Introduction

Congress maintains a continuing interest in reducing petroleum-based fuel consumption and greenhouse gas (GHG) emissions in transportation. In 2019, the transportation sector—mostly motor vehicles—contributed 29% of total U.S. GHG emissions,¹ using primarily petroleum-based fuels, which made up 91% of total fuel consumption.² To achieve petroleum consumption and GHG emission reduction goals, Members of Congress introduced numerous legislative proposals that would have promoted the deployment and use of alternative fuels (AFs)—such as biofuels, hydrogen, and electricity—and alternative fuel motor vehicle (AFV) technology—such as flex-fuel, fuel-cell, and electric vehicles (see "Alternative Fuels and Alternative Fuel Vehicles"). The use of alternative fuels and vehicles has the potential to reduce the transportation sector's overall emissions of GHGs, particulate matter, and other air pollutants, by reducing the consumption of petroleum fuels. The potential for any such reduction varies depending on the fuels and vehicles that gain in widespread use compared to their conventional counterparts.³

Legislative proposals rely on various approaches to support different aspects of the transportation sector. Some proposals offer tax incentives for the purchase of AFs or AFVs; offer grants or loans for transition of fleets to AFVs; authorize funding for research, design, development, and demonstration (RDD&D) to improve existing technologies and develop new technologies; and/or establish national policies or standards for emissions or vehicle fleet composition. Some of these proposals also seek to incentivize the use of AFs in different classes of vehicles, from light-duty to medium- and heavy-duty.⁴ Some proposals would extend or expand previously established programs or policies, while others propose new ones.

Some of these proposals were enacted during the 116^th Congress, including provisions to extend existing tax incentives, grant and loan programs, and research and development activities.⁵

This report examines provisions within legislative proposals that would support the broader deployment of alternative fuels and alternative fuel vehicles; a discussion of relevant enacted legislation, including definitions of alternative fuels and vehicles found in statute; identification of major barriers and obstacles to increasing deployment of AFs and AFVs; and an analysis of legislation introduced in the 116^th Congress.

Alternative Fuels and Alternative Fuel Vehicles

CRS identified legislation supporting alternative fuels as defined in the Energy Policy Act of 1992 (EPAct 1992; P.L. 102-486) and subsequent amendments; such fuels are "substantially not petroleum and would yield substantial energy security benefits and substantial environmental benefits."⁶ Different policy approaches may be more effective in incentivizing particular types of fuels or technologies. While the goal of AF policies is generally to reduce the use of petroleum through substitution, many alternative fuels are derived in part from petroleum (e.g., fuel blends) or may be produced through the combustion of fossil fuels (e.g., electricity and hydrogen generated from coal or natural gas sources).

Figure 1. Bills Introduced in the 116th Congress by Technology Type Number of bills that would have promoted each technology type

Source: CRS from Congress.gov. Notes: Provisions were categorized based on the vehicle or fuel specifically referenced within the text of the legislation. Some bills included provisions that would have promoted more than one type of fuel or vehicle technology and are counted once for each technology type that is applicable. Includes bills that were enacted and not enacted.

Figure 1 summarizes the number of bills introduced in the 116^th Congress that would have implemented policies promoting the different types of alternative fuel or vehicle technology. Ten bills included provisions that would have promoted alternative fuels, 10 bills had provisions to promote alternative fuel vehicles broadly, 16 bills included policies to promote zero-emission vehicles (ZEVs) broadly, 26 bills included provisions with electric vehicle-specific policies and programs, and 17 bills had provisions to promote fuel cell vehicles. Following are descriptions for AF and AFV categories referenced in these bills.

