$20 Million in Federal Grant Funding Announced for Clean Diesel Retrofit Projects; Competition Closes June 4, 2012

The U.S. Environmental Protection Agency’s (EPA) National Clean Diesel Campaign (NCDC) opened a national grant competition on April 20, 2012.  The Agency is currently accepting proposals for projects that reduce diesel engine emissions.  The Fiscal Year (FY) 2012 Request for Proposals (RFP) is posted here and on www.grants.gov.  The RFP will be open for approximately 45 days, closing on June 4, 2012.   EPA plans to award approximately $20 million across the country in Clean Diesel Funding Assistance Program funds in the fall 2012, under the Diesel Emissions Reduction (DERA) program.  The NCDC website contains more information regarding clean diesel technologies, past awarded projects and helpful tips. Overall information on the FY 2012 RFP is online at http://epa.gov/cleandiesel/prgnational.htm#rfp.  EPA is encouraging fewer and larger awards, than in prior grant competitions, and each EPA Region has a dollar range defining the proposals they are accepting.  The smallest grant possible is in Region 10 ($600,000) and the largest grant possible is in Region 9 ($2,700,000).  See map of EPA Regions 1-10 below.  See page 15 of the RFP for your region's specific requirement -- http://www.epa.gov/air/grants/rfp-epa-oar-otaq-12-05.pdf.

EPA REGIONS

A list of priority areas and counties (e.g., areas in nonattainment of national ambient air quality standards for a criteria pollutant) can be found at: www.epa.gov/cleandiesel/documents/fy12-county-area-list.pdf.  In addition, each region also has its own priorities. See pages 10-13 of the RPF - http://www.epa.gov/air/grants/rfp-epa-oar-otaq-12-05.pdf

Eligible diesel emission reduction solutions include verified emission control technologies such as retrofit devices, cleaner fuels, and engine upgrades, verified idle reduction technologies, verified aerodynamic technologies and low rolling resistance tires, certified engine repowers, and/or vehicle or equipment replacement. Eligible diesel vehicles, engines and equipment include buses, medium-duty or heavy-duty trucks, marine engines, locomotives and nonroad 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). Eligible entities (i.e., applicants) include regional, state, local or tribal agencies or port authorities with jurisdiction over transportation or air quality, and nonprofit organizations or institutions that (a) represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets or (b) have, as their principal purpose, the promotion of transportation or air quality.  At this time, EPA is not allowing private companies or individuals to apply directly for an EPA grant.  Instead, EPA told AGC that it is currently setting up a rebate program (like cash for clunkers) that would be available to public or private entities. Get Your Questions Answered!  Three (3) Q&A Webinars will be held on April 24, 25 and 26.  Visit the NCDC website for more information. All questions and/or inquiries regarding the RFP should be submitted in writing to CleanDiesel@epa.gov or call 1-877-NCDC-FACTS. All questions about the 2012 RFP will be collected into a "frequently asked questions" document which will be updated weekly as EPA receives new questions and provides answers to them.  You can find the FAQ document on EPA’s Grants and Funding Web page http://epa.gov/cleandiesel/prgnational.htm#faq, or go directly to the FAQ document at this link: http://www.epa.gov/cleandiesel/documents/fy12-dera-faq.pdf. History & Reauthorization of Diesel Grants In Jan. 2011, President Obama signed legislation (H.R. 5809) reauthorizing DERA grants to eligible entities for projects that reduce emissions from existing diesel engines.  The bill authorizes up to $100 million annually for FY2012 through FY2016 and allows for new types of funding mechanisms.  $29.9 million was appropriated by Congress for FY2012. The Diesel Emissions Reduction Program (known as “DERA”) was created under the Energy Policy Act of 2005 (EPAct), Title VII, Subtitle G (Sections 791 to 797) (PDF) (January 2005).  This act gave EPA new grant and loan authority for promoting diesel emission reductions and authorized appropriations to the Agency of up to $200 million per year for FY2007 through FY2011. As stipulated in the Act, 70 percent of DERA funds are to be used for national competitive grants, with the remaining 30 percent allocated to the states. AGC chapters and members have joined forces with other industry partners to voluntarily apply for and win millions in EPA diesel retrofit grants, and to leverage millions more in matching and in-kind contributions, to help their members afford the high cost of reducing emissions from construction equipment that is currently out in the field.  In addition, many AGC members have benefited from funds awarded by EPA to state/local agencies – indicating many public-private partnerships at play. For more information, please contact Leah Pilconis at pilconisl@agc.org