Alternative Fuel and Advanced Vehicle Technology Incentives: A Summary of Federal Programs

June 12, 2012 – September 13, 2021 R42566

Alternative Fuel and Advanced Vehicle
September 13, 2021
Technology Incentives: A Summary of
Lynn J. Cunningham
Federal Programs
Senior Research Librarian

A wide array of federal incentives supports the development and deployment of
Bill Canis
alternatives to conventional fuels and engines in transportation. These incentives include Specialist in Industrial
tax deductions and credits for vehicle purchases and the instal ation of refueling
Organization and Business
systems, federal grants for conversion of older vehicles to newer technologies, mandates
for the use of biofuels, and incentives for manufacturers to produce alternative fuel
Melissa N. Diaz
vehicles. The current array of incentives for alternative fuels and related technologies
Analyst in Energy Policy
does not reflect a single, comprehensive strategy, but rather an aggregative approach to a
range of discrete public policy issues, including goals of reducing petroleum
Brent D. Yacobucci
consumption and import dependence, improving environmental quality, expanding
Section Research Manager
domestic manufacturing, and promoting agriculture and rural development.

Alternative fuels programs can be general y classified into seven categories, some of

which overlap: increasing the penetration of electric vehicles (EVs) in the automotive
market; expanding domestic biofuel production and use; establishing other alternative fuels; encouraging the
purchase of nonpetroleum vehicles; reducing fuel consumption and greenhouse gas emissions; supporting U.S.
vehicle manufacturing; and funding U.S. highways.
Current federal programs are administered by five key agencies: Department of the Treasury (Treasury),
Department of Energy (DOE), Department of Transportation (DOT), Environmental Protection Agency (EPA),
and the U.S. Department of Agriculture (USDA). The incentives and programs described in this report are
organized by the responsible agency.
 Treasury (through the Internal Revenue Service, IRS) administers tax credits and deductions for
alternative fuel and advanced technology vehicle purchases, expansion of alternative fuel
refueling infrastructure, and incentives for the production and/or distribution of alternative fuels.
Many of these incentives have expired in recent years.
 DOE (mainly through the Office of Energy Efficiency and Renewable Energy, EERE) administers
research and development (R&D) programs for advanced fuels and transportation technology,
grant programs to deploy alternative fuels and vehicles, and a loan program to promote domestic
manufacturing of high-efficiency vehicles.
 DOT (mainly through the Federal Highway Administration, FHWA, and Federal Transit
Administration, FTA) administers grant programs to deploy “clean fuel” buses and other
alternative fuel vehicles. DOT (through the National Highway Traffic Safety Administration,
NHTSA) also administers federal Corporate Average Fuel Economy (CAFE) standards, which
include incentives for production of alternative fuel vehicles.
 EPA (mainly through the Office of Transportation and Air Quality, OTAQ) administers the
Renewable Fuel Standard, which mandates the use of biofuels in transportation. EPA also
administers grant programs to replace older diesel engines with newer technology.
 USDA (mainly through the Rural Business-Cooperative Service, RBS) administers grant, loan,
and loan guarantee programs to expand agricultural production of biofuel feedstocks, conduct
R&D on biofuels and bioenergy, and establish and expand facilities to produce biofuels,
bioenergy, and bioproducts.
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Introduction
Since the early years of the automobile, petroleum-fueled combustion engines have dominated
the vehicle market. Alternatives, including battery-powered electric vehicles (EVs) and alcohol-
fueled combustion vehicles, have existed since the automobile’s infancy, but their adoption was
limited for a variety of reasons, including abundant, inexpensive gasoline and diesel fuel, a
refueling infrastructure network dedicated to petroleum, and differences in vehicle performance
and capability. Interest in alternatives to petroleum has grown over time, driven by factors such as
concerns over U.S. reliance on imported petroleum, pollutant emissions and subsequent health
effects, and climate change resulting from the use of fossil fuels. Congress has considered and
debated the role of petroleum and other transportation energy sources for decades, and that
discussion continues as the nation considers legislation to address aging infrastructure and
meeting the needs of modern society.
A range of federal incentives support the development and deployment of alternatives to
conventional fuels and engines in transportation. These incentives include tax deductions and
credits for vehicle purchases and the instal ation of refueling infrastructure, federal grants for
conversion of older vehicles to newer technologies, mandates for the use of biofuels, and
incentives for manufacturers to produce alternative fuel vehicles. Some of these incentives have
expired and subsequently been reinstated, in many cases retroactively. Further, in some cases this
retroactive extension has happened multiple times.
Many of the policy choices presented for alternative fuel and advanced vehicle technologies
originated as a response to the nation’s interest in reducing petroleum imports, a goal first
articulated at the time of the two oil embargoes imposed by the Organization of Petroleum
Exporting Countries (OPEC) in the 1970s. While President Richard Nixon is often cited as the
first President to cal for “energy independence,” successive Presidents and Congresses have
made efforts to reduce petroleum import dependence as wel .
However, concern over import dependence among some stakeholders has waned, particularly
since the mid-2000s. Driven largely by the advent of inexpensive dril ing techniques once
considered “unconventional,” domestic crude oil production increased 145% from 2008 and
2020,1 while net U.S. petroleum (crude oil and products) imports peaked in 2005 and became
negative (i.e., net exports) in 2020.2 Since the mid-2000s, other considerations have played a
larger role, including an increasing share of U.S. greenhouse gas (GHG) emissions coming from
transportation—while total U.S. emissions fel 11% from 2005 to 2019, transportation emissions
increased from 27% of the total to 29% (Figure 1). The majority of those transportation
emissions come from the combustion of gasoline and diesel fuel in cars, trucks, buses, and other
automobiles.

