied hydrogen (gaseous hydrogen is not subject to the excise tax, and thus is ineligible for the credit). Ethanol, methanol, and biodiesel do not qualify for the alternative fuel or alternative fuel mixture credit, but some of these fuels are subject to other tax incentives (see below). Electricity and gaseous hydrogen do not qualify for the credits, nor are they subject to motor fuels excise taxes. For More Information See IRS Publication 510 and IRS Forms 637, 720, 4136, and 8849 on the IRS website. Related CRS Reports CRS Report R46451, Energy Tax Provisions Expiring in 2020, 2021, 2022, and 2023 (“Tax Extenders”), by Mol y F. Sherlock, Margot L. Crandal -Hol ick, and Donald J. Marples Alternative Fuel Refueling Property Credit31 Administered by IRS Authority Established by the Energy Policy Act of 2005 (P.L. 109-58), Title XIII, §1342(a). Amended by P.L. 109-135, Title IV, §402(k), 412(d); P.L. 110-172, §6(b); P.L. 110-343, Division B, title II, § 207; P.L. 111-5, Division B, Title I, §§ 1123(a),1142(b)(3), and 1144(b)(2); P.L. 113-295; and P.L. 115-141. The temporary alternative fuel refueling property credit has expired and subsequently has been extended retroactively on multiple occasions, most recently through 2021 by the Consolidated Appropriations Act, 2021 (P.L. 116-260, Division EE, Title 1, §143). Annual Funding JCT estimated budget effect for FY2021: $39 mil ion. JCT estimated budget effect for FY2021-FY2025: $159 mil ion.32 Termination Date December 31, 2021 Description Consumers or businesses who instal ed qualified fueling equipment received a 30% tax credit of up to $30,000 for properties subject to an al owance for depreciation and $1,000 for al other properties. Qualified Applicant(s) Individuals or businesses who instal qualifying equipment/property. For taxpayers who sel equipment to tax-exempt entities (e.g., government agencies, schools), those taxpayers may claim the credit if they disclose to the purchaser their intent to claim the credit. Applicable Natural gas, liquefied petroleum gas, hydrogen, electricity, E85, or diesel fuel blends Fuel/Technology containing a minimum of 20% biodiesel. For More Information See IRS Form 8911; Instructions for IRS form 8911; AFDC’s entry for the Alternative Fuel Infrastructure Tax Credit on its “Federal Laws and Incentives” web page; and DOE’s Alternative Fuel Infrastructure fact sheet. Related CRS Reports CRS Report R46451, Energy Tax Provisions Expiring in 2020, 2021, 2022, and 2023 (“Tax Extenders”), by Mol y F. Sherlock, Margot L. Crandal -Hol ick, and Donald J. Marples 31 26 U.S.C. §30C. 32 U.S. Congress, Joint Committee on T axation, “ Estimated Budget Effects of the Revenue Provisions Contained in the ‘Consolidated Appropriation Act, 2021,’” 116th Cong., 2nd sess., December 21, 2020, JCX-24-20 (Washington, DC: GPO, 2020). Congressional Research Service 10 Alternative Fuel and Advanced Vehicle Technology Incentives Fuel/Infrastructure Incentives—Biofuels Biodiesel or Renewable Diesel Mixture Excise Tax Credit33 and Income Tax Credit34 Administered by IRS Authority Mixture Credit: Established in 2005 by the Energy Policy Act of 2005 (P.L. 109-58), §1346; amended by the Energy Improvement and Extension Act of 2008 ( P.L. 110-343, Division B), §202-203. The temporary excise tax credits for biodiesel and renewable diesel fuels have expired and subsequently have been extended retroactively on multiple occasions, most recently through 2022 by the Further Consolidated Appropriations Act, 2020 (P.L. 116-94). Income Tax Credit: Established in 2005 by the American Jobs Creation Act of 2004, §302 (P.L. 108-357); extended by the Energy Policy Act of 2005, §1344 (P.L. 109-58); amended by the Energy Improvement and Extension Act of 2008 (P.L. 110-343, Division B), §202-203. The temporary income tax credits for biodiesel and renewable diesel fuels have expired and subsequently have been extended retroactively on multiple occasions, most recently through 2022 by the Further Consolidated Appropriations Act, 2020 (P.L. 116-94). Annual Funding JCT estimated budget effect for FY2021 for both credits combined: $3.1 bil ion; JCT estimated budget effect for FY2020-FY2024: $15.183 bil ion35 (the income tax credit alone is estimated at less than $50 mil ion cumulative for FY2020-FY2024). Termination Date December 31, 2022 Description Mixture Credit: Biodiesel and renewable diesel blenders (or producers of diesel/biodiesel blends) can claim a $1.00 per gal on tax credit through the end of 2022 for biodiesel or renewable diesel used to produce a qualified biodiesel mixture. The credit is claimed as a credit against the blender’s motor fuels excise taxes; any excess credit beyond the taxpayer’s excise tax liability is claimed as direct payments from the IRS. Income Tax Credit: Producers, blenders, or retailers of biodiesel, renewable diesel,36 or “agri-biodiesel”37 (biodiesel produced from virgin agricultural products such as soybean oil or animal fats) can claim a $1.00 per-gal on income tax credit through the end of 2022 for fuel sold or used by the taxpayer, whether delivered pure or in a qualified mixture. Before amendment by P.L. 110-343, the credit was valued at $1.00 per gal on of agri-biodiesel or 50 cents per gal on of biodiesel produced from previously used agricultural products (e.g., recycled fryer grease). Both credits may not be claimed for the same batch of fuel. Qualified Applicant(s) Biodiesel producers and blenders Applicable Biodiesel, renewable biodiesel, agri-biodiesel Fuel/Technology 33 26 U.S.C. §§6426(c) and 6427(e). 34 26 U.S.C. §40A. 35 T he JCT estimated budget effect includes both the Biodiesel and Renewable Diesel Income T ax credit as well as the Biodiesel and Renewable Diesel Excise T ax Credits. See U.S. Congress, Joint Committee on T axation, “Estimated Budget Effects of the Revenue P rovisions Contained in the House Amendment to the Senate Amendment to H.R. 1865, the Further Consolidated Appropriations Act, 2020,” 116th Cong., 1st Session, December 17, 2019, JCX-54R-19 (Washington, DC: GPO, 2019). 36 Renewable diesel is similar to biodiesel but produced through different processes. Renewable diesel may not qualify as agri-biodiesel. 37 For more on the difference between biodiesel, renewable diesel, and agri-biodiesel, see the IRS website at https://www.irs.gov/instructions/i8864. Congressional Research Service 11 Alternative Fuel and Advanced Vehicle Technology Incentives For More Information See IRS Publication 510, Chapter 2: Fuel Tax Credits and Refunds; and AFDC’s entry for the Biodiesel Mixture Excise Tax Credit on its “Federal Laws and Incentives” web page. Related CRS Reports CRS Report R46451, Energy Tax Provisions Expiring in 2020, 2021, 2022, and 2023 (“Tax Extenders”), by Mol y F. Sherlock, Margot L. Crandal -Hol ick, and Donald J. Marples Small Agri-Biodiesel Producer Credit38 Administered by IRS Authority Established in 2005 by the Energy Policy Act of 2005, §1345 (P.L. 109-58); amended by the Energy Improvement and Extension Act of 2008 (P.L. 110-343, Division B), §202-203. This temporary credit has expired and subsequently has been extended retroactively on multiple occasions, most recently through 2022 by the Further Consolidated Appropriations Act, 2020 (P.L. 116-94). Annual Funding JCT estimated tax expenditure for FY2020-2024: JCT has not separately estimated this expenditure.39 Termination Date December 31, 2022 Description The smal agri-biodiesel producer credit is valued at 10 cents per gal on of “agri-biodiesel” (see Biodiesel Tax Credit, above) produced. The credit can be claimed on the first 15 mil ion gal ons of biodiesel produced by a smal producer in a given year through the end of 2022. Agri-biodiesel is defined as biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. Qualified Applicant(s) Any agri-biodiesel producers with production capacity less than 60 mil ion gal ons per year Applicable Biodiesel Fuel/Technology For More Information See IRS Publication 510, Chapter 2: Fuel Tax Credits and Refund; and IRS Form 8864, and Instructions for Form 8864; AFDC’s webpage for the Smal Agri-Biodiesel Producer Tax Credit. Related CRS Reports CRS Report R41631, The Market for Biomass-Based Diesel Fuel in the Renewable Fuel Standard (RFS), by Brent D. Yacobucci; and CRS Report R46451, Energy Tax Provisions Expiring in 2020, 2021, 2022, and 2023 (“Tax Extenders”), by Mol y F. Sherlock, Margot L. Crandal -Hol ick, and Donald J. Marples Second Generation Biofuel Producer Credit40 Administered by IRS Authority Established on January 1, 2009, by the Food, Conservation, and Energy Act of 2008, §15321 (P.L. 110-246); amended by the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152), §1408; amended by the Smal Business Jobs Act of 2010 (P.L. 111-240), §2121; amended by the American Taxpayer Relief Act of 2012 (P.L. 112-240) §404. This temporary credit has expired and subsequently has been extended retroactively on multiple occasions, most recently through 2021 by the Consolidated Appropriations Act, 2021 (P.L. 116-260). 38 26 U.S.C. §40A. 39 T he JCT does not separately report tax expenditure or budget effect estimates for this credit “because the estim ated revenue losses, or in the case of negative tax expenditures gains, for fiscal years 2020 through 2024 are below the de m inim is amount ($50 million).” See U.S. Congress, Joint Committee on T axation, “ Estimates of Federal T ax Expenditures for Fiscal Years 2020-2024,” 116th Cong., 2nd sess., November 5, 2020, JCX-23-20 (Washington: GPO, 2020). 40 26 U.S.C. §40. Congressional Research Service 12 Alternative Fuel and Advanced Vehicle Technology Incentives Annual Funding JCT estimated budget effect for FY2021: $9 mil ion; JCT estimated budget effect for FY2021-FY2025: $16 mil ion.41 Termination Date December 31, 2021 Description Producers of cel ulosic biofuel can claim a tax credit of $1.01 per gal on. For cel ulosic ethanol producers, the value of the production tax credit is reduced by the value of the volumetric ethanol excise tax credit (expired) and the smal ethanol producer credit (expired); the credit is currently valued at $1.01 cents per gal on. P.L. 112-240 amended the credit to include noncel ulosic fuel produced from algae feedstocks. The credit applies to fuel produced after December 31, 2008. Qualified Applicant(s) Cel ulosic biofuel producers and algae-based biofuel producers Applicable Cel ulosic biofuels and algae-based biofuels Fuel/Technology For More Information See AFDC’s webpage for the Second Generation Biofuel Producer Tax Credit; and IRS Publication 510 and IRS Forms 637 and 6478, which are available via the IRS website Related CRS Reports CRS Report R42122, Algae’s Potential as a Transportation Biofuel, by Kelsi Bracmort; and CRS Report R46451, Energy Tax Provisions Expiring in 2020, 2021, 2022, and 2023 (“Tax Extenders”), by Mol y F. Sherlock, Margot L. Crandal -Hol ick, and Donald J. Marples aid Highways, Appendix K.

Related CRS Reports

CRS Report RL30304, The Federal Excise Tax on Motor Fuels and the Highway Trust Fund: Current Law and Legislative History, by Sean Lowry, and CRS Report R44674, Funding and Financing Highways and Public Transportation, by Robert S. Kirk and William J. Mallett

Administered by

Loan Programs Office (LPO)

Authority

Office (LPO) Authority Authorized by the Energy Independence and Security Act of 2007 §136 ( (P.L. 110-140), funded by the Consolidated Security, Disaster Disaster Assistance, and Continuing Appropriations Act (P.L. 110-329)

Annual Funding

$5 million for FY2018P.L. 110-329) Annual Funding $5 mil ion for FY2021 (for program administration); $17.7 bil ion in loan authority remains to catalyze domestic manufacturing of fuel efficient, light-duty passenger vehicles and eligible components.42 Scheduled No termination until funds ful y spent. Termination Description (for program administration)

Scheduled Termination

Facilities funded must be placed in service by the end of 2020. The Trump Administration recommended in its FY2019 budget that the ATVM program be eliminated and administration expenses reduced to $1 million; Congress did not approve the budget rescission.

