Third Report to Congress:
Highlights from the Diesel
Emission Reduction Program
&EPA
United States
Environmental Protection
Agency
EPA-420-R-16-004
February 2016
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Acronyms and Abbreviations
ccv
CO
CO2
DERA
DOC
DPF
EPA
ET
FY
HC
NAAQS
NCDC
NOx
PM
Recovery Act
RFP
Closed Crankcase Ventilation
Carbon Monoxide
Carbon Dioxide
Diesel Emissions Reduction Act
Diesel Oxidation Catalyst
Diesel Participate Filter
Environmental Protection Agency
Emerging Technologies
Fiscal Year
Hydrocarbon
National Ambient Air Quality Standards
National Clean Diesel Campaign
Nitrogen Oxides
Particulate Matter
American Reinvestment and Recovery Act
Request for Proposals
Photo Credits
Unless otherwise noted, all photos in this report by Eric Vance, USEPA.
Disclaimer of Endorsement
Mention of or referral to commercial products or services, and/or links to non-
EPA sites does not imply official EPA endorsement of or responsibility for the
opinions, ideas, data, or products presented at those locations, or guarantee the
validity of the information provided.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Table of Contents
Executive Summary 1
DERA Funding Has Provided a Broad Range of Benefits 1
Cumulative Impacts and Project Locations Since 2008 4
Looking Ahead 8
Section 1: DERA National Competitive Grants 11
Fiscal Year 2009/2010 11
Fiscal Year 2011 12
Fiscal Year 2012 13
Fiscal Year 2013 14
Lessons Learned and Looking Ahead 15
DERA SmartWay Finance Grants 15
DERA Emerging Technology Grants 17
DERA Tribal Grants 18
Section 2: American Recovery and Reinvestment Act 19
Recovery Act State grants 21
Section 3: DERA State Program 22
FY 2008-2011 State Grants 23
FY 2012-2013 State grants 24
Lessons Learned and Looking Ahead 25
Section 4: DERA National Clean Diesel Rebate Program 26
The 2012 School Bus Replacement Rebate Program 26
The 2013 Construction Equipment Rebate Program 27
Lessons Learned and Looking Ahead 28
Section 5: DERA Ports Initiative 29
Lessons Learned and Looking Ahead 30
Looking Ahead for the DERA Program 32
Appendix A: National Program Evaluation Criteria 34
Appendix B: DERA Projects and Case Studies 35
Appendix C: Map of Diesel Collaboratives 36
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Table of Exhibits
Exhibit 1: DERA Program Benefits and Accomplishments (FYs 2009-2013) 1
Exhibit 2: DERA Funded Sectors 2009-2013 4
Exhibit 3: DERA Funding by Technology Type, 2009-2013 4
Exhibit 4: Cumulative Impacts of DERA (FY 2008-2013) 5
Exhibit 5: Diesel Engine Turnover by Year 6
Exhibit 6: Diesel Exhaust Health Effects 9
Exhibit 7: Total DERA Funding Appropriations in this Report 11
Exhibits: FY 2009/2010 DERA Funding by Sector 11
Exhibit 9: FY 2009/2010 DERA Technologies 12
Exhibit 10: FY 2011 DERA Funding by Sector 12
Exhibit 11: FY 2011 DERA Technologies 13
Exhibit 12: FY 2012 DERA Funding by Sector 13
Exhibit 13: FY 2012 DERA Technologies 14
Exhibit 14: FY 2013 DERA Funding by Sector 14
Exhibit 15: FY 2013 DERA Technologies 15
Exhibit 16: Reducing Emissions on School Buses through Retrofits 17
Exhibit 17: Recovery Act DERA National Funding by Sector 19
Exhibit 18: Recovery Act DERA National Technologies 20
Exhibit 19: Recovery Act DERA State Funding by Sector 21
Exhibit 20: Recovery Act DERA State Technologies 21
Exhibit 21: FY 2008-2011 DERA State Funding by Sector 23
Exhibit 22: FY 2008-2011 DERA State Technologies 23
Exhibit 23: FY 2012-2013 DERA State Funding by Sector 24
Exhibit 24: FY 2012-2013 DERA State Technologies 24
Exhibit 25: FY 2013 DERA Ports Initiative Funding by Sector 29
Exhibit 26: EPA Regions and Regional Clean Diesel Collaboratives 36
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Executive Summary
Executive Summary
From goods movement to building construction to public transportation, diesel
engines are the modern-day workhorse of the American economy. Though diesel
engines are reliable and efficient, older ones emit significant amounts of exhaust
including particulate matter (PM) and nitrogen oxides (NOxl, which can harm
human health. Despite the recent implementation of the U.S. Environmental
Protection Agency's (EPA) most stringent emissions standards, approximately
10.3 million older diesel engines remain in use1. EPA began awarding clean diesel
grants in 2008 under the Diesel Emissions Reduction Act (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's National Clean Diesel Campaign (NCDC) within the Office of Transportation
and Air Quality administers the DERA grants. 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. This 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-
2013.2
DERA Funding Has Provided a Broad Range of Benefits
Since 2009, the DERA program has achieved impressive outcomes and a range of
benefits, summarized in Exhibit 1. See Exhibit 4 for cumulative impacts.
Exhibit 1: DERA Program Benefits and Accomplishments (FYs 2009-2013)
Investment of DERA Program
$520 million funds awarded
58,800 engines retrofitted or replaced
Up to $11 billion in monetized health benefits
Up to 1,700 fewer premature deaths
81% of projects targeted to areas with air quality
challenges
3:1 leveraging of funds from non-federal sources
Emission and Fuel Reductions
312,500 tons of NOX
12,000 tons of PM
18,900 tons of hydrocarbon
58,700 tons of carbon monoxide
4,836,100 tons of carbon dioxide
431 million gallons of fuel
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Improved air quality and public health
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 and 12,000 tons of PM2.5 3 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,
which include up to 1,700 fewer premature deaths associated with the emission
reductions achieved over this same period.4,5 These clean diesel projects also are
estimated to reduce 18,900 tons of hydrocarbon (HC) and 58,700 tons of carbon
monoxide (CO) over the lifetime of the affected engines.
Served disproportionately impacted communities
Many projects have made health and environmental impacts in socially and
economically vulnerable areas. Goods movement projects are especially beneficial
because they tend to take place in communities that are disproportionately
impacted by higher levels of diesel exhaust, such as those near ports, rail yards,
and distribution centers. Clean diesel projects reduce exposure for people living
in these communities, and the improved air quality provides immediate health
benefits. Since the first DERA grants in 2008, EPA has increasingly focused
attention on PM and ozone nonattainment areas to achieve maximum benefits for
every dollar spent. For projects awarded in FY 2009 to FY 2013, 81% were located
in areas with air quality challenges.
Improving Air Quality and Public Health: Urban Trucking and School Bus Fleets
The Southwest Detroit Environmental Vision (SDEV) diesel project focused on decreasing
diesel emissions through the retrofit of various diesel vehicles including the replacement
of 24 medium heavy-duty diesel trucks and eight school buses.
SDEV received a total of $1.2
million in grant funding to work
with Greater Lansing Area Clean
Cities, NextEnergy Center, and
nine fleet partners. This project
impacted multiple economically
disadvantaged and underserved
urban areas in Michigan
(Detroit, Dearborn, Flint,
Lansing), as well as vulnerable
populations in suburban and
Photo Courtesy of Southwest Detroit Environmental Vision rural areas with poor air quality.
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Executive Summary
Reduced climate impacts and improved fuel savings
DERA projects covered in this 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. Black carbon (BC) is a component of PM and has been
linked to a range of climate impacts, including increased temperatures and
accelerated snow melt. BC also contributes to adverse health impacts associated
with PM exposure. Particles emitted by legacy mobile diesel engines are about
75% BC, so reductions in these BC-rich sources also likely provide climate
benefits. DERA projects provide immediate BC reductions by reducing PM
emissions from the legacy fleet of diesel engines, including approximately 8000
tons of PMa.5 over the lifetime of the projects covered in this report.