1 U.S. Energy Information Administration (EIA), U.S. Field Production of Crude Oil, Washington, DC, July 30, 2021,
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpus1&f=a.
2 EIA, U.S. Net Imports of Crude Oil and Petroleum Products, Washington, DC, July 30, 2021, https://www.eia.gov/
dnav/pet/hist/LeafHandler.ashx?n=PET&s=MT TNTUS2&f=A.
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Figure 1. U.S. Greenhouse Gas Emissions from Transportation and Electric Power
Mil ion Metric Tons Carbon Dioxide Equivalent (MMT CO2 Eq.)

Source: U.S. Environmental Protection Agency (EPA), Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990-
2019, EPA 430-R-21-005, Washington, DC, April 14, 2021, Tables ES-6 and ES-7, https://www.epa.gov/
ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2019.
Notes: In this figure, emissions from electric power for transportation are included in the transportation sector,
as wel as in total electric power emissions. In 2005, electric power contributed 33% of U.S. emissions,
decreasing to 25% in 2019, while transportation emissions increased from 27% to 29% during the same time
frame. Excludes U.S. territories.
Federal incentives to promote alternative fuels and advanced vehicle technologies do not reflect a
single, comprehensive strategy but rather an aggregative approach to a range of discrete public
policy issues, including improving environmental quality, expanding domestic manufacturing,
and promoting agriculture and rural development.
Factors Behind Alternative Fuels and Technologies
Incentives
While a reliance on foreign sources of petroleum was an overriding concern for much of the past
50 years, other factors, such as rural development, promotion of domestic manufacturing, and
environmental concerns, have also shaped congressional interest in alternative fuels and
technologies. A variety of programs affecting the development and commercialization of
alternative fuels and technologies have been proposed and enacted, each with its own benefits and
drawbacks.3 Alternative fuels programs can be general y classified into seven categories, some of
which overlap: increasing the penetration of EVs in the automotive market; expanding domestic
biofuel production and use; establishing other alternative fuels; encouraging the purchase of
nonpetroleum vehicles; reducing fuel consumption and greenhouse gas emissions; supporting
U.S. vehicle manufacturing; and funding U.S. highways.

3 T his report does not evaluate the effectiveness of alternative fuel programs and incentives.
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Expanding Electric Vehicle Use
Many stakeholders see EVs as a key strategy in addressing transportation-related pollutant GHG
emissions. A plug-in battery electric vehicle (BEV) has no direct emissions of conventional
pollutants4 or GHGs.5 The same is true for a plug-in hybrid electric vehicle (PHEV) when
operating in al -electric mode. Sales of plug-in vehicles have increased: in 2015, plug-in vehicles
represented roughly 0.8% of the new passenger vehicle market, and in 2018, that share had
increased to 2.2%.6 However, while infrastructure to recharge plug-in vehicles has grown over the
same time, the number of publicly available charging stations remains smal relative to the
number of retail gasoline stations in the United States.
Developing Domestic Biofuel Production and Use
Biofuels, particularly corn-based ethanol, have been seen as a homegrown alternative to imported
oil. A number of programs were put in place to encourage their domestic development (instead of
importing from other biofuel producers, such as Brazil). To spur establishment of this domestic
industry, Congress has enacted a number of laws, which are beneficial to states that have a large
concentration of corn and soybean growers (corn and soybeans being the raw material feedstocks
in most U.S. biofuels). Many of the incentives for biofuel production have been included in farm-
related legislation and appropriations acts and hence have been administered by the U.S.
Department of Agriculture (USDA), or in tax provisions administered by the Internal Revenue
Service (IRS). Since 2005, petroleum refiners and importers have been required to supply
biofuels as a share of their gasoline and diesel supply.7 This mandate, the Renewable Fuel
Standard (RFS), has been an impetus for expanded production and use of ethanol and other
biofuels. Within and outside of the RFS, specific policies support the development of biodiesel
and other renewable diesel fuels and biofuels produced from cel ulose, farm and municipal waste,
and/or algae. These include specific carve-outs within the RFS mandates and targeted tax credits
for biofuels other than conventional ethanol.
Establishing Other New Alternative Fuels
In addition to biofuels, Congress has sought to spur development of other alternative fuels, such
as hydrogen, liquefied petroleum gas (LPG), compressed natural gas (CNG), and liquefied natural
gas (LNG). Some of these fuels have been supported through tax credits, vehicle purchase
mandates (mainly on federal and state fleets), and R&D programs (e.g., for hydrogen fuel and
fuel cel vehicles).

