1. Reducing Emissions From Diesel Engines
Amy Bhesania
U.S. Environmental Protection Agency

2. Outline EPA’s National Clean Diesel Program Grant and Rebate Programs
Volkswagen Settlement
Greenhouse Gas Emissions Rule
Because of this issue, one of worst public health and environmental issues, EPA is addressing using a variety of approaches. Regulatory (new engines, fuels) and voluntary.

3. National Clean Diesel Program

4. Diesel Exhaust Health Impacts
Diesel exhaust contains Particulate Matter (PM), Nitrogen Oxides (NOx), and toxic substances such as heavy metals and benzene
Children are particularly vulnerable
Pollutants can be 2-5 times worse inside cabin than outside
Link between PM and significant health problems:
Aggravated asthma, respiratory symptoms, decreased lung function
Cancer, heart disease
These emissions are linked to premature deaths, asthma attacks, lost work and school days, and other health impacts
Because of this issue, one of worst public health and environmental issues, EPA is addressing using a variety of approaches. Regulatory (new engines, fuels) and voluntary.

5. Why Focus on Diesel?

6. Clean School Bus USA
School buses travel about four billion miles each year, providing safe transportation for more than 25 million children every day.
Diesel exhaust from these buses negatively impacts the health of children who have a faster breathing rate than adults and whose lungs are not yet fully developed.

7. Clean School Bus USA
Started in 2003, EPA's Clean School Bus is a national program designed to help communities reduce emissions from older diesel school buses.
Program goals:
Reduce idling and reinforce smart driving practices
Retrofit buses with modern pollution control technologies
Replace the oldest and dirtiest buses with new, cleaner buses
EPA’s DERA Program awards grants and rebates to replace or retrofit eligible school buses
Photo is the cover of “The Magic School Bus Gets Cleaned Up” which is also available in Spanish. Scholastic created the book in partnership with EPA. Organizations may request copies of the book through EPA’s website.

8. Clean School Bus USA Idle Reduction
Clean School Bus's National Idle Reduction Campaign helps you take action toward a cleaner, healthier environment.
Unnecessary school bus idling affects:
Negatively impacts human health,
Pollutes the air,
Wastes fuel, and
Causes excess engine wear.
Idling school buses can pollute the air in and around the bus. entering school buildings through air intakes, doors, and open windows.
For more information on Idle Reduction go to:
Fortunately, it's easy to implement practices that reduce school bus idling.

9. Idling Reduction Technologies
Clean School Bus USA
Idle Reduction
Idling Reduction Technologies
Engine-off auxiliary heaters can be used to warm engines and passenger compartments in colder climates.
Fuel-Operated Engine Block Heaters heat the engine block for a warm start.
Electric Plug-in Block Heaters warm the engine block by heating the engine coolant or oil.
Compartment and Engine Block Heaters warm the engine block and passenger compartment simultaneously using an auxiliary heater.

10. State and National Grants
DERA Grants and Rebates
State and National Grants
The Diesel Emission Reduction Act (DERA) provides EPA the authority to offer grants and rebates to reduce diesel emissions.
DERA was authorized through 2016, and is presently waiting reauthorization
In 2008, EPA began offering State and National grants focused on replacing and/or retrofitting diesel powered vehicles and equipment
States are provided DERA funds without competition
National grants are competitive, providing funds to eligible entities such as government agencies and non-profit organizations
We are optimistic that DERA will be reauthorized soon or given an appropriation to continue grant activities until the reauthorization is passed.

11. DERA Grants and Rebates
School Bus Rebates
In 2012, EPA introduced a pilot rebate program focusing on the replacement of old school buses.
In addition to bus replacement, EPA began offering rebate money to retrofit buses in 2015.
Applications are accepted in the fall of each year and are selected randomly.
Buses eligible for replacement must be:
Diesel-powered by 2006 or older engine model year
Gross Vehicle Weight Rating of 10,001 lbs. or above
Have accumulated at least 10,000 miles over the past 12 months or used at least three days per week to transport students

12. DERA Grants and Rebates
School Bus Rebates
2016 DERA School Bus Rebates
In 2016, 90 applications were submitted from Region 7
514 applications received
$44 million total requested
$7 million available
2181 new school bus requests
68 retrofit requests
Selections will be announced in mid-December
2015 DERA School Bus Rebates
535 applications received
$52 million total requested
$7 million available
308 old buses were replaced with new school buses comprising 72 fleets
Applications for the 2016 School Bus Rebate Program were due on November 1, 2016

