EPA Awards $30 Million for Clean Diesel Projects, Future Funding Remains Uncertain

In mid-October, the U.S. Environmental Protection Agency (EPA) announced the recipients of the Diesel Emission Reduction Act (DERA) grants for fiscal year (FY) 2012.  EPA awarded $30 million to fund projects designed to replace, retrofit or repower older diesel-powered engines like those used in construction equipment, commercial trucks and buses, marine engines and other applications. DERA was enacted in 2005 and since it was first funded in FY 2008, EPA has awarded over 500 grants nationwide. These voluntary projects have reduced hundreds of thousands of tons of air pollution and saved millions of gallons of fuel. 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. AGC has long and consistently supported EPA’s “clean diesel” initiatives, including its incentives to reduce emissions from existing fleets of off-road diesel equipment. DERA is widely supported by more than 500 industry, labor, environmental, health and government organizations.  In addition, DERA is one of the few environmental programs that has sustained strong support from both Republican and Democrats in Washington, D.C. and state capitals throughout the nation. Future Funding Uncertain AGC continues to urge Congress to provide financial and technical assistance to the many equipment owners who seek to find fair and effective ways to reduce emissions from existing fleets of off-road diesel equipment. DERA received $15 million in the continuing resolution (CR) – a measure recently passed by both the House and Senate to provide funding for all federally-funded programs during the first half of FY 2013, which began on Oct. 1, 2012.  The House Appropriations Committee, per its FY 2013 Interior and Environment Appropriations bill, would fund the DERA program at $30 million. The Senate has not yet acted on their bill, but it released a draft of the markup vehicle that would fund DERA at only $20 million in FY 2013.  AGC is working with a broad coalition of interested stakeholders to urge Senate leaders to match the funding levels reported in the House bill.  The coalition is actively collecting signatures on a letter to the Senate Committee on Appropriations, highlighting the need for additional diesel retrofit funds. The budget for FY 2014 is in the final stages of development.  AGC and its DERA coalition partners are working to schedule meetings with EPA and the White House Office of Management and Budget to ensure continued support for the DERA program in the FY 2014 budget. AGC understands that the construction industry has a significant role to play in environmental protection.  For many years, AGC had a formal partnership with EPA.  It remains a leader in the field of green construction.  From the beginning, AGC has been actively involved in EPA’s National Clean Diesel Campaign and continues to maintain a strong working relationship with the Clean Air Task Force, the Diesel Technology Forum, leading engine manufacturers and many other key diesel interest groups.