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Quantifying Hybrid Electric Vehicle (HEV) emissions and fuel consumption is a difficult problem for a number of different reasons: 1) HEVs can be configured in significantly different ways (e.g., series or parallel); 2) the Auxiliary Power Unit (APU) can consist of a wide variety of engines, fuel types, and sizes; and 3) the APU can be operated very differently depending on the energy management system strategy and the type of driving that is performed (e.g., city vs. highway driving). With the future increase of HEV penetration in the vehicle fleet, there is an important need for government agencies and manufacturers to determine HEV emissions and fuel consumption. In this paper, several critical issues associated with HEV emissions and fuel consumption are identified and analyzed, using a sophisticated set of HEV and emission simulation modeling tools.