13. DERA Grants and Rebates
Replacement & Retrofit Rebates Amounts
CLASS
GROSS VEHICLE WEIGHT RATE
REBATE AMOUNT
Class 3
10,001 – 14,000 lbs.
$15,000
Class 4
14,001 – 16,000 lbs.
Class 5
16,001 – 19,500 lbs.
Class 6
19,501 – 26,000 lbs.
$20,000
Class 7
26,001 – 33,000 lbs.
Class 8
33,001 + lbs.
$25,000
The replacement bus must:
Be the same or smaller vehicle class as determined by GVWR as the bus it replaced.
Operate in the same manner and over the same routes as the original bus, and
Meet Federal safety standards
Rebate Amounts for Retrofitting a Bus
$4,000 for a DOC plus CCV and $6,000 when a FOH is added to the DOC and CCV

14. DERA Grants and Rebates

15. DERA Grants and Rebates
Funding Amounts and Awards by Type

16. School Buses Replaced/Retrofitted compared to other fleet types
DERA Grants and Rebates
School Buses Replaced/Retrofitted compared to other fleet types
Total Number of Engines for all fleets: 55,000
School Buses: Approximately 22,000

17. DERA Grants and Rebates

18. VW Settlement The settlement involved the following models:
Jetta (model years 2009–2015)
Beetle (model years 2009–2015)
Audi A3 (model years 2009–2015)
Golf (model years 2009–2015)
Passat (model years )
VW Settlement

19. VW Settlement
On October 25, 2016 a final settlement was approved by the court which partially resolves allegations that Volkswagen violated the Clean Air Act
It was alleged that VW sold approximately 500,000 vehicles containing 2.0 liter diesel engines equipped with defeat devices.
VW is required to:
Buyback or perform an emissions modification on at least 85% of affected engines.
Invest $2 billion to promote the use of zero emission vehicles and infrastructure.
Invest $2.7 billion to fully remediate the excess NOx emissions caused by the affected engines.

20. Zero Emission Vehicle Investment
VW Settlement
Zero Emission Vehicle Investment
VW invests $2 billion over 10 years
$800 million California ZEV investment
$1.2 billion National ZEV investment
VW investment plan must advance the use and market penetration of ZEVs, have a high likelihood of utilization, accessible/available in where most needed, and build positive awareness of ZEVs
VW will develop a national outreach plan describing how it will solicit input
From the web on EPA’s involvement in ZEV: “Volkswagen will submit a series of ZEV investment plans to CARB for review and approval, for ZEV investments in California. Volkswagen will submit a series of ZEV national investment plans to EPA for review and approval based on objective criteria, for ZEV investments in the rest of the country. The CAA 2.0 liter partial settlement requires Volkswagen to provide notice and opportunities for certain government agencies to provide suggestions, observations, and offers of assistance or support for potential ZEV investments that VW may make under its national plans. Volkswagen must provide reasonable notice of these opportunities on and Therefore, more detailed information for government agencies interested in learning about this process for public comment should visit these websites.  Any member of the public interested in Volkswagen ZEV plans should contact their State Attorney General’s Office. “

21. VW Settlement Mitigation Fund
$2.7 billion to mitigate the lifetime total of NOx from affected engines
The count appoints a Trustee to manage the trust account
50 states, DC, and Puerto Rico may become beneficiaries to the trust
Each State Governor names the state agency that will oversee eligible mitigation actions
Allocation of funding is based on number of registered illegal VW vehicles within the boundary of the beneficiary
Beneficiaries may use trust funds on a variety of projects to reduce NOx emissions
Still in the process of finding a trustee. Once the Trustee is in place and the Trust is effective, states have a timeline to certify as beneficiaries and create a plan to use the money.

22. VW Settlement Eligible Mitigation Projects to Replace or Repower
Class 8 local freight trucks and port drayage trucks
Class 4-8 School, shuttle and transit buses
Locomotive switchers
Ferries and tugboats
Ocean-going vessels – shore power
Class 4-7 trucks
Airport ground support equipment
Forklifts
Light duty Zero Emission Vehicle supply equipment
10. The DERA Option
This option provides for the use of trust funds for actions not specifically listed in 1 – 9, but are otherwise eligible under DERA
Beneficiaries may use trust funds for DERA non-federal voluntary match or over-match.
Detroit Diesel Settlement
The Detroit Diesel Corp. will pay $28.5 million in fines and pollution-reduction projects to resolve violations of the federal Clean Air Act.
Detroit Diesel will pay a $14 million civil penalty and spend another $14.5 million on projects to reduce nitrogen oxide and other air pollutants, including replacing high-polluting school buses and locomotive engines with models that meet current emission standards.
 The company will spend $10.87 million to replace older, higher-emitting school buses across the country, with a special emphasis on economically disadvantaged school districts.
Additionally, Detroit Diesel will spend $3.625 million to upgrade diesel locomotive engines, with a special emphasis on engines used in more polluted areas, he said.

23. Greenhouse Gas Vehicle Rule
U.S. Environmental Protection Agency (EPA) and
Department of Transportation’s National Highway Traffic Safety Administration (NHTSA)
Greenhouse Gas Vehicle Rule

24. Greenhouse Gas Rule
In 2014 EPA and NHTSA published final standards for medium and heavy duty vehicles.
The new standard will:
Improve fuel efficiency
Cut carbon pollution
Reduce the impacts of climate change
Bolster energy security and
Encourage manufacturing innovation

25. Greenhouse Gas Rule Projected Savings:
There are 2 phases to the GHG Standards published in 2014
Phase I will be fully implemented by 2018 and involves medium/heavy duty trucks model years
Phase II will begin implementation in involves medium/heavy duty trucks model years
Projected Savings:
80 billion gallons of fuel
1.1 billion MMT of carbon pollution
$170 billion in fuel costs for vehicle
owners and operator
2018 implementation is for trailers. Other vehicles will be impacted in 2021

26. Greenhouse Gas Rule Medium/Heavy Duty Emissions Phase II
Beyond Model Year 2018
Medium/Heavy Duty Emissions
Phase II
Use of emerging and advanced technologies by 2027
24% CO2 reductions and fuel savings for vocational vehicles by 2027
Less than 3% cost increase for vocational vehicles

27. Total Annual GHG Trends for Phase II
Green line is business as usual
Blue line is Phase I reductions
Red line is Phase II reductions, which lead to a net decrease in GHG and fuel consumption for 13 years even though the heavy-duty sector is expected to grow

28. Useful Websites
For more information on the Greenhouse Gas Rule go to:
For more information on the Clean Diesel School Bus Rebates go to:
For more information on the VW settlement go to:

29. Background Info

30. Project Funding Percentage
Section I.B.2 of the RFP
Exhaust Controls -up to 100% of the cost
Diesel Oxidation Catalysts, Diesel Particulate Filters, etc.
Engine Upgrades -up to 40% of the cost
Cleaner Fuels -cost differential between conventional fuel and cleaner fuel
EPA will NOT fund stand alone cleaner fuel use

31. Project Funding Percentage
Section I.B.2 of the RFP
Verified Idle Reduction Technologies
EPA will NOT fund stand alone idle reduction technologies EXCEPT:
Locomotive idle reduction up to 40% of the cost
Shore connection systems (locomotive and marine) up to 25% of the cost
Electrified parking spaces (truck stop electrification) up to 25% of the cost
Idle reduction technologies on school buses with model year 2006 or older engines that have been previously retrofitted, up to 100%
Other idle reduction projects -100% when combined on the same vehicle with new eligible verified exhaust control funded under this RFP
Example: Auxiliary Power Unit AND Diesel Particulate Filter on a truck

32. Project Funding Percentage
Section I.B.2 of the RFP
Verified Aerodynamic Technologies (Aero) and Low Rolling Resistance Tires (Tires)
EPA will NOT fund stand-alone Aero and/or Tires projects
If Aero and/or Tires are combined on the same vehicle with a verified exhaust control technology funded under this RFP, EPA will fund up to 100% of the cost of all technologies
Example: Low Rolling Resistance Tires AND Diesel Particulate Filter on a truck

33. Project Funding Percentage
Section I.B.2 of the RFP
Repower of Locomotive, Marine, and Non-road Vehicles
and Equipment:
EPA will fund up to 40% of the cost (labor and equipment) of a 2015 model year or newer engine certified to EPA emission standards.
EPA will fund up to 60% of the cost (labor and equipment) of an all-electric repower.
Repower of Highway Diesel Vehicles:
EPA will fund up to 50% of the cost (labor and equipment) of a 2015 model year or newer engine that is certified to CARB’s Optional Low-Nox Standard.

34. Project Funding Percentage
Section I.B.2 of the RFP
Replacement of Locomotive and Non-road Vehicles and Equipment:
EPA will fund up to 25% of the cost of a replacement vehicle or piece of equipment powered by a 2015 model year or newer engine certified to EPA emission standards.
EPA will fund up to 45% of the cost of a new, all-electric non-road vehicle or piece of equipment.
Replacement of Highway Vehicles (other than drayage):
EPA will fund up to 25% of the cost of a replacement vehicle powered by a 2015 model year or newer engine certified to EPA emission standards.
EPA will fund up to 35% of the cost of a replacement vehicle powered by a 2015 model year or newer engine certified to meet CARB’s Optional Low-Nox Standard.
EPA will fund up to 45% of the cost of an all-electric replacement vehicle.
Replacement of Drayage Trucks:
EPA will fund up to 50% of the cost of a replacement drayage truck powered by a 2011 model year or newer certified engine.