Focused on goods movement and the supply chain
DERA funding has focused on diesel pollution at intermodal hubs, such as ports
and delivery centers, and across the nation's transportation infrastructure that
supplies goods. In doing so, we are modernizing the diesel powered equipment
that moves our economy by transporting goods throughout the nation. EPA will
continue to target specific fleets in high diesel exposure areas such as near ports
and freight distribution hubs and other disproportionately affected communities.
Generated economic and environmental activity.
Clean diesel projects are cost-effective, according to EPA's calculations of health
benefits. Each federal dollar invested in clean diesel projects has leveraged as
much as $3 from other government agencies, private organizations, industry, and
nonprofit organizations, generating between $5 and $21 in public health benefits.
DERA funding has impacted a variety of sectors and supported many clean diesel
technologies. New clean diesel technologies help spur environmental jobs and
innovation in the marketplace.
Answered popular demand.
Stakeholders have shown a tremendous amount of interest in EPA-funded clean
diesel projects. Funding requests have exceeded availability by as much as 35:1
for our National Clean Diesel Rebate Program and 7:1 for our national grant
competitions since the inception of DERA. These requests highlight DERA's
ongoing potential to meet the nation's need for diesel emission reductions and
fleet turnover incentives.
Met local needs.
EPA is committed to engaging local communities through clean diesel projects,
and targets projects that will be able to continue to provide benefits after the
project period has closed. These grants have addressed local environmental and
public health problems as DERA grant recipients tailor projects to the needs of
each individual community.
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Exhibit 2: DERA Funded Sectors 2009-2013
Short Haul
Stationary Agriculture
Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Cumulative Impacts and Project Locations Since 2008
In the early years of DERA,
many applicants requested
funding for retrofits of on-
highway vehicles, especially
long-haul trucks and school
buses, and use of alternative
fuels such as B20. As the
DERA program progressed
and EPA's on-highway 2007
standards were implemented,
applicants sought to repower
larger vehicles, vessels and
equipment in ports and rail
yards. Exhibit 2 shows the
most frequently funded
sectors for the Recovery Act
and FY 2009-2013. Exhibit 3
shows the most frequently
funded technologies for the
Recovery Act and FY 2009-2013.6
City/County Vehicle
Construction
School Bus
Long Haul
Refuse Hauler
Rail
Ports and Airports
Exhibit 3: DERA Funding by Technology Type, 2009-2013
Aero Profile Tractor
Auxiliary Power Unit
Compressed Natural Gas Replacement
Diesel Oxidation Catalyst (DOC)
Diesel Particulate Filter (DPF)
Direct Fired Heater (DFH)
DOC + Closed Crankcase Ventilation (CCV)
DOC + DFH
DPF+CCV
Engine Replacement
Engine Repower
Single Wide Tires
Trailer Side Skirts
Trailer Tails
Truck Stop Electrification
0 2000 4000 6000 8000
Number of Units Funded
10000
12000
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Executive Summary
Exhibit 4: Cumulative Impacts of DERA (FY 2008-2013)
EPA has awarded 642 grants since the start of DERA in 2008 through FY 2013.
These grants have upgraded nearly 73,000 vehicles or pieces of equipment and
saved over 450 million gallons of fuel. EPA estimates that total lifetime emission
reductions achieved through DERA funding are 14,700 tons of PM and 335,200
tons of NOX. These reductions have created up to $12.6 billion of health benefits.7
DERA Projects FY 2008 - 2013
*b
Hawaii
Puerto Rico and Virgin Islands
if
Guam
Legend
Rebates FY 12-13
Emerging/SmartWay
ARRA 2009
Number of Grants
1
2
National FY08-13
Number of Grants
1-2
3-4
5-6
State FY 06-13
Number of Grants
1-2
3-4
5-6
| ""] 2005 NATA Counties
Nonattainment Areas
Alaska
Leading the Effort for Fleet Turnover
DERA funding has upgraded nearly 73,000 diesel engines since 2008, but many
engines in the legacy fleet will continue to operate over the next decade. Although
the number of heavy polluting diesel engines is projected to decline due to fleet
turnover and new engine standards, a significant number of legacy vehicles will
remain on the road. For instance, EPA estimates that more than one million
legacy fleet engines will remain in operation in 2030, see Exhibit 5.8
DERA funding provides an incentive to fleet owners to upgrade or replace older
equipment and accelerate the fleet turnover across the country. The replaced
vehicles or engines are required to be scrapped or permanently disabled ensuring
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
the turnover of older, dirtier engines. Since 2008, demand from fleet owners has
exceeded DERA's available funds. There is a need to turn over these older
engines, a desire from fleet owners to do so, and a significant public health
benefit.
DERA funding is a key component of EPA's National Clean Diesel Campaign
(NCDC) which addresses the legacy fleet through outreach, partnerships,
technology assessment and grants. It is the Federal program uniquely focused on
protecting public health through lowering diesel exhaust exposure. Several other
Federal programs include a clean diesel component, such as the Department of
Transportation's Congestion Mitigation and Air Quality Improvement (CMAQ)
Program, the U.S. Maritime Administration's grant program and the Department
of Energy's Clean Cities program. CMAQ focuses on surface transportation
projects that can contribute to congestion relief and air quality improvements,
MARAD focuses on marine projects, and Clean Cities advances the nation's
economic, environmental, and energy security by supporting local actions to cut
petroleum use in transportation.
Exhibit 5: Diesel Engine Turnover by Year
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Fleet turnover and new
standards will drive an
estimated 88% reduction of
heavy polluting diesel engines
over the next 15 years;
however, over one million will
remain in use in 2030.
III!
I I
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Executive Summary
Focus on Cost-Effective Projects
As part of its implementation role, over the years EPA has refined the
requirements in the DERA Requests for Proposals (RFP) to lower the amount of
EPA funding for individual projects where the vehicle or fleet owner derives an
economic benefit (a more efficient engine or vehicle replacement, or fuel-saving
technologies). In FY 2011 and earlier, EPA funded up to 75% of the cost of an
engine repower. In FY 2012 RFP, EPA cost-share was lowered to 50% and by FY
2013 it was decreased to 40%. Additionally, EPA stopped funding stand-alone
cleaner fuel use, though DERA grant recipients were permitted to bundle cleaner
fuels with retrofit technologies or engine replacements. EPA also ceased funding
stand-alone idle reduction technologies, except on locomotives, shore power
systems, truck stop electrification or newer school buses already equipped with
retrofit devices, unless the technologies were bundled with verified exhaust
control technologies.
Focus on Communities and Improving Areas of Poor Air Quality
In the early years of DERA funding, many projects retrofitted long-haul trucks
and fleets for immediate emissions reductions. Now, many of these trucks and
buses are already equipped with emission reducing technologies due to EPA's
emission standards for new heavy-duty engines, so project focus has shifted to
older nonroad engines, vessels and short haul trucks. These engines can remain
in service for decades and may predate EPA's most recent heavy-duty and
nonroad emission standards, which have created significant reductions in PM
and NOx. These projects, though sometimes requiring more resources per engine
than retrofitting trucks or buses, provide important reductions in emissions to
local areas.
Community-based projects are those in or near specific locations like ports, rail
yards, or bus depots where residents are disproportionately affected by diesel
exhaust. Since the first DERA grants in 2008, EPA has increasingly focused
attention on PM (per the 1997, 2006 and 2012 National Ambient Air Quality
Standards) and ozone (per the 8-hour 2008 National Ambient Air Quality
Standard) nonattainment areas. Between FY 2009 and FY 2013, 81% of all
projects took place in nonattainment and areas with relatively high concentration
of particulate matter.9 In order to help reduce instances of asthma, heart and
lung disease, and other respiratory ailments, EPA will continue funding projects
in areas with air quality challenges to achieve the most meaningful improvements
to the health and well-being of local residents.
