Release Date: February 4, 2000

Six weeks after President Clinton announced the toughest standards ever for reducing air pollutants from auto tailpipes, the U.S. Department of Energy today kicked off a major new research effort targeting $75 million to develop new ways to produce ultra clean fuels and better pollution control devices for tomorrow's cars and trucks.

"Driving now accounts for 30 percent of the total air pollution in the United States," said Energy Secretary Bill Richardson. "This initiative points to the day when Americans will breathe cleaner air not only because we supported tougher regulations but also because we invested in better technologies. In addition, if we can develop a low-sulfur, high-performance diesel fuel, we can take an important step toward dramatically improving fuel economy while we cut air pollution."

In December, the Clinton Administration announced a new rule requiring the nation's gasoline suppliers to meet an average sulfur level of 30 parts per million (ppm) by 2005, down from the current average of nearly 300 ppm. A rule affecting sulfur levels in diesel fuel is expected to be in place by the end of the year. Sulfur reduces the effectiveness of catalytic converters, the devices that reduce engine exhaust pollution.

A key objective of the initiative is to verify that fuel processing technologies to meet the tighter gasoline standards will perform as expected. Many of these new approaches are still on the drawing boards and have yet to be tested at significant levels.

Similarly, producing low-sulfur diesel fuel, which could be used in more energy-efficient engines, will require new fuel processing technologies and clean-burning additives to enhance vehicle performance, especially when used with new emission control technologies.

The Energy Department is asking for proposals in any of three categories: (1) projects that produce ultra-clean fuels from a variety of energy resources -- conventional crude oil, petroleum coke, refinery wastes, natural gas, or coal -- and verify the performance of these fuels by testing in engines, (2) projects that develop innovative emission control systems and verify their performance in engine tests, or (3) longer-range projects that could lead to innovative fuel making processes, components, materials, or technologies that refineries and automakers could incorporate into future fuel, engine, and emission control systems.

Candidate fuels could include low-sulfur gasoline, diesel fuel, or any liquid fuel that enables a future vehicle to achieve ultra-low emissions. All fuels produced in the new program must be compatible with the nation's existing transportation system infrastructure.

The Energy Department intends to make the new funding available in 2000 through 2005 and will require industry partners to share from 35 to 50 percent of a project's cost, depending on the type of project.

The ultra-clean fuels initiative also will address another challenge facing most U.S. refineries today -- the declining quality of the crude oils. Crude oil produced in the United States and in neighboring countries is becoming increasingly heavier (thicker) and higher in sulfur content, making it more difficult to process into clean-burning fuels.

The Energy Department is encouraging the formation of research teams made up of technology developers, fuel suppliers, engine or vehicle manufacturers, and emission control system developers. The effort will be conducted in conjunction with the Partnership for a New Generation of Vehicles, a government-industry initiative to develop vehicles that are three times more efficient as conventional cars (i.e., up to 80 miles per gallon). Ultra-clean diesel fuels could offer a way for these new vehicles to meet the tighter emission standards without compromising safety, performance, or affordability.

Up to $15 million could be awarded for each project. Research efforts could take up to 5 years. The Energy Department will evaluate proposals in two time periods. The first evaluation will be for proposals received by June 30, 2000. A second evaluation will be conducted on proposals received by December 1, 2000.