Description

The Advanced Technology Vehicles Manufacturing (ATVM) Loan Program was established in 2007 to help automakers meet mandated vehicle fuel economy standards and to encourage domestic production of more fuel-efficient cars and light trucks. It provides up to $25 billion bil ion in revolving loans to qualified automakers for investment in their manufacturing operations. In FY2008, $7.51 billionbil ion was appropriated for the direct loans—$7.5 billionbil ion for the loan subsidies (available until expended) and $10 million mil ion for administration. Although appropriations are provided annuallyannual y for administration, Congress approved the program loan subsidy authority one time. Currently, loans have been made to five companies, using $8.4 billion bil ion of the $25 billion bil ion loan authority. With loan repayments, $17.7 bil ion in loan authority is available as of June 2021loan authority. No projects have been funded with ATVM loans since March 2011.

Qualified Applicant(s)

The Biden Administration has said that it would like to utilize these funds for expanding the U.S. electric vehicle battery supply chain. Qualified Applicant(s) An automotive manufacturer satisfying specified fuel economy requirements or a manufacturer of qualifying components. To be financiallyfinancial y eligible for an ATVM loan, an applicant must be financiallyfinancial y viable without the receipt of additional federal funding for the proposed project; facilities must be located in the United States. 41 U.S. Congress, Joint Committee on T axation, “ Estimated Budget Effects of the Revenue Provisions Contained in the ‘Consolidated Appropriation Act, 2021,’” 116th Cong., 2nd sess., December 21, 2020, JCX-24-20 (Washington: GPO, 2020). 42 See Department of Energy, FY2022 Congressional Budget Request, volume 3, part 2 (June 2021), p. 296. Congressional Research Service 13 Alternative Fuel and Advanced Vehicle Technology Incentives Applicable No limitations proposed project.

Applicable Fuel/Technology

No limitations on specific technologies; rather, limits are stipulated for vehicle emissions and fuel consumption

For More Information

DOE's Fuel/Technology and fuel consumption For More Information DOE’s LPO website; DOE's ’s ATVM website; LPO's ’s Advanced Vehicles Manufacturing Projects' website; Projects’ website; Advanced Technology Vehicles Manufacturing Fact Sheet; ATVM FAQs; and the ATVM 1-Page Summary

Related CRS Reports

ATVM 1-Page Summary Related CRS Reports CRS Report R42064, The Advanced Technology Vehicles Manufacturing (ATVM) Loan Program: Status and Issues, by Bill Bil Canis and Brent D. Yacobucci

Administered by

Office of Energy Efficiency and Renewable Energy (EERE)

Authority

Federal Nonnuclear Energy Research and Development Act of 1974 (P.L. 93-577)

) Energy Policy and Conservation Act of 1975 (EPCA; P.L. 94-163) 94-163)

Energy Conservation and Production Act of 1976 (ECPA; P.L. 94-385) 94-385)

Department of Energy Organization Act of 1977 (P.L. 95-91)

) Energy Tax Act (P.L. 95-618)

) National Energy Conservation Policy Act of 1978 (NECPA; P.L. 95-619)

) Powerplant and Industrial Fuel Use Act of 1978 (P.L. 95-620)

) Energy Security Act of 1980 (P.L. 96-294)

) National Appliance Energy Conservation Act of 1987 (P.L. 100-12)

) Federal Energy Management Improvement Act of 1988 (P.L. 100-615)

) Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 ( P.L. 101-218) 101-218)

Clean Air Act Amendments of 1990 (P.L. 101-549)

) Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990 ( P.L. 101-575)

575) Energy Policy Act of 1992 (EPACT; P.L. 102-486)

) Biomass Research and Development Act of 2000 (Title III of Agricultural Risk Protection Act of 2000; P.L. 106-224)

) Farm Security and Rural Investment Act of 2002 (P.L. 107-171)

) Healthy Forest Restoration Act of 2003 (P.L. 108-148)

) Energy Policy Act of 2005 (EPACT 2005; P.L. 109-58)

) Energy Independence and Security Act of 2007 (EISA; P.L. 110-140)

The ) Food, Conservation, and Energy Act of 2008 (P.L. 110-234)

) American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5)

Annual Funding

$203.6 million for FY2018

Scheduled Termination

None

Description

The Bioenergy Technologies ProgramP.L. 111-5) Energy Act of 2020 (Div. Z of Consolidated Appropriations Act, 2020; P.L. 116-260), Title III, Sec. 9009 Annual Funding $255 mil ion for FY2021. Scheduled None Termination Description The Bioenergy Technologies Office works with a broad spectrum of partners (government, industrial, academic, agricultural, and nonprofit), primarily focusing on research, development, demonstration, and deployment (RDD&D) of commercially commercial y viable, high-performance biofuels, bioproducts, and biopower made from renewable biomass biomass resources. Other nontransportation applications for biomass and bioenergy systems systems also are studied under this program. Qualified Applicant(s) Universities and businesses Applicable Biofuels Fuel/Technology Congressional Research Service 14 Alternative Fuel and Advanced Vehicle Technology Incentives For More Information See EERE’s Bioenergy Technologies Office (BTOalso are studied under this program.

Qualified Applicant(s)

Universities and businesses

Applicable Fuel/Technology

Biofuels

For More Information

See EERE's Bioenergy Technologies Office (BTO's) website; BTO's Bioenergy ’s Bioenergy FAQ web page; and BTO's Strategic Plan page; DOE’s Bioenergy Technologies Office – Funding Opportunities; and BTO’s Strategic Plan For a Thriving and Sustainable Bioeconomy. Related CRS Reports For a Thriving and Sustainable Bioeconomy

Related CRS Reports

CRS Report R41440, Biopower: Background and Federal Support, by Kelsi Bracmort; CRS Report R43416, Energy Provisions in the 2014 Farm Bill (P.L. 113-79): Status and Funding, by Kelsi Bracmort

Administered by

EERE and sponsored by the Vehicle Technologies Program

Authority

CRS In Focus IF10288, Overview of the 2018 Farm Bil Energy Title Programs, by Kelsi Bracmort; and CRS Report R45943, The Farm Bil Energy Title: An Overview and Funding History, by Kelsi Bracmort Clean Cities Program Administered by EERE and sponsored by the Vehicle Technologies Program Authority Established by the Alternative Motor Fuels Act of 1988 (P.L. 100-494), and amended by the Energy Policy Act of 1992 (P.L. 102-486)

Annual Funding

$37.8 million for FY2018

Scheduled Termination

None

Description

InitiallyP.L. 102-486) Annual Funding $40 mil ion for FY2021. Scheduled None Termination Description Initial y started in 1993 as a DOE program to promote alternative fuel vehicles among the states, it is now a broader program to reduce petroleum consumption in transportation, with 100more than 75 Clean Cities coalitions that focus on deployment of alternative and renewable fuels, idle-reduction measures, fuel economy improvements, and emerging transportation technologies, and new mobility choices. Clean Cities provides technical, informational, and financial assistance to communities.

Qualified Applicant(s)

Qualified Applicant(s) Businesses, fuel providers, vehicle vehicle fleets, state and local government agencies, and community organizations, led by nearly 100 Vehicle Technologies Program Clean Cities coordinators Applicable Electricity, Program Clean Cities coordinators

Applicable Fuel/Technology

Electricity, natural gas, propane, bio-methane, ethanol, biodiesel, hydrogen

For More Information

See DOE's hydrogen Fuel/Technology For More Information See DOE’s Clean Cities website; and EERE's ; EERE’s Clean Cities Overview factsheet; Clean Cities Coalition Network: Goals and Accomplishments web page. Related CRS Reports None Hydrogen and Fuel Cell Technologies Office Administered by EERE Authority Federal Energy Administration Clean Cities Overview factsheet.

Related CRS Reports

None

Administered by

EERE

Authority

Federal Energy Administration Act of 1974 (P.L. 93-275)

) Federal Nonnuclear Energy Research and Development Act of 1974 (P.L. 93-577)

) Energy Policy and Conservation Act of 1975 (EPCA; P.L. 94-163) 94-163)

Electric and Hybrid Vehicle Research, Development and Demonstration Act (P.L. 94-413)

) Department of Energy Organization Act of 1977 (P.L. 95-91)

) Automotive Propulsion Research and Development Act of 1978 (Title III of Department of Energy Act of 1978-—Civilian Applications; P.L. 95-238)

) Methane Transportation Research, Development Development and Demonstration Act of 1980 (P.L. 96-512) 96-512)

Energy Security Act of 1980 (P.L. 96-294)

) Alternative Motor Fuels Act of 1988 (P.L. 100-494)

) Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 ((P.L. 101-566)

) Energy Policy Act of 1992 (EPACT; P.L. 102-486)

) Hydrogen Future Act of 1996 (P.L. 104-271)

) Energy Policy Act of 2005 (EPACT 2005; P.L. 109-58)

) Energy Independence and Security Act of 2007 (EISA; P.L. 110-140)

American Recovery and Reinvestment ) Congressional Research Service 15 Alternative Fuel and Advanced Vehicle Technology Incentives American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5)

Annual Funding

$100.3 million for FY2018

Scheduled Termination

None

Description

This program works with industry, national laboratories, universities, P.L. 111-5) Energy Act of 2020 (Div. Z of Consolidated Appropriations Act, 2020; P.L. 116-260), Title III, Sec. 9009 Annual Funding $150 mil ion for FY2021. Scheduled None Termination Description This program works with industry, national laboratories, universities, government agencies, and other partners to overcome barriers barriers to the use of hydrogen and fuel cells. cel s. It includes a research and development (R&D) effort focused on advancing the performance and reducing the cost of these technologies. R&D applies to both transportation and stationary applications.

Qualified Applicant(s)

Federal Qualified Applicant(s) Federal government, national laboratories, colleges col eges and universities, and for-profit organizations Applicable Hydrogen, fuel cel s Fuel/Technology For More Information See EERE’s Hydrogen and Fuel Cel Technologies Office website; the Hydrogen and Fuel Cel Technologies Office and for-profit organizations

Applicable Fuel/Technology

Hydrogen, fuel cells

For More Information

See EERE's Fuel Cell Technologies website; the Fuel Cell Technologies Office's Publication & Product Library, Publication & Product Library, including annual progress reports for the program; DOE’s Hydrogen and Fuel Cel Technologies Office – Funding Opportunities. Related CRS Reports for the program.

Related CRS Reports

[Archived] CRS Report R40168, Alternative Fuels and Advanced Technology Vehicles: Issues in Congress, by Brent D. Yacobucci Vehicle Technologies Office (VTO) Administered by EERE Authority Congress, by Brent D. Yacobucci

Administered by

EERE

Authority

Authorized by the Energy Independence and Security Act of 2007 §136 ( P.L. 110-140), funded by the Consolidated Security, Disaster Disaster Assistance, and Continuing Appropriations Act (P.L. 110-329)

Annual Funding

$304.9 million for FY2018—of that amount not less than $160 million for Batteries and Electric Drive P.L. 110-329); Energy Act of 2020 (Div. Z of Consolidated Appropriations Act, 2020; P.L. 116-260), Title III, §9009 Annual Funding $400 mil ion for FY2021—of that amount not less than $178 mil ion for Batteries and Electric Drive Technology programs. Scheduled None Termination Description Through research and development, VTOTechnology programs

Scheduled Termination

None

Description

Through research and development, VTP supports partnerships with other public and private organizations to enhance energy efficiency and productivity and bring clean, affordable technologies to market. It supports research on electric batteries, more efficient engines, and advanced lightweight materials. In addition, it supports, and works through, two major government-industry endeavors: the US DRIVE Partnership and the 21^st21st century Truck Partnership.