Streamlined Funding Mechanism: The National Clean Diesel Rebate Program
The DERA reauthorization signed by President Barack Obama in 2011 allowed
EPA to offer rebates in addition to grants. EPA opened the first rebate program in
2012 to allow public and private fleet owners to replace older school buses
currently in operation. EPA had $2 million in total funding but received over
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
1,000 applications requesting more than $70 million. A lottery was used to make
selections and applicants replaced 76 buses across the country. EPA offered a
second round of rebate funding in 2013 to replace and retrofit construction
equipment and provided rebates to three recipients. Outreach to the multi-
segmented construction sector about the rebate opportunity proved difficult, and
may have impacted participation in the program, along with EPA's limited ability
to provide rebates to private fleets and relatively complex requirements necessary
to achieve the most cost-effective results.
Rebates have proven to be a popular funding mechanism for both public and
private school bus fleet owners. The benefits of the rebate program include a
streamlined application process and an accelerated project period length. The
time from start to finish for a rebate project is approximately half the time of a
grant project. EPA offered another school bus replacement rebate program in
2014, the final results of which will be covered in the next Report to Congress.
Clean Diesel Projects at Ports
From the outset of the DERA program, the port sector has been a priority since
communities surrounding ports tend to have disproportionately poor air quality.
In 2013, EPA reinvigorated engagement with stakeholders about air quality issues
facing ports. These conversations culminated in a Summit in Baltimore that
brought together port authorities, state and local government, industry, and
communities to discuss efforts to reduce emissions in ports. In FY 2013, EPA
offered a ports-only Request for Proposals (RFP) to establish clean diesel projects
at ports. EPA provided $4 million in funding for six grants to replace or retrofit
more than 130 engines operating at or around ports.
Looking Ahead
As part of the President's 21st Century Clean Transportation Plan, the
Administration is calling for major new investments in our nation's
infrastructure, by accelerating the integration of autonomous vehicles, low-
carbon technologies, and intelligent transportation systems that reduce climate
emissions, increase safety, and improve transportation options for American
families. EPA will play its part in this plan, financed through the establishment of
a mandatory fund that will accelerate the transition to cleaner vehicle fleets by
providing $1.65 billion over the course of 10 years and up to $300 million in FY
2017 to renew and increase funding for the DERA Program.
EPA will also continue to target its traditional discretionary funding for areas that
suffer from poor air quality and will focus on projects that engage local
communities and provide lasting benefits. EPA is especially interested in working
with port communities and has adjusted its national RFP to prioritize projects
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Executive Summary
that reduce emissions from engines involved in goods movements and freight
industries. EPA also plans to continue to offer rebate funding and focus on fleet
turnover for engines that pre-date EPA's on-highway standards for PM (model
year 2006 or older).
Exhibit 6: Diesel Exhaust Health Effects
Direct emissions from diesel engines, especially PM, NOX, and sulfur oxides (SOX), as well as
other air toxics, contribute to health problems. In addition, NOX contributes to the formation
of ozone and PM through chemical reactions.
PM has been associated with an increased risk of premature mortality, increased hospital
admissions for heart and lung disease, and increased respiratory symptoms. Long-term
exposure to components of diesel exhaust, including diesel PM and diesel exhaust organic
gases, are likely to pose a lung cancer hazard. Exposure to ozone can aggravate asthma and
other respiratory symptoms, resulting in more asthma attacks, additional medication, lost
school and work days, increased emergency room visits and hospitalizations, and even
premature mortality. Repeated exposure to ozone can increase susceptibility to respiratory
infection and lung inflammation and can aggravate preexisting asthma. At sufficient
concentrations, ozone can even cause permanent damage to the lungs, resulting in the
development of chronic respiratory illnesses. Children, outdoor workers, those who exercise
outside, people with heart and lung disease, and the elderly are most at risk.
The technologies used in
DERA grants can reduce
PM emissions by up to
95% and NOxbyupto
90%. Each of these
reductions makes an
immediate and positive
impact on public health.
PM and NOX controls have
been the primary focus
for the time period of this
Report.
For more information on health effects, see Health Assessment Document for Diesel Engine
Exhaust, which examines information regarding the health hazards associated with exposure
to diesel engine exhaust.
1 EPA's Office of Transportation and Air Quality calculation using MOVES2014 and NONROAD.
2 For FY 2011, the State Clean Diesel Program results are actuals and the National Clean Diesel
Program results are estimates. For more detailed final information on the FY 2008 grants, please
see the Second Report to Congress: Highlights of the Diesel Emissions Reduction Program,
EPA 420-R-12-031 from December 2012.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
See the Report to Congress: Highlights of the Diesel Emissions Reduction Program, EPA 420-R-09-
006 from August 2009 for the First Report on the DERA program.
3 PM2.5 will be referred to as PM for the rest of this Report.
4 When a grant is awarded, estimated emissions reductions are calculated. As the grant
progresses, DERA grant recipients are required to submit quarterly programmatic progress
reports to EPA. Once a grant is completed, the recipient submits a final programmatic report
which includes an overview of the project's implementation and a final accounting of project
expenses and results (engines replaced or retrofitted, technologies applied, and emissions
reduction calculations for PM, NOx and CO2). EPA, along with a contracted third party,
evaluates the reports for consistency and accuracy.
EPA estimates emissions reductions for each project through our web-based Diesel Emissions
Quantifier (DEQ) using the information in the grant final reports. The DEQ uses MOVES and
NONROAD as the basis for calculations. After the emissions reductions are calculated, the
information is tracked internally along with all grant recipient information. Final emissions data
for each grant is totaled for each fiscal year and program.
EPA estimates that the total present value of health benefits from the emission reductions
between the Recovery Act and FY 2013 range from $3.0 billion to $11 billion (in 2014 dollars;
range reflects the use of both a 3 and 7 percent discount rate and the valuation of premature
mortality derived from either the American Cancer Society cohort study (Krewski et al., 2009) or
the Harvard Six-Cities study (Lepeule et al., 2012)). Benefits calculated using EPA's PM2.5
benefit per ton values, which monetize a suite of PM-related health impacts including premature
mortality, hospital admissions, emergency room visits, and work loss days. Please refer to the
benefit per ton Technical Support Document for more information. US EPA, (2013). Technical
Support Document: Estimating the Benefit per Ton of Reducing PM2.5 Precursors from 17
Sectors. Office of Air Quality Planning and Standards. Research Triangle Park. January. The
document can be found here: www.epa.gov/sites/production/files/2014-
10/documents/sourceapportionmentbpttsd.pdf (accessed 7/24/2015).
5 EPA estimates that the emission reductions achieved over the lifetime of the affected engines will
help avoid between 750 and 1,700 premature deaths. Estimates of premature mortality avoided
were calculated using PM-related incidence per ton estimates presented in the benefit per ton
Technical Support Document (referenced above). The range of premature mortality avoided is
derived from either the American Cancer Society cohort study (Krewski et al., 2009) or the
Harvard Six-Cities study (Lepeule et al., 2012).
6 Many grant recipients installed more than one technology on each vehicle, so the total number
of technologies exceeds the 58,815 vehicles affected figure stated above.
7 The cumulative totals were created by adding the actual results from FY 2008 from the Second
Report to Congress to the actual and estimated results covered in this Report from the Recovery
Act to FY2013.
8 The "Legacy Fleet" is defined by the DERA program as the existing pool of medium and heavy -
heavy-duty engines in 2008, the first year of appropriations for DERA, or approximately 11
million diesel engines. This estimate was created according to the MOVES and NONROAD
models. Data based on a projected 10 percent fleet turnover rate from EPA modeling.
9 The percentage of projects taking place in FY 2009-2013 in non-attainment areas was calculated
using the EPA Office of Air and Radiation's most recent National Ambient Air Quality Standards,
which can be found at www3 .epa.gov/ ttn / naaqs / criteria, html and NATA areas are places where
all or part of the population is exposed to more than 2.0 ng/m3 of diesel particulate matter
emissions in EPA's 2005 National-Scale Air Toxics Assessment found at:
www3.epa.gov/ttn/naaqs/criteria.html.
