1. The request letter from Senator Sessions is provided in Appendix A.

2. E85 is a blended fuel containing between 70 and 85 percent ethanol.

3. B20 is a blended fuel containing 20 percent biodiesel and 80 percent diesel fuel.

4. S.C. Davis, S.W. Diegel, and R.G. Boundy, Transportation Energy Data Book: Edition 27, ORNL-6981 (Oak Ridge, TN, 2008), Table 4.5, web site http://cta.ornl.gov/data/index.shtml.

5. U. Kunert and H. Kuhfeld, “The Diverse Structures of Passenger Car Taxation in Europe and the EU Commissions Proposal for Reform,” Discussion Paper 589 (Berlin, Germany: Deutsches Institut für Wirtschaftsforschung, May 2006), web site http://ideas.repec.org/p/diw/diwwpp/dp589.html.

6. 26 U.S. Code 30B, “Alternative Motor Vehicle Credit.” See web site www.irs.gov/businesses/article/0,,id=175456,00.html.

7. See web site http://wardsauto.com (subscription site): Chrysler: E. Mayne, “Bluetec Grand Cherokee Rollout on Rocks” (September 10, 2008); Toyota: E. Mayne, “Diesel-Powered Tundra Under Review” (October 1, 2008); Honda: C. Schweinsberg, “Honda Cancels Acura Diesel” (October 30, 2008); Hyundai: C. Schweinsberg, “Hyundai To Introduce Stop-Start in U.S.; Drops S-Diesel Plan” (January 13, 2009).

8. Energy Information Administration, “Petroleum Navigator: Weekly Retail Gasoline and Diesel Prices,” web site http://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_a.htm.

9. Energy Information Administration, Annual Energy Outlook 2009 reference case, AEO2009 National Energy Modeling System run AEO2009.D120908A.

10. The request letter from Senator Sessions is provided in Appendix A.

11. Energy Information Administration, Emissions of Greenhouse Gases in the United States 2007, DOE/EIA-0573(2007) (Washington, DC, December 2008), web site www.eia.gov/oiaf/1605/ggrpt/index.html.

12. J.A. DeVore and E.R. Fanick, “Impact of Ultra-Clean Fischer-Tropsch Diesel Fuel on Emissions in a Light-Duty Passenger Car Diesel Engine,” SAE International Document No. 2002-01-2725 (October 2002), web site www.sae.org/technical/papers/2002-01-2725 (subscription site).

13. Results taken from Argonne National Laboratory’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model, Version 1.8b.

14 For a discussion of greenhouse gas emissions and indirect land use changes, see T. Searchinger, R. Heimlich, R.A. Houghton, et al., “Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change, Science, Vol. 319, No. 5867 (February 29, 2008), pp. 1238-1240, web site www.sciencemag.org/cgi/content/abstract/1151861 (subscription site).

15. M. Wang and Z. Haq, “Letter to Science” (March 14, 2008), web site www.transportation.anl.gov/pdfs/letter_to_science_anldoe_03_14_08.pdf.

16. U.S. Department of Energy, Office of Policy Analysis, World Biofuels Production Potential: Understanding the Challenges to Meeting the U.S. Renewable Fuel Standard (Washington, DC, September 2008), web site www.pi.energy.gov/documents/20080915_WorldBiofuelsProductionPotential.pdf.

17. U.S. Department of Energy, Energy Efficiency and Renewable Energy, “Biomass FAQs,” web site http://www1.eere.energy.gov/biomass/biomass_basics_faqs.html.

18. For a breakdown of the different feedstocks used for electricity generation in the GREET model, see Appendix C.

19. See Appendix C.

20. P. Valdes-Dapena, “Hybrid vs. Diesel vs. Flex-Fuel,” CNNMoney.com, web site http://money.cnn.com/galleries/2007/autos/0706/gallery.alf_fuel_basics/index.html.

21. Fuel economy improvement of E85 optimized engine based on fuel economy data published for the Saab 9-5 2.3t BioPower compared to fuel economy data published for a Saab 2.3T Turbo.

22. B. Pope, “BMW Expects Slow Acceptance of New Diesel Offerings in U.S.,” WardsAuto.com (January 14, 2008), web site http://wardsauto.com/reports/2008/naias/bmw_diesel_acceptance/.