Alternative Fuels and Alternative Fuel Vehicles. AFs and AFVs generally include all fuels and vehicles described in this section. Statute and regulation also include coal-derived liquid fuels, liquid fuel blends derived from renewable sources, and other fuels determined by the Department of Energy to be "substantially not petroleum" (e.g., P-series fuels)⁷ and that would benefit the general aims of energy security and environmental protection.⁸ Depending on the program, AFVs may also include certain hybrid or dual-fuel vehicles not included in other categories, such as hybrid-electric vehicles.⁹

Biofuels and Conventional or Flex-Fuel Vehicles. Ethanol, other alcohols, and biodiesel are derived from biological materials and blended with petroleum-based fuels for use in conventional or internal combustion engine vehicles (ICEVs). E10, a common form of ethanol in transportation fuels, is a blend of 10% ethanol by volume with gasoline for use in light-duty ICEVs.¹⁰ In the United States, ethanol is primarily derived from corn grain but may also be derived from other sources such as sugar cane and wood chips.

E85 contains at least 85% ethanol by volume blended with gasoline or other fuels for use in flex-fuel vehicles (FFV).¹¹ FFVs have an internal combustion engine and offer the flexibility of using any combination of gasoline and/or E85.

B100, or "neat biodiesel," is 100% biodiesel, a liquid fuel manufactured from vegetable oils or animal fats.¹² B100 is then blended with conventional diesel for use in diesel engines, often at the 5% (B5) or 20% (B20) level.

Electricity and Plug-in Electric Vehicles. Electricity is generated from a variety of sources depending on geographic location of power plants, time of day, and season. It is used to charge batteries stored onboard light-, medium-, and heavy-duty plug-in electric-vehicles (PEVs),¹³ which may be dedicated (i.e., battery-electric vehicles) or hybrid (i.e., plug-in hybrid-electric vehicles).¹⁴

Hydrogen and Fuel Cell Vehicles. Hydrogen is extracted from water and other sources (e.g., natural gas, coal, and biomass), commonly through the processes of steam reforming—a process that combines steam and natural gas—or electrolysis—a process that splits water molecules into hydrogen and oxygen.¹⁵ Hydrogen is then used to power fuel cell vehicles (FCVs), where hydrogen stored in the vehicle is used to generate electricity for operating light-, medium-, and heavy-duty vehicles.¹⁶

Natural Gas and Natural Gas Vehicles. Natural gas is extracted from geologic formations, and is stored for use in transportation as compressed natural gas (CNG) or liquefied natural gas (LNG).¹⁷ CNG, stored in a gaseous state, is suitable for use in light-, medium-, and heavy-duty vehicles. LNG, cooled and stored as a liquid, is suitable for use in medium- and heavy-duty vehicles. CNG and LNG vehicles may have a dedicated configuration or hybrid configuration for use with both natural gas and conventional fuel.

Propane and Propane Vehicles. Propane, or liquefied petroleum gas (LPG), is a byproduct of the production of natural gas or crude oil.¹⁸ LPG may be used in dedicated or dual-fuel vehicles with light-, medium-, or heavy-duty applications.

Zero-Emission Vehicles. This term is used to describe vehicles that emit zero GHGs while being operated. Typically, ZEVs include fuel cell vehicles and battery-electric vehicles, but may also include any other vehicle that similarly emits zero GHGs from the vehicle.¹⁹

Statutory Foundation of Federal Policies for Alternative Fuels and Vehicles

Federal legislation and regulation enacted since the 1970s form the foundation for AF and AFV policies and programs. These laws and regulations established agency authorities, energy goals, and efficiency and emissions standards; defined alternative fuels and vehicles; and enacted federal programs.²⁰

Fuel Economy and Emissions Standards

The Clean Air Act of 1970 (CAA; P.L. 91-604) established initial emissions standards for vehicles and provided the initial authority for the U.S. Environmental Protection Agency (EPA) to regulate emissions standards.²¹ The Energy Policy and Conservation Act (EPCA; P.L. 94-163), enacted in 1975, established Corporate Average Fuel Economy (CAFE) standards for new light-duty vehicles (e.g., passenger vehicles and light trucks) and provided the initial authority for the National Highway Traffic Safety Administration (NHTSA) within the Department of Transportation (DOT) to regulate CAFE standards. Amendments to EPCA in the Energy Independence and Security Act of 2007 (EISA; P.L. 110-140) established a schedule for increasing fuel economy for motor vehicles, mandating at least 35 miles per gallon for model year 2020 compared to about 26.6 miles per gallon in model year 2007.²²