Qualified Applicant(s)

Qualified Applicant(s) Universities, vehicle and engine manufacturers, material suppliers, nonprofit technology organizations, energy suppliers, and national laboratories

Applicable Fuel/Technology

Applicable Advanced batteries, power electronics and electric motors, advanced combustion, Fuel/Technology lightweight materials, vehicle-to-grid interaction, and fuel cell cel and hydrogen technologies For More Information See EERE’s and hydrogen technologies

For More Information

See EERE's Vehicle Technology Office website; and ; annual progress reports for the Vehicle Technologies Office and its six R&D subprograms.

Related CRS Reports

; and DOE’s Vehicle Technologies Office – Funding Opportunities. Related CRS Reports CRS Report R42064, The Advanced Technology Vehicles Manufacturing (ATVM) Loan Program: Status and Issues, by Bill Bil Canis and Brent D. Yacobucci Congressional Research Service 16 Alternative Fuel and Advanced Vehicle Technology Incentives Department of Transportation Alternative Fuel Corridors Administered by Federal Highway Administration (FHWA) Authority Established by the Fixing America’s Surface Transportation Act (FAST Act) of 2015, P.L. 114-94, §1413, amending 23 U.S.C. Chapter 1 Annual Funding Funded through the Highway Trust Fund. Scheduled N/A Termination Description The Alternative Fuel Corridors program designates a national network of plug-in electric vehicle charging and hydrogen, propane, and natural gas fueling infrastructure along national highway system corridors. To designate the corridors, FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders. Within five years of the establishment of the corridors, and every five years thereafter, FHWA wil update and redesignate the corridors. FHWA also has an objective to deploy fuel infrastructure along the designated corridors. Qualified Applicant(s) State and local officials nominate corridors Applicable Vehicles powered by electricity, hydrogen, propane, and natural gas Fuel/Technology For More Information See FHWA’s Alternative Fuel Corridors website. Related CRS Reports CRS Report R44388, Surface Transportation Funding and Programs Under the Fixing America’s Surface Transportation Act (FAST Act; P.L. 114-94), coordinated by Robert S. Kirk; and CRS Report R45747, Vehicle Electrification: Federal and State Issues Affecting Deployment, by Bil Canis, Corrie E. Clark, and Mol y F. Sherlock Congestion Mitigation and Air Quality Improvement Program Administered by Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) Authority Canis and Brent D. Yacobucci

Administered by

Federal Highway Administration (FHWA) and Federal Transit Administration (FTA)

Authority

Established by the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991 ( P.L. 102-240); reauthorized multiple times, most recently by the Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) of 2005 (P.L. 109-59); extended multiple times, most recently by the Highway and Transportation Funding Act of 2014 (P.L. 113-159), and Fixing America's ’s Surface Transportation Act (FAST Act, P.L. 114-94) Annual Funding $2.5 bil ion in FY2021; $2.5 bil ion requested for FY2022. Scheduled Reauthorized through FY2021 Termination Description Congestion Mitigation and Air Quality Improvement 114-94)

Annual Funding

$2.40 billion in FY2018; $2.45 billion requested for FY2019

Scheduled Termination

Reauthorized through FY2020

Description

Congestion Mitigation and Air Quality Improvement (CMAQ) provides funds to states for transportation projects designed to reduce traffic congestion and improve air quality, particularly in areas of the country that do not attain National Ambient Air Quality Standards. In particular, it authorizes funding for programs and projects intended to reduce carbon monoxide, particulate matter, and ozone. CMAQ funds are apportioned in accordance with a formula based largely on a state'’s population and pollutionpol ution reduction needs. Qualified Applicant(s) needs.

Qualified Applicant(s)

State departments of transportation and metropolitan planning organizations (MPOs)

Applicable Fuel/Technology

Applicable Any transportation project or technology that can lead to reductions in congestion or Fuel/Technology help improve air quality For More Information See FHWA’s CMAQ website. Related CRS Reports CRS Report R44332, Federal-Aid Highway Program (FAHP): In Brief, Federal-Aid Highway Program (FAHP): In Brief, by Robert S. Kirk; air quality

For More Information

See FHWA's CMAQ website.

Related CRS Reports

CRS Report R44388, Surface Transportation Funding and Programs Under the Fixing America's Surface Transportation ’s Surface Transportation Act (FAST Act; P.L. 114-94), coordinated by Robert S. Kirk

Administered by

Congressional Research Service 17 Alternative Fuel and Advanced Vehicle Technology Incentives Corporate Average Fuel Economy Program Alternative Fuel Vehicle Credits Administered by National Highway Traffic Safety Administration (NHTSA) Authority (NHTSA)

Authority

Corporate Average Fuel Economy (CAFE) program established in the Energy Policy and Conservation Act (EPCA) of 1975 (P.L. 94-163); alternative fuels incentives established in the Alternative Motor Fuels Act (P.L. 100-494); amended multiple times, most most recently by the Energy Independence and Security Act of 2007, §109 (P.L. 110-140), to extend the expiration date through model year 2019 for dual fueled vehicles

Annual Funding

N/A

Scheduled Termination

No expiration for dedicated vehicles; after model year (MY) 2019 for dual fueled vehicles

Description

Automakers that sell Annual Funding N/A Scheduled No expiration for dedicated vehicles Termination Description Automakers that sel passenger cars and light trucks in the United States must comply with federal CAFE standards. Those standards set fuel economy targets which automakers automakers must meet, averaged across their car and light truck fleets. Those targets vary by vehicle class and size. To promote the production and sale of alternative fuel vehicles vehicles and provide flexibility in compliance, automakers may accrue CAFE credits by selling sel ing alternative fuel vehicles. For dedicated vehicles (i.e., vehicles (i.e., vehicles that run solely on alternative fuel), credits are unlimited. For dual fueled vehicles (i.e., that may run on conventional or alternative fuel), credits are limited. “Petroleum reduction” incentives are applied to the calculation of “dedicated” and “dual fuel” vehicles’ fuel economy for the purposes of CAFE compliance based on provisions in the Alternative Motor Fuels Act (AMFA) of 1988 P.L. 100-494 (see 49 U.S.C. §32905), thereby providing miles per gal on fuel equivalency ratings for electric and natural gas vehicles. The Biden Administration has proposed to revise the current CAFE standards established under the Trump Administration, increasing them by 8% per year for passenger cars and light trucks over MYs 2024-2026. NHTSA projects that the proposed standards would require, on an average industry fleet-wide basis, vehicles with roughly 48 mpg in MY 2026. Qualified Applicant(s) Automakers that produce vehicles for sale in the United States Applicable Incentives apply to vehicles conventional or alternative fuel), credits are limited: The maximum fuel economy increase allowed through the use of dual fueled vehicle credits is 1.2 miles per gallon through model year (MY) 2014. After 2014 the credits are phased down and completely eliminated after MY 2019. The Trump Administration has proposed to retain MY 2020 CAFE standards through MY 2026, reversing increases proposed by the Obama Administration.

Qualified Applicant(s)

Automakers that produce vehicles for sale in the United States

Applicable Fuel/Technology

Incentives apply to vehicles capable of operating on methanol (at least 85%), ethanol (at capable of operating on methanol (at least 85%), ethanol (at Fuel/Technology least 85%), natural gas, liquefied petroleum gas, hydrogen, coal-derived liquid fuels, biologically biological y derived fuels, and electricity. For More Information See NHTSA’s CAFE website. Related CRS Reports derived fuels, and electricity.

For More Information

See NHTSA's CAFE website.

Related CRS Reports

CRS Report R45204, Vehicle Fuel Economy and Greenhouse Gas Standards: Frequently Frequently Asked Questions, by Richard K. Lattanzio, Linda Tsang, and Bill Canis

Administered by

Federal Transit Administration (FTA)

Authority

Established by the Fixing America's Surface Transportation Act (FAST Act) of 2015, P.L. 114-94, §3017, amending 49 U.S.C. 5339

Annual Funding

$55 million per year through FY2020. An additional $29.5 million was appropriated for FY2018 for a total of $84.5 million

Scheduled Termination

End of FY2020

Description

The Low or No Emission , §3017, amending 49 U.S.C. 5339 Annual Funding $55 mil ion per year through FY2021. In the Consolidated Appropriations Act, 2021 ( P.L. 116-260), an additional $125 mil ion was appropriated for FY2021 for a total of $180 mil ion. Scheduled End of FY2021 Termination Description The Low or No Emission Vehicle program provides funding to state and local governmental authorities for the purchase or lease of zero-emission and low-emission transit buses as well wel as acquisition, construction, and leasing of required supporting facilities. The federal share of the cost of leasing or purchasing a transit bus is not to exceed 85% of the total transit bus cost. The federal share in the cost of leasing or acquiring low- or no-emission bus-related equipment and facilities is 90% of the net project cost. Qualified Applicant(s) project cost.

Qualified Applicant(s)

Eligible applicants include direct recipients of FTA grants under the Section 5307 Urbanized Area Formula program, states, and Indian Tribestribes. Except for projects proposed Congressional Research Service 18 Alternative Fuel and Advanced Vehicle Technology Incentives by Indian tribesby Indian Tribes, proposals for funding eligible projects projects in rural (nonurbanized) areas must be submitted as part of a consolidated state proposal.

Applicable Fuel/Technology

Applicable Proposed vehicles must make greater reductions in energy consumption and harmful Fuel/Technology emissions, including direct carbon emissions, than comparable standard buses. Eligible technologies include buses and fueling infrastructure for vehicles powered by electricity, CNG, propane, fuel cells, cel s, and hybrid fuels, such as diesel-electric buses. For More Information See FTA’s Low or No Emission Vehicle Program website. Related CRS Reports CRS Report R44388, Surface Transportation Funding and Programs Under the Fixing America’s Surface Transportation buses.

For More Information

See FTA's Low or No Emission Vehicle Program website.

Related CRS Reports

CRS Report R44388, Surface Transportation Funding and Programs Under the Fixing America's Surface Transportation Act (FAST Act; P.L. 114-94), coordinated by Robert S. Kirk

Administered by

Office of Transportation and Air Quality (OTAQ) Authority Quality (OTAQ)

Authority

Established in 2005 by the Energy Policy Act of 2005 (P.L. 109-58), §§791-797; amended in 2008 by P.L. 110-255, §3; and amended in 2011 by the Diesel Emissions Emissions Reduction Act of 2010 (P.L. 111-364), §2

Annual Funding

$59.6 million for FY2018

Scheduled Termination

None (last authorized through FY2016, but the program is still active and receiving funding)

Description

The National Clean Diesel Campaign (NCDC) promotes clean air strategies ), §2; and amended in 2020 by the Consolidated Appropriations Act, 2021(P.L. 116-260), Division S, §101 Annual Funding $90 mil ion for FY2021; $150 mil ion requested for FY2022. Scheduled None (last authorized through FY2024) Termination Description The National Clean Diesel Campaign (NCDC) promotes clean air strategies by working with manufacturers, fleet operators, air quality professionals, environmental and community organizations, and state and local officials to reduce diesel emissions. States are al ocatedare allocated funds for their clean diesel programs programs through the Diesel Emission Emission Reduction Act (DERA). Qualified Applicant(s) Act (DERA).

Qualified Applicant(s)

Manufacturers, fleet operators, air quality professionals, environmental and community organizations, and state and local governments

Applicable Fuel/Technology

governments Applicable Technologies that significantly reduce emissions (EPA maintains a list of verified retrofit retrofit Fuel/Technology technologies and emerging technologies at http://www.epa.gov/cleandiesel/verification/verif-list.htm).

For More Information

See EPA's ). For More Information See EPA’s National Clean Diesel Campaign website. Related CRS Reports None Renewable Fuel Standard Administered by OTAQ Authority Campaign website.