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Section 1: DERA National Competitive Grants
Section 1: DERA National Competitive Grants
EPA prioritizes clean diesel projects that provide immediate health and
environmental benefits and target areas of greatest need. The DERA legislation
emphasizes maximizing health benefits and serving areas of poor air quality, such
as non-attainment areas for PM and ozone, and conserving diesel fuel.
For each fiscal year, by statute, EPA sets aside 30% of funding for states to
establish their own clean diesel programs. The remaining 70% of the annual
appropriation is used for national competitive grant and rebate funding
opportunities. Some of those funds may be reserved for special funding
opportunities, such as the National Clean Diesel Rebate program, but most is
directed to a nationwide, competitive grant program.
Exhibit 7: Total DERA Funding Appropriations in this Report
Recovery Act 2009/2010 2011 2012
$300 million $120 million $50 million $30 million
Fiscal Year 2009/2010
EPA received an appropriation of $60 million in both FY 2009 and FY 2010; of the
combined total of $120 million,
$64 million went to the
national competitive program.l
Combining the two years'
appropriations streamlined the
RFP process and provided
applicants an opportunity to
propose larger projects.
EPA received over 350
applications with applicants
requesting five dollars for every
one available. EPA awarded 69
national, competitive grants.
These grants retrofitted or
replaced 7,700 engines and
pieces of equipment, see
Exhibit 8 and Exhibit 9.
Exhibit 8: FY 2009/2010 DERA Funding by
Sector
Agriculture City/County Vehicle
Short Haul
Construction
School Bus
Refuse Hauler_
Rail
Ports and Airports
Long Haul
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Exhibit 9: FY 2009/2010 DERATechnologies
Aero Profile Tractor
Auxiliary Power Unit
Biodiesel
Compressed Natural Gas Replacement
Diesel Oxidation Catalyst (DOC)
Diesel Particulate Filter (DPF)
Direct Fired Heater (DFH)
DOC + Closed Crankcase Ventilation (CCV)
DOC + DFH + CCV
Engine Replacement
Engine Repower
Single Wide Tires
Trailer Side Skirts
Trailer Side Skirts +TrailerTails
Trailer Tails
Truck Stop Electrification
Ultra Low Sulfur Diesel
-2,050
-2,070
NOTE: Engine Shutdown, DOC +
DFH, and Compressed Natural
Gas units were also funded in FY
2009/2010 but are not shown
due to scale (< 10 units funded).
0 200 400 600 800
Number of Units Funded
1,000
1,200
DERA FY 2009/2010 grants reduced an estimated 56,500 lifetime tons of NOX;
1,700 tons of PM; 2,800 tons of HC; 7,800 tons of CO; and 882,900 tons of CO2.
These projects also saved
over 78 million gallons of
fuel.
Fiscal Year 2011
EPA received a $50 million
appropriation in FY 2011 and
directed $32 million to the
national competitive
program. EPA funded 47
national competitive grants
across the country, one of
which was an Emerging
Technology grant. Matching
funding contributed was $38
million. EPA received 235
applications requesting $289
million, see Exhibit 10 and
Exhibit 11.
Exhibit 10: FY 2011 DERA Funding by Sector
Short Haul
Agriculture
School Bus
Refuse Hauler
Rail
City/County Vehicle
Construction
Long Haul
Ports and Airports
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Section 1: DERA National Competitive Grants
DERA FY 2011 grants are estimated to reduce 37,800 lifetime tons of NOX; 1,400
tons of PM; 2,600 tons of HC; 7,000 tons of CO; and 263,300 tons of CO2. These
grants upgraded 2,600 engines or pieces of equipment, and the projects saved
more than 23 million gallons of fuel.
Exhibit 11: FY2011 DERA Technologies
Auxiliary Power Unit
Cab Roof Fairing
Compressed Natural Gas Replacement
Diesel Oxidation Catalyst (DOC)
Diesel Particulate Filter
Direct Fired Heater (DFH)
DOC + Closed Crankcase Ventilation
DOC + DFH
Engine Replacement
Engine Repower
Engine Shutdown
100 200 300 400
Number of Units Funded
500
Exhibit 12: FY 2012 DERA Funding by Sector
Fiscal Year 2012
In FY 2012, EPA received $30 million for clean diesel projects. EPA allocated
approximately $20 million for the national competitive program and funded 26
grants to reduce emissions
from 868 diesel engines or
pieces of equipment.
Matching funding
contributed was $39 million.
EPA received 94 applications
seeking nearly $132 million
in funding, see Exhibit 12
and Exhibit 13.
DERA FY 2012 grants are
estimated to reduce 26,600
lifetime tons of NOX; 800
tons of PM; 1,100 tons of
HC; 3,500 tons of CO; and
100,700 tons of CO2. These
projects also saved nearly 9
million gallons of fuel.
Short Haul
Agriculture
City/County Vehicle
Construction
Long Haul
Ports and Airports
Rail
Refuse Hauler
School Bus
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Exhibit 13: FY2012 DERATechnologies
Auxiliary Power Unit
Biodiesel
Compressed Natural Gas
Compressed Natural Gas Replacement
Diesel Oxidation Catalyst (DOC)
Diesel Particulate Filter
Direct Fired Heater (DFH)
DOC + Closed Crankcase Ventilation
DOC + DFH
Engine Replacement
Engine Repower
Truck Stop Electrification
50 100 150 200
Number of Units Funded
250
Exhibit 14: FY 2013 DERA Funding by Sector
Agriculture
Short Haul
City/County Vehicle
Construction
Fiscal Year 2013
In FY 2013, EPA received a total appropriation of $20 million and dedicated $14
million for the rebate
program, the ports-specific
RFP, and the national RFP.
EPA made $9 million
available under the FY
2013 National Clean Diesel
Funding Assistance
Program and received 78
applications seeking almost
$48 million in funding. EPA
funded 23 competitive
grants in FY 2013.
Matching funding
contributed was $23
million. These grants
retrofitted, replaced or
repowered 334 engines and
pieces of equipment, see
Exhibit 14 and Exhibit 15.
EPA estimates that DERA FY 2013 grants reduced 6,900 lifetime tons of NOX; 170
tons of PM; 100 tons of HC; 1,100 tons of CO; and 91,200 tons of CO2. These
projects also saved more than 8 million gallons of fuel.
School Bus
Refuse Hauler
Ports and Airports
Long Haul
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Section 1: DERA National Competitive Grants
Exhibit 15: FY2013 DERA Technologies
Alternate Fuel ^
Auxiliary Power Unit
Diesel Particulate Filter ^m
Direct Fired Heater + Diesel Oxidation Catalyst
Engine Replacement ^m
Engine Repower ^"
Truck Stop Electrication ^
20 40 60 80 100
Number of Units Funded
Lessons Learned and Looking Ahead
EPA continues to target DERA funds to maximize cost-effectiveness and make
significant emissions reductions in areas disproportionately exposed to diesel
exhaust. In 2012, EPA conducted an evaluation and planning process to target
those engines in the remaining fleet that have significant useful life left but are
heavy emitters. These engines are often found at ports and are used for goods
movement. Each funding opportunity since has been crafted to attract and fund
the most impactful projects, often in the goods movement sector.
For the national competitive program,
demand from applicants has exceeded
program resources. For the past two fiscal
years, over 1000 engines were not able to be
funded from the following types of fleets:
transit buses, short haul/delivery trucks,
refuse haulers, locomotives, agriculture,
construction, city/county vehicles, school
buses, marine, ports and airports, and long
haul trucks.
UJM
I
DERA SmartWay Finance Grants
The SmartWay Finance program competitively awarded grants to establish
programs to provide fleet owners access to financing through the use of low-cost
loans and loan guarantees for the purchase of fuel-saving and emission control
technologies and vehicle replacements. SmartWay Finance grants established
programs that assisted small- and medium-sized fleet owners in purchasing
cleaner, more fuel-efficient trucks and equipment.