4 E.g., particulate matter (PM), volatile organic compounds (VOCs), and nitrogen oxides (NOx), which pose direct
health impacts or contribute to the formation of other atmospheric compounds that affect human health or welfare.
5 Often referred to as zero emission vehicles (ZEVs) because of the lack of direct emissions, the use of EVs may still
result in upstream emissions from the production of the vehicle and its components, as well as from the generation of
electricity (if, for example, that electricity comes from fossil fuel combustion). For more information on EVs, see CRS
Report R46231, Electric Vehicles: A Prim er on Technology and Selected Policy Issues, by Melissa N. Diaz. For more
information on EV lifecycle emissions relative to conventional vehicles, see CRS Report R46420, Environm ental
Effects of Battery Electric and Internal Com bustion Engine Vehicles, by Richard K. Lattanzio and Corrie E. Clark .
6 International Energy Agency (IEA), Global EV Outlook 2021, April 2021, https://www.iea.org/reports/global-ev-
outlook-2021.
7 For further discussion, see CRS Report R43325, The Renewable Fuel Standard (RFS): An Overview, by Kelsi
Bracmort .
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Encouraging the Use of Nonpetroleum Vehicles
Congress has enacted laws which seek to boost consumer adoption by providing tax credits for
the purchase of some vehicles that consume far less petroleum than conventional vehicles, or that
do not consume petroleum at al . These tax credit programs general y are limited in duration as a
way to encourage early adopters to take a risk on new kinds of vehicles. The proponents contend
that once a significant number of such new cars and trucks are on the road, additional buyers
would be attracted to them, the increased volume would result in lower prices, and the tax credits
would no longer be needed. Currently, a credit is available for the purchase of plug-in electric
vehicles. Expired credits include incentives for hybrid vehicles, fuel cel vehicles, advanced lean
burn technology vehicles,8 and certain alternative fuel vehicles. Congress has also enacted tax
credits to spur the expansion of infrastructure to fuel such vehicles and to incentivize the sale of
alternative fuels.
Reducing Fuel Consumption and Vehicle Emissions
Several agencies, including the Environmental Protection Agency (EPA) and the Department of
Transportation (DOT), have been mandated by statute to address concerns over fuel consumption
and vehicle emissions through programs for alternative fuels. The most significant and long-
standing program to reduce vehicle fuel consumption is the Corporate Average Fuel Economy
(CAFE) program administered by DOT.9 Under CAFE, each manufacturer’s fleet must meet
specific miles-per-gal on standards for passenger vehicles and light trucks. If a manufacturer fails
to do so, it is subject to financial penalties. Manufacturers can accrue credits toward meeting
CAFE standards for the production and sale of certain types of alternative fuel vehicles. A joint
rulemaking process between DOT and EPA links future CAFE standards with GHG standards
promulgated under EPA’s Clean Air Act authority. DOT also established the Congestion
Mitigation and Air Quality Improvement Program (CMAQ) to fund programs that intended to
reduce emissions in urban areas that exceed certain air quality standards. At EPA, the Diesel
Emission Reduction Act (DERA) was implemented with a goal of reducing diesel emissions by
funding and implementing new technologies. In addition, EPA’s RFS mandates the use of
renewable fuels for transportation.10 Under the RFS, some classes of biofuels must achieve GHG
emission reductions relative to gasoline.
Supporting U.S. Motor Vehicle Manufacturing
The Department of Energy (DOE), in partnership with U.S. automakers, federal labs, and
academic institutions, has funded and overseen research and development programs on alternative
vehicles and vehicle electrification for decades, in particular research focused on how to produce
economical batteries that extend electric vehicle range. These R&D programs were supplemented
in the American Recovery and Reinvestment Act (ARRA; P.L. 111-5) to include grants to U.S.-
based companies for facilities to manufacture advanced battery systems, component
manufacturers, and software designers to boost domestic production and international
competitiveness. The Advanced Technology Vehicles Manufacturing (ATVM) loan program at

8 For the most part, these are advanced diesel vehicles.
9 For further discussion, see CRS Report R45204, Vehicle Fuel Economy and Greenhouse Gas Standards: Frequently
Asked Questions, by Richard K. Lattanzio, Linda T sang, and Bill Canis.
10 For further discussion, see CRS Report R43325, The Renewable Fuel Standard (RFS): An Overview, by Kelsi
Bracmort .
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DOE, established by the Energy Independence and Security Act of 2007 (P.L. 110-140), has
supported manufacturing plant investments to enable the development of technologies to reduce
petroleum consumption, including the manufacture of electric and hybrid vehicles,11 although no
new loans have been approved since 2011.
Highway Funding and Fuels Taxes
As described below (see “Incentives for Alternative Fuel and Alternative Fuel Mixtures”), one of
the earliest fuels-related federal programs is the motor vehicle fuels excise tax first passed in the
Highway Revenue Act of 1956 to fund construction and maintenance of the interstate highway
system. Original y, only gasoline and diesel were taxed, but as newer fuels became available
(such as ethanol and compressed natural gas), they were added to the federal revenue program,
but often at lower tax rates than gasoline or diesel. Lower tax burdens for some fuels or vehicles
may effectively incentivize those choices over conventional options. However, lower tax burdens
for these vehicles and fuels could compromise federal highway revenue. The vehicles responsible
for lower tax revenues include traditional internal combustion engine vehicles with higher
mileage per gal on as wel as new technology electric and hybrid cars.
Structure and Content of the Report
The federal tax incentives and programs discussed in this report aim to support the development
and deployment of alternative fuels. There is no central coordination of how these incentives
interact. In general, they are independently administered by separate federal agencies, including
five agencies: Department of the Treasury, DOE, DOT, EPA, and USDA.
This report focuses strictly on programs that directly support alternative fuels or advanced
vehicles. It does not address more general programs (e.g., general manufacturing loans, rural
development loans), or programs that have been authorized but never funded. The programs are
presented by agency, starting with those that general y address the above factors, followed by
those that are fuel- or technology-specific. Programs that expired or were repealed on or after
December 31, 2017, are included in Appendix A.12 Congress may explore whether to reinstate
these expired programs or establish similar programs.
Appendix B contains four tables:
1. a summary of the programs discussed in the body of the report, listed by agency
(Table B-1);
2. a listing of programs and incentives for alternative fuels, by fuel type (Table B-
2);
3. a listing of programs and incentives for advanced technology vehicles, by vehicle
type (Table B-3); and
4. a listing of recently expired programs by agency (Table B-4).