Related CRS Reports

None

Administered by

OTAQ

Authority

Established in 2005 by the Energy Policy Act of 2005, §1501 (P.L. 109-58); expanded by the Energy Independence and Security Act of 2007, §202 (P.L. 110-140)

Annual Funding

N/A

Scheduled Termination

None

Description

P.L. 110-140) Annual Funding N/A Scheduled None Termination Description The Energy Policy Act of 2005 established a renewable fuel standard (RFS) for automotive fuels. The RFS was expanded by the Energy Independence and Security Act of 2007. The RFS requires the use of renewable fuels (including ethanol and biodiesel) in transportation fuel. In 2011, fuel suppliers were required to include 13.95 billion gallons bil ion gal ons of renewable fuels in the national transportation fuel supply; this requirement increases annually to 36 billion gallonsannual y to 36 bil ion gal ons in 2022. The expanded RFS also specificallyspecifical y mandates the use of "“advanced biofuels"”—fuels produced from noncorn feedstocks and with 50% lower lifecycle lifecycle greenhouse gas emissions than petroleum fuel—starting in 2009. Of the 36 billion gallonsbil ion gal ons required in 2022, at least 21 billion gallonsbil ion gal ons must be advanced biofuels.

There are also specific quotas for cellulosic Congressional Research Service 19 Alternative Fuel and Advanced Vehicle Technology Incentives There are also specific quotas for cel ulosic biofuels and for biomass-based diesel fuel. On May 1, 2007, EPA issued a final rule on the original RFS program detailing compliance standards for fuel suppliers, as well as wel as a system to trade renewable fuel credits between suppliers. On March 26, 2010, EPA issued final rules for the expanded program (RFS2), including lifecycle analysis methods necessary to categorize fuels as advanced biofuels, and new rules for credit verification and trading. While this program is not a direct subsidy for the construction of biofuels plants, the guaranteed market created by the RFS is believed believed to have stimulated growth of the biofuels industry and raised prices above where they would have been in the absence of the mandate.

In certain circumstances, EPA has the authority to waive portions of the RFS mandates. Since 2014, the total renewable fuel statutory target has not been met, with the advanced biofuel portion fallingfal ing below the statutory target by a large margin since 2015.

Qualified Applicant(s)

Gasoline and diesel fuel suppliers—generally refiners, Qualified Applicant(s) Gasoline and diesel fuel suppliers (general y refiners), but other entities may also be covered Applicable Al biofuels (conventional ethanol, biodiesel, renewable diesel, cel ulosic biofuels, Fuel/Technology advanced biofuels) For More Information See EPA’s but other entities may also be covered

Applicable Fuel/Technology

All biofuels (conventional ethanol, biodiesel, renewable diesel, cellulosic biofuels, advanced biofuels)

For More Information

See EPA's Renewable Fuel Standard (RFS) website.

Related CRS Reports

Renewable Fuel Standard (RFS) website. Related CRS Reports CRS Report R43325, The Renewable Fuel Standard (RFS): An Overview, by Kelsi Bracmort; CRS Report R44045, The Renewable Fuel Standard (RFS): Waiver Authority and Modification of Volumes, by Kelsi Bracmort; CRS Recorded Event WRE00231, An Overview of the Renewable Fuel Standard (RFS), by Kelsi Bracmort Bracmort and Brent D. Yacobucci; and CRS Report R41106, The Renewable Fuel Standard (RFS): Cellulosic Biofuels Yacobucci; CRS Report R41106, The Renewable Fuel Standard (RFS): Cel ulosic Biofuels; and CRS Report R46244, The Renewable Fuel Standard (RFS): Frequently Asked Questions About Smal Refinery Exemptions (SREs), by Kelsi Bracmort Department of Agriculture43 Bracmort

Administered by

Rural Development

Authority

Bioenergy Program for Advanced Biofuels44 Administered by Rural Development Authority Established by the Farm Security and Rural Investment Act of 2002 (P.L. 107-171). Most recently amended by Title IX, Section 9005 of the Agriculture Improvement Act of 2018 ((P.L. 115-334).

Annual Funding

). Annual Funding Mandatory: The 2018 farm bill (bil (P.L. 115-334) authorized mandatory Commodity Credit Corporation (CCC) funding of $7 million annually for FY2019-FY2023 to remain available until expended. The 2014 farm bill (P.L. 113-79) authorized mandatory CCC funding of $15 million annually for FY2014-FY2018 to remain available until expended.

Scheduled Termination

Authorized through FY2023

Description

) authorized mandatory funding of $7 mil ion annual y for FY2019-FY2023 to remain available until expended. $7 mil ion was appropriated annual y for FY2019, FY2020,45 and FY2021. Discretionary: The 2018 farm bil authorized discretionary funding of $20 mil ion annual y for FY2019-FY2023. No discretionary funding was appropriated through FY2021. Scheduled Authorized through FY2023 Termination Description The purpose of the program is to support and ensure an expanding production of advanced biofuels by providing payments to eligible advanced biofuel producers. Participating producers are paid on a quarterly basis for the quantity of eligible advanced biofuels produced in that quarter. Producers who increase their annual production over the previous fiscal year may also be eligible for additional incremental payments issued annuallyannual y. Not more than 5% of total payments made in a given fiscal year may go to producers for production at facilities with a total refining capacity exceeding 150 million gallonsmil ion gal ons a year. The 2018 farm bill limited bil limited the proportion of total payments made for 43 For program details, contact Kelsi Bracmort, Specialist in Natural Resources and Energy Policy. 44 7 U.S.C. §8105. 45 In the FY2022 Budget Appendix, USDA notes a transfer of an additional $100 million from the Commodity Credit Corporation (CCC) in FY2020 for $107 million total available funding for that fiscal year, likely reflecting the availability of carryover funding. See the Appendix volume for FY2022 Budget of the United States Governm ent, p. 133. Congressional Research Service 20 Alternative Fuel and Advanced Vehicle Technology Incentives the proportion of total payments made for biofuels derived from a single eligible commodity to not more a single eligible commodity to not more than one third of total funds available in a given fiscal year. Qualified Applicant(s) Producers of advanced biofuels Applicable Payments wil be made to eligible funds available in a given fiscal year.

Qualified Applicant(s)

Producers of advanced biofuels

Applicable Fuel/Technology

Payments will be made to eligible advanced biofuel producers for the production of fuel Fuel/Technology derived from renewable biomass, other than corn kernel starch, to include biofuel derived from cellulose, hemicellulose, cel ulose, hemicel ulose, or lignin; biofuel derived from sugar and starch (other than ethanol derived from corn kernel starch); biofuel derived from waste material, including crop residue, other vegetative waste material, animal waste, food waste, and yard waste; diesel-equivalent fuel derived from renewable biomass, including vegetable oil and animal fat; biogas (including landfill landfil gas and sewage waste treatment gas) produced through the conversion of organic matter from renewable biomass; butanol or other alcohols produced through the conversion of organic matter from renewable biomass; and other fuel derived from cellulosic biomass.

For More Information

from cel ulosic biomass. For More Information See the USDA program website and program number 10.867 on the beta.SAM.gov website.

Related CRS Reports

SAM.gov website. Related CRS Reports CRS Report R40913, Renewable Energy and Energy Efficiency Incentives: A Summary of Federal Programs, by Lynn J. Cunningham; CRS In Focus IF10288, Overview of the 2018 Farm Bil Energy Title Programs, by Kelsi Bracmort; and CRS Report R45943, The Farm Bil Energy Title: An Overview and Funding History, by Kelsi Bracmort Biomass Crop Assistance Program (BCAP; §9011)46 Administered by Farm Service by Lynn J. Cunningham

Administered by

Farm Service Agency (FSA)

Authority

Agency (FSA) Authority Established by the Food, Conservation, and Energy Act of 2008 (P.L. 110-246). Most recently amended by Title IX, Section 9010 of the Agriculture Improvement Act of 2018 ((P.L. 115-334).

Annual Funding

). Annual Funding Mandatory: The 2018 farm bill bil provided no mandatory funding. The 2014 farm bill bil authorized mandatory CCC funding of $25 million annually from mil ion annual y from FY2014 through FY2018. Discretionary: Discretionary funding of $25 mil ion annual y for FY2019FY2018.

Discretionary: Discretionary funding of $25 million annually for FY2014-FY2023 is authorized to be appropriated. No funding was appropriated through FY2021. Scheduled Authorized through FY2023 Termination Description authorized to be appropriated.

Scheduled Termination

Authorized through FY2023

Description

BCAP provides assistance to support the production of eligible biomass crops on land within approved BCAP project areas. In exchange for growing eligible crops, the FSA is to provide annual payments through 5- to 15-year contracts. Under these contracts up to 50% of establishment costs may also be provided. FSA also is to provide matching payments to eligible material owners at a rate of $1 for each $1 per dry ton paid by a qualified biomass conversion facility. Payments may not exceed $20 per ton for a two-year period, and matching payments are available for no more than two years per participant. Qualified Applicant(s) Producer of an eligible crop in a BCAP project area; person with the right to col ect or harvest eligible material. Applicable Eligible crops and eligible material, both of which have exclusions specified participant.

Qualified Applicant(s)

Producer of an eligible crop in a BCAP project area; Person with the right to collect or harvest eligible material.

Applicable Fuel/Technology

Eligible crops and eligible material, both of which have exclusions specified in statute. in statute. Fuel/Technology Eligible material for a matching payment is renewable biomass with several important exclusions exclusions, including harvested grains, fiber, or other commodities eligible eligible to receive payments under the Commodity Title (Title I) of the 2014 farm bill bil (the residues of these commodities, however, are eligible and may qualify for payment); animal waste and animal waste byproducts, including fats, oils, greases, and manure; food waste, and yard waste. The 2018 farm bill bil includes algae as an eligible material; algae was previously an eligible crop but not an eligible material. Eligible Eligible crops for annual payments include renewable biomass, with the exception of crops eligible to receive a payment under Title I of the 2014 farm bill bil and plants that are invasive or noxious, or have the potential to become invasive or noxious. 46 7 U.S.C. §8111. Congressional Research Service 21 Alternative Fuel and Advanced Vehicle Technology Incentives For More Information invasive or noxious.

For More Information

See program number 10.087 on the beta.SAM.gov website.

Related CRS Reports

SAM.gov website. Related CRS Reports CRS Report R40913, Renewable Energy and Energy Efficiency Incentives: A Summary of Federal Programs, by Lynn J. Cunningham; and CRS Report R41296, Biomass Crop Assistance Program Program (BCAP): Status and Issues, by Mark A. McMinimy; CRS In Focus IF10288, Overview of the 2018 Farm Bil Energy Title Programs, by Kelsi Bracmort; and CRS Report R45943, The Farm Bil Energy Title: An Overview and Funding History, by Kelsi Bracmort Biomass Research and Development (BRDI)47 Administered by National Institute of Food and Agriculture (NIFA) Authority Established by the Biomass Research and Development and Issues, by Mark A. McMinimy

Administered by

National Institute of Food and Agriculture (NIFA)

Authority

Established by the Biomass Research and Development Act of 2000, §307 (P.L. 106-224). Most recently amended by Section 7507 of the Agriculture Improvement Act of 2018 ((P.L. 115-334).

Annual Funding

). Annual Funding Mandatory: The 2018 farm bill bil provided no mandatory funding. The 2014 farm bill authorizesbil authorized mandatory funding (to remain available until expended) of $3 million mil ion for four fiscal years—FY2014-FY2017—with baseline funding authority expiring after FY2017.

Discretionary: Discretionary Discretionary: Discretionary funding of $20 million mil ion is authorized to be appropriated annually for FY2014annual y for FY2019-FY2023. However, no discretionary funding was appropriated for BRDI through FY2021. Scheduled Authorized through FY2023 Termination Description Competitive BRDI through FY2018. A DOE funding match of up to $3 million of discretionary funding is subject to annual appropriations; DOE contributed up to $3 million for FY2017.²³

Scheduled Termination

Authorized through FY2023

Description

Competitive funding including grants, contracts, and financial assistance for biomass research, development, and demonstration projects. A minimum of 15% of funding must go to each of three program areas: feedstock development, biofuels and biobased products development, and biofuels development analysis.

