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Stimulus Bill Offers Millions in Diesel Retrofit Funds

The recently-passed stimulus package includes $300 million to clean up diesel engines nationwide and could result in grants of more than $1 million for AGC Chapters to distribute to member companies. The grant funding has increased six-fold from fiscal year 2008 and is designed to help construction companies and other diesel users reduce emissions from their fleets, as well as promote economic recovery and preserve/create jobs. AGC members are encouraged to work with their local Chapters to begin preparing project proposals immediately. While EPA officials will explain the grant process at AGC's 90th Annual Convention in San Diego, March 4 at 8:30 am, AGC expects EPA to post online its official "Request for Applications" (RFA)  on the same day (targeted for release on March 4) and hold it open for only 45 days (anticipated deadline for submitting proposals is April 13).  Due to increased funding and compressed timelines, AGC encourages Chapters and members to begin work on proposals as soon as possible.  The request for applications will be available at http://www.epa.gov/otaq/diesel/grantfund.htm and http://www.recovery.gov. EPA's diesel funds will cover up to 100% for EPA-verified "retrofit" technologies (emission filters/catalysts), idle reduction technologies, and EPA-certified engine upgrades (kits only); 75% for engine repowers (newer engine); and 25% for all vehicle or equipment replacements.  EPA grants cannot fund the cost of emissions reductions currently mandated under federal, state or local law.  Money will be awarded in May 2009; those projects that receive funding must be implemented during the June 9, 2009-Sept. 30, 2010 timeframe. Interested members should begin working with AGC Chapters to prepare now for the upcoming competition.  Please contact Leah Pilconis at pilconisl@agc.org if you need additional information. Chapter will need to follow the five steps below.
  1. Find eligible partners (e.g., AGC member companies, equipment dealers, state environment and/or transportation agencies, etc.). Any AGC Chapter can prepare and submit a grant application to EPA wherein the Chapter would propose a "retrofit" project(s) that would significantly reduce diesel emissions in its region.  (NOTE that EPA assistance grants cannot fund the cost of emissions reductions currently mandated under federal, state or local law.)  The Chapter's grant application would explain how it would use the federal monies to help its members implement diesel emission reduction strategies.  As a first step, interested Chapters would need to coordinate with members to identify construction companies that might be interested in using federal funds to clean up their older diesel equipment.  Chapters should also consider contacting their local equipment dealers.  In past grant competitions, some AGC Chapters have received much-needed support from CAT, Cummins, John Deere, etc., including assistance with compiling fleet inventories; assistance with assessing possible "retrofits;" assistance with quantifying the emission reduction benefits of a proposed project(s); and monetary or "in kind" contributions - like matching funds or an agreement to install "retrofits" at no charge.  It may also be useful for Chapters to connect with the state air agency contacts and department of transportation liaison.
  2. Assess diesel fleets and identify eligible vehicles/equipment. Once a Chapter identifies diesel equipment owners/operators (e.g., AGC members) who may want to partner with the Chapter, the next step would be to assess their members' fleets and determine what machines can potentially be cleaned up.  Medium and heavy-duty trucks and construction equipment would qualify for EPA funding.  Specifically, EPA funding can be used to pay for a variety of emission reduction strategies, such as "aftertreatment" retrofit (emission filters/catalysts) and idle-reduction technologies; EPA-certified engine upgrades; engine repowers (newer engine); vehicle or equipment replacements; and the use of cleaner fuels.  EPA's list of verified off-road (or non-road) engine retrofit technologies is online at http://www.epa.gov/otaq/retrofit/nonroad-list.htm.
  3. Prepare fleet and proposal description. As part of the application process, each proposal will need to include an Applicant Fleet Description (XLS). You will find directions under the "READ ME" tab of the spreadsheet. E-mail CleanDiesel@epa.gov for more information.
  4. Evaluate cost-effectiveness and emission reductions of the proposed project. According to EPA, cost-effective projects located in areas with a high population and air quality problems will rank higher in the evaluation process.  See EPA's Diesel Emission Quantifier - an interactive Web-based tool designed to help to fleet owners/operators estimate emission reductions and cost effectiveness for clean diesel projects.  Estimates are made using specific information about a fleet.  AGC Chapters and members can view a recorded version of a recent Webinar (sponsored by EPA) that provides step-by-step instructions on how to use the Diesel Emissions Quantifier.
  5. Review material from the FY 2008 grant competition. Many of the programmatic priorities, eligible entities and projects, and application instructions will be the same as the 2008 Requests for Proposals.  However, applicants should be aware that the ARRA funding Requests for Applications will contain new priorities, funding criteria and restrictions, and application requirements specific to the ARRA authority.  AGC Chapters and members can view a recorded version of a recent Webinar (sponsored by the Diesel Technology Forum) to hear EPA representatives and previous grant winners explain how grant applications are typically evaluated and tips on how to improve the competitiveness of a proposal.  Also check out EPA's archived funding materials.
BackgroundProjects awarded in 2009 will be funded through grants authorized by the Diesel Emission Reduction Act (DERA) program (Title VII, Subtitle G (Sections 791 to 797) of the EPAct 2005). Under this authority EPA will award grants via its National Diesel Emission Reduction Program on a competitive basis for implementation projects that achieve significant reductions in diesel emissions that improve air quality and protect public health.  EPA will ultimately decide who the grant money goes to after reviewing all of the funding applications.   For more information, contact Leah Pilconis at (703) 837-5332 or pilconisl@agc.org.