11 For more information, see CRS Report R42064, The Advanced Technology Vehicles Manufacturing (ATVM) Loan
Program : Status and Issues, by Bill Canis and Brent D. Yacobucci.
12 For a list and description of programs that expired or were repealed before December 31, 2017, please see Version 17
of this report, dated November 20, 2018.
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Current Federal Incentives
Department of the Treasury
Vehicle Incentives
Alternative Motor Vehicle Credit (Fuel Cell Vehicles)13
Administered by
IRS
Authority
Established by the Energy Policy Act of 2005, (P.L. 109-58, §1341(a)). Amended by P.L.
109-135, Title IV, §§ 402(j) and 412(d), P.L. 110-343, Division B, Title II, § 205(b), P.L. 111-
5, Division B, §1141-1144; P.L. 112-240, Title I, § 104(c)(2)(H), and P.L. 113-295, Division
A, Title II, §§ 218(a) and 220(a). The Consolidated Appropriations Act of 2016 (P.L. 114-
113) extended through 2016 (retroactive for 2015) the alternative motor vehicle credit
for qualified fuel cel motor vehicles only; the credit for qualified fuel cel vehicles has
expired and subsequently been extended retroactively on multiple occasions since 2016,
most recently through 2021 by the Consolidated Appropriations Act, 2021 ( P.L. 116-260,
Division EE, Title 1, §142).14
Annual Funding
Joint Committee on Taxation (JCT) estimated budget effect for FY2021: $4 mil ion. JCT
budget effect for FY2021-FY2025: $6 mil ion.15
Termination Date
December 31, 2021, for fuel cel vehicles; expired December 31, 2010, or earlier for al
other vehicles.
Description
Enacted in the Energy Policy Act of 2005, the original provision included separate credits
for four distinct types of vehicles: those using fuel cel s, advanced lean burn technologies,
qualified hybrid technologies, and qualified alternative fuels technologies. Currently, only
qualified fuel cel motor vehicles are eligible for the tax credit.
Qualified Applicant(s)
Taxpayers purchasing a qualified vehicle. For taxpayers who sel vehicles 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
Qualified fuel cel vehicles
Fuel/Technology
For More Information See IRS Form 8910: Alternative Motor Vehicle Credit; Instructions for IRS Form 8910;
IRS Notice 2008-33; and the Alternative Fuels Data Center’s (AFDC’s) entry for the Fuel
Cel Motor Vehicle 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
Plug-In Electric Drive Vehicle Credit16
Administered by
IRS

13 26 U.S.C. §30B.
14 In the past, Congress has acted regularly to extend expired or expiring temporary tax provisions. Collectively, these
temporary tax provisions are often referred to as “tax extenders.”
15 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).
16 26 U.S.C. §30D.
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Authority
Established by the Energy Improvement and Extension Act of 2008, 26 U.S.C. 38(b)(35),
30D, P.L. 110-343, Div. B, Title II, §205(a). The American Recovery and Reinvestment Act
of 2009 (P.L. 111-5, §141) amended Section 30D effective for vehicles acquired after
December 31, 2009.
Annual Funding
JCT estimated tax expenditure for FY2021: $0.6 bil ion; JCT estimated tax expenditure
for FY2020-FY2024: $3.0 bil ion.17
Scheduled
Phased out separately for each automaker when that automaker has sold a total of
Termination
200,000 qualified vehicles.18
Description
Purchasers of plug-in electric vehicles may file to obtain a tax credit of up to $7,500 per
vehicle, depending on battery capacity. The vehicle must be acquired for use or lease and
not for resale. Additional y, the original use of the vehicle must commence with the
taxpayer and the vehicle must be used predominantly in the United States. For purposes
of the 30D credit, a vehicle is not considered acquired prior to the time when title to the
vehicle passes to the taxpayer under state law.
Qualified Applicant(s)
Taxpayers purchasing a qualified vehicle. For taxpayers who sel vehicles 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
Plug-in electric vehicles
Fuel/Technology
For More Information See the IRS web page for the Plug-In Electric Drive Vehicle Credit (IRC 30D); and
AFDC’s web page for the Qualified Plug-In Electric Vehicle (PEV) Tax Credit.
Related CRS Reports
CRS In Focus IF11017, The Plug-In Electric Vehicle Tax Credit, by Mol y F. Sherlock
Plug-In Two-Wheeled Electric Vehicle Credit19
Administered by
IRS
Authority
American Recovery and Reinvestment Act, P.L. 111-5, §1142 amended by the American
Taxpayer Relief Act of 2012 (P.L. 112-240 §403). This temporary credit has expired and
subsequently has been extended retroactively on multiple occasions. The credit lapsed
completely for 2014 (no vehicles qualified). Most recently the credit was extended for
two-wheeled vehicles through 2021 by the Consolidated Appropriations Act, 2021 (P.L.
116-260).
Annual Funding
JCT estimated budget effect for FY2021: Less than $500,000. JCT estimated budget effect
for FY2021-FY2025: $2 mil ion.20
Termination Date
December 31, 2021, for two-wheeled vehicles. Expired December 31, 2013, for three-
wheeled vehicles and December 31, 2011, for low speed two- or three-wheeled vehicles.
Description
Internal Revenue Code Section 30D provided a tax credit for qualified plug-in electric
vehicles. The credit was equal to 10% of the cost of a qualified plug-in electric vehicle and
limited to $2,500. Qualified vehicles included vehicles that have two or three wheels. The
vehicle must have been acquired for use or lease and not for resale. The original use of

