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Public/Private Partnerships
Engines for Innovation in Transportation

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II. Examples of Public/Private Partnerships in Transportation

B. The Clean Cities Initative: Voluntary Technology Deployment of Legislative Mandates

Several important laws passed over the last thirty years have led to significant changes in the design and operation of motor vehicles, engines, and the fuels that power them. These laws have been motivated primarily by a concern over the harmful effects of atmospheric pollution on human health and the environment, as well as the consequences of increasing reliance on imported petroleum for our transportation energy needs. In addition, the combined impact of this legislation has also stimulated research into new technologies that could eventually supplant gasoline as our major transportation fuel.

In particular, three laws have directly spurred this new emphasis on alternatives to gasoline. The Alternative Motor Fuels Act of 1989 provided incentives for the purchase and use of these alternative fuel vehicles (AFVs) and mandated their addition to the Federal motor vehicle fleet. The Clean Air Act Amendments (CAAA) of 1990 set strict schedules for metropolitan areas to meet the National Ambient Air Quality Standards (NAAQS) for certain identified pollutants. It also called for establishing standards for what could be considered 'clean' fuels, allowed states to set up their own programs for lowering vehicle emissions, and extended emission requirements to a broader variety of vehicles and non-transportation engines. The Energy Policy Act (EPACT)of 1992 set a national goal of replacing 30% of our petroleum fuel with non-petroleum fuels by 2010. It also required that certain public and private motor vehicle fleets increase their proportion of AFVs by set levels over the next fifteen years.14 A total of 129 U.S. consolidated metropolitan statistical areas (CMSAs) are covered by either CAAA or EPACT, or both.15 EPACT envisioned that at least 70% of these designated fleets would consist of AFVs by the year 2006. President Clinton further defined specific goals for the Federal vehicle fleets in Executive Orders 12844 (April 21, 1993) and 13031 (December 13, 1996).16 For example, by the year 2001, at least 75% of all federal and state new fleet vehicles and 90% of alternative-fuel provider fleet vehicles must be AFVs.17

The Clean Cities Initiative is a voluntary program sponsored by the Office of Transportation Technologies (OTT) at the U.S. Department of Energy (DOE). Its primary goal is to encourage the nationwide expansion of AFVs and the supporting infrastructure for purchasing, maintaining and refueling them. Increasing the number of AFVs in the nation will, in turn, improve the nation's energy security (by reducing dependence on imported petroleum products) and environmental quality (by reducing harmful vehicle emissions), while at the same time stimulating the growth of a new industry with significant potential for the future.

1. Partnership Description

a. Partners

In contrast to the other partnerships assessed in this report, the Clean Cities Initiative is a voluntary program under the sponsorship of DOE. It was established shortly after the EPACT in 1992 to assist vehicle fleet managers to attain the AFV inventory goals established in that legislation. As of September 1999, more than 3,500 public and private sector partners participate along with DOE in the Initiative. These include municipal and regional government organizations, interest groups, and industries in the alternative fuel and AFV markets participating in 74 local Clean Cities coalitions in 36 states and the District of Columbia.

b. Partnership Structure and Roles

The lead Federal agency, the Department of Energy, acts as the primary sponsor and encourager of the Initiative. It also makes available a number of incentives to encourage local participation. These resources are available through several channels: The Initiative's Web Site (http://www.ccities.doe.gov/what_is.html); the toll-free Clean Cities Hotline (1-800-CCITIES); and from the Initiative's designated Program Managers at DOE headquarters and eight DOE Regional Offices.18 They include:

  • The Roadmap to Clean Cities, with instructions on how to become designated as a 'Clean City';
  • Clean Cities Guide to Alternative Fuel Vehicle Incentives and Laws, including information on federal, state and local funding sources and incentives to support local activities;
  • The Alternative Fuel News, a bimonthly newsletter;
  • The Alternative Fuel Vehicle Fleet Buyer's Guide (http://www.fleets.doe.gov), a computer-based tool
  • to assist fleet managers in deciding whether and what kind of alternative fuel vehicles to purchase. The data base includes information on AFV dealers and their products, refueling sites, local laws and incentives related to AFVs, and points of contact; and
  • Training and materials to help local coalitions to incorporate as a nonprofit organization, seek additional funding and grants, participate in larger programs related to AFV deployment, and perform community outreach and public information campaigns.

Most of the actual effort behind the Initiative is generated by local 'Clean Cities' coalitions that have been established to pursue the program's goal of increasing the number of AFVs in the nation. In order to participate, each coalition must prepare a detailed Program Plan for approval by DOE, as outlined in the Roadmap to Clean Cities. This Plan includes the coalition's membership, responsibilities, and specific targets for AFVs in their region. Typically the DOE Regional Office provides advice and assistance in the preparation of this document. After review and approval by the DOE Regional Office and Headquarters, the coalition is formally 'launched'. The success of this program will ultimately depend heavily on the success of these local coalitions in promoting these same goals.

As of April 1999, there were 74 'Clean Cities' coalitions. California is the state with the largest number of Clean Cities at 10, followed by Connecticut (6), New York (6), and Texas (5).19 These coalitions enlist additional like-minded members; sponsor events and work with the local media to publicize the advantages and availability of AFVs; and gather and disseminate information on the specific laws, incentives and infrastructure for AFVs in their communities. Many of the leaders of these Clean Cities coalitions are also employees of municipal, regional and state government organizations with an interest in improved air quality and/or alternative fuels. In addition, local utilities are key participants, particularly natural gas companies who will provide the fuel and refueling facilities for the AFVs once they are deployed. Local automotive dealerships that sell and service these AFVs are also frequent participants. As a sample, current members of the San Diego Regional AFV Coalition are listed in Figure 4.

c. Scale/ Funding

The amount of direct federal funding available to the program is limited. In 1999, for example, DOE contributed $1.9 million to the State Energy Program (SEP) Alternative Fuels Special Projects account to provide grants of 'seed money' to local coalitions. In the previous year, DOE provided $400,000 to match a similar contribution from the Gas Research Institute (GRI) to fund technologies that promoted natural gas-fueled vehicles in Clean Cities. Each Regional Office has a small budget to assist the creation and activities of local coalitions. There is also a central fund of less that $1 million for rebates to buyers of AFVs.

In addition to these amounts, however, DOE assisted local coalitions in attracting more than $275 million for AFV-related projects between FY 1992 and FY 1996 alone through the Congestion Mitigation and Air Quality (CMAQ) program, established by the Intermodal Surface Transportation Efficiency Act of 1991 and re-authorized in the recent Transportation Equity Act for the 21st Century in 1998.20 The CMAQ programs permits spending federal Highway Trust Fund money on transportation-related projects in air quality non-attainment areas that lead to reductions in vehicle emissions. DOE has also been active in encouraging state and local governments to fund compatible activities that promote AFVs.

Figure 4: San Diego Regional AFV Coalition Members

Government

CA Dept. of General Services
City of Coronado
City of Del Mar
City of El Cajon
City of Encinitas
City of Lemon Grove
City of Oceanside
City of Ponway
City of San Diego
City of Vista
North County Transit District
San Diego Air Pollution Control District
San Diego County Office of Education
San Diego County Water Authority
San Diego Transit
San Diego Unified Port District
SANDAG (San Diego Assoc. of Governments)
US Marine Corps, Camp Pendleton
US Navy, Public Works Center
US Postal Service