Qualified Applicant(s)

Qualified Applicant(s) Institutions of higher learning (colleges col eges and universities), national laboratories, federal or state research entities, private-sector entities, and nonprofit organizations Applicable Biomass; biofuels Fuel/Technology For More Information See the USDA program website; and the Biomass Research and Development (BR&D) Board’s BRDI website; program number 10.312 on the Sam.gov website Related CRS Reports CRS Report R40913, Renewable Energy and Energy Efficiency Incentives: A Summary of Federal Programs, by Lynn J. Cunningham; CRS In Focus IF10288, Overview of the 2018 Farm Bil Energy Title Programs, by Kelsi Bracmort; and CRS Report R45943, The Farm Bil Energy Title: An Overview and Funding History, by Kelsi Bracmort Biorefinery, Renewable Chemical, entities, and nonprofit organizations

Applicable Fuel/Technology

Biomass; biofuels

For More Information

See the USDA program website.

Administered by

Rural Development

Authority

Established by Title IX of the Farm Security and Rural Investment Act of 2002 (FSRIA, P.L. 107-171). Most recently amended by Title IX Section 9003 of the Agriculture Improvement Improvement Act of 2018 (P.L. 115-334).

Annual Funding

Mandatory: Under the 2018 farm bill, mandatory CCC funding of $50 million in FY2019 and $25 million in). Annual Funding Mandatory: Under the 2018 farm bil , mandatory Commodity Credit Corporation (CCC) funding of $50 mil ion for FY2019 and $25 mil ion for FY2020 (to remain available until expended) was authorized for loan guarantees. $50 mil ion was made available for FY2019. $24 mil ion in funding was made available for FY2020.49 There is no new baseline funding after FY2020. The 2014 farm bill authorized mandatory CCC funding of $100 million in FY2014 and $50 million each for FY2015 and FY2016. Funding for grants was eliminated in 2014.

Discretionary: Discretionary funds of $75 million annuallyHowever, $5 mil ion in funding was made available for FY2021. 47 7 U.S.C. §8108. 48 7 U.S.C. §8103. 49 T he original mandatory funding of $25 million for FY2020 was reduced by $1 million for a final total of $24 million Congressional Research Service 22 Alternative Fuel and Advanced Vehicle Technology Incentives Discretionary: Funds of $75 mil ion annual y are authorized to be appropriated for FY2014-FY2018 and FY2019-FY2014-FY2023. No discretionary funding has been appropriated for this program through FY2021 and there is no budget request for discretionary appropriations for FY2022.50 Scheduled Authorized through FY2023 Termination Description The purpose of the program is to assist this program through FY2018.

Scheduled Termination

Authorized through FY2023

Description

The purpose of the program is to assist in the development of new and emerging technologies for the development of advanced biofuels, renewable chemicals, and biobased product manufacturing so as to increase the energy independence of the United States; promote resource resource conservation, public health, and the environment; diversify markets markets for agricultural and forestry products and agriculture waste material; and create jobs and enhance the economic development of the rural economy. Loan guarantees are made to fund the development, construction, and retrofitting of commercial-scale biorefineries using eligible technology. The maximum loan guarantee is $250 million.

Qualified Applicant(s)

mil ion. Qualified Applicant(s) Individuals, entities, Indian tribes, state or local governments, corporations, farm cooperatives, farmer farmer cooperative organizations, associations of agricultural producers, national laboratories, institutions of higher education, rural electric cooperatives, public power entities, and consortia of any of the previous entities

Applicable Fuel/Technology

entities Applicable Technologies being adopted in a viable commercial-scale operation of a biorefinery that Fuel/Technology that produces an advanced biofuel, renewable chemical, or biobased product; technologies that have been demonstrated to have technical and economic potential for commercial application in a biorefinery that produces one or more of these products.

For More Information

For More Information See the USDA program website; and program number 10.865 on the beta.SAM.gov website.

Administered by

Rural Development

Authority

SAM.gov website. Related CRS Reports CRS Report R40913, Renewable Energy and Energy Efficiency Incentives: A Summary of Federal Programs, by Lynn J. Cunningham; CRS In Focus IF10288, Overview of the 2018 Farm Bil Energy Title Programs, by Kelsi Bracmort; and CRS Report R45943, The Farm Bil Energy Title: An Overview and Funding History, by Kelsi Bracmort Rural Energy for America Program (REAP) Grants and Loans51 Administered by Rural Development Authority Established by Title IX, Sections 9005 and 9006 of the Farm Security and Rural Investment Act of 2002 (FSIRA, P.L. 107-171). Most recently amended by Title IX, Section 9007 of Agriculture Improvement Improvement Act of 2018 (P.L. 115-334).

Annual Funding

). Annual Funding Mandatory: The 2018 farm bill bil retains mandatory funding of $50 million mil ion for FY2014 and each fiscal year thereafter (therefore REAP' REAP’s mandatory funding authority does not expire with the 2014 farm billbil ). Mandatory funds are to remain available until expended.

Discretionary: Discretionary Discretionary: The 2018 farm bil also retains authorized annual discretionary funding of $20 mil ion $20 million annually is authorized to be appropriated for FY2014FY2019-FY2023. Actual discretionary appropriations have been $335,000 for FY2019, $706,000 for FY2020, and $10.4 mil ion for FY2021 .52 $30.2 mil ion requested for FY2022. in mandatory funds made available to the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program. T his reduction is noted in the Appendix volume to the FY2021 Budget of the United States Governm ent on p. 142. 50 From p. 145 of the Appendix volume to the FY2022 Budget of the United States Government: “T he 2022 Budget does not request discretionary funding for this program because mandatory funding is provided through the 2018 Farm Bill.” 51 7 U.S.C. §8107. 52 $10 million in additional discretionary funding was appropriated to REAP in the Consolidated Appropriation Act, FY2021 (P.L. 116-260, §781). T his additional amount was added to the base discretionary appropriation of $392,000 for loan subsidies and grants and is to remain available until expended. Section 781 directs the Agriculture Secretary to use the additional $10 million “ to carry out a pilot program to provide financial assistance for rural com munities to further develop renewable energy.” Congressional Research Service 23 Alternative Fuel and Advanced Vehicle Technology Incentives Scheduled Authorized with no expiration Termination Description REAP promotes energy efficiency and renewable energy for agricultural producers and rural smal businesses through the use of (1) grants for energy audits and renewable energy development assistance, and (2) financial assistance for renewable energy systems and energy efficiency improvements. The 2018 farm bil added new funding for equipment that exceeds energy efficiency standards and capped funding for this category of loan guarantees at 15% of total funds. The 2014 farm bil excluded the use of REAP funds for instal ing retail energy dispensing equipment, such as blender pumps. Qualified Applicant(s) Eligible entities to receive grants to provide energy audits and renewable development assistance to agricultural producers and rural smal businesses include state, tribal, or local governments; land-grant col eges or other institutions of higher education; rural electric cooperatives; public power entities; councils; and other similar entities. Agricultural producers and rural smal businesses are eligible to receive direct financial assistance for energy efficiency improvements and renewable energy systems. Applicable Biofuels (see description above), among other technologies. Fuel/Technology For More Information See the USDA program website; and program number 10.868 on the SAM.gov website. Related CRS Reports CRS Report RL31837, An Overview of USDA Rural Development Programs, by Tadlock Cowan; CRS Report R40913, Renewable Energy and Energy Efficiency Incentives: A Summary of Federal Programs, by Lynn J. Cunningham Congressional Research Service 24 Alternative Fuel and Advanced Vehicle Technology Incentives Appendix A. Selected Expired or Repealed Programs Repowering Assistance Program53 Administered by Rural Development Authority have been $3.5 million in FY2014; and $1.35 million in FY2015; $500,000 in FY2016; $352,000 in FY2017; and $293,000 in FY2018.

Scheduled Termination

Authorized with no expiration

Description

REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants for energy audits and renewable energy development assistance, and (2) financial assistance for renewable energy systems and energy efficiency improvements. The 2018 farm bill added new funding for equipment that exceeds energy efficiency standards and capped funding for this category of loan guarantees at 15% of total funds. The 2014 farm bill excluded the use of REAP funds for installing retail energy dispensing equipment, such as blender pumps.

Qualified Applicant(s)

Eligible entities to receive grants to provide energy audits and renewable development assistance to agricultural producers and rural small businesses include state, tribal, or local governments; land-grant colleges or other institutions of higher education; rural electric cooperatives; public power entities; councils; and other similar entities. Agricultural producers and rural small businesses are eligible to receive direct financial assistance for energy efficiency improvements and renewable energy systems.

Applicable Fuel/Technology

Biofuels (see description above), among other technologies.

For More Information

See the USDA program website; and program number 10.868 on the beta.SAM.gov website.

Related CRS Reports

CRS Report RL31837, An Overview of USDA Rural Development Programs, by Tadlock Cowan; CRS Report R40913, Renewable Energy and Energy Efficiency Incentives: A Summary of Federal Programs, by Lynn J. Cunningham

Administered by

Rural Development

Authority

Established by the Food, Conservation, and Energy Act of 2008 (P.L. 110-246). Repealed by the Agriculture Improvement Act of 2018 (P.L. 115-334).

Annual Funding

). Annual Funding Mandatory: Under the 2014 farm bill, bil , mandatory CCC funding of $12 million mil ion for FY2014 was authorized, to remain available until expended (i.e., no new baseline funding after FY2014).

Discretionary: The 2014 farm bill bil authorized discretionary funding of $10 million annually mil ion annual y to be appropriated for FY2014-FY2018.

Termination Date

Termination Date Repealed on December 20, 2018 Description 20, 2018

Description

The Repowering Assistance Program (RAP) made payments to eligible biorefineries to biorefineries to encourage the use of renewable biomass as a replacement for fossil fuels used to provide heat for processing or power in the operation of these eligible biorefineries. Not more than 5% of the funds was to be made available to eligible producers with a refining capacity exceeding 150 million gallonsmil ion gal ons of advanced biofuel per year.

Qualified Applicant(s)

Qualified Applicant(s) Eligible biorefinery. The biorefinery must have been in existence on or before June 18, 2008. Applicable Renewable Biomass Fuel/Technology For More Information 2008.

Applicable Fuel/Technology

Renewable Biomass

For More Information

See the USDA program website; and program number 10.866 on the beta.SAM.gov website.

Related CRS Reports

website. Related CRS Reports CRS Report R43416, Energy Provisions in the 2014 Farm Bill Bil (P.L. 113-79): Status and Funding, by Kelsi Bracmort; CRS Report R40913, Renewable Energy and Energy Efficiency Incentives: A Summary of Federal Programs, by Lynn J. Cunningham Special Depreciation Allowance for Second Generation (Cellulosic and Algae-Based) Biofuel Plant Property54 Administered by IRS Authority Established in 2006 by the Tax Relief and Health Care Act of 2006 (P.L. 109-432), §209; amended by the Energy Improvement and Extension Act of 2008 (P.L. 110-343, Division B), §201; modified by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creationby Lynn J. Cunningham

Administered by

IRS

Authority

Established on January 1, 2009, by the Food, Conservation, and Energy Act of 2008, §15321 (P.L. 110-246); amended by the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152), §1408; amended by the Small Business Jobs Act of 2010 (P.L. 111-240), §2121312), §401; amended by the American Taxpayer Relief Act of 2012 (P.L. 112-240 §404, §410). This temporary credit has expired and subsequently has been extended retroactively on multiple occasions, most recently through 2017 by the Bipartisan Budget Act of 2018 (P.L. 115-123)

Annual Funding

2020 by the Further Consolidated Appropriations Act, 2020 (P.L. 116-94). Annual Funding JCT estimated tax expenditure for FY2017-FY2021FY2020-FY2024: Less than $50 mil ion total55 Termination Date December 31, 2020 53 7 U.S.C. §8104. 54 26 U.S.C. §168. 55 “T he special depreciation allowance for qualified second-generation biofuel plant property [was] extended three years to property placed in service prior to January 1, 2021. T his tax expenditure is not listed in T able 1 because the estimated revenue loss is below the de minimis amount [Less than $50 million]. See U.S. Congress, Joint Committee on T axation, Estimates of Federal T ax Expenditures for Fiscal Years 2020 -2024,” 116th Cong., 2nd sess., November 5, 2020, JCX-23-20 (Washington, DC: GPO, 2020). Congressional Research Service 25 Alternative Fuel and Advanced Vehicle Technology Incentives Description A taxpayer could take a depreciation deduction of 50% of the adjusted basis of a new cel ulosic or algae-based biofuel plant in the year it was put in service. Any portion of the cost financed through tax-exempt bonds was exempted from the depreciation al owance. Before amendment by P.L. 110-343 the accelerated depreciation applied only to cel ulosic ethanol plants that break down cel ulose through enzymatic processes—the amended provision applied to al cel ulosic biofuel plants. Before amendment by P.L. 112-240 the : Less than $50 million total

Termination Date

December 31, 2017

Description

Producers of cellulosic biofuel could claim a tax credit of $1.01 per gallon. For cellulosic ethanol producers, the value of the production tax credit was reduced by the value of the volumetric ethanol excise tax credit and the small ethanol producer credit; the credit was last valued at $1.01 cents per gallon (the offsetting tax credits have expired). P.L. 112-240 amended the credit to include noncellulosic fuel produced from algae feedstocks.