17 For JCT tax expenditure estimates, 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).
18 Estimated cumulative sales for selected automakers as of June 2020 were: T esla, 605,373; General Motors, 234,523;
Nissan, 144,913; T oyota Motor Corporation, 127,593; Ford Motor Company, 123,030; BMW Group, 99,481
(EVAdoption.com, “Federal EV T ax Credit Phase Out T racker by Automaker” (EV Sales beginning Jan 1, 2010
through June 2020), 2020 (specific date not listed), https://evadoption.com/ev-sales/federal-ev-tax-credit-phase-out-
tracker-by-automaker/).
19 26 U.S.C. §30D. T his credit formerly applied to both two- and three-wheeled vehicles, as well as low-speed vehicles.
20 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).
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the vehicle had to commence with the taxpayer and the vehicle had to be used
predominantly in the United States.
Qualified Applicant(s)
Taxpayers purchasing a qualified vehicle. For taxpayers who sel vehicles 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
Two-wheeled plug-in electric vehicles
Fuel/Technology
For More Information See IRS Notice 2013-67 and IRS form 8936; and AFDC’s web page for the Qualified Two-
Wheeled Plug-In Electric Drive Motor Vehicle Tax Credit.
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
Idle Reduction Equipment Tax Exemption21
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
N/A22
Scheduled
No expiration date23
Termination
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 of the EPA in consultation with the Secretary of Energy and the Secretary
of Transportation.
Qualified Applicant(s)
Sel ers or users or heavy trucks, trailers, or tractors
Applicable
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 IRS Publication 510; 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’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 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.
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(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 30, 2022, by the Fixing America’s Surface Transportation (FAST) Act (P.L.
114-94).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
Taxes vary by fuel: gasoline, 18.4 cents per gal on; diesel fuel, 24.4 cents per gal on;
biodiesel, 24.4 cents per gal on; ethanol, 18.4 cents per gal on; P-series fuels, 18.4 cents
per gal on; hydrogen (gaseous hydrogen is not subject to the excise tax), 18.4 cents per
gal on equivalent; liquefied petroleum gas (LPG), 18.3 cents per gal on equivalent;
compressed natural gas (CNG), 18.3 cents per gal on equivalent; liquefied natural gas
(LNG), 24.3 cents per gal 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 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).
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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).
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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.
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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.
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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
Department of Energy
Advanced Technology Vehicles Manufacturing Loan Program (ATVM)
Administered by
Loan Programs Office (LPO)
Authority
Authorized by the Energy Independence and Security Act of 2007 §136 (P.L. 110-140),
funded by the Consolidated Security, Disaster Assistance, and Continuing Appropriations
Act (P.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
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 bil ion in revolving loans to qualified automakers for investment in
their manufacturing operations. In FY2008, $7.51 bil ion was appropriated for the direct
loans—$7.5 bil ion for the loan subsidies (available until expended) and $10 mil ion for
administration. Although appropriations are provided annual y for administration,
Congress approved the program loan subsidy authority one time. Currently, loans have
been made to five companies, using $8.4 bil ion of the $25 bil ion loan authority. With
loan repayments, $17.7 bil ion in loan authority is available as of June 2021. No projects
have been funded with ATVM loans since March 2011. 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 financial y eligible for an ATVM loan, an
applicant must be financial 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.
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Applicable
No limitations on specific technologies; rather, limits are stipulated for vehicle emissions
Fuel/Technology
and fuel consumption
For More Information DOE’s LPO website; DOE’s ATVM website; LPO’s Advanced Vehicles Manufacturing
Projects’ website; Advanced Technology Vehicles Manufacturing Fact Sheet; ATVM FAQs;
and the ATVM 1-Page Summary
Related CRS Reports
CRS Report R42064, The Advanced Technology Vehicles Manufacturing (ATVM) Loan Program:
Status and Issues, by Bil Canis and Brent D. Yacobucci
Bioenergy Technologies Office (formerly the Biomass and Biorefinery Systems
R&D Program)
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)
Energy Conservation and Production Act of 1976 (ECPA; P.L. 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)
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)
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)
Food, Conservation, and Energy Act of 2008 (P.L. 110-234)
American Recovery and Reinvestment Act of 2009 (ARRA; 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
$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 commercial y
viable, high-performance biofuels, bioproducts, and biopower made from renewable
biomass resources. Other nontransportation applications for biomass and bioenergy
systems also are studied under this program.
Qualified Applicant(s)
Universities and businesses
Applicable
Biofuels
Fuel/Technology
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For More Information See EERE’s Bioenergy Technologies Office (BTO) website; BTO’s Bioenergy FAQ web
page; DOE’s Bioenergy Technologies Office – Funding Opportunities; and BTO’s Strategic
Plan For a Thriving and Sustainable Bioeconomy.
Related CRS Reports
CRS Report R41440, Biopower: Background and Federal Support, by Kelsi Bracmort; 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
$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 more than 75 Clean Cities coalitions that focus on deployment of alternative and
renewable fuels, idle-reduction measures, fuel economy improvements, emerging
transportation technologies, and new mobility choices. Clean Cities provides technical,
informational, and financial assistance to communities.
Qualified Applicant(s)
Businesses, fuel providers, vehicle fleets, state and local government agencies, and
community organizations, led by nearly 100 Vehicle Technologies Program Clean Cities
coordinators
Applicable
Electricity, natural gas, propane, bio-methane, ethanol, biodiesel, hydrogen
Fuel/Technology
For More Information See DOE’s Clean Cities website; 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 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)
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 and Demonstration Act of 1980 (P.L.
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)
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American Recovery and Reinvestment Act of 2009 (ARRA; 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 to the use of hydrogen and fuel 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 government, national laboratories, 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 Publication & Product Library, including annual progress reports
for the program; DOE’s Hydrogen and Fuel Cel Technologies Office – Funding
Opportunities.
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
Authorized by the Energy Independence and Security Act of 2007 §136 ( P.L. 110-140),
funded by the Consolidated Security, Disaster Assistance, and Continuing Appropriations
Act (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, VTO 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
21st century Truck Partnership.
Qualified Applicant(s)
Universities, vehicle and engine manufacturers, material suppliers, nonprofit technology
organizations, energy suppliers, and national laboratories
Applicable
Advanced batteries, power electronics and electric motors, advanced combustion,
Fuel/Technology
lightweight materials, vehicle-to-grid interaction, and fuel cel and hydrogen technologies
For More Information See EERE’s Vehicle Technology Office website; annual progress reports for the Vehicle
Technologies Office and its six R&D subprograms; 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 Bil Canis and Brent D. Yacobucci
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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
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 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 (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 pol ution reduction
needs.
Qualified Applicant(s)
State departments of transportation and metropolitan planning organizations (MPOs)
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; 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
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Corporate Average Fuel Economy Program Alternative Fuel Vehicle Credits
Administered by
National Highway Traffic Safety Administration (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 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
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 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 and provide flexibility in compliance, automakers may accrue CAFE credits by
sel ing alternative fuel vehicles. For dedicated 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 capable of operating on methanol (at least 85%), ethanol (at
Fuel/Technology
least 85%), natural gas, liquefied petroleum gas, hydrogen, coal-derived liquid fuels,
biological y 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 Asked
Questions, by Richard K. Lattanzio, Linda Tsang, and Bil Canis
Low or No Emission Vehicle Program
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 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 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)
Eligible applicants include direct recipients of FTA grants under the Section 5307
Urbanized Area Formula program, states, and Indian tribes. Except for projects proposed
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by Indian tribes, proposals for funding eligible projects in rural (nonurbanized) areas must
be submitted as part of a consolidated state proposal.
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 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 Act (FAST Act; P.L. 114-94), coordinated by Robert S. Kirk
Environmental Protection Agency
National Clean Diesel Campaign
Administered by
Office of Transportation and Air 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; amended in 2011 by the Diesel Emissions Reduction Act of
2010 (P.L. 111-364), §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 ocated funds for their clean diesel programs through the Diesel Emission Reduction
Act (DERA).
Qualified Applicant(s)
Manufacturers, fleet operators, air quality professionals, environmental and community
organizations, and state and local governments
Applicable
Technologies that significantly reduce emissions (EPA maintains a list of verified retrofit
Fuel/Technology
technologies and emerging technologies at http://www.epa.gov/cleandiesel/verification/
verif-list.htm).
For More Information See EPA’s National Clean Diesel Campaign website.
Related CRS Reports
None
Renewable Fuel Standard
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
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 bil ion gal ons
of renewable fuels in the national transportation fuel supply; this requirement increases
annual y to 36 bil ion gal ons in 2022. The expanded RFS also specifical y mandates the use
of “advanced biofuels”—fuels produced from noncorn feedstocks and with 50% lower
lifecycle greenhouse gas emissions than petroleum fuel—starting in 2009. Of the 36
bil ion gal ons required in 2022, at least 21 bil ion gal ons must be advanced biofuels.

