DERA Fourth Report to Congress:
Highlights of the Diesel Emissions
Reduction Program
Office of Transportation and Air Quality (OTAQ)
July 2019 EPA-420-R-19-005
\	United States
Environmental Protection
m m Agency

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Acronyms and Abbreviations
ARRA
American Recovery and Reinvestment Act of 2009
C02
Carbon Dioxide
DERA
Diesel Emissions Reduction Act
DOC
Diesel Oxidation Catalyst
DPF
Diesel Particulate Filter
EPA
Environmental Protection Agency
FY
Fiscal Year
HC
Hydrocarbon
NOx
Nitrogen Oxides
PM
Particulate Matter
RFP
Request for Proposals
Photo Credits
All photos in this report are by DERA funding recipients, EPA staff managing
DERA awards, or EPA Chief Photographer Eric Vance unless otherwise noted. The
cover photo of a school bus is by Tracey Footer.
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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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Table of Contents
Executive Summary	1
DERA Funding Benefits	1
Project Locations, Sectors, and Technologies Since 2008 	4
2017 and Beyond	5
Section 1: DERA National Competitive Grants	8
Fiscal Year 2014 - National Grants	8
Fiscal Year 2015 - National Grants	9
Fiscal Year 2016 - National Grants	10
Moving Forward - National Grants	11
DERA Tribal Grants	13
Moving Forward - Tribal Grants	14
Section 2: DERA State Program	15
FY 2014-2016 State Grants	15
Moving Forward - State Grants	17
Section 3: DERA School Bus Rebate Program	18
The 2014-2016 School Bus Rebate Program	18
Moving Forward - Rebates	20
Section 4: DERA Funding at Ports	21
Moving Forward - Ports	21
Lessons Learned for the DERA Program	23
Looking Ahead for the DERA Program	24
Appendix A: List of DERA Projects	26

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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Table of Exhibits
Exhibit 1: DERA Program Benefits and Accomplishments (FYs 2008-2016) 1
Exhibit 2: DERA Funded Sectors 2008-2016	4
Exhibit 3: DERA Funding by Technology Type, 2008-2016 	4
Exhibit 4: Map of DERA Awards	5
Exhibit 5: Diesel Exhaust Health Effects	6
Exhibit 6: DERA Funding Appropriations, 2014-2016 	8
Exhibit 7: FY 2014 DERA Funding by Sector	8
Exhibit 8: FY 2014 DERA Technologies	9
Exhibit 9: FY 2015 DERA Funding by Sector	9
Exhibit 10: FY 2015 DERA Technologies	10
Exhibit 11: FY 2016 DERA Funding by Sector	10
Exhibit 12: FY 2016 DERA Technologies	11
Exhibit 13: Reducing Emissions on School Buses through Retrofits	12
Exhibit 14: FY 2014-2016 DERA Tribal Funding by Sector	13
Exhibit 15: FY 2014-2016 DERA Tribal Technologies	13
Exhibit 16: FY 2014-2016 DERA State Funding by Sector	16
Exhibit 17: FY 2014-2016 DERA State Technologies	16
Exhibit 18: School Bus Rebate Funds Awarded and Requested	19

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Executive Summary
Executive Summary
From transportation to power generation, the diesel engine is in every part of the
U.S. economy. Invented in the 1890s, it is durable and strong. And thanks to
American ingenuity, new engines coming off the manufacturing line are now sixty
times cleaner than prior to EPA's emissions standards. However, nearly 10 million
older diesel engines are still in use in communities across the United States,
emitting diesel exhaust which can harm human health and the environment.
The Diesel Emissions Reduction Act (DERA) program, authorized in 2005 and
reauthorized with unanimous bipartisan support in 2010, is the only Federal
government program addressing legacy engines1 as its sole mission. Cost-effective,
targeted to disproportionately affected communities, and supported by American
industry, the DERA program continues to evolve with market and stakeholder
demands.
EPA's National Clean Diesel Campaign (NCDC) within the Office of Transportation
and Air Quality administers the DERA grant and rebate programs. 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 2018. This Fourth Report to Congress summarizes final results
from FY 2008-2013 and details a combination of final and estimated results from
FY 2014-2016.
DERA Funding Benefits
Since 2008, the DERA program has achieved impressive outcomes and a range of
benefits, summarized in Exhibit 1.
Exhibit 1: DERA Program Benefits and Accomplishments (FYs 2008-2016)
Investment of DERA Program
Emission and Fuel Reductions
$629 million funds awarded
472,700 tons of NOx
67,300 engines retrofitted or replaced
15,490 tons of PM
Up to $19 billion in monetized health
benefits
17,700 tons of hydrocarbon
Up to 2,300 fewer premature deaths
61,550 tons of carbon monoxide
64% of projects targeted to areas with air
quality challenges
5,089,170 tons of carbon dioxide
3:1 leveraging of funds from non-federal
sources
454 million gallons of fuel saved

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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Improved air quality and public health
DERA grants have funded projects that provided immediate health and
environmental benefits. From fiscal years 2008 to 2016, EPA awarded $629
million to retrofit or replace 67,300 engines in vehicles, vessels, locomotives or
other pieces of equipment, with $300 million of this funding coming from the
Recovery Act alone. EPA estimates that these projects will reduce emissions by
472,700 tons of NOx and 15,490 tons of PM2.5 2 over the lifetime of the affected
engines. Because of these pollution reductions, EPA estimates a total present
value of up to $19 billion in monetized health benefits over the lifetime of the
affected engines, which include up to 2,300 fewer premature deaths associated
with the emission reductions achieved over this same period.3'4These clean diesel
projects awarded from FY 2008 to 2016 are also estimated to reduce 17,700 tons
of hydrocarbon (HC)5 and 61,550 tons of carbon monoxide (CO) over the lifetime
of the affected engines.
Served disproportionately impacted communities
Many DERA 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 focused
attention on PM and ozone nonattainment areas and areas with elevated air toxic
exposure, to achieve maximum benefits for every dollar spent. For projects
awarded in FY 2008 to FY 2016, 64% were in areas with these air quality
challenges.
Reduced climate impacts and improved fuel savings
DERA projects awarded in FY 2008 to FY 2016 are estimated to reduce 5,089,173
tons of carbon dioxide (CO2) over the lifetime of the affected engines and save over
454 million gallons of fuel because of idle reduction and fuel-efficient
technologies. Black carbon (BC), a component of PM, 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 are also
likely providing climate benefits. DERA projects provide immediate BC reductions
by reducing PM emissions from the legacy fleet of diesel engines, and have
reduced a total of 15,490 tons of PM over the lifetime of the projects covered in
this report.
Focused on ports and other parts of the supply chain
Moving goods through the supply chain requires many trucks, trains, ships,
cargo handling equipment, barges, and workboats. Addressing the harmful
emissions from these operations is an ongoing and increasing priority for local,
state, national and international policy policymakers. To help address these
issues, DERA funding is often targeted at intermodal hubs, such as ports and
2

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Executive Summary
delivery centers, and across the nation's transportation infrastructure. In doing
so, we are modernizing the diesel-powered equipment that moves our economy by
transporting goods throughout the nation. EPA anticipates that DERA will
continue to prioritize diesel emission reductions at ports and other freight
distribution centers to complement the work being done by the port industry,
communities, and all levels of government to improve environmental performance
and increase economic prosperity.
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, industries,
and nonprofit organizations, generating between $11 and $30 in public health
benefits.6 Each federal dollar invested in DERA also results in over $2 in fuel
savings.7 DERA funding has accelerated upgrades and replacements for old diesel
vehicles and equipment, improving the public and private diesel fleets that are
critical to the economy.
Answered popular demand
Stakeholders have shown a tremendous amount of interest in EPA-funded clean
diesel projects. Funding request amounts have exceeded funding availability by
as much as 38:1 for our National Clean Diesel Rebate Program and 7:1 for our
national grant competitions since the inception of DERA. These requests highlight
the interest in the DERA program 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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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Project Locations, Sectors, and Technologies 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. As the DERA
program progressed and EPA's
on-highway 2007 standards were
implemented, applicants sought
to replace larger vehicles, vessels
and equipment in ports and rail
yards. Exhibit 2 shows the most
frequently funded sectors for FY
2008-2016. Exhibit 3 shows the
most frequently funded
technologies for FY 2008-2016.8
Exhibit 2: DERA Funded Sectors 2008-2016
Delivery Truck
Short Haul
Agriculture
Rail
/ Ports and Airports
Transit Bus
School Bus
.Construction
/
Long Haul
Stationary
Refuse Hauler
Emergency
Vehicle
Exhibit 3: DERA Funding by Technology Type, 2008-2016
Aerodynamic Technologies
Diesel Oxidation Catalyst (DOC)
Diesel Particulate Filter (DPF)
DOC + Closed Crankcase Ventilation (CCV)
Engine Replacement
Idling Reduction Technologies
Truck Stop Electrification
Vehicle Replacement
Other
2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000
Number of Units Funded
4

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&EPA
Environmental Protection
Executive Summary
Exhibit 4: Map of DERA Awards
	DERA Program FY 2008-2016
Hawaii
O
0	50 100 200 Miles
1	I I I I I I I I
Guam and Northern Mariana Islands
0	20 40 80 Miles
1	I I I I I II I
American Samoa
* ^
0	5 10 20 Miles 
1	' ' ' I ' i ' I
Number of DERA
Awards by Program
National Rebate
 <1  <1
 <2 o <2
O ^6 O <3
State Tribal
 <1
 <1
O <2
 <2
 <3
 <3
O <4
Emerging
Ports
Technology
 <1
<1
O <2
 <2
o <3
Finance
VI
O
 <1
0 <2 ZZI NATA Counties
Nonattainment Areas
0	250 500 1,000 Miles
1	i i ' I i ' i I
^ o
K
0	20 40
1	i i i I i
Alaska
Puerto Rico &
U.S. Virgin Islands
80 Miles
jJ
2017 and Beyond
EPA has awarded funding for FY 2017 and FY 2018 grants and rebates and will
cover these projects in the next Report to Congress when the projects are finalized
or close to completion. EPA will continue to target its funding to areas that suffer
from poor air quality. EPA is especially interested in working with port
communities, and the national RFP prioritizes projects that reduce emissions
from engines involved in goods movement and freight industries. EPA also
prioritizes projects that engage local communities and provide lasting benefits.
Based on the size of the legacy fleet and past demand for rebate funding
exceeding availability, with $5 in requests for every $1 available; subject to
available appropriations, EPA plans to continue to offer rebate funding to
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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
encourage fleet turnover for engines that pre-date EPA's on-highway standards
for PM (engine model year 2006 or older).
Exhibit 5: 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
NOx by up to 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 "Legacy