The credit applied to fuel produced after December 31, 2008.

Qualified Applicant(s)

Cellulosic biofuel producers and algae-based biofuel producers

Applicable Fuel/Technology

Cellulosic biofuels and algae-based biofuels

For More Information

See AFDC's entry for the Second Generation Biofuel Producer Tax Credit on its "Expired, Repealed, and Archived Incentives and Laws" web page; and IRS Publication 510 and IRS Forms 637 and 6478, which are available via the IRS website.

Related CRS Reports

CRS Report R42122, Algae's Potential as a Transportation Biofuel, by Kelsi Bracmort; and CRS Report R44990, Energy Tax Provisions That Expired in 2017 ("Tax Extenders"), by Molly F. Sherlock, Donald J. Marples, and Margot L. Crandall-Hollick

Administered by

IRS

Authority

Established in 2006 by the Tax Relief and Health Care Act of 2006 (P.L. 109-432), §209; amended by the Energy Improvement and Extension Act of 2008 (P.L. 110-343, Division B), §201; modified by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312), §401; amended by the American Taxpayer Relief Act of 2012 (P.L. 112-240, §410). This temporary credit has expired and subsequently has been extended retroactively on multiple occasions, most recently through 2017 by the Bipartisan Budget Act of 2018 (P.L. 115-123).

Annual Funding

JCT estimated tax expenditure for FY2017-FY2021: Less than $50 million total

Termination Date

December 31, 2017

Description

A taxpayer could take a depreciation deduction of 50% of the adjusted basis of a new cellulosic or algae-based biofuel plant in the year it was put in service. Any portion of the cost financed through tax-exempt bonds was exempted from the depreciation allowance. Before amendment by P.L. 110-343 the accelerated depreciation applied only to cellulosic ethanol plants that break down cellulose through enzymatic processes—the amended provision applied to all cellulosic biofuel plants. Before amendment by P.L. 112-240 the provision did not apply to algae-based biofuel plants: the incentive for algae-based plants applies to property was placed in service after January 2, 2013. Qualified Applicant(s) Any cel ulosic after January 2, 2013.

Qualified Applicant(s)

Any cellulosic biofuel plant acquired after December 20, 2006, and placed in service before January 1, 20142021, and any algae-based biofuel plant placed in service between January 2, 2013, and December 31, 2017 31, 2021. Any plant that had a binding contract for acquisition before December 20, 2006, did not qualify. Applicable Cel ulosic and algae-based biofuels Fuel/Technology For More Information See Senate Finance Committee, Summary 20, 2006, did not qualify.

Applicable Fuel/Technology

Cellulosic and algae-based biofuels

For More Information

See Senate Finance Committee, Summary of House-Senate Agreement on Tax, Trade, Health, of House-Senate Agreement on Tax, Trade, Health, and Other Provisions, December December 7, 2006; AFDC’s web page for the Second Generation Biofuel Plant Depreciation Deduction Al owance, listed on the database’s “Expired, Repealed, and Archived Incentives and Laws” website. Related CRS Reports CRS Report R42122, Algae’7, 2006.

Related CRS Reports

CRS Report R42122, Algae's Potential as a Transportation Biofuel, by Kelsi Bracmort; and CRS Report R44990, Energy Tax Provisions That Expired in 2017 ("“Tax Extenders"”), by Molly by Mol y F. Sherlock, Donald J. Marples, and Margot L. Crandall-Hollick

Program

Description

FY2018 Appropriation
or JCT Estimated Expenditure

Expiration Date

Eligible Fuels or Technologies

Internal Revenue Service

Idle Reduction Equipment Tax Exemption

The Idle Reduction Equipment Tax Exemption exempts certain vehicle idling reduction devices from the federal excise tax on heavy trucks and trailers.

$17 million

None

Devices that have been identified by the Administrator of the EPA as reducing idling of a heavy truck or trailer at a motor vehicle rest stop or other location where such vehicles vehicles are temporarily parked or remain stationary CRS-28 link to page 39 FY2021 Appropriation or JCT Estimated Eligible Fuels or Program Description Expenditure Expiration Date Technologies Fuel/Fueling Infrastructure Incentives - General Motor Fuels Excise parked or remain stationary

Motor Fuels Excise Taxes

The motor fuels taxes that were included in the Highway Revenue Act of 1956 (P.L. 84-627) were dedicated to supporting the Highway Trust Fund, except for the tax on compressed natural gas, which was enacted in 1993. The federal excise tax on most of these fuels was last N/Aa 4.3 cents per gal on Gasoline, diesel, liquefied Taxes Revenue Act of 1956 (P.L. 84-627) were dedicated to of the gasoline/ petroleum gas, liquefied supporting the Highway Trust Fund, except for the tax diesel fuel tax is natural gas, fuels with on compressed natural gas, which was enacted in 1993. permanent; the rest methanol from natural gas, The federal excise tax on most of these fuels was last of the motor fuels P Series fuels, and raised by Congress in 1993. Taxes vary by fuel: gasoline, taxes expire on compressed natural gas 18.4 cents per gal on; diesel fuel, 24.4 cents per gal on; September 30, biodiesel, 24.4 cents per gal on; ethanol, 18.4 cents per 2022, when many gal on; P-series fuels, 18.4 cents per gal on; liquefied current highway- hydrogen, 18.4 cents per gal on equivalent; liquefied related taxes expire petroleum gas (LPG), 18.3 cents per gal on equivalent; compressed natural gas (CNG), 18.3 cents per gal on raised by Congress in 1993. Taxes vary by fuel: gasoline, 18.4 cents per gallon; diesel fuel, 24.4 cents per gallon; biodiesel, 24.4 cents per gallon; ethanol, 18.4 cents per gallon; P-series fuels, 18.4 cents per gallon; hydrogen, 18.4 cents per gallon equivalent; liquefied petroleum gas (LPG), 18.3 cents per gallon equivalent; compressed natural gas (CNG), 18.3 cents per gallon equivalent; liquefied natural gas (LNG), 24.3 cents per gallongal on equivalent. Alternative fuel tax credits are or were available against many of these (see "“Incentives for Alternative Alternative Fuel and Alternative Fuel Mixtures" and "Biodiesel ” and “Biodiesel or Renewable Diesel Mixture Tax Credit"”). Electricity for electric vehicles is untaxed. These exemptions/credits effectively effectively incentivize selected fuels/vehicles relative relative to conventional options. Incentives for The Alternative Fuel Excise Tax Credit was a 50-cent- $204 mil ion December 31, 2021 Liquefied petroleum gas, P Alternative Fuel and per gal on excise tax credit for certain alternative fuel Series fuels, compressed or Alternative Fuel used as fuel in a motor vehicle, motor boat, or airplane; a liquefied natural gas, Mixtures similar provision established a 50-cent-per gal on credit liquefied hydrogen, any for alternative fuel mixed with a traditional fuel (gasoline, liquefied fuel derived from diesel, or kerosene) for use as a fuel. coal or peat, liquefied hydrocarbons derived from biomass (does not include ethanol, methanol, or biodiesel) CRS-29 FY2021 Appropriation or JCT Estimated Eligible Fuels or Program Description Expenditure Expiration Date Technologies Alternative Fuel Consumers and businesses who instal qualified fueling $39 mil ion December 31, 2021 Natural gas, liquefied Refueling Property equipment received a 30% tax credit of up to $30,000 petroleum gas, hydrogen, Credit for properties subject to an al owance for depreciation, electricity, E85, or diesel and $1,000 for al other properties. fuel blends containing a minimum of 20% biodiesel Fuel/Fueling Infrastructure Incentives – Biofuels Biodiesel or Income Tax Credit: Biodiesel and renewable diesel $3.1 bil ion (combined total December 31, 2022 Biodiesel, renewable diesel, Renewable Diesel blenders (or producers of diesel/biodiesel blends) may for excise and income tax and agri-biodiesel Income Tax Credit claim a tax credit of $1.00 per gal on of fuel used to credits) and Mixture Credit produce a qualified mixture. (both credits may not be claimed for the Mixture Credit: Producers, blenders, or retailers of same batch of fuel) biodiesel, renewable diesel, or agri-biodiesel may claim a tax credit of $1.00 per gal on of qualified fuel sold or used by the taxpayer Smal Agri-Biodiesel An agri-biodiesel (produced from virgin agricultural JCT has not estimated this December 31, 2022 Agri-biodiesel Producer Credit products) producer with less than 60 mil ion gal ons per expenditure year in production capacity could claim a credit of 10 cents per gal on on the first 15 mil ion gal ons produced in a year. Second Generation Producers of cel ulosic biofuel could claim a tax credit of $9 mil ion December 31, 2021 Cel ulosic and algae-based Biofuel Producer $1.01 per gal on. For cel ulosic ethanol producers, the biofuels Credit (formerly value of the production tax credit was reduced by the Credit for Production value of the volumetric ethanol excise tax credit and the of Cel ulosic and smal ethanol producer credit. The credit was valued at Algae-Based Biofuel) $1.01 cents per gal on (the offsetting tax credits have expired). P.L. 112-240 amended the credit to include noncel ulosic fuel produced from algae feedstocks. CRS-30 FY2021 Appropriation or JCT Estimated Eligible Fuels or Program Description Expenditure Expiration Date Technologies Department of Energy Advanced Technology ATVM was established in 2007 to help automakers meet $5 mil ion (for administration) No expiration for No limitations on specific Vehicles mandated vehicle fuel economy standards and to the loan program technologies; rather, limits Manufacturing encourage domestic production of more fuel-efficient are stipulated for vehicle (ATVM) Program cars, light trucks, and componentsto conventional options

N/A^a

4.3 cents per gallon of the gasoline/ diesel fuel tax is permanent; the rest of the motor fuels taxes expire on September 30, 2022, when many current highway-related taxes expire

Gasoline, diesel, liquefied petroleum gas, liquefied natural gas, fuels with methanol from natural gas, P Series fuels, and compressed natural gas

Plug-in Electric Drive Vehicle Credit

Purchasers of plug-in electric vehicles may file to obtain a tax credit of up to $7,500 per vehicle, depending on battery capacity.

$1.2 billion

The credit is phased out when an automaker has sold a total of 200,000 qualified vehicles

Plug-in electric vehicles

Department of Energy

Advanced Technology Vehicles Manufacturing (ATVM) Program

ATVM was established in 2007 to help automakers meet mandated vehicle fuel economy standards and to encourage domestic production of more fuel-efficient cars and light trucks. It was first funded in . It was first funded in emissions and fuel 2008 to provide $25 billion bil ion in revolving loans to qualified automakers for investment in their manufacturing consumption, and facilities automakers for investment in their manufacturing must be located in the operations. In FY2008, $7.51 billionbil ion was appropriated for United States. There must the direct loans—$7.5 billion bil ion for the loan subsidies be a reasonable prospect (available until expended) and $10 million for administration. Currentlymil ion for for repayment. administration. As of August 2021, loans have been made to five companies, using $8.4 billion of the $25 billion loan authority.