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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 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 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 fal ing below the statutory target by a large margin since 2015.
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 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, CRS Recorded Event WRE00231, An Overview of the Renewable Fuel Standard
(RFS), by Kelsi Bracmort and Brent D. 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
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
Mandatory: The 2018 farm bil (P.L. 115-334) 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
annual 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 mil ion
gal ons a year. The 2018 farm 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.
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biofuels derived from 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 advanced biofuel producers for the production of fuel
Fuel/Technology
derived from renewable biomass, other than corn kernel starch, to include biofuel
derived from 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 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 cel ulosic biomass.
For More Information See the USDA program website and program number 10.867 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
Biomass Crop Assistance Program (BCAP; §9011)46
Administered by
Farm Service 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
Mandatory: The 2018 farm bil provided no mandatory funding. The 2014 farm bil
authorized mandatory CCC funding of $25 mil ion annual y from FY2014 through
FY2018.
Discretionary: Discretionary funding of $25 mil ion annual y for FY2019-FY2023 is
authorized to be appropriated. No funding was appropriated through FY2021.
Scheduled
Authorized through FY2023
Termination
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 in statute.
Fuel/Technology
Eligible material for a matching payment is renewable biomass with several important
exclusions, including harvested grains, fiber, or other commodities eligible to receive
payments under the Commodity Title (Title I) of the 2014 farm 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 bil includes algae as an eligible material; algae was previously an eligible
crop but not an eligible material. 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 bil and plants that are invasive or noxious, or have the potential to become
invasive or noxious.

46 7 U.S.C. §8111.
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For More Information See program number 10.087 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; and CRS Report R41296, Biomass Crop Assistance
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 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
Mandatory: The 2018 farm bil provided no mandatory funding. The 2014 farm bil
authorized mandatory funding (to remain available until expended) of $3 mil ion for four
fiscal years—FY2014-FY2017—with baseline funding authority expiring after FY2017.
Discretionary: Discretionary funding of $20 mil ion is authorized to be appropriated
annual y for FY2019-FY2023. However, no discretionary funding was appropriated for
BRDI through FY2021.
Scheduled
Authorized through FY2023
Termination
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)
Institutions of higher learning (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, and Biobased Product Manufacturing
Assistance Program (formerly the Biorefinery Assistance Program)48
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 Act of 2018 (P.L. 115-334).
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. However, $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
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Discretionary: Funds of $75 mil ion annual y are authorized to be appropriated for
FY2014-FY2018 and FY2019-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 in the development of new and emerging
technologies for advanced biofuels, renewable chemicals, and biobased product
manufacturing so as to increase the energy independence of the United States; promote
resource conservation, public health, and the environment; diversify 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 mil ion.
Qualified Applicant(s)
Individuals, entities, Indian tribes, state or local governments, corporations, farm
cooperatives, 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
Technologies being adopted in a viable commercial-scale operation of a biorefinery that
Fuel/Technology
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 See the USDA program website; and program number 10.865 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
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 Act of 2018 (P.L. 115-334).
Annual Funding
Mandatory: The 2018 farm bil retains mandatory funding of $50 mil ion for FY2014 and
each fiscal year thereafter (therefore REAP’s mandatory funding authority does not
expire with the 2014 farm bil ). Mandatory funds are to remain available until expended.
Discretionary: The 2018 farm bil also retains authorized annual discretionary funding of
$20 mil ion to be appropriated for FY2019-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.”