Incentives for Manufacturers and Producers

In 1988, the Alternative Motor Fuels Act (P.L. 100-494) established an incentive for vehicle manufacturers to meet CAFE standards by producing vehicles that could operate on alternative fuels. At the time, these included ethanol, methanol, and natural gas, which were estimated to produce less carbon dioxide than similar quantities of gasoline or diesel.²³ Alternative fuels were later defined in the Energy Policy Act of 1992 (EPAct 1992; P.L. 102-486), forming part of the basis for defining alternative fuels used by subsequent laws, regulations, and programs. That law also established AFV purchase requirements for federal, state, and certain private vehicle fleets.

The Energy Policy Act of 2005 (EPAct 2005; P.L. 109-58) established new programs and new authorities to promote the production and use of alternative fuels and vehicles. For example, the statute established the Renewable Fuel Standard, which mandated a certain volume of renewable fuel (e.g., ethanol) be blended into transportation fuel nationwide.²⁴ This mandate was expanded in 2007 by EISA.

Three fuel-related incentives have been established to promote the production of certain biofuels or renewable fuels for use as fuels or to produce fuel blends with gasoline or diesel. These tax incentives have been extended in one- or two-year increments, in some cases retroactively.

EPAct 2005 included a tax credit for biodiesel and renewable diesel mixtures.²⁵ The tax credit may be claimed by producers or blenders for each gallon of biodiesel or renewable diesel used to produce a biodiesel mixture. This tax credit has been extended through 2022.²⁶

The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA; P.L. 109-59) established tax credits for alternative fuels and alternative fuel mixtures.²⁷ The tax credit may be claimed by producers for each gallon of certain alternative fuels used as a fuel or suppliers for each gallon of alternative fuels blended with gasoline or diesel for use as a fuel. These tax credits were extended through December 31, 2021.²⁸

The second generation biofuel producer credit²⁹ is designed to spur production of second generation biofuels—liquid fuels produced from renewable biological materials. The tax credit may be claimed by the producer for each gallon of fuel sold for specified uses. This tax credit was extended through January 1, 2022.

The federal government also has implemented other policies to promote adoption of alternative fuel technologies, which are periodically reauthorized by Congress. These include the EPA Diesel Emissions Reduction program and private activity bonds issued by the Department of Transportation.³⁰

Incentives for Vehicle Purchasers

Tax incentives have been implemented to incentivize consumer purchases of certain AFVs.

Buyers of fuel cell vehicles (FCVs) may be eligible for a tax credit of up to $8,000 (26 U.S.C. §30B), for FCVs purchased by December 31, 2021.³¹ Eligibility for FCVs originated with the tax credit for alternative motor vehicles, enacted in 2005,³² along with advanced lean-burn technology vehicles, hybrid vehicles, and other alternative fuel vehicles, with distinct limitations for each vehicle type.³³ Vehicles other than FCVs must have been purchased by December 31, 2010, in order to qualify for the tax credit. In addition, for hybrid vehicles and advanced lean-burn technology vehicles, the credit was capped at 60,000 vehicles per manufacturer, after which the credit phased out.³⁴

Buyers of PEVs may be eligible for a tax credit up to $7,500 (26 U.S.C. §30D). The tax credit for new qualified plug-in electric drive motor vehicles was enacted in 2008, designed as a short-term subsidy to introduce consumers to new technology.³⁵ The full credit is capped at 200,000 per vehicle manufacturer, after which the credit is phased out.³⁶ As of January 2020, Tesla and General Motors surpassed this cap and the tax credit is not currently available for purchasers of those vehicles.