23. E. Mayne, “Bluetec Grand Cherokee Rollout on  Rocks,” WardAuto.com (September 10, 2008), web site http://subscribers.wardsauto.com/ar/blutec_grand_cherokee_080910 (subscription site).

24. The fuel economy gain of using a diesel engine versus a gasoline engine is taken from www.fueleconomy.gov. A limited number of diesel engine vehicles are sold in the United States. The fuel economy of several diesel vehicles sold in 2008 and 2009 was compared with that of a similar vehicle based on model and vehicle performance.

25. S.C. Davis, S.W. Diegel, and R.G. Boundy, Transportation Energy Data Book: Edition 27, ORNL-6981 (Oak Ridge, TN, 2008), web site http://cta.ornl.gov/data/index.shtml.

26. Source: S.C. Davis, S.W. Diegel, and R.G. Boundy, Transportation Energy Data Book: Edition 27, ORNL-6981 (Oak Ridge, TN, 2008), web site http://cta.ornl.gov/data/index.shtml.

27. P. Valdes-Dapena, “Hybrid vs. Diesel vs. Flex-Fuel,” CNNMoney.com, web site http://money.cnn.com/galleries/2007/autos/0706/gallery.alf_fuel_basics/index.html.

28. Fuel economy improvement of E85-optimized engine based on fuel economy data published for the Saab 9-5 2.3t BioPower compared to fuel economy data published for a Saab 2.3T Turbo.

29. Information taken from www.edmunds.com.

30. N. Rufford and J. Dawe, “Toyota Prius Proves a Gas Guzzler in a Race with the BMW 520d,” Sunday Times (March 16, 2008), web site www.timesonline.co.uk/tol/driving/used_car_reviews/article3552994.ece.

31 S.C. Davis, S.W. Diegel, and R.G. Boundy, Transportation Energy Data Book: Edition 27, ORNL-6981 (Oak Ridge, TN, 2008), Table 4.5, web site http://cta.ornl.gov/data/index.shtml.

32. S.C. Davis, S.W. Diegel, and R.G. Boundy, Transportation Energy Data Book: Edition 27, ORNL-6981 (Oak Ridge, TN, 2008), Table 4.6, web site http://cta.ornl.gov/data/index.shtml.

33. Diesel Technology Forum, Demand for Diesels: The European Experience (Frederick, MD, July 2001), web site www.dieselforum.org/news-center/pdfs/EuropeanExperience.pdf/at_download/file; and L. Ulrich, “Diesel Automobiles Clean Up for an Encore,” New York Times (May 18, 2008), web site www.nytimes.com/2008/05/18/automobiles/18DIESEL.html.

34. International Energy Agency, Energy Prices and Taxes (Second Quarter 2008), available by subscription or purchase from web site www.oecdbookshop.org/oecd/. The information on Western European gasoline prices is for premium unleaded (95 RON), which is roughly equivalent to the U.S. 91octane premium unleaded grade.

35. E.A. Taub, “Diesel Engines May Not Purr, But They Please the Mileage Mavens,” New York Times (October 24, 2007), web site www.nytimes.com/2007/10/24/automobiles/autospecial/24audi.html; Diesel Technology Forum, Demand for Diesels: The European Experience (Frederick, MD, July 2001), web site www.dieselforum.org/news-center/pdfs/EuropeanExperience.pdf/at_download/file.

36. C. Morey and J. Mark, “Diesel Passenger Vehicles—Can They Meet Air Quality Needs and Climate Change Goals?,” SAE International Document No. 2000-01-1599 (April 2000), web site www.sae.org/technical/papers/2000-01-1599 (subscription site).

37. U. Kunert and H. Kuhfeld, “The Diverse Structures of Passenger Car Taxation in Europe and the EU Commissions Proposal for Reform,” Discussion Paper 589 (Berlin, Germany: Deutsches Institut für Wirtschaftsforschung, May 2006), web site http://ideas.repec.org/p/diw/diwwpp/dp589.html.

38. C. Morey and J. Mark, “Diesel Passenger Vehicles—Can They Meet Air Quality Needs and Climate Change Goals?,” SAE International Document No. 2000-01-1599 (April 2000), web site www.sae.org/technical/papers/2000-01-1599 (subscription site).