EPA awarded four grants in FY 2009/2010 and five in the Recovery Act with more
than $22.5 million to replace or retrofit more than 1,400 engines or pieces of
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
equipment. In total, EPA had selected nine projects in FY 2009/2010 and
Recovery Act, but three projects returned funds and were closed before they
achieved results. The FY 2009/2010 and Recovery Act Finance Grants reduced
an estimated 19,200 lifetime tons of NOX; 600 tons of PM; 1,000 tons of HC;
5,600 tons of CO; and 82,900 tons of COa. These grants will save over 7 million
gallons of fuel.
Lessons Learned
Grants to set up financing programs have proven to be a difficult mechanism to
fund clean diesel projects. Finance grants generally require more administrative
oversight and more time to establish and accomplish grant objectives, due to the
revolving nature of loan programs. In addition, some grantees could not make the
envisioned program work. Issues included changing economic factors (lower
interest rates which made the grantee's program less appealing; lower demand for
new engines or technologies due to the slowed economy; expiration of a tax credit
necessary for the program to succeed) and grantee administrative challenges. EPA
deobligated $18.9 million in funding for these grants and returned it to either the
U.S. Treasury (Recovery Act grants) or redirected the funds to other clean diesel
DERA grants. EPA has closed all finance grants awarded from 2008 to 2010.
Because DERA grants have not proven to be a good mechanism for establishing
and administering low-cost financing programs, EPA is not currently anticipating
loan future programs.
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Section 1: DERA National Competitive Grants
DPF Emissions
Reduction
Exhibit 16: Reducing Emissions on School Buses through Retrofits2
Nearly 13,000 Diesel Oxidation Catalysts (DOC) or DOC +
Closed Crankcase Ventilation (CCV) have been installed on
school buses with DERA funding, as well as approximately
1,400 Diesel Particulate Filters (DPF). In 2014, EPA's
Technology and Assessment Center within the Office of
Transportation and Air Quality conducted in-use testing on
DOCs and DPFs and confirmed these technologies achieve
verified levels of emissions reduction and remain durable in
real world applications. Between 2008 and 2012, multiple
manufacturers'verified retrofit devices were procured by
EPA and tested.
The devices were typically from prior grant projects and
were used on school buses in normal operation for two to
four years and accumulating up to 90,000 miles. All testing
was performed on an engine dynamometer. Nine DPFs and
three DOCS were tested for PM, HC, and CO. Per the tables
on the right, DOCs alone were shown to reduce PM
emissions up to 20%, and DPFs can reduce PM up to 99%.
PM
94%
64%
65%
51%
82%
99%
97%
98%
97%
HC
37%
57%
72%
51%
74%
86%
92%
86%
87%
CO
N/A
55%
61%
53%
65%
73%
77%
77%
73%
DERA Emerging Technology Grants
The Emerging Technology (ET) program fostered the development of next
generation diesel emissions reduction technologies by partnering technology
manufacturers with fleets to test the effectiveness of the products. If the products
proved successful in the field, they became verified technologies and available for
wider use. The program supported projects to demonstrate and improve
seventeen technologies.
In total, EPA provided over $15 million in funding for emerging technology grants
to upgrade more than 200 engines or pieces of equipment while also supporting
technology innovation. In FY 2009/2010, EPA awarded funding to five ET
projects. Eleven projects were selected to receive Recovery Act funding. In FY
2011, EPA funded one ET project.
Emerging technologies included selective catalytic reduction, diesel oxidation
catalysts, engine shutdown, engine upgrades, auxiliary power units, diesel
particulate filters, exhaust gas recirculation, a lean NOx catalyst, and hybrid
replacements. The ET grants reduced an estimated 4,400 lifetime tons of NOx;
160 tons of PM; 220 tons of HC; 1,600 tons of CO; and 2,200 tons of CO2.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Lessons Learned
While the ET program was successful in demonstrating some new products, there
were many challenges for manufacturers and fleets with the limited DERA
funding available. Consequently, EPA suspended the ET program as DERA
allocations decreased. At the same time, the DERA program prioritized funding to
areas with poor air quality given limited funding. Complexities associated with
emerging technologies and their grant projects also made them more costly for
the numbers of devices installed. Of the emerging technologies included on the ET
program list, over half elected to not pursue full EPA verification or certification.
DERA Tribal Grants
A priority for the DERA program is to work with Tribes to reduce emissions. EPA
began funding Tribal grants through the national competitive program in FY
2009/2010. Between FY 2009-2013, EPA received applications requesting nearly
$7 million in funding. By FY 2013, EPA had awarded ten tribal grants in Alaska,
Arizona, California, Iowa, Minnesota, and Washington. These grants have
provided $3,204,660 to retrofit or replace marine vessels, mining equipment,
generators, municipal vehicles, and school buses.
Lessons Learned and Looking Ahead
Taking into consideration Tribal feedback, EPA offered a stand-alone tribal RFP in
FY 2014 with $1 million in available funding. EPA is committed to strengthening
partnerships with tribal communities and will likely continue to offer a stand-
alone RFP for tribes with targeted tribal outreach.
1 The state program automatically receives 30% of an appropriation, so the national component
received 70% of the 2009/2010 program,
which amounted to $84 million. The national
competitive program received $64 million
while the remaining $20 million went to the
Emerging Technology and SmartWay Finance
grant programs. In addition, some national
funding in FY 2011 and the Recovery Act
went to SmartWay Finance and Emerging
Technology grants. These results are covered
in another section.
2 McCoy, B. J., & Tanman, A. (2014).
Emissions Performance and In-Use
Durability of Retrofit After-Treatment
Technologies. SAE International Journal of photo Courtesy of Northwest Indian Fisheries
Engines, 7(4). DOI: 10.4271/2014-01-2347. Commission
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Section 2: American Recovery and Reinvestment Act
Section 2: American Recovery and
Reinvestment Act
Exhibit 17: Recovery Act DERA National
Funding by Sector
Short Haul
Stationary Agriculture
City/County Vehicle
Construction
School Bus
In 2009, EPA received $300
million for DERA through
the American Recovery and
Reinvestment Act (Recovery
Act), see Exhibit 17 and
Exhibit 18.1 EPA funded
"shovel-ready" large and
impactful clean diesel
projects that delivered
immediate emissions
reductions. More than 600
entities applied, requesting
$1.7 billion in project funds
and offering $2.2 billion in
matching funds. EPA
awarded 89 competitive
projects across the country,
upgrading nearly 17,000
pieces of equipment, see
Exhibit 17 and Exhibit 18.2
DERA Recovery Act grants are estimated to reduce 102,500 lifetime tons of NOx;
3,600 tons of PM; 6,000 tons of HC; 17,000 tons of CO; and 2,235,700 tons of
CO2. These projects also saved nearly 200 million gallons of fuel. Grant recipients
reported to the Office of Management and Budget that these projects created or
saved approximately 3,000 jobs.3
Refuse Hauler
Rail \
Ports and Airports
Long Haul
Photo courtesy of Michael Kearns,
City of Richmond, VA
Photo courtesy of Mat Carlile,
Utah Department of
Environmental Quality
Photo courtesy of the San
Joaquin Valley Unified Air
Pollution Control District
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Exhibit 18: Recovery Act DERA National Technologies
Auxiliary Power Unit
Cab Side Fairing
Compressed Natural Gas
Diesel Oxidation Catalyst (DOC)
Diesel Particulate Filter (DPF)
Direct Fired Heater (DFH)
DOC + Closed Crankcase Ventilation (CCV)
DOC + DFH
DOC + DFH + CCV
DPF + CCV
Emulsion
Engine Replacement
Engine Repower
Engine Shutdown
Hybrid Replacement w/DPF
Other Emission Control
Partial Flow Filter
Single Wide Tires
Single Wide Tires +Trailer Side Skirt
Trailer Side Skirts
Trailer Tails
Truck Stop Electrification
Ultra Low Sulfur Diesel
NOTE: Cab Roof Fairing units
were also funded under the
Recovery Act but are not shown
due to scale (< 10 units funded).