Other Policies and Programs

The federal government also supports research, design, development, and demonstration projects for alternative fuel technologies. Congress also has periodically reauthorized a number of funding programs. These projects and programs are funded through the annual appropriations process. One such program is the Department of Energy's Clean Cities program, which supports local efforts to reduce petroleum use in transportation, including deployment of alternative fuels and vehicles.³⁷

For a full list of existing programs, see CRS Report R42566, Alternative Fuel and Advanced Vehicle Technology Incentives: A Summary of Federal Programs, by Lynn J. Cunningham et al.

Discussion of Major Barriers to Adoption

New technologies typically face a number of barriers to industrial and consumer adoption. In the United States, ICEVs and petroleum fuels benefit from a history as the dominant technology in road transportation that has facilitated, among other things, familiarity among consumers and vast infrastructure for production, distribution, and fueling. As a result, broad deployment and adoption of alternative fuels and vehicles face an incumbent technology with a variety of advantages. Some policymakers have sought to address the commercialization barriers faced by AFs and AFVs through legislation and policy. Some of these efforts were undertaken in the 116^th Congress. The following sections describe some of these barriers.

Vehicle Cost

Vehicle cost comprises the upfront cost to purchase a new or used vehicle (to be paid at the point of sale or via payment plan) and the costs of use and maintenance over its lifetime (e.g., refueling, maintenance, periodic parts replacement). While a higher upfront cost for some AFVs may be offset by lower fuel costs over the lifetime of the vehicle depending on the comparative price of petroleum, higher upfront costs may impose a barrier to consumer acceptance. Due to existing consumer tax credits that tend to target PEVs, greater focus on PEVs in proposed legislation, and limited availability of FCVs nationwide, this section focuses more on PEVs.

In the case of new electric vehicle purchases, one study determined the price at which respondents would consider purchasing an electric vehicle to be $35,765 in the United States (and $36,000 on average globally).³⁸ For comparison, the average price of a new car in the United States was $25,826 in 2019,³⁹ and many smaller new ICEVs retail for under $20,000. Tax incentives can help overcome the higher upfront cost of AFVs by lowering the cost to consumers; however, the benefit of such tax incentives may only be accessible to consumers with a tax liability to apply the credit since it is not a refundable tax credit. For the 2018 tax year, 80% of those claiming the tax credit for new qualified plug-in electric vehicles had an adjusted gross income of $100,000 or more.⁴⁰ Manufacturers may also increase prices when consumers receive tax credits, such that the benefits of the tax credit are shared between the buyer and the seller.⁴¹ Grants and loans for state and local fleet managers support fleet acquisition of AFVs, but some federal programs are competitive and funding may be limited. Once purchased, the costs of use and maintenance depend on individual driving patterns and local costs of fuel (e.g., liquid fuels, electricity). Annual fuel cost data suggest that PEVs—ranging from $450 to $2,450 in annual fuel costs—may be cheaper to own than gasoline vehicles—ranging from $700 to $4,900.⁴² Electric vehicles may also require less maintenance due to fewer moving parts in the electric drivetrain and fewer lubricants and other fuels.⁴³

Vehicle Performance

Driving range between refueling stops and the convenience of refueling are additional consumer concerns, especially with respect to PEVs,⁴⁴ which typically have shorter driving ranges than ICEVs.⁴⁵ One survey reported that 60% of respondents made at least one driving trip longer than 200 miles without making stops, which may inform consumer expectations for AFVs.⁴⁶ While some RDD&D is focused on increasing driving ranges, some studies suggest that driving ranges offered by PEVs are sufficient to meet the average daily driving needs of most consumers in the United States.⁴⁷

Fuel cell and flex-fuel vehicles have a refueling time comparable to ICEVs, which can take several minutes to fill up an empty tank. Meanwhile, a PEV may take less than an hour or more than 12 hours depending on the battery capacity and type of charging equipment.⁴⁸

In addition to technology improvements, investment in expansion of existing AF refueling infrastructure may address these concerns. Access to numerous reliable refueling stations may mitigate some range anxiety and soften expectations that AFVs provide the same driving range and refueling experience as ICEVs. A discussion of provisions regarding infrastructure falls outside of the scope of this report.⁴⁹