39. Manufacturers Association of Emissions Control Association, web site www.meca.org.

40. Ibid.

41. Ibid.

42. G.G. Banco, “An Analysis of the Federal Government’s Role in the Research and Development of Clean Diesels in the United States,” SAE International Document No. 2004-01-1753 (March 2004), web site www.sae.org/technical/papers/2004-01-1753 (subscription site).

43. T. Moran, “European Urea Diesels for U.S. Market,” Automotive News Europe (October 27, 2008), web site www.bosch-diesel.us/pool/pdf/2008-10-27_European-urea.pdf; T. Moran, “Urea Must Flow or New Diesels Won’t Go,” Automotive News (October 20, 2008), web site www.autonews.com/article/20081020/ANA03/810200294/1186; and L. Ulrich, “Diesel Automobiles Clean Up for an Encore,” New York Times (May 18, 2008), web site www.nytimes.com/2008/05/18/automobiles/18DIESEL.html.

44. Manufacturers Association of Emissions Control Association, web site www.meca.org.

45. Ibid.

46. T. Moran, “European Urea Diesels for U.S. Market,” Automotive News Europe (October 27, 2008), web site www.bosch-diesel.us/pool/pdf/2008-10-27_European-urea.pdf.

47. C. Morey and J. Mark, “Diesel Passenger Vehicles—Can They Meet Air Quality Needs and Climate Change Goals?,” SAE International Document No. 2000-01-1599 (April 2000), web site www.sae.org/technical/papers/2000-01-1599 (subscription site).

48. U.S. Environmental Protection Agency, “Control of Air Pollution From New Motor Vehicles: Heavy-Duty Engine and Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements; Final Rule,” 40 CFR Parts 69, 80, and 86, Federal Register, Vol. 66, No. 12 (January 18, 2001), web site www.epa.gov/EPA-AIR/2001/January/Day-18/a01a.htm.

49. Energy Information Administration, “Petroleum Navigator: Weekly Retail Gasoline and Diesel Prices,” web site http://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_a.htm.

50. See web site http://wardsauto.com (subscription site): Chrysler: E. Mayne, “Bluetec Grand Cherokee Rollout on Rocks” (September 10, 2008); Toyota: E. Mayne, “Diesel-Powered Tundra Under Review” (October 1, 2008); Honda: C. Schweinsberg, “Honda Cancels Acura Diesel” (October 30, 2008).

51. Energy Information Administration, “Petroleum Navigator: Weekly Retail Gasoline and Diesel Prices,” web site http://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_a.htm.

52. 26 U.S. Code 30B, “Alternative Motor Vehicle Credit.” See web site www.irs.gov/businesses/article/0,,id=175456,00.html.

53. Opinion Research Corporation International for the National Renewable Energy Laboratory, Study No. 717318 (July 31-August 3, 2008).

54. Opinion Research Corporation International for the National Renewable Energy Laboratory, Study No. 70627 (July 3, 1997).

55. Opinion Research Corporation International for the National Renewable Energy Laboratory (May 20-23, 2004).

56. Diesel fuel is part of a more general product slate called “distillates,” which includes off-road diesel, gasoil, heating oil, and kerosene.

57. Diesel production has undergone dramatic changes in the past few years with respect to environmental specifications as well as production output technologies and continues to evolve both in the United States and abroad. Specifically, diesel desulfurization efforts took a dramatic turn in 2006 with the implementation of the Clean Air Act Amendments of 1990 (see web site www.epa.gov/air/caa/caaa.txt) in a major effort to reduce air pollution and acid rain. Between 1993 and 2006, U.S. highway diesel could contain up to 500 ppm sulfur concentration. With the exception of small refineries (those with a distillation capacity of less than 155,000 barrels per day), starting on June 1, 2006, 80 percent of highway diesel fuel marketed by producers and importers was required to be ULSD with a concentration of 15 ppm or less. By December 1, 2010, all highway diesel fuel sold at U.S. retail outlets must be ULSD. In addition, the EPA also promulgated a timeline for the desulfurization of non-road, locomotive, and marine diesel fuel, which by 2014 must also be ULSD.

58. The U.S. refining industry has in recent years sought to export product there, thus keeping the distillate supply tight in the U.S. market and, in turn, keeping diesel margins high. See W. Pentland, “America's Oil Export Problem (Yes, Export),” web site www.forbes.com/2008/09/30/energy-diesel-exports-biz-energy-cx_wp_1001energy08_exports.html.