-4,900
500 1000 1500
Number of Units Funded
2000
Photo courtesy of City of Portland Bureau of Planning and Sustainability
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Section 2: American Recovery and Reinvestment Act
Recovery Act State grants
As part of the Recovery
Act, EPA funded state
grants as well as national
competitive DERA grants.
EPA allocated $88 million
to participating states to
retrofit or replace 13,700
engines or pieces of
equipment. These projects
reduced an estimated
22,600 lifetime tons of NOX;
1,400 tons of PM; 1,900
tons of HC; 7,900 tons of
CO; and 538,600 tons of
COa. These projects also
saved more than 48 million
gallons of fuel, see Exhibit
19 and Exhibit 20.
Exhibit 19: Recovery Act DERA State Funding
by Sector
Stationary Agriculture
Short Haul
Jty/County Vehicle
Construction
School Bus_
Long Haul
Ports and Airports
Rail
Refuse Hauler
Exhibit 20: Recovery Act DERA State Technologies
Auxiliary Power Unit
Biodiesel i
Cab Side Fairing
Compressed Natural Gas Replacement i
Diesel Oxidation Catalyst
Diesel Particulate Filter
Direct Fired Heater
DOC + Biodiesel
DOC + Closed Crankcase Ventilation
DPF + Closed Crankcase Ventilation
Engine Replacement
Engine Repower
Engine Shutdown
Lean NOx Catalyst
Partial Flow Filter i
Single Wide Tires
Trailer Side Skirts
Truck Stop Electrification
-4,560
1000 1500
Number of Units Funded
2000
NOTE: Hybrid Replacement units
were also funded under the
Recovery Act but are not shown
due to scale (< 10 units funded).
Total funding for projects was $294 million due to management and oversight funds.
2 Recovery Act funding also included SmartWay Finance, Emerging Technology, and State grants,
all of which are covered in their own sections below.
3 This jobs estimate was created based on self-reported information from Recovery Act grant
recipients according to the Office of Management and Budget's guidance on job reporting.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Section 3: DERA State Program
Protecting Children's Health and
Lowering PM2.5 Emissions in California
California Air Resources Board
(CARS) was awarded a two-year
DERA State Clean Diesel Program
grant to install Diesel Particulate
Filter (DPF) retrofits on 60 heavy-
duty school buses operating
throughout California. This
project was implemented using
$660,051 in DERA grant funding
combined with $473,949 in CARS
matching funds and $44,599 in
leveraged funds from the San
Joaquin Valley Air Pollution
Control District (SJVAPCD) and
participating school districts. This
project was administered through
a partnership between CARS,
SJVAPCD and participating fleets.
The project produced greater
deployment of clean diesel
technology than proposed in the
original work plan (i.e., 60
installed versus 54 projected
retrofits).
The DERA legislation requires EPA to offer 30%
of the annual appropriation to states to
implement their own clean diesel programs. The
fifty states began receiving DERA funds in 2008,
and the District of Columbia became eligible as
a state in FY 2009. The state agencies receiving
and administering the DERA funds do not
directly implement projects; instead, the
agencies run their own funding programs to
offer sub-grants and loans to applicants within
their states. State agencies must select eligible
applicants according to EPA's requirements, but
the selections are made entirely by the states to
best fit state and local needs. Participating
states received supplemental funds in 2009,
2010, and 2011 to their original FY 2008
awards. Supplemental funding to the original
award allows for greater continuity for state
projects.
Puerto Rico became eligible for state funding in
FY 2011, and the DERA reauthorization allowed
Guam, the United States Virgin Islands,
American Samoa, and the Commonwealth of the
Northern Mariana Islands to receive funds
beginning in FY 2012. The five U.S. territories
split funds equivalent to one state's funding
allotment.
Diesel Oxidation Catalyst (DOC)
This old diesel engine from a waste hauler was
scrapped and replaced with a CNG engine.
Photo Courtesy of Leonardo Academy
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Section 3: DERA State Program
FY 2008-2011 State
Grants
In total, states and
territories received about
$54 million in FY 2008-
2011 funds.1 EPA made 55
initial awards, and these
grants received
supplemental funding in
the subsequent fiscal
years, see Exhibit 21 and
Exhibit 22. These projects
are estimated to reduce
19,300 lifetime tons of NOX;
910 tons of PM; 1,300 tons
ofHC; 5,100 tons of CO;
and 500,600 tons of CO2.
Exhibit 21: FY 2008-2011 DERA State Funding
by Sector
Stationary ^Agriculture
Short Haul City/County Vehicle
Construction
Long Haul
_ Ports and Airports
Rail
Refuse Hauler
School Bus
Exhibit 22: FY 2008-2011 DERA State Technologies
Auxiliary Power Unit
Compressed Natural Gas Replacement
Diesel Oxidation Catalyst (DOC)
Direct Fired Heater (DFH)
Diesel Particulate Filter (DPF)
DOC + Closed Crankcase Ventilation (CCV)
DOC + DFH
DOC + DFH + CCV
DFH + Auxiliary Power Unit
DFH + CCV
DPF+CCV
Engine Replacement
Engine Repower
Hybrid Replacement
Other Emissions Control Device
Partial Flow Filter
Single Wide Tires
Trailer Side Skirts
Truck Stop Electrification
-4,075
~2,100
~2,130
NOTE: Biodiesel and Cab Roof
Fairing units were also
funded under the Recovery
Act but are not shown due to
scale (< 10 units funded).
200 400 600 800 1000
Number of Units Funded
1200
1400
These projects also saved about 45 million gallons of fuel and retrofitted or
replaced 12,000 engines or pieces of equipment.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
FY 2012-2013 State grants
After finishing the FY 2008-2011 grants, EPA decided to reduce the amount of
time state grants remain open in order to encourage states to draw down funding
more quickly and to streamline the grant process. EPA switched to two year
funding increments, so the next round of state grants began in FY 2012 and
concluded with FY 2013
funding. In total, states
and territories received
about $9.5 million in
FY 2012-2013 funds. EPA
made 51 initial awards in
FY2012 and 29
supplemental awards in
FY2013, see Exhibit 23
and Exhibit 24.
Exhibit 23: FY 2012-2013 DERA State Funding
bv Sector
Agriculture
- City/County Vehicle
Stationary
Short Haul
Construction
Long Haul
Ports and Airports
Rail
Refuse Hauler
School Bus
Exhibit 24: FY 2012-2013 DERA State Technologies
Auxiliary Power Unit
Compressed Natural Gas Replacement
Diesel Oxidation Catalyst
Diesel Particulate Filter (DPF)
Direct Fired Heater
DPF + Closed Crankcase Ventilation
Engine Replacement
Engine Repower
Single Wide Tires
Trailer Side Skirts
Truck Stop Electrification
Ultra Low Sulfur Diesel
200 400 600
Number of Units Funded
800
1,000
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Section 3: DERA State Program
These projects reduced an estimated 4,500 lifetime tons of NOx; 200 tons of PM;
240 tons of HC; 1,200 tons of CO; and 86,500 tons of CO2. These projects also
saved about 7.7 million gallons of fuel and retrofitted or replaced 1,900 engines or
pieces of equipment.
Lessons Learned and Looking Ahead
After the conclusion of the FY 2012-2013 state grants, EPA began a new grant
cycle for FY 2014-2015. Participating States began new grants if they had
completed their work plan for FY 2013 grants. EPA conducted an analysis of the
State grant program and found that State clean diesel projects could be more cost
effective if they adhered to the DERA National program requirements. In 2014,
EPA began requiring States to follow the requirements in the DERA National
Program RFP for model years, technologies, cost-share and other factors. This
proved difficult for some States, so some applied to EPA for and received waivers
as they adjusted their programs to the more rigorous requirements.