Other performance characteristics that may pose barriers to deployment and adoption of AFVs include reliability and safety of vehicles, maintenance infrastructure compared to conventional vehicles, and overall driving experience compared to conventional vehicles.⁵⁰

Fuel Prices and Consumer Preferences

Historically, the price of oil has demonstrated a certain volatility, increasing and decreasing in response to changes in global demand and supply, geopolitical events, and other worldwide events, including the 2020 COVID-19 global pandemic.⁵¹ Studies and reports have documented observations that changes in fuel prices are followed by changes in market shares for smaller light-duty vehicles (i.e., passenger cars) versus larger light-duty vehicles (i.e., light trucks). According to a report from the Congressional Budget Office, increases in gasoline prices have been followed by decreased sales of light trucks and increased sales of passenger cars, which generally have higher fuel economy;⁵² conversely, decreases in gasoline prices have been followed by sales of each vehicle type returning to levels before price increases. This trend was later observed in 2015, when a decrease in gasoline prices correlated with an increase in sales of light trucks (e.g., SUVs) and a decrease in passenger car sales.⁵³

It may follow that fuel prices play a role in the adoption of alternative fuels and vehicles, which substitute for petroleum fuels; however, a 2020 analysis found that vehicle choices may be more strongly associated with certain driver characteristics than with fuel efficiency or fuel prices, particularly over the long term.⁵⁴ EPA data shows that the production share of light trucks has increased to more than 50% for model year 2019 compared to approximately 25% for model year 1985.⁵⁵ This overall trend is predicted to continue as consumer preferences change and manufacturers adjust their vehicle lineups.⁵⁶ Market-based policies may be used to promote alternative fuels and vehicles, but precise outcomes may be difficult to predict.

Other Challenges

As the variety and number of alternative fuels and vehicles increases, challenges may arise around ensuring the safety of fuel delivery, providing repair and maintenance, and recycling and disposing of consumed lubricating oils, other fluids, and other parts. For example, batteries from plug-in electric vehicles are costly and require valuable minerals to produce.⁵⁷ Continued research and development on batteries may yield additional options for reuse and recycling.⁵⁸ Another example concerns the safety and efficiency of hydrogen delivery.⁵⁹ Hydrogen poses a potential risk of pipeline deterioration, which may result in leakage during transportation.

Proposed Legislation in the 116^th Congress

What follows is a discussion of legislation in 2019 and 2020. Each section summarizes bills introduced in the 116^th Congress that were identified as containing AF and AFV provisions. Figure 2 summarizes the number of bills containing provisions that would have implemented each incentive type. Overall, 15 bills would have implemented policies pertaining to tax incentives or rebates for the purchase of an alternative fuel vehicle, while 12 bills would have implemented policies pertaining to grant or loan programs for bus acquisition, and 11 bills would have implemented policies supporting manufacturing incentives.

Figure 2. Bills Introduced in the 116th Congress by Incentive Type Number of bills with a provision promoting each type of incentive

Source: CRS from Congress.gov. Notes: RDD&D = Research, design, development, and demonstration. Some bills included provisions that would have implemented more than one type of incentive and are counted once for each incentive type that is applicable. Includes bills that were enacted and not enacted.

Vehicle Acquisition

One type of policy tool proposed in legislation in the 116^th Congress was a compensatory incentive for the purchase and use of alternative fuels and vehicles. Tax incentives, rebates, grants, and loans lower the costs for replacing or retrofitting ICEVs with alternative fuel vehicles. These incentives targeted individual drivers, as well as state and local transit and school bus operators.