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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
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Appendix A. Selected Expired or Repealed
Programs
Repowering Assistance Program53
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
Mandatory: Under the 2014 farm bil , mandatory CCC funding of $12 mil ion for FY2014
was authorized, to remain available until expended (i.e., no new baseline funding after
FY2014).
Discretionary: The 2014 farm bil authorized discretionary funding of $10 mil ion annual y
to be appropriated for FY2014-FY2018.
Termination Date
Repealed on December 20, 2018
Description
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. Not more
than 5% of the funds was to be made available to eligible producers with a refining
capacity exceeding 150 mil ion gal ons of advanced biofuel per year.
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 See the USDA program website; and program number 10.866 on the beta.SAM.gov
website.
Related CRS Reports
CRS Report R43416, Energy Provisions in the 2014 Farm 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
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 2020 by the
Further Consolidated Appropriations Act, 2020 (P.L. 116-94).
Annual Funding
JCT estimated tax expenditure for FY2020-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).
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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
provision did not apply to algae-based biofuel plants: the incentive for algae-based plants
applies to property placed in service after January 2, 2013.
Qualified Applicant(s)
Any cel ulosic biofuel plant acquired after December 20, 2006, and placed in service
before January 1, 2021, and any algae-based biofuel plant placed in service between
January 2, 2013, and December 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 of House-Senate Agreement on Tax, Trade, Health,
and Other Provisions, 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’s Potential as a Transportation Biofuel, by Kelsi Bracmort; and
CRS Report R44990, Energy Tax Provisions That Expired in 2017 (“Tax Extenders”), by Mol y
F. Sherlock, Donald J. Marples, and Margot L. Crandal -Hol ick
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Appendix B. Summary Tables
Appendix B contains four tables
 Table B-1 provides a summary of the programs discussed in the body of the
report, listed by agency;
 Table B-2 lists programs and incentives for alternative fuels, by fuel type;
 Table B-3 lists programs and incentives for advanced technology vehicles, by
vehicle type; and
 Table B-4 lists programs by agency that have expired or were repealed since
December 31, 2017.

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Table B-1. Federal Programs by Agency
FY2021 Appropriation
or JCT Estimated
Eligible Fuels or
Program
Description
Expenditure
Expiration Date
Technologies
Internal Revenue Service
Vehicle Incentives
Alternative Motor
This provision included separate credits for four distinct
$4 mil ion
December 31, 2021, Hybrid gasoline-electric;
Vehicle Credit (Fuel
types of vehicles: using fuel cel s, advanced lean burn
for fuel cel vehicles
diesel; battery-electric;
Cel Vehicles)
technologies, qualified hybrid technology, or qualified
alternative fuel and fuel cel
alternative fuels technologies.
vehicles; and advanced
lean-burn technology
vehicles
Plug-in Electric Drive
Purchasers of plug-in electric vehicles may file to obtain a
$0.6 bil ion
The credit is phased Plug-in electric vehicles
Vehicle Credit
tax credit of up to $7,500 per vehicle, depending on
out when an
battery capacity.
automaker has sold
a total of 200,000
qualified vehicles
Plug-in Electric
A maximum credit of $2,500 was al owed for certain
Less than $500,000
December 31, 2021, Two- or three-wheeled
Vehicle Credit (Two-
types of new qualified plug-in electric vehicles, including
for two-wheeled
plug-in electric vehicles
or Three-Wheeled)
vehicles with two or three wheels.
vehicles; December
31, 2013, for three-
wheeled vehicles
Idle Reduction
The Idle Reduction Equipment Tax Exemption exempts
JCT has not estimated this
None
Devices that have been
Equipment Tax
certain vehicle idling reduction devices from the federal
expenditure
identified by the
Exemption
excise tax on heavy trucks and trailers.
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 are temporarily
parked or remain
stationary

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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
The motor fuels taxes that were included in the Highway
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
equivalent; liquefied natural gas (LNG), 24.3 cents per
gal on equivalent. Alternative fuel tax credits are or were
available against many of these (see “Incentives for
Alternative Fuel and Alternative Fuel Mixtures” and
“Biodiesel or Renewable Diesel Mixture Tax Credit”).
Electricity for electric vehicles is untaxed. These
exemptions/credits effectively incentivize selected
fuels/vehicles 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 components. It was first funded in
emissions and fuel
2008 to provide $25 bil ion in revolving loans to qualified
consumption, and facilities
automakers for investment in their manufacturing
must be located in the
operations. In FY2008, $7.51 bil ion was appropriated for
United States. There must
the direct loans—$7.5 bil ion for the loan subsidies
be a reasonable prospect
(available until expended) and $10 mil ion for
for repayment.
administration. As of August 2021, loans have been made
to five companies; 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 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
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 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 cel s. It includes a research and
development (R&D) effort focused on advancing the
performance and reducing the cost of these technologies.
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
may reduce the emissions of transportation-related
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
that program for the production and sale of alternative
natural gas, liquefied
Alternative Fuel
fuel vehicles. For dedicated vehicles (i.e., vehicles that run
petroleum gas, hydrogen,
Vehicles
solely on alternative fuel), credits are unlimited. For dual
coal-derived liquid fuels,
fueled vehicles (i.e., that may run on conventional or
biological y derived fuels,
alternative fuel), credits 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
funding to state and local governmental authorities for
FY2021. In the Consolidated
include buses and fueling
the purchase or lease of zero-emission and low-emission
Appropriations Act, 2021 (P.L.
infrastructure for vehicles
transit buses as wel as acquisition, construction, and
116-260) an additional $125
powered by electricity,
leasing of required supporting facilities. 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 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 by working with
authorized through
that significantly reduce
manufacturers, fleet operators, air quality professionals,
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,
advanced biofuels (fuels other than corn-based ethanol),
and biomass-based diesel
cel ulosic biofuels, and biomass-based diesel fuels.
fuels)
Greenhouse gas emission reduction requirements apply
to al advanced biofuels and to conventional biofuels from
refineries built after 2007.
Department 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 in the form of grants,
The 2018 farm bil provided
Authorized through
Biomass energy and
Development
contracts, and financial assistance for biomass 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,
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
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)
through the use of (1) grants for energy audits and
FY2014 and each fiscal year
renewable energy development assistance, and (2)
thereafter. Discretionary
financial assistance for renewable energy systems and
funding of $20 mil ion annual y
energy efficiency improvements.
was authorized to be
appropriated for FY2019-
FY2023
Source: CRS analysis.

