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EPA making $20M available for clean diesel projects

The US Environmental Protection Agency (EPA) has issued a Request for Proposals (EPA-OAR-OTAQ-12-05) with up to $20 million in FY 2012 grant funding to establish clean diesel projects aimed at reducing pollution from the existing fleet of diesel engines. In addition to these grants, approximately $9 million will be available through direct state allocations.

Eligible diesel vehicles, engines and equipment may include buses; medium-duty or heavy-duty trucks; marine engines; locomotives; non-road engines, equipment or vehicles used in construction; handling of cargo (including at a port or airport); agriculture; mining or energy production (including stationary generators and pumps). EPA will provide funding for:

  • Verified Exhaust Control Technologies: up to 100% of the cost of eligible verified technologies.

  • Engine Upgrades: up to 50% of the cost of eligible engine upgrades.

  • Verified/Certified Cleaner Fuel Use: the cost differential between the eligible cleaner fuels and conventional diesel fuels.

  • Verified Idle Reduction Technologies: EPA will not fund stand-alone idle reduction technologies, except for idle reduction technologies on locomotives, shore connection systems and truck stop electrification technologies, as discussed below. EPA will fund up to 100% of the cost of an eligible, verified idle reduction technology if that technology is combined on the same vehicle with a new eligible verified exhaust control.

  • Locomotive Idle Reduction Technologies: up to 50% of the cost of eligible idle reduction technologies on locomotives.

  • Shore Connection Systems and Truck Stop Electrification Technologies: up to 25% of the cost of eligible shore connection systems and truck stop electrification technologies.

  • Verified Aerodynamic Technologies and Low Rolling Resistance Tires: EPA will not fund stand-alone aerodynamic technologies or low rolling resistance tires. EPA will fund up to 100% of the cost of verified aerodynamic technologies or verified low rolling resistance tires if the technology is combined on the same vehicle with a new eligible verified exhaust control technology.

  • Certified Engine Repower: up to 50% of the cost (labor and equipment) of an eligible engine repower.

  • Certified Vehicle/Equipment Replacement: For non-road diesel vehicles and equipment, EPA will fund the incremental cost of a newer, cleaner vehicle or piece of equipment powered by a 2011 or newer model year certified non-road diesel engine, up to 25% of the cost of an eligible replacement vehicle or piece of equipment.

    For highway diesel vehicles and equipment, EPA will provide up to 25% of the cost of an eligible replacement vehicle or piece of equipment (except for drayage vehicles. For drayage truck replacement,EPA will fund up to 50% of the cost of eligible drayage trucks with a 2007 model year or newer heavy-duty engine.

States, tribes, local governments, and non-profits are eligible to apply for these grants. The closing date for receipt of proposals is 4 June 2012.

This is the first competition since the Diesel Emission Reduction Program, also known as DERA, was reauthorized in 2011. The program cleans up existing diesel vehicles, many of which can be operated for decades, by targeting projects that utilize the most cost-effective clean diesel strategies. By reducing diesel emissions in areas that have significant air quality issues the program can have a direct impact on community health.

EPA has standards in place that make new diesels more than 90% cleaner than their predecessors. However, older diesels that predate these standards emit large amounts of air pollutants such as nitrogen oxides (NOx) and particulate matter (PM).

DERA was enacted in 2005 and since it was first funded in FY 2008, EPA has awarded more than 500 grants nationwide. EPA estimates that for every $1 spent on clean diesel funding up to $13 of public health benefit is realized.

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