1 FY 2008 state grant results are covered in this Report to Congress because they were combined
with later fiscal years to create one continuous project.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Section 4: DERA National Clean Diesel
Rebate Program
A significant change in the DERA reauthorization signed in January 2011
provided EPA with the authority to award rebates. Rebates may be awarded to
public institutions and some non- profit organizations, and private entities if they
have a license, lease or contract with an eligible public organization. The National
Clean Diesel Rebate Program was the first-ever rebate program within EPA.
Rebates and grants differ in a variety of ways. One distinction is the simplified
application process for rebates, which applicants prefer, compared with the
higher administrative burden of the grant process. Rebates specify exact project
requirements and eligibility. This allows for a more streamlined application,
selection, and payment process. The rebate amount is specified up front and,
once the selected applicant has completed all work, they are reimbursed with the
rebate amount. EPA chose to use a lottery system to select school bus rebate
winners. Winners had to meet all program requirements.
The 2012 School Bus Replacement Rebate Program
School buses were selected as the target fleet for
the pilot rebate program because protecting
children's health is a very high priority for EPA,
and NCDC has a long and successful history with
the school bus sector on clean diesel projects.
In November 2012, EPA launched the 2012
School Bus Replacement Rebate Program, a pilot program to replace older school
buses with newer vehicles powered by certified 2012 or newer engines. EPA set
aside $2 million for this program, and each rebate award funded approximately
25% of the bus replacement; fleet owners covered the remaining cost. This
funding opportunity was aimed at school bus fleet owners with 1994 to 2003
model year engines seeking to replace those buses with a certified 2012 or newer
model year engine. Eligible replacement school buses may operate on ultra-low
sulfur diesel, battery or hybrid drivetrains, or alternative fuels. Health benefits
are achieved by scrapping the old buses and replacing them with cleaner ones.
School bus fleet owners showed a tremendous demand for rebates. During the
one month open application period, EPA received over 1,000 applications from
school bus fleet owners requesting more than $70 million to replace over 2,800
buses across the nation. EPA conducted a random lottery to select twenty-eight
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Section 4: DERA National Clean Diesel Rebate Program
applicants to replace 76 buses with rebates totaling $2 million. EPA announced
these selectees in January 2013. Matching funding contributed was $6 million.
Selected applicants were notified and given 90 days to submit purchase orders to
EPA to ensure they were making adequate progress on replacing the buses. Those
selected applicants that did not submit the purchase order within 90 days were
replaced with applicants from the waitlist. In total, selectees had to replace and
scrap the old buses within 9 months of their selection. After submitting the
appropriate paperwork, they received their EPA rebate.
In total, the school bus rebate program is estimated to have reduced 11 tons of
PM, 215 tons of NOx, 18 tons of HC and 78 tons of CO.
The 2013 Construction Equipment Rebate Program
EPA selected the construction sector for its FY 2013 round of rebates with $2
million in available funding. EPA chose construction equipment, part of the
nonroad sector, after offering rebates to on-road school buses the previous year.
In November 2013, EPA opened the application period for the 2013 Construction
Equipment Funding Opportunity. EPA accepted applications until January 2014.
This funding opportunity allowed public fleets and private fleets to retrofit Tier 2
or Tier 3 emissions standard construction equipment engines with Diesel
Particulate Filters (DPFs) or to replace engines with engines certified to cleaner
emissions standards. In order to maximize health benefits, the construction
equipment had to operate in priority countiesareas with air quality challenges.
In order to be eligible, projects had to be located in: PM 2.5 or 8-Hr Ozone
Nonattainment Areas or 8-Hr Ozone Maintenance Areas, areas that participate in
EPA's Ozone Advance Program or PM Advance Program, and/or counties where
all or part of the population is exposed to more than 2.0 p.g/m3 of diesel
particulate matter emissions as determined by the 2005 National-Scale Air Toxics
Assessment.
Selected applicants had twelve months from the date of selection to take delivery
and install the new Diesel Particulate Filters or to replace the engine. Those
replacing engines also had to provide proof of scrappage for the old engine to
ensure that it was taken out of use.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
EPA received nineteen applications requesting over $1.3 million in rebate funding.
However, some applicants experienced issues with technology applicability or
their portion of the cost-share. In the end, EPA awarded $52,000 to 3 applicants
to install one DPF and two engine replacements. The rebates reduced an
estimated 11 tons of NOX; 1 ton of PM; 1 ton of HC; and 6 tons of CO.
Lessons Learned and Looking Ahead
Fleet owners across a variety of sectors were very enthusiastic about the pilot
rebate program. All of the DERA program's stakeholders praised the program for
inducing fleet owners to replace older dirtier engines. Without the rebate, many of
these owners would not have been able to afford the replacement.
The construction program did not receive the same response as the school bus
program, and there are a few likely reasons. EPA wanted to prioritize equipment
operating in areas of poor air quality as well as those model years most cost-
effective to upgrade or replace. Selected applicants who wanted to install diesel
particulate filters needed to spend two weeks data-logging to make sure their
engine was appropriate for DPF installation. The complexity, location
requirement, and added steps were deterrents for potential applicants so EPA
received fewer applications than the more straightforward requirements for school
bus replacements. Another impediment is likely that most heavy-duty diesel
equipment is operated by private entities; however, DERA cannot directly fund
private fleet projects unless the private entity has a contract or lease with a public
entity
Given the success of the School Bus Replacement Rebate Program and the
importance of children's health, EPA will likely fund more school bus rebates in
the future. These rebates make a visible impact in communities across the
country by providing children with healthier rides to school.
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Section 5: DERA Ports Initiative
Section 5: DERA Ports Initiative
Ports play a significant role in the nation's transportation system and goods
movement supply chain. Many ports are located in areas with high percentage of
low income and minority populations who are often disproportionately impacted
by diesel emissions associated with port activities. Ships and harbor craft are
usually the largest contributors of diesel pollution at ports. Marine engines, cargo
handling equipment, drayage trucks, and locomotives are also contributors of
diesel pollution at ports. Port authorities, terminal operators and fleet owners,
drayage truckers, and rail operators all have a role in helping to reduce diesel
emissions at ports and surrounding communities. Reducing exposure to diesel
exhaust in and around ports is important for public health and the environment.
In 2013, EPA initiated "A National Conversation on Ports" to exchange views and
develop a shared understanding of the challenges and opportunities of ports and
port communities. These meetings allowed EPA to hear directly from those whose
lives are most closely tied to ports. These meetings culminated in the National
Port Stakeholders Summit held in April, 2014.
Since 2008, fleets operating at marine and inland water ports have been a target
fleet for DERA funding. EPA set aside $4 million for the FY 2013 Ports RFP. This
was the first time DERA funding had been used in a sector-specific RFP. Eligible
entities included public port authorities with jurisdiction over transportation or
air quality at a marine or inland water port located in an area of poor air quality.1
Community groups, local
governments, terminal
operators, shipping carriers, and
other business entities involved
in port operations were
encouraged to partner with port
authorities. EPA received eight
applications requesting more
than $9 million in funding. EPA
funded six projects that replaced
drayage trucks, retrofitted cargo
handling equipment, repowered
a switcher locomotive, replaced
older shuttle carriers with
hybrids, and installed marine
shore power infrastructure, see
Exhibit 25. Matching funding
contributed was $7.8 million. RaN
Exhibit 25: FY 2013 DERA Ports
Initiative Funding by Sector
Cargo Handling
Construction
Short Haul
Marine
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
DERA FY 2013 Ports RFP projects reduced an estimated 3,100 lifetime tons of
NOX; 100 tons of PM; 150 tons of HC; 300 tons of CO; and 30,100 tons of CO2.
These projects also saved more than 2.6 million gallons of fuel.
Photo Courtesy of Virginia Maritime Association
Cleaning Up Emissions from Port Harbor Craft
This project, awarded to the Virginia Maritime
Association, will upgrade and replace two very
old Tier 0 (unregulated) marine propulsion
engines in one tug boat with EPA Tier 3-certified
marine engines. This tug boat, the G.M.
McAllister, is a 110-foot marine tug boat that
operates out of Newport News, VA.
This vessel is used primarily for ship docking
assistance, as well as general harbor services.
