The U.S. Environmental Protection Agency (EPA) recently announced the availability of $26 million in grant funding to establish clean diesel projects aimed at reducing emissions from the nation's existing fleet of diesel engines. These grants are funded through the Diesel Emissions Reduction Act (DERA) and give preference to fleets in areas with poor air quality. The deadline to submit a project proposal is Tuesday, April 26, 2016, at 4pm ET. EPA expects to make awards in the fall.
Although private construction companies cannot directly apply for EPA grant funds, foundations (and other “charitable” organizations) and trade associations may be eligible to receive a grant. In the past, AGC Chapters and AGC Foundations have applied for –- and won! –- EPA grant money to help their contractor members retrofit equipment that was used on high-profile construction projects. In addition, AGC contractors have partnered with government agencies and other nonprofit institutions to make use of retrofit grants.
The Request for Proposals (RFP) is posted on www.grants.gov. The RFP and additional information is also posted at www.epa.gov/cleandiesel/clean-diesel-national-grants#rfp. Applicants are encouraged to carefully review the RFP, which EPA has updated from the most recent competition. For an overview, click here to see the slides from EPA’s informational webinars.
DERA Funding Update
The White House’s proposed budget for fiscal year (FY) 2017 requests $10 million for EPA’s voluntary Diesel Emissions Reduction Act (DERA) grant program, down from the FY 2016 $50 million final appropriation. However, the President’s proposed 21st Century Clean Transportation Plan, a major initiative to increase investments in clean transportation by about 50 percent, would provide up to $300 million for DERA in FY 2017. This initiative would be funded by a proposed $10/barrel fee on oil to be paid by oil companies and phased in over 5 years. AGC has voiced concern that preference may be given to school buses and ports when allocating this new dedicated source of funding. AGC will work to ensure that construction equipment is afforded equal opportunity in the selection of future grant projects.
In related news, the U.S. Senate recently approved continued funding for DERA through an amendment to Senate Bill (SB) 2012, the Energy Policy Modernization Act of 2015. The amendment calls for an allocation of $100 million for five years (FY 2017 through FY 2021). Currently, the DERA grant program is set to expire on September 30, 2016. AGC and its diesel coalition partners are now focused on getting the U.S. House of Representative to agree to support continued DERA funding in conference.
On the appropriations front, AGC and our partners in the DERA Coalition recently sent a letter to the House and Senate Appropriations Committees’ seeking $100 million in funding for DERA for fiscal year 2017. The DERA program is currently funded at $50 million, increasing to the $100 million level would be in line with the authorized levels in the amendment mentioned above.
More information about the President’s proposed budget is available at the White House's press office website, along with a fact sheet on the President's 21st Century Clean Transportation System. For more information on EPA’s DERA grant program – click here.
EPA’s Report to Congress on DERA
According to EPA’s Third Report to Congress (PDF), EPA began awarding clean diesel grants in 2008 under DERA, a grant program created by Congress as part of the Energy Policy Act of 2005 to reduce diesel exhaust from these older engines. EPA awarded the first DERA grants in 2008, the American Recovery and Reinvestment Act (Recovery Act) grants in 2009, and grants from funds appropriated in Fiscal Years (FY) 2009 through 2015. EPA’s Third Report to Congress covers final results from the Recovery Act and FYs 2009-2011 and estimated results and benefits from funding in FY 2011-2013.
EPA maintains that DERA grants have funded projects that provided immediate health and environmental benefits. From 2009 to 2013, EPA awarded $520 million to retrofit or replace 58,800 engines in vehicles, vessels, locomotives or other pieces of equipment. EPA estimates that these projects will reduce emissions by 312,500 tons of NOX (nitrogen oxides) and 12,000 tons of PM2.5 (fine particulate matter) over the lifetime of the affected engines. As a result of these pollution reductions, EPA estimates a total present value of up to $11 billion in monetized health benefits over the lifetime of the affected engines. DERA projects covered in EPA’s third report (FYs 2009-2013) are estimated to reduce 4,836,100 tons of carbon dioxide (CO2) over the lifetime of the affected engines and save over 431 million gallons of fuel as a result of idle reduction and more fuel-efficient technologies.
For more information, please contact Leah Pilconis at pilconisl@agc.org or Sean O’Neill at oneills@agc.org.