$5 million (for administration)

Facilities funded must be placed in service by December 31, 2020

No limitations on specific technologies; rather, limits are stipulated for vehicle emissions and fuel consumption

Biomass and Biorefinery Systems Program

The Biomass Program primarily focuses on research, development, demonstration, and deployment (RDD&D) to ensure that cellulosic ethanol is commercially ; with loan repayments, $17.7 bil ion of the $25 bil ion loan authority remains available. Biomass and The Biomass Program primarily focuses on research, $255 mil ion None Biofuels Biorefinery Systems development, demonstration, and deployment (RDD&D) Program to ensure that cel ulosic ethanol is commercial y viable by 2012 and that biobased aviation fuel, diesel fuel, and gasoline are price competitive by 2017. Clean Cities Program Initial y started in 1993 as a DOE program to promote $40 mil ion None Electricity, natural gas, alternative fuel vehicles by 2017.

$203.6 million

None

Biofuels

Clean Cities Program

Initially started in 1993 as a DOE program to promote alternative fuel vehicles among the states, it is now a among the states, it is now a propane, bio-methane, broader program to reduce petroleum consumption in ethanol, biodiesel, transportation, with 100 Clean Cities coalitions that hydrogen that focus on deployment of alternative and renewable fuels, idle-reduction measures, fuel economy improvements, and emerging transportation technologies. Clean Cities provides technical, informational, and financial assistance to communities. Hydrogen and Fuel The DOE Hydrogen Program works to communities.

$37.8 million

None

Electricity, natural gas, propane, bio-methane, ethanol, biodiesel, hydrogen

Hydrogen and Fuel Cell Technologies Program

The DOE Hydrogen Program works with industry, with industry, $150 mil ion None Hydrogen, fuel cel s Cel Technologies national laboratories, universities, government agencies, Program and other partners to overcome the barriers to the use of hydrogen and fuel cells. cel s. It includes a research and development (R&D) effort focused on advancing the performance and reducing the cost of these technologies.

$100.3 million

None

Hydrogen, fuel cells

Vehicle Technologies Program (VTP)

Through research and development, VTP supports partnerships with other public and private organizations that will enhance energy efficiency and productivity, bring clean and affordable technologies to market, and enhance advanced technology vehicle choices for consumers.

$304.9 million—of that not less than $160 million for Batteries and Electric Drive Technology program

None

Advanced batteries, power electronics and electric motors, advanced combustion, lightweight materials, vehicle-to-grid interaction, and fuel cell and hydrogen technologies

Department of Transportation

Congestion Mitigation and Air Quality Improvement Program (CMAQ)

Congress directed the DOT to establish the CMAQ CRS-31 FY2021 Appropriation or JCT Estimated Eligible Fuels or Program Description Expenditure Expiration Date Technologies Vehicle Technologies Through research and development, VTO supports $400 mil ion—of that amount None Advanced batteries, power Office (VTO) partnerships with other public and private organizations not less than $178 mil ion for electronics and electric that wil enhance energy efficiency and productivity, bring Batteries and Electric Drive motors, advanced clean and affordable technologies to market, and enhance Technology programs combustion, lightweight advanced technology vehicle choices for consumers. materials, vehicle-to-grid interaction, and fuel cel and hydrogen technologies Department of Transportation Alternative Fuel The Alternative Fuel Corridors program designates a Funded through the Highway N/A Vehicles powered by Corridors national network of plug-in electric vehicle charging and Trust Fund electricity, hydrogen, hydrogen, propane, and natural gas fueling infrastructure propane, and natural gas along national highway system corridors. To designate the corridors, FHWA solicits nominations from state and local officials and works with other federal officials and industry stakeholders. Within five years of the establishment of the corridors, and every five years thereafter, FHWA wil update and redesignate the corridors. FHWA also has an objective to deploy fuel infrastructure along the designated corridors. Congestion Mitigation Congress directed the DOT to establish the CMAQ $2.5 bil ion September 30, 2021 Not limited to alternative and Air Quality program to provide funds for projects and programs that fuels or advanced Improvement program to provide funds for projects and programs that may reduce the emissions of transportation-related pollutants technologies Program (CMAQ) pol utants that may cause an area within a state to exceed certain air quality standards. CRS-32 FY2021 Appropriation or JCT Estimated Eligible Fuels or Program Description Expenditure Expiration Date Technologies Corporate Average Automakers subject to Corporate Average Fuel N/A No expiration for Methanol (at least 85%), Fuel Economy (CAFE) Economy (CAFE) standards may accrue credits under dedicated vehicles ethanol (at least 85%), Incentives for exceed certain air quality standards.

$2.4 billion

September 30, 2020

Not limited to alternative fuels or advanced technologies

Corporate Average Fuel Economy (CAFE) Incentives for Alternative Fuel Vehicles

Automakers subject to Corporate Average Fuel Economy (CAFE) standards may accrue credits under that program for the production and sale of alternative fuel vehicles. that program for the production and sale of alternative natural gas, liquefied Alternative Fuel fuel vehicles. For dedicated vehicles (i.e., vehicles vehicles that run solely petroleum gas, hydrogen, Vehicles solely on alternative fuel), credits are unlimited. For dual coal-derived liquid fuels, For dual fueled vehicles (i.e., that may run on conventional or biological y derived fuels, alternative fuel), credits are limited: The maximum fuel economy increase allowed through the use of these credits is 1.2 miles per gallon through model year (MY) 2014. After 2014 the credits are phased down and completely eliminated after MY 2019.

N/A

No expiration for dedicated vehicles; after MY 2019 for dual fueled vehicles

Methanol (at least 85%), ethanol (at least 85%), natural gas, liquefied petroleum gas, hydrogen, coal-derived liquid fuels, biologically derived fuels, and electricity

Low or No Emission Vehicle Program

The Low or No Emission are limited: “Petroleum and electricity reduction” incentives are applied to the calculation of “dedicated” and “dual fuel” vehicles’ fuel economy for the purposes of CAFE compliance based on provisions in the Alternative Motor Fuels Act (AMFA) of 1988 P.L. 100-494 (see 49 U.S. Code §32905), thereby providing miles per gal on fuel equivalency ratings for electric and natural gas vehicles. The Biden Administration has proposed to revise the current CAFE standards established under the Trump Administration, increasing them by 8% per year for passenger cars and light trucks over MYs 2024-2026. NHTSA projects that the proposed standards would require, on an average industry fleet-wide basis, vehicles with roughly 48 mpg in MY 2026. Low or No Emission The Low or No Emission Vehicle program provides $55 mil ion per year through September 30, 2021 Eligible technologies Vehicle Program Vehicle program provides funding to state and local governmental authorities for FY2021. In the Consolidated include buses and fueling authorities for the purchase or lease of zero-emission and low-emission Appropriations Act, 2021 (P.L. infrastructure for vehicles and low-emission transit buses as well wel as acquisition, construction, and 116-260) an additional $125 powered by electricity, leasing of required supporting facilities. The federal share of the cost of leasing or purchasing a transit bus is not to The federal share mil ion was appropriated for CNG, propane, fuel cel s, of the cost of leasing or purchasing a transit bus is not to FY2021 for a total of $180 and hybrid fuels such as exceed 85% of the total transit bus cost. The federal mil ion diesel-electric buses share in the cost of leasing or acquiring low- or no-emission emission bus-related equipment and facilities is 90% of the net project cost CRS-33 FY2021 Appropriation or JCT Estimated Eligible Fuels or Program Description Expenditure Expiration Date Technologies Environmental Protection Agency National Clean Diesel EPA’s National Clean Diesel Campaign (NCDC) $90 mil ion None (last Primarily for technologies Campaign promotes clean air strategies the net project cost

$84.5 million

September 30, 2020

Eligible technologies include buses and fueling infrastructure for vehicles powered by electricity, CNG, propane, fuel cells and hybrid fuels such as diesel-electric buses

Environmental Protection Agency

National Clean Diesel Campaign

EPA's National Clean Diesel Campaign (NCDC) promotes clean air strategies by working with by working with authorized through that significantly reduce manufacturers, fleet operators, air quality professionals, environmental and community organizations, and state and local officials to reduce diesel emissions. States are allocated funds for their clean diesel programs through the Diesel Emission Reduction Act (DERA).

$59.6 million

None (last authorized through FY2016, but the program is still active and receiving funding)

Primarily for technologies that significantly reduce emissions (EPA maintains a list of verified retrofit technologies and emerging technologies at http://www.epa.gov/cleandiesel/)

Renewable Fuel Standard (RFS)

Mandated use of renewable fuel in gasoline and diesel fuel: 4.0 billion gallons in 2006, increasing to 36 billion gallons FY2016, but the emissions (EPA maintains a environmental and community organizations, and state program is stil list of verified retrofit and local officials to reduce diesel emissions. States are active and receiving technologies and emerging al ocated funds for their clean diesel programs through funding) technologies at the Diesel Emission Reduction Act (DERA). http://www.epa.gov/cleandiesel/) Renewable Fuel Mandated use of renewable fuel in gasoline and diesel N/A None Biofuels (specific Standard (RFS) fuel: 4.0 bil ion gal ons in 2006, increasing to 36 bil ion requirements for advanced gal ons in 2022. There are specific submandates for biofuels, cel ulosic fuels, in 2022. There are specific submandates for advanced biofuels (fuels other than corn-based ethanol), cellulosic biofuels, and biomass-based diesel cel ulosic biofuels, and biomass-based diesel fuels. fuels) Greenhouse gas emission reduction requirements apply to al to all advanced biofuels and to conventional biofuels from refineries refineries built after 2007. Department built after 2007.

N/A

None

Biofuels (specific requirements for advanced biofuels, cellulosic fuels, and biomass-based diesel fuels)

Department of Agriculture

Bioenergy Program for Advanced Biofuels

To support and ensure an expanding production of advanced biofuels by providing payments to eligible advanced biofuel producers

Mandatory funding: $7 million for each of FY2019-FY2023 of Agriculture Bioenergy Program To support and ensure an expanding production of Mandatory funding: $7 mil ion Authorized through Advanced biofuels for Advanced Biofuels advanced biofuels by providing payments to eligible for each of FY2019-FY2023 FY2023 advanced biofuel producers. was authorized to remain available until expended

Discretionary funding of $20 mil ion annual y for FY2019-FY2023 Biomass Crop The Biomass Crop Assistance Program (BCAP) provides The 2018 farm bil provided Authorized through Feedstocks for the Assistance Program financial assistance to support the production of eligible no mandatory funding. FY2023 production of advanced (BCAP) biomass crops on land within approved BCAP project Discretionary funding of $25 biofuels areas. mil ion annual y for FY2019-FY2023 CRS-34 FY2021 Appropriation or JCT Estimated Eligible Fuels or Program Description Expenditure Expiration Date Technologies Biomass Research and Provides competitive funding of $20 million annually for FY2019-FY2023

Authorized through FY2023

Advanced biofuels

Biomass Crop Assistance Program (BCAP)

The Biomass Crop Assistance Program (BCAP) provides financial assistance to support the production of eligible biomass crops on land within approved BCAP project areas.

The 2018 farm bill provided no mandatory funding.

Discretionary funding of $25 million annually for FY2019-FY2023

Authorized through FY2023

Feedstocks for the production of advanced biofuels

Biomass Research and Development Initiative (BRDI)

Provides competitive funding in the form of grants, funding in the form of grants, The 2018 farm bil provided Authorized through Biomass energy and Development contracts, and financial assistance for biomass research, development, and demonstration projects.