Note: N/A = not applicable.
a. The motor fuels excise tax generates revenue (as opposed to being a tax expenditure). CBO projects revenue of $33.5 bil ion in FY2021 from al motor fuels
(conventional and alternative).

CRS-35

link to page 41 link to page 41 link to page 41 link to page 41 link to page 41
Table B-2. Federal Taxes and Incentives for Alternative Fuels
Excise Tax Rate
Production
Incentive for Blending
Fuel
(¢ per gallon)
Incentive
and/or Fuel Use
Federal R&D
Other Programs
Biofuels

General
None
None
None
DOE Biomass R&D
Renewable fuel standard (RFS)
program—$255
mandates biofuel use by gasoline and
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]

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 Crop Assistance
Program (BCAP); specific carve-out in
RFS for advanced biofuels
Electricityd
None
None
None

Hydrogen

DOE Hydrogen and

Fuel Cel 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 ation 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
Source: CRS analysis.
Notes: For more details, see Table B-1. Italics indicate expired provisions.
a. Program not exclusively for transportation biofuels—also covers bioenergy (i.e., stationary sources) and bioproducts.
b. Program not exclusively for transportation biofuels—also covers bioenergy (i.e., stationary sources) and bioproducts.
c. This category general y encompasses others, including cel ulosic biofuels, algae-based biofuels, and biomass-based diesel fuels.
d. Electricity and gaseous hydrogen are not subject to the excise tax, nor are they subject to the excise tax credit.
e. Program not exclusively focused on transportation.
CRS-37

link to page 43
Table B-3. Federal Incentives for Alternative Fuel and Advanced Technology Vehicles
Vehicle Technology or Fuel
Manufacturing
Type
Incentive
Purchase Incentive
Federal R&D
Other Programs
Electrified Vehicles

General

$178.7 mil ion in FY2021 under National Clean Diesel
DOE’s Vehicle Technologies
Campaign (NCDC), Clean
Program covers battery and
Cities
electrification technologies
Hybrid
ATVM loan program
Up to $3,400 for passenger vehicles

general y applies
[expired]
Battery Electric
Credits under CAFE
Up to $7,500 for passenger vehicles;

program; ATVM loan
Up to $2,500 for two- and three-
program general y applies
wheeled and low-speed vehicles
Up to $4,000 for conversion kits
[expired]
Plug-in Hybrid
Credits under CAFE
Up to $7,500 for passenger vehicles;

program; ATVM loan
Up to $2,500 for two- and three-
program general y applies
wheeled and low-speed vehicles
Up to $4,000 for conversion kits;
[expired]
Ethanol Flexible Fuel
Credits under CAFE
None
Limited
National Clean Diesel
Vehicle (FFV)
program expire after
Campaign (NCDC), Clean
2019 model year
Cities
Fuel Cell Vehicles
Credits under CAFE
Up to $8,000 for passenger vehicles
DOE Hydrogen and Fuel Cel
National Clean Diesel
program; ATVM loan
[expired]
Technologies Program—$150
Campaign (NCDC), Clean
program general y applies
mil ion in FY2021a
Cities
Natural Gas Vehicles

Limited

Compressed Natural Gas
Credits under CAFE
Up to $4,000 for passenger vehicles

National Clean Diesel
(CNG)
program; ATVM loan
[expired]
Campaign (NCDC), Clean
program general y applies
Cities
Liquefied Natural Gas (LNG)
Credits under CAFE
Up to $4,000 for passenger vehicles

National Clean Diesel
program; ATVM loan
[expired]
Campaign (NCDC), Clean
program general y applies
Cities
Source: CRS analysis.
CRS-38

link to page 32
Notes: For more details, see Table B-1. Italics indicate expired provisions.
a. Program not exclusively focused on transportation.
Table B-4. Selected Expired/Repealed Programs by Agency
Administering
Agency
Program
Description
Expiration Date
Eligible Fuels or Technologies
Department of
Repowering
The Repowering Assistance Program (RAP) made payments
Repealed on
Renewable biomass

Agriculture
Assistance
to eligible biorefineries to encourage the use of renewable
December 20, 2018
Program (RAP)
biomass as a replacement for fossil fuels used to provide
heat for processing or power in the operation of these
eligible biorefineries.
Internal
Special
A taxpayer could take a depreciation deduction of 50% of
December 31, 2017
Cel ulosic and algae-based biofuels
Revenue Service
Depreciation
the adjusted basis of a new cel ulosic 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 al owance. Before amendment by P.L.
Biofuel Plant
110-343 the accelerated depreciation applied only to
Property
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 provision did not apply to algae-based biofuel plants: the
incentive for algae-based plants applied to property placed in
service in 2013.
Source: CRS analysis.

CRS-39

Alternative Fuel and Advanced Vehicle Technology Incentives

Author Information

Lynn J. Cunningham
Melissa N. Diaz
Senior Research Librarian
Analyst in Energy Policy

Bill Canis
Brent D. Yacobucci
Specialist in Industrial Organization and Business
Section Research Manager

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
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Congressional Research Service
R42566 · VERSION 20 · UPDATED
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