A number of legislative actions supporting the purchase and use of alternative fuels and alternative fuel vehicles were introduced in the 116^th Congress. The Consolidated Appropriations Act, 2021 (H.R. 133, P.L. 116-260) extended the alternative motor vehicle credit for the purchase of fuel cell vehicles through December 31, 2021. Other introduced bills included a number of vehicle acquisition provisions that would have amended existing tax incentives, expanded the applicability for existing programs, or established entirely new programs. Table 1 includes key provisions for vehicle acquisition included in legislation introduced in the 116^th Congress, but which were not enacted.

Rebates and Tax Incentives for Individual Taxpayers

Tax incentives for AFVs were included in many bills in the 116^th Congress. Numerous Members sought to expand the overall applicability of the tax credit for PEVs. Several Members proposed legislation that would have expanded the tax credit to target certain taxpayers that otherwise may not be receiving the full benefit. Another option would be to allow the credit to be transferred to a financing entity, which would allow low- and moderate-income taxpayers to capture more of the value of the credit for which they might not otherwise be eligible. Another proposal could expand the credit to include previously-owned PEVs (or establish a new tax incentive specifically for previously-owned PEVs) that could offer another option for lowering the cost of PEVs for more taxpayers.

Beyond tax incentives, one provision would have established a voucher for the purchase or lease of a new PEV. As a voucher, this incentive is independent of income and tax liability and would have broad applicability.

Funding for Local Transportation

Legislation introduced in the 116^th Congress included a number of grants and loans programs that would have provided assistance to states and localities seeking to transition away from diesel fuel for public transportation and school bus fleets. Members sought to amend the applicability of the Clean School Bus program, which provides grants for replacing school buses, to add electricity and remove ultra low-sulfur diesel as eligible fuel types.⁶⁰ Other bills would have expanded transit funding for alternative fuel buses, including zero-emission buses, and related infrastructure. Some bills would have set a zero-emission requirement on new bus acquisitions.

Nationally, programs such as DOE's Clean Cities program provide assistance at the local level for states, local governments, and other public transportation operators working to adopt alternative fuels. Clean Cities' efforts have yielded results in increasing the number of alternative fuel vehicles and the number of vehicle miles traveled on alternative fuels.⁶¹ Legislation introduced in the 116^th Congress would have continued the efforts of Clean Cities and programs like it by authorizing grant programs for statewide transportation electrification and by authorizing loans for bus operators at the state and local level to acquire electric buses.

Vehicle Manufacturing and Fuel Production

A variety of incentives for manufacturers and fuel producers included in bills introduced in the 116^th Congress would have supported alternative fuel adoption by promoting the supply of alternative fuels and AFVs in order to meet demand or potentially induce demand. With the passage of the Further Consolidated Appropriations Act, 2020 (P.L. 116-94) and the Consolidated Appropriations Act, 2021 (P.L. 116-260), various tax incentives for producers of liquid fuels (including the tax credit for biodiesel or renewable diesel mixtures, the tax credits for alternative fuel and alternative fuel mixtures, and the second generation biofuel producer credit) were extended to the end of either 2021 or 2022. Table 2 includes key provisions for vehicle manufacturers and fuel producers included in legislation introduced in the 116^th Congress, but which were not enacted.

A range of proposed and enacted measure also promoted vehicle manufacturing. The Advanced Technology Vehicles Manufacturing Loan program also was reauthorized in P.L. 116-260. Proposed legislation focused primarily on medium- and heavy-duty vehicles. Alternative fuel medium- and heavy-duty vehicles are more challenging to design and produce than light-duty vehicles due to their size, while also having higher associated manufacturing costs.⁶² Bills would have focused on increasing the deployment of medium- and heavy-duty ZEVs (e.g., plug-in electric and fuel cell). Some policy proposals would have amended existing grants and loans programs to include or focus on PEVs. Other proposals would have established tax incentives for manufacturers of zero-emission heavy vehicles.

National Policies and Research and Development

Proposals introduced in the 116^th Congress also included a range of less direct policy options in support of increased deployment of alternative fuels and vehicles. National standards and requirements can serve as complements to tax incentives and other compensatory incentives. Research, development, demonstration, and deployment projects have the potential to yield more efficient manufacturing or deployment methods for existing technology, as well as facilitate the development of new technology.

