National Clean Diesel Campaign Upcoming Funding Opportunities Rosalva Tapia June 3, 2009 National Tribal Forum on Air Quality Management Conference 2009

2 National Clean Diesel Campaign Two components: Regulatory Rules to cover new engines Innovative Strategies Cover existing engines in legacy fleet DERA Program 4 Innovative programs designed to address in-use diesel engines by promoting various cost-effective emissions reduction strategies Cleaner fuels Retrofitting Repower Replacing equipment Reduce idling

3 DERA’s Four Innovative Programs Clean Diesel Emerging Technologies Program SmartWay Clean Diesel Finance Program National Clean Diesel Assistance Funding Program Clean Diesel State Program

4 Buses Medium or heavy duty trucks Marine engines Locomotives Nonroad engine, stationary engine or vehicle used for: – Construction – Handling of cargo (including at a port or airport) – Agriculture – Mining – Energy production Eligible Fleets and Equipment

5 Diesel Emissions Reduction Program Funding Distribution State Program By statute 30% of funding Clean Diesel Emerging Technologies Program By statute <10% of funding National Program By statute 70% of funding National Clean Diesel Funding Assistance Program Regional Grant Competitions SmartWay Clean Diesel Finance Program CompetitiveNon Competitive

6 SmartWay Clean Diesel Innovative Finance Program Finance Program grants are to establish innovative financing projects. The projects must result in: – lower loan interest rates for the buyer of clean vehicles or equipment; and/or – greater loan approvability rate for the buyer of clean vehicles or equipment; and/or – an increased financial incentive for buying clean vehicles or equipment when compared to similar vehicles or equipment without the clean technology National Competitive Program

7 Clean Diesel Emerging Technologies Program Program is for projects that will use technologies not yet verified and/or commercialized but on EPA’s Emerging Technology List Program does not cover research and development costs Only eligible entities can apply National Competitive Program

8 “States shall use funds to develop and implement grant and low-cost revolving loan programs as appropriate to meet State needs and goals relating to the reduction of diesel emissions” Allocation Program States can subgrant or subaward funds Funding may go to Federal, local and/or state mandated retrofits under State program State Clean Diesel Grant Program: Use of Funds

9 Regional, state, local, tribal or port agency with jurisdiction over transportation or air quality; and Nonprofit organization or institution which – Represents or provides pollution reduction or educational services to persons or organizations that operate diesel fleets; or – Has, as its principle purpose, the promotion of transportation or air quality National Clean Diesel Funding Assistance Program: Eligible Entities

10 National Clean Diesel Funding Assistance Program: Priority Projects Project proposals must align with these statutory priorities: Maximize public health benefits Are the most cost-effective Are in areas with high population, air quality issues, and air toxic concerns Are in areas that receive a disproportionate quantity of air pollution (i.e. truck stops, ports) Maximize the useful life of the engine Conserve diesel fuel and utilize ULSD (early introduction of ULSD for nonroad projects)

11 Cannot fund the cost of emissions reductions mandated under Federal, State or Local law Grants are not for emissions testing Cannot fund fueling infrastructure costs, such as the acquisition cost of tanks, the construction or acquisition costs of fuel depots, or the construction or acquisition costs of biodiesel manufacturing facilities National Clean Diesel Funding Assistance Program: Use of Funds

12 National Clean Diesel Funding Assistance Program: % of $ for Technologies/Projects EPA’s Clean Diesel funding will cover up to: – 75% for engine repowers – 25% for all replacements except 50% for school buses that meet 2010 standards – 100% for retrofit technologies – 100% for idle reduction technologies – 100% for engine upgrades (kits only) – 100% for incremental cost of cleaner fuels

13 FY 2008 Funding - Outcomes $49.2M Appropriated Awarded 119 grants New Clean Diesel Project in every state Approximately: 46,000 tons of NOx and 2,200 tons of fine particulate matter (PM2.5) reductions Quantifiable public health benefit of approximately $580 million to $1.4 billion. Additionally, projects funded under a small portion of these grants will save 3.2 million gallons of fuel per year for a cost savings to operators of more than $8 million each year (at $2.50 per gallon)

14 Recovery Act Funding - $300M State Program By statute 30% of funding $88M Clean Diesel Emerging Technologies Program By statute <10% of funding $20M National Program By statute 70% of funding $206M National Clean Diesel Funding Assistance Program Regional Grant Competitions $156M SmartWay Clean Diesel Finance Program $30M Note: Recovery Act Funds 2% ($6M) for administrative costs

15 Nearly 650 applications received Approximately $2 billion requested offering over $2 billion in matching funds Applicants include state/local governments, port authorities, school districts, trade associations, environmental organizations and other NGOs School bus, ports, construction, trucking, locomotive, and other sectors Recovery Act Funding - Progress

16 Things To Do Know to Prepare for FY 2009 DERA Grants $60M appropriated Plan to publish competitions this fall Communicate with potential partners – Regional Office, State, Local Communities Organize fleet information Resources – – Sign up for listserv