Discretionary funding of $20 million is authorized to be appropriated annually for research, no mandatory funding. FY2023 biobased products (not Initiative (BRDI) development, and demonstration projects. Discretionary funding of $20 limited to transportation mil ion is authorized to be applications) appropriated annual y for FY2019-FY2023 Biorefinery, The Biorefinery, Renewable Chemical, and Biobased Mandatory CCC funding of Authorized through Advanced biofuels, Renewable Chemical, FY2019-FY2023

Authorized through FY2023

Biomass energy and biobased products (not limited to transportation applications)

Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program

The Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program (formerly the Biorefinery Assistance Program or BAP) assists in the development of new and emerging Product Manufacturing Assistance Program (formerly the $50 mil ion in FY2019 and $25 FY2023 renewable chemicals, and and Biobased Product Biorefinery Assistance Program or BAP) assists in the mil ion in FY2020 (to remain biobased products Manufacturing development of new and emerging technologies for available until expended) was Assistance Program technologies for advanced biofuels, renewable chemicals, and biobased authorized for loan product manufacturing. Loan guarantees are made to guarantees. Discretionary fund the development, construction, and retrofitting of funding of $75 mil ion annual y commercial-scale biorefineries using eligible technology. was authorized for FY2019-FY2023 Rural Energy for REAP promotes energy efficiency and renewable energy Mandatory CCC funds of $50 Authorized with no Rural energy projects America Program for agricultural producers and rural smal businesses mil ion are authorized for expiration broadly (REAP) construction, and retrofitting of commercial-scale biorefineries using eligible technology.

Mandatory CCC funding of $50 million in FY2019 and $25 million in FY2020 (to remain available until expended) was authorized for loan guarantees. Discretionary funding of $75 million annually was authorized for FY2019-FY2023

Authorized through FY2023

Advanced biofuels, renewable chemicals, and biobased products

Rural Energy for America Program (REAP)

REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants for energy audits and through the use of (1) grants for energy audits and FY2014 and each fiscal year renewable energy development assistance, and (2) thereafter. Discretionary and (2) financial assistance for renewable energy systems and energy efficiency improvements.

Mandatory CCC funds of $50 million are authorized for FY2014 and each fiscal year thereafter. $20 million annually funding of $20 mil ion annual y energy efficiency improvements. was authorized to be appropriated for FY2019-FY2023 appropriated for FY2019-FY2023

Authorized with no expiration

Rural energy projects broadly

Fuel

Excise Tax Rate
(¢ per gallon)

Production Incentive

Incentive for Blending and/or Fuel Use

Federal R&D

Other Programs

General

None

None

None

DOE Biomass R&D program—$232 million in FY2015,^a smaller amounts in USDA Biomass R&D^b

Renewable fuel standard (RFS) Renewable fuel standard (RFS) program—$255 mandates biofuel use by gasoline and diesel fuel suppliers

Conventional Ethanol

18.4

None

$0.54 per gallon mil ion in FY2021,a diesel fuel suppliers smal er amounts in Tax credit for instal ation of refueling USDA Biomass R&Db infrastructure for some biofuels Conventional Ethanol 18.4 None $0.54 per gal on [expired] [expired]

Majority of RFS currently met through use of conventional (corn-based) ethanol Biodiesel and Renewable 24.4 $1.00 plus $0.10 for $1.00 per gal on (may not Specific carve-out in RFS for biomass- Diesel smal “agri-biodiesel” claim this and the based diesel producers producer credit) Cel ulosic and Algae- Varies $1.01 per gal on, plus None DOE and USDA Specific carve-out in RFS for cel ulosic Based Biofuels accelerated biomass programs biofuels (but not for algae-based fuels) depreciation of plant focused on cel ulosic property biofuel development Advanced Biofuelsc Varies Varies Varies DOE Biomass USDA Farm Bil programs, including Program Biorefinery Assistance, Bioenergy Program, Biomass use of conventional (corn-based) ethanol

Biodiesel and Renewable Diesel

24.4

$1.00 plus $0.10 for small producers [expired]

$1.00 per gallon (may not claim this and the producer credit)

[expired]

Specific carve-out in RFS for biomass-based diesel

Cellulosic and Algae-Based Biofuels

Varies

$1.01 per gallon, plus accelerated depreciation of plant property

[expired]

None

DOE and USDA biomass programs focused on cellulosic biofuel development

Advanced Biofuels^c

Varies

Varies

Varies

DOE Biomass Program

USDA Farm Bill programs, including Biorefinery Assistance, Bioenergy Program, Biomass Crop Assistance Program (BCAP); specific carve-out in RFS for advanced biofuels Electricityd None None None Hydrogen DOE Hydrogen and Fuel Cel Program (BCAP)

Hydrogen

18.4

None

$0.50 per gallon

[expired]

DOE Hydrogen and Fuel Cell Technologies Program—$150 mil ion in FY2015e Liquefied Hydrogen 18.4 None $0.50 per gal on Tax credit for instal ation of refueling infrastructure CRS-36 link to page 41 link to page 32 Excise Tax Rate Production Incentive for Blending Fuel (¢ per gallon) Incentive and/or Fuel Use Federal R&D Other Programs Gaseous Hydrogend None None None Tax credit for instal ationProgram—$97 million in FY2015^d

Tax credit for installation of refueling infrastructure (expired)

Liquefied Petroleum Gas (LPG)

18.3

None

$0.50 per gallon

[expired]

Tax credit for installation of refueling infrastructure Liquefied Petroleum 18.3 None $0.50 per gal on Tax credit for instal ation of refueling Gas (LPG) infrastructure Natural Gas Compressed Natural Gas 18.3 None $0.50 per gal on Tax credit for instal ation of refueling (CNG) infrastructure Liquefied Natural Gas 24.3 None $0.50 per gal on Tax credit for instal ation of refueling (LNG) infrastructure infrastructure (expired)

Compressed Natural Gas (CNG)

18.3

None

$0.50 per gallon

[expired]

Tax credit for installation of refueling infrastructure (expired)

Liquefied Natural Gas (LNG)

24.3

None

$0.50 per gallon

[expired]

Tax credit for installation of refueling infrastructure (expired)

Vehicle Technology or Fuel Type

Manufacturing Incentive

Purchase Incentive

Federal R&D

Other Programs

Electrified Vehicles

General

$103 million in FY2015 under DOE's Vehicle Technologies Program covers hybrid, battery electric, and plug-in technologies

National Clean Diesel Campaign (NCDC), Clean Cities

Hybrid

ATVM loan program generally applies

Up to $3,400 for passenger vehicles [expired]

Battery Electric

Credits under CAFE program; ATVM loan program generally applies

Up to $7,500 for passenger vehicles;

Up to $2,500 for two- and three-wheeled and low-speed vehicles

[expired];

Up to $4,000 for conversion kits [expired]

Plug-in Hybrid

Credits under CAFE program; ATVM loan program generally applies

Up to $7,500 for passenger vehicles;

Up to $2,500 for two- and three-wheeled and low-speed vehicles

[expired];

Up to $4,000 for conversion kits; [expired]

Ethanol Flexible Fuel Vehicle (FFV)

Credits under CAFE program expire after 2019 model year

None

Limited

National Clean Diesel Campaign (NCDC), Clean Cities

Fuel Cell Vehicles

Credits under CAFE program; ATVM loan program generally applies

Up to $8,000 for passenger vehicles

[expired]

DOE Hydrogen and Fuel Cell Technologies Program—$97 million in FY2015^a

National Clean Diesel Campaign (NCDC), Clean Cities

Natural Gas Vehicles

Limited

Compressed Natural Gas (CNG)

Credits under CAFE program; ATVM loan program generally applies.

Up to $4,000 for passenger vehicles [expired]

National Clean Diesel Campaign (NCDC), Clean Cities.

Liquefied Natural Gas (LNG)

Credits under CAFE program; ATVM loan program generally applies.

Up to $4,000 for passenger vehicles [expired]

National Clean Diesel Campaign (NCDC), Clean Cities.

Administering Agency

Program

Description

Expiration Date

Eligible Fuels or Technologies

Department of Agriculture

Repowering Assistance Program (RAP)

The Repowering Assistance Program (RAP) made payments to eligible biorefineries to encourage the use of renewable biomass as a replacement for fossil fuels used to provide heat for processing or power in the operation of these eligible biorefineries.

Repealed on December 20, 2018

Renewable biomass

Internal Revenue Service

Alternative Fuel Refueling Property Credit

Consumers and businesses who install qualified fueling equipment received a 30% tax credit of up to $30,000 for properties subject to an allowance for depreciation, and $1,000 for all other properties.

December 31, 2017, for hydrogen refueling property; December 31, 2013, for all other fuels

Natural gas, liquefied petroleum gas, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel

Alternative Motor Vehicle Credit

This provision included separate credits for four distinct types of vehicles: using fuel cells, advanced lean burn technologies, qualified hybrid technology, or qualified alternative fuels technologies.

December 31, 2017, for fuel cell vehicles

Hybrid gasoline-electric; diesel; battery-electric; alternative fuel and fuel cell vehicles; and advanced lean-burn technology vehicles

Biodiesel or Renewable Diesel Excise Tax Credit

Biodiesel and renewable diesel blenders (or producers of diesel/biodiesel blends) could claim a tax credit of $1.00 per gallon of fuel used produce a qualified mixture.

December 31, 2017

Biodiesel, renewable diesel, and agri-biodiesel

Biodiesel or Renewable Diesel Income Tax Credit

Producers, blenders, or retailers of biodiesel, renewable diesel, or agri-biodiesel could claim a tax credit of $1.00 per gallon of qualified fuel sold or used by the taxpayer.

December 31, 2017

Biodiesel, renewable diesel, and agri-biodiesel

Incentives for Alternative Fuel and Alternative Fuel Mixtures

The Alternative Fuel Excise Tax Credit was a 50-cent-per gallon excise tax credit for certain alternative fuel used as fuel in a motor vehicle, motor boat, or airplane; a similar provision established a 50-cent-per gallon credit for alternative fuel mixed with a traditional fuel (gasoline, diesel, or kerosene) for use as a fuel.

December 31, 2017

Liquefied petroleum gas, P Series fuels, compressed or liquefied natural gas, liquefied hydrogen, any liquefied fuel derived from coal or peat, liquefied hydrocarbons derived from biomass (does not include ethanol, methanol or biodiesel)

Plug-in Electric Vehicle Credit (Two- or Three-Wheeled)

A maximum credit of $2,500 was allowed for certain types of new qualified plug-in electric vehicles, including vehicles with two or three wheels.

December 31, 2017, for two-wheeled vehicles; December 31, 2013, for three-wheeled vehicles

Two- or three-wheeled plug-in electric vehicles

Second Generation Biofuel Producer Credit (formerly Credit for Production of Cellulosic and Algae-Based Biofuel)

Producers of cellulosic biofuel could claim a tax credit of $1.01 per gallon. For cellulosic ethanol producers, the value of the production tax credit was reduced by the value of the volumetric ethanol excise tax credit and the small ethanol producer credit. The credit was valued at $1.01 cents per gallon (the offsetting tax credits have expired). P.L. 112-240 amended the credit to include noncellulosic fuel produced from algae feedstocks.

December 31, 2017

Cellulosic and algae-based biofuels

Small Agri-Biodiesel Producer Credit

An agri-biodiesel (produced from virgin agricultural products) producer with less than 60 million gallons per year in production capacity could claim a credit of 10 cents per gallon on the first 15 million gallons produced in a year.

December 31, 2017

Agri-biodiesel

Special Depreciation Allowance for Second Generation Biofuel Plant Property

A taxpayer could take a depreciation deduction of 50% of the adjusted basis of a new cellulosic or algae-based biofuel or algae-based biofuel Al owance for plant in the year it was put in service. Any portion of the Second cost financed through tax-exempt bonds was exempted Generation from the depreciation allowanceal owance. Before amendment by P.L. P.L. Biofuel Plant 110-343 the accelerated depreciation applied only to cellulosic Property cel ulosic ethanol plants that break down cellulose cel ulose through enzymatic processes—the amended provision applied to all cellulosic al cel ulosic biofuel plants. Before amendment by P.L. 112-240 the provision did not apply to algae-based biofuel plants: the incentive for algae-based plants applied to property placed in service service in 2013. in 2013.

December 31, 2017

Cellulosic and algae-based biofuels