Federal Fleet Requirements

These policies also include proposals that apply specifically to the federal fleet, consisting of 658,000 vehicles all across the country.⁶³ As possibly the largest civilian fleet operator in the country, the federal government can contribute to demand for existing technology, which may result in benefits (e.g., larger scale production may reduce costs per vehicle) for smaller entities and nonfederal consumers.⁶⁴ The enactment of the CHARGE Act (P.L. 116-160) in 2020 requires the General Services Administration to issue guidance establishing that agencies may use federal government credit cards to charge federal PEVs at commercial stations, and the National Defense Authorization Act for Fiscal Year 2021 (P.L. 116-283) authorized a pilot program for purchasing AFVs in the Department of Defense. Other policies for federal fleets would have established government-wide standards for vehicle acquisitions, alternative fuel consumption, and GHG emissions.

National Standards and Requirements

Proposals for national requirements would have targeted emissions reductions and specifically promoted ZEVs (e.g., PEVs and fuel cell vehicles), setting a long-term goal for tax incentives, grants, loans, and other programs. A national standard requiring 100% ZEV sales by 2040 would have established a need for an increase in the supply of ZEVs, complementing the tax incentives and other funding programs that are designed to induce the demand for zero-emission and other alternative fuel vehicles.

Research and Development

Research, design, development, and demonstration projects have the potential to yield scalable benefits to deployment efforts for alternative fuels and vehicles. In the 116^th Congress, the Consolidated Appropriations Act, 2021 (P.L. 116-260) authorized broad sustainable transportation research and development at DOE in the Offices of Hydrogen and Fuel Cell Technologies, Vehicles Technologies, and Bioenergy Technologies. Other proposals would have authorized RDD&D for projects designed to reduce petroleum use and emissions in transportation, and RDD&D specifically for energy storage technology (e.g., PEV batteries). These proposals indicate an interest in identifying solutions to certain challenges specific to transportation electrification, while supporting innovation in transportation more broadly.

The outcomes from RDD&D have the potential to impact many aspects of alternative fuel adoption. RDD&D can be used to discover cheaper materials and efficiencies in production that may contribute to an overall decrease in manufacturing costs that can be reflected in the prices available to consumers.

Policy Proposals in the 117^th Congress

New and previously proposed policy options have been introduced by Congress and proposed by the Biden Administration since the start of the 117^th Congress.

Some bills from the 116^th Congress have been reintroduced, including the Clean School Bus Act of 2021 (H.R. 1344/S. 506), Electric CARS Act of 2021 (H.R. 1271/S. 395), GREEN Act of 2021 (H.R. 848), Postal Vehicle Modernization Act (H.R. 1636), and USA Electrify Forward Act (H.R. 1879).

The CLEAN Future Act (H.R. 1512), introduced in March 2021, and referred to the House Committee on Energy and Commerce and other committees, would promote ZEVs through authorization of a pilot program to electrify refrigerated vehicles, reauthorize the Clean School Bus Program, formally authorize the Clean Cities program, and reauthorize the Diesel Emissions Reduction program, among other provisions.⁶⁵ Similar provisions are included in the LIFT America Act (H.R. 1848).

In an executive order, President Biden called for a plan to facilitate procurement of ZEVs for fleets at all levels of government with an emphasis on American- and union-made vehicle manufacturing.⁶⁶

The Biden Administration's proposed American Jobs Plan would promote domestic production of PEVs and batteries, offer consumer incentives for the purchase of PEVs, and offer grant and incentive programs for the installation of 500,000 PEV chargers by 2030. The plan also commits to replacing 50,000 diesel transit vehicles, electrifying 20% of school buses, and electrifying the federal fleet.⁶⁷

Appendix. Legislation Introduced in the 116^th Congress

The following table lists all bills cited throughout the report. Legislation is listed in alphabetical order by bill name, with enacted legislation listed first.