The G.M. McAllister operates for approximately
1,300 hours per year and consumes
approximately 160,000 gallons of fuel annually.
This project will lower particulate matter, NOx
and carbon dioxide emissions.
Lessons Learned and Looking Ahead
Ports are critical for commerce and are a keystone for economic growth in the
U.S. However, they often can be a growing source of pollution, including
greenhouse gases and air pollution. Over 41 million people in the U.S.roughly
one in eightare exposed to air pollution coming from port operations, and as a
result, are at higher risk of developing asthma, heart disease, and other health
problems. A high concentration of legacy fleets operate in and around ports.
Diesel emissions from these fleets pose a number of health risks to the
neighboring population. Equipment and vehicles used at ports also contribute to
our nation's greenhouse gas emissions. Ports can significantly reduce these
harmful emissions by implementing newer technologies and changing key
practices.
Ports and goods movement remain a priority for the EPA and the DERA program.
This funding has been instrumental in furthering emissions reductions through
clean diesel projects located at ports and goods movement hubs.
In addition, EPA has launched a Ports Initiative designed to support ports,
communities and other stakeholders in taking on this challenge and finding
common sense solutions that protect local communities and port workers from
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Section 5: DERA Ports Initiative
harmful air emissions while also reducing the greenhouse gas emissions that
contribute to climate change. EPA is organizing a group of industry, community,
State and local government experts, under the Clean Air Act Advisory Committee,
dedicated to providing EPA with advice and insight on strategies and solutions
that will advance emissions reductions to protect the air in communities near
ports. Throughout this process stakeholders have expressed the importance of
the DERA program in reducing emissions from the legacy fleet of diesel engines.
Recommendations from this group are expected in 2016.
1 Areas of poor air quality included areas:
1. Designated as paniculate matter or ozone nonattainment areas;
2. Where all or part of the population is exposed to more than 2.0 ug/m3 of diesel paniculate matter emissions in
EPA's 2005 National-Scale Air Toxics Assessment; and/or
3. That participated in EPA's Ozone or PM Advance Program.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Looking Ahead for the DERA Program
Even with implementation of EPA's stringent standards for new on-highway and
nonroad engines, EPA estimates that approximately one million engines from the
legacy fleet will still remain in use in the year 2030. These engines will continue
to affect the environment and public health and will not be touched by fleet
turnover. Some of these engines will be decades old, pre-dating modern engine
technology, yet still in use. In fact, EPA estimates that in 2025, mobiles sources
will still make up about 45% of total NOx sources, with the legacy fleet portion
about 15%. In addition, the legacy fleet will contribute about 20% of the direct PM
emissions from mobile sources in the year 2025. The DERA program is designed
to target removal and replacement of these remaining engines of the legacy fleet
to protect public health and the environment.
EPA estimates that DERA funding has reduced 14,700 tons of PM and 335,200
tons of NOx since the first grants in 2008. These emission reductions have saved
billions in health care costs. DERA projects have retrofitted or replaced nearly
73,000 engines in the nation's legacy fleet. Diesel engines are long-lasting and
many pre-date the EPA's stricter emissions standards. DERA funding helps to
address these engines that emit higher levels of diesel exhaust and contribute to
poor air quality. DERA helps promote fleet turnover, which can have major health
benefits for communities surrounding ports, rail yards, distribution centers, and
schools. The Diesel Emissions Reduction Act is currently authorized through
2016.
Photo courtesy of Sara Bartholomew, USEPA
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Looking Ahead for the DERA Program
As the program looks ahead to the challenges of cleaner movement of goods
through the nation's supply chain, reducing black carbon pollution, and assisting
environmentally challenged communities, DERA will continue to follow its guiding
principles for all future implementation:
Target areas and populations with disproportionate levels of exposure to
diesel exhaust while maximizing cost-effectiveness.
Prioritize children's health with a goal of every child riding to school in a
bus that meets the latest on-highway standards.
Target projects that reduce emissions from engines involved in goods
movements and freight and frequently found operating at ports.
Increase greenhouse gas and black carbon reductions from DERA projects
while continuing to reduce particulate matter and other criteria pollutants.
Design each DERA program opportunity to fund the most beneficial
projects and maximize cost-effectiveness.
Continue to reduce pollution from diesel engines by partnering with key
stakeholders.
Provide assistance to state and local governments in the development of
their own clean diesel programs.
Continue verifying performance of emission reduction technologies in the
field.
Maximize health benefits from clean diesel projects.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Appendix A: National Program Evaluation
Criteria
Project summary and overall approach
Results - Outcomes and Outputs
Programmatic priorities
o Location
o Diesel reduction effectiveness
o Maximization of public health benefits
o Utilization of community based multi-stakeholder collaborative
process
o Conservation of diesel fuel
Regional Significance
Past performance - Programmatic capability and reporting on results
Staff expertise/qualifications
Budget/resources
Past expenditure of awarded grant funds
Applicant fleet description
For the Recovery Act grant competition, EPA used the same criteria but also took
job creation/retention and "shovel-ready" projects into consideration.
For more detailed information about the Request for Proposals, please see
www. epa.gov / cleandiesel / clean-diesel-national-grants#rfp.
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Appendix B: DERA Projects and Case Studies
Complete list of DERA and ARRA-funded national competitive projects:
FY2012-2015 www.epa.gov/cleandiesel/clean-diesel-national-grants#dera2
FY2008-2011 www.epa.gov/cleandiesel/clean-diesel-national-grantstfderal
Complete list of Tribal projects:
www.epa.gov/cleandiesel/clean-diesel-tribal-grantstfprojects
Complete list of Ports RFP projects:
FY2014 www.epa.gov/ports-initiative/funding-projects-improve-air-quality-
ports#awarded2014
FY2013 www.epa.gov/ports-initiative/funding-projects-irnprove-air-quality-
ports#awarded2013
Complete list of State Allocations:
FY2012-2015 www.epa.gov/cleandiesel/clean-diesel-state-allocationstfalloc2
FY2008-2011 www.epa.gov/cleandiesel/clean-diesel-state-allocationstfallocl
Complete list of Rebates:
FY2015 School Bus www.epa.gov/cleandiesel/clean-diesel-rebatestf2015sb
FY2014 School Bus www.epa.gov/cleandiesel/clean-diesel-rebatestf2014sb
FY2013 Construction www.epa.gov/cleandiesel/clean-diesel-rebatestf2013co
FY2012 School Bus www.epa.gov/cleandiesel/clean-diesel-rebatestf2012sb
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Third Report to Congress: Highlights from the Diesel Emission Reduction Program
Appendix C: Map of Diesel Collaboratives
Exhibit 26: EPA Regions and Regional Clean Diesel Collaboratives
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District of Columbia, Indiana, Michigan,
Maryland
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Virginia and West Wisconsin and 35 Tribal
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Southeast Diesel Blue
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Collaborative Collaborative
Region 4:
Alabama, Region 6: Arkansas,
Florida, Georgia,
Kentucky, Mississippi,
North Carolina, South
Carolina, Tennessee and
6 Tribal Nations
Louisiana, New Mexico,
Oklahoma, Texas and 66
Native Tribes
Region 7: Iowa, Kansas,
Missouri, Nebraska and
9 Tribal Nations
Northeast Diesel
Collaborative
EPA Region 1:
Connecticut, Maine,
Massachusetts, New
Hampshire, Rhode
Island, Vermont and 10
Tribal Nations
EPA Region 2: New
Jersey, New York, Puerto
Rico, the U.S. Virgin
Islands and 8 Tribal
Nations
Rocky Mountain Clean
Diesel Collaborative
Region 8: Colorado,
Montana, North Dakota,
South Dakota, Utah,
Wyoming and 27 Tribal
Nations
West Coast
Collaborative
Region 9: Arizona,
California, Hawaii,
Nevada, Pacific Islands
and 148 Tribal Nations
Region 10: Alaska,
Idaho, Oregon,
Washington and 271
Native Tribes
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