Get Ready: EPA 2013 Clean Diesel Funding Competition Opening Soon

May 9 UPDATE: EPA’s 2013 Diesel Retrofit Grant Competition is NOW OPEN! To view the Request for Proposals (RFP), application, instructions and all supporting information go here - http://epa.gov/cleandiesel/prgnational.htm.   Proposal packages are due by Tuesday, June 25, 2013, at 4:00 pm EDT.

The U.S. Environmental Protection Agency (EPA) currently has approximately $20 million available in grant funding to reduce emissions from diesel engines nationwide, including those used in exiting fleets of construction equipment.  EPA anticipates releasing the 2013 Clean Diesel Funding Request for Proposals (RFP) this month.  Later in the year, the agency will award money to “eligible entities” (like AGC Chapters) that prevail in the national grant competition.  Get a head start on your application by participating in EPA’s webinar (May 13 or 14) and be sure to follow AGC’s grant writing tips, as detailed below. EPA’s National Clean Diesel Funding Assistance Program – created by the Diesel Emissions Reduction Act (DERA) – authorizes EPA to award competitive grants, rebates and offer loans to fund projects that reduce emissions from existing diesel engines through a variety of strategies. These strategies include emission control and idle reduction technologies; cleaner fuels; engine upgrades or replacements; and/or vehicle or equipment replacements.  Under the DERA grant program, funding is restricted to the use of technologies, fuels, and engines that have been verified or certified by EPA or California Air Resources Board (CARB). Over the past five years, several AGC chapters and members have joined forces with other industry partners to apply these grants and have won millions in EPA diesel retrofit grants. These grants allow chapters to leverage millions more in matching and in-kind contributions to help their members afford the high cost of reducing emissions from construction equipment 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. A Look Back and a Look Ahead In related news, EPA recently released its second report to Congress highlighting the accomplishments of its national diesel emission reduction program during the 2008- 2010 timeframe.  Past successes include upgrading or replacing more than 50,000 older diesel-powered engines and seeing measurable clean air benefits and fuel savings, according to the report.  For every $1 in public funds appropriated through the DERA program, an additional $3 in non-federal funds has been leveraged – including significant private sector investments – resulting in $7 to $18 in benefits to the public, EPA’s report states. Despite these facts and figures, future federal funding for the DERA program remains uncertain (see below for more details).  In the proposed fiscal year (FY) 2014 budget, President Obama announced a 70 percent cut to the DERA program.  This would reduce available funding from approximately $20 million (appropriated as part of this year’s continuing resolution) to $6 million for FY 2014. AGC is continuing to work with a broad Washington, D.C.-based diesel coalition to urge Congress to provide greater financial assistance to the many equipment owners who seek a fair and effective way to reduce emissions from existing fleets of off-road diesel equipment, as   more dedicated and innovative funding is surely needed. (See coalition Letter to House Appropriations Committee; Letter to Senate Appropriations Committee.)  EPA estimates that 11 million pieces of older equipment are still in operation across the country. Indeed, just as state and local clean air officials develop plans to help meet President Obama’s new and more stringent clean air standards for fine particles (with reconsideration of the ozone standard on tap), the proposed FY 2014 budget would nearly eliminate the DERA funding “tool” that has helped many non-attainment areas reduce emissions and get into compliance.  The cut in public funding for this voluntary incentive program will take away the much-needed support that diesel equipment owners need to help cover the high costs of modernizing older diesel engines via engine replacements and retrofits. AGC worked alongside the coalition to secure reauthorization of DERA in January 2011 (H.R. 5809), thereby allowing EPA to continue to provide grants through FY 2016 to eligible entities for projects that reduce emissions from existing diesel engines. The bill authorizes up to $100 million annually and allows for a new type of “rebate” funding mechanism, as well as other changes advocated by AGC intended to make the grants more accessible to construction contractors.  As stipulated in the original Act, 70 percent of DERA funds are to be used for national competitive grants, with the remaining 30 percent allocated to the states.

DERA Funding History
Fiscal Year	Rounded Amount
FY 2008	$49M
ARRA	$300M
FY 2009/2010	$120M
FY 2011	$50M
FY 2012	$30M
FY 2013	Less than $19.9M

General DERA Grant Tips

Here are some tips to help you start preparing your FY 2013 diesel grant application now. 1.  Sign up for EPA’s National Clean Diesel Campaign email updates online at http://www.epa.gov/cleandiesel/ncdc-cmt.htm  to receive prompt notification when the 2013 request for proposals (RFP) is open. 2.  Identify your fleet – e.g., type of equipment, size and age of engine, etc. Are you looking to retrofit, repower, replace?

• Check out EPA’s reporting sheets posted online at http://www.epa.gov/cleandiesel/tools/ (not required) to see a list of the information EPA will be asking you to gather.

3.  Run the Diesel Emissions Quantifier (DEQ) on your fleet – online at http://www.epa.gov/cleandiesel/quantifier/ – to show expected project results, cost-effectiveness, and public health benefits. 4.  Compare the costs. What is most cost-effective option for your proposal? 5.  How does your application address the national priorities listed in the Energy Policy Act of 2005 (EPAct), Title VII, Subtitle G (Sections 791 to 797) – the law that first established DERA? 6.  Begin to gather additional information, answering questions such as –

• Describe the impact of air pollution in your community: Is your community disproportionately impacted by air pollution? Are there highway, rail yards, ports, mines, etc. polluting your community air?
• Describe your past performance on similar grants in scope or with the federal government.
• Identify key staff who will take responsibility for running your grant. What is their experience, etc.?

7.  Check out EPA’s “Supporting Documents Archives” online at  http://www.epa.gov/cleandiesel/dera-national-archive.htm.

• Documents that will provide great information include the FY 2012 RFP and the 2009-2012 FAQs.

More Information EPA’s main DERA National Program website is www.epa.gov/cleandiesel/prgnational.htm. You can also contact the DERA Hotline at 1 (877) NCDC-FACTS (1 (877) 623-2322). Please direct additional questions to AGC’s Senior Environmental Advisor Leah Pilconis at pilconisl@agc.org.