59. J. Vautrain, “Special Reports: China, India Lead Growth in Asian Refining Capacity,” Oil and Gas Journal, Vol. 106, No. 47 (December 15, 2008), web site www.ogj.com/articles/save_screen.cfm?ARTICLE_ID=347791.

60. American Petroleum Institute, “Why Recent Retail Diesel Prices Have Been Higher Than Gasoline Prices” (January 16, 2009), web site www.api.org/aboutoilgas/diesel/upload/January-2009_high_retail_diesel_prices.pdf.

61. Energy Information Administration, Form EIA-810, “Monthly Refinery Report,” and Form EIA-815, “Monthly Terminal Blenders Report,” web site http://www.eia.gov/dnav/pet/pet_pnp_refp_dc_nus_mbbl_a.htm.

62. Energy Information Administration, “Petroleum Navigator: Refinery Yield,” web site http://www.eia.gov/dnav/pet/pet_pnp_pct_dc_nus_pct_a.htm.

63. A. Campoy, “Refiners Tilt to Diesel Over Gasoline,” Wall Street Journal (May 16, 2008), web site http://online.wsj.com/article/SB121090017595697445.html.

64. Diesel Fuel News (April 4, 2008).

65. International Energy Agency, Medium Term Oil Report (July 2008), web site http://omrpublic.iea.org/mtomr.htm (subscription site).

66. Energy Information Administration, Form EIA-814, “Monthly Imports report,” U.S. Imports of Motor Gasoline Blending Components, web site http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epobg_im0_mbbl_m.htm.

67. In Europe, highway diesel fuel must meet the Euro 5 (10 ppm) sulfur standards by January 1, 2009. Many countries in Asia also are moving toward production of ULSD because of public health considerations, while refiners in the Middle East are also moving toward the Euro 5 highway diesel fuel sulfur standards, in part because they see Europe as an attractive diesel export market both in the near and long term. How quickly refineries abroad, especially in Asia, are able to ramp up distillate capacity and implement clean diesel technology will influence the length of time developed nations like the United States will continue to experience relatively high diesel prices. The ability of foreign suppliers to act in the short term could be hindered by price controls on diesel products in those countries that would in effect discourage refiners from making upgrades. See: Asian Development Bank, A Roadmap for Cleaner Fuels and Vehicles in Asia (November 2008), web site www.cleanairnet.org/caiasia/1412/articles-71194_roadmap.pdf.

68. International Energy Agency, Medium Term Oil Report (July 2008), web site http://omrpublic.iea.org/mtomr.htm (subscription site).

69. Organization of the Petroleum Exporting Countries, World Oil Outlook 2008 (Vienna, Austria, 2008), web site www.opec.org/library/world%20oil%20outlook/WorldOilOutlook08.htm.

70. International Energy Agency, World Energy Outlook 2008. (London, UK, November 2008), web site www.worldenergyoutlook.org.

71. Diesel Fuel News (November 10, 2008).

72. Diesel Fuel News (September 1, 2008).

73. World Refining and Fuels Today (December 11, 2007).

74. A. Campoy, J. Resnick-Ault, and R. Gold, “Refiners Cut Back on Gasoline,” Wall Street Journal (December 17, 2008), web site http://online.wsj.com/article/SB122947423155012413.html.

75. See, for example, J.E. McCarthy, Air Pollution from Ships: MARPOL Annex VI and Other Control Options, Order Code RL34548 (Washington, DC: Congressional Research Service, updated September 9, 2008), web site http://ncseonline.org/nle/crsreports/08July/RL34548.pdf.

76. J. Vautrain, “New Regs Require Lower Bunker Fuel Sulfur Levels,” Oil and Gas Journal, Vol. 106, No. 44 (November 24, 2008), web site www.ogj.com/articles/save_screen.cfm?ARTICLE_ID=346119.

77. California Air Resources Board, The California Low Carbon Fuel Standard Regulation: Draft (December 2008), web site www.arb.ca.gov/fuels/lcfs/1208lcfsreg_draft.pdf.

78. J. Reinaud, The European Refinery Industry Under the EU Emissions Trading Scheme (Paris, France: International Energy Agency, November 2005), web site www.iea.org/Textbase/Papers/2005/IEA_Refinery_Study.pdf.