1. DERG@epa.ohio.gov http://epa.ohio.gov/oee/derg.aspx Updated 10/26/11 Carolyn Watkins, Office of Environmental Education Carolina Prado, Division of Air Pollution Control

2. Why clean diesel? Reduce our exposure to the harmful pollutants in diesel exhaust. Reduce the amount of air pollution created by diesel engines. Improve air quality in Ohio counties that do not currently meet national Clean Air standards

3. Diesel Exhaust and Health Diesel exhaust contains small soot particles known as fine particulate matter Fine particles can lodge in the lungs and aggravate conditions such as asthma and bronchitis US EPA has determined that diesel exhaust is a likely human carcinogen

5. The 6 R’s of Diesel Cleanup REDUCE fuel use and engine idling REFUEL with cleaner fuels like propane and CNG RETROFIT existing vehicles with pollution controls REBUILD older diesel engines to reduce emissions REPOWER older diesel engines, to remove or replace with a newer, cleaner engine REPLACE older diesel vehicles and non-road equipment with newer, cleaner vehicles and equipment that meet more stringent emission standards

6. DERG Grant Program Moved from the Ohio Department of Development to Ohio EPA July 1, 2011. ODOD and ODOT will continue to administer grants already awarded in the first two rounds Federal highway congestion mitigation and air quality (CMAQ) funds, $20 million over two years Ohio EPA will also apply for additional US EPA funds when available

7. DERG Eligible Fleets All transportation sectors allowed in CMAQ, including highway construction Public sector diesel fleet (e.g., transit buses, municipal snowplows, school buses, refuse collection trucks) Private sector (including non-profit) diesel fleets, e.g., long and short haul trucks, locomotives, highway construction equipment (working on a surface transportation construction project within an Ohio non-attainment area) that apply through a public sector partner such as a metropolitan planning organization Emission reduction calculation (HC and NOx in g/day) must accompany application.

8. Applications may be submitted from fleets in Ohio nonattainment counties: those not meeting federal air quality standards for fine particulates (PM 2.5) or ozone (green counties on map) Eligible Fleets

9. DERG Eligible Expenses All types of projects, subject to CMAQ restrictions :  Rebuilding a diesel engine, with resulting emission reductions  Full cost of replacement of traditional public transit vehicles, or partial cost of replacement of other diesel-powered vehicles & equipment.  Purchase and installation of verified retrofit technologies with resulting emission reductions  Upgrades to long-haul trucks for idle reduction, aerodynamic fixtures, and efficient tire technologies  Repowers (destruction of old engine must be certified)  Truck stop electrification (idle reduction) capital expenses  Labor costs if performed by an outside contractor/vendor to install approved DERG Program replacement engines or retrofit applications.

10. DERG Eligible Projects CMAQ-invested projects or programs must reduce CO, ozone precursor (NOx and VOCs), PM, or PM precursor (e.g., NOx) emissions from transportation. All projects shall be advertised and awarded through competitive bid standards Equipment must be operated in a nonattainment or maintenance area for a minimum 65% of the time Public-Private Partnerships (PPPs) must be documented and executed FHWA must issue formal eligibility determination

11. Technology Options U.S. EPA Verified Technologies http://epa.gov/cleandiesel/verification/verif-list.htm http://epa.gov/cleandiesel/verification/verif-list.htm California Air Resources Board (CARB) Verified Technologies www.arb.ca.gov/diesel/verdev/verdev.htm www.arb.ca.gov/diesel/verdev/verdev.htm

12. Ineligible Expenses Operating expenses and fuel costs, including incremental costs of fuel. The use of cleaner fuels such as ULSD and biodiesel blends is encouraged, but is not reimbursable. Any project required by any law or other agreement Work done on purchases made prior to official notice of project funding approval, or for costs incurred for work or purchases not included in the approved project costs. Labor expenses for replacement or retrofits performed by the project sponsor rather than an outside contractor/vendor Administrative costs.

13. DERG Grant Administration Ohio EPA issues request for proposals in November, 2011, with application deadline in January, 2012 Ohio EPA and ODOT choose best mix of projects that meet Federal Highway requirements ODOT administers grants to public sector fleets Ohio EPA administers grants to private sector fleets Up to 80% of eligible project costs are reimbursed 20% non-federal match required on all projects Calculation of emission reductions required with each application

14. Factors Considered in Awarding Grants Anticipated level of PM 2.5 or ozone precursor emission reductions Cost effectiveness Anti-idling program in place Anticipated level of reduction of other pollutants Ability to maintain the equipment Strength of match provided by the applicant Number of miles traveled by the affected vehicles Geographic balance of grants awarded across eligible counties within Ohio

15. Timeline (approximate) October 2011: Website and application under development (http://epa.ohio.gov/oee/derg.aspx), seeking comments and suggestionshttp://epa.ohio.gov/oee/derg.aspx October - November 2011: information sessions in several cities, Request for Proposals (RFP) released January 2012: proposals due March 2012: DERG grant awards announced April 2012: projects under contract September 2012: Next round of applications due

16. Another funding source : Ohio Clean Diesel School Bus Fund www.epa.ohio.gov/oeef/schoolbus.aspx www.epa.ohio.gov/oeef/schoolbus.aspx Retrofits and Idle Reduction Equipment (no repowers or replacements) Grants up to $300,000 Maximum $600,000 available to award each year from state civil penalties Applications due March 1 and September 1, 2012 and March 1, 2013

17. School Buses Cleaned Up So Far Since the program began in 2006, Ohio’s Clean Diesel School Bus Fund provided $7 million to retrofit 2,337 school buses with pollution controls, installed idle reduction equipment onto another 544 buses, and removed more than 145 tons of pollutants from the air.

18. Questions? DERG@epa.ohio.gov DERG@epa.ohio.gov Funding questions: Carolyn Watkins Office of Environmental Education (614) 644-3768 carolyn.watkins@epa.ohio.gov Technology questions: Carolina Prado Division of Air Pollution Control (614) 644-2310 carolina.prado@epa.ohio.gov