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Alternative Fuels and Advanced Technology Vehicles: Issues in Congress (CRS Report for Congress)

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Release Date Revised May 8, 2006
Report Number IB10128
Authors Brent D. Yacobucci, Resources, Science, and Industry Division
Source Agency Congressional Research Service
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  • Premium   Revised Jan. 6, 2006 (14 pages, $24.95) add
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Summary:

Alternative fuels and advanced technology vehicles are seen by proponents as integral to improving urban air quality, decreasing dependence on foreign oil, and reducing emissions of greenhouse gases. However, major barriers -- especially economics -- currently prevent the widespread use of these fuels and technologies. Because of these barriers, and the potential benefits, there is continued congressional interest in providing incentives and other support for their development and commercialization. In the 109th Congress, alternative fuels and advanced technology vehicles have received a good deal of attention, especially in the debate over omnibus energy legislation. High fuel prices, especially in response to hurricanes along the gulf coast, have focused that attention. Major topics of congressional interest include tax incentives for alternative fuel production; the future of ethanol and the fuel additive MTBE [Methyl Tertiary-Butyl Ether], including the establishment of a renewable fuels standard (RFS); and research and development of hydrogen fuel and fuel cells. Other topics include government vehicle purchase requirements; tax credits for vehicle purchases; promotion of biodiesel fuel; and incentives for hybrid electric vehicles. The Energy Policy Act of 2005 (P.L. 109-58, H.R. 6) contains many provisions relevant to alternative fuels and advanced technology vehicles. Among its provisions, the bill expands existing tax incentives for the purchase of advanced vehicles; authorizes R&D [Research & Development] funding for hydrogen fuel and fuel cells; and requires that gasoline contain ethanol or other renewable fuel. H.R. 6 was signed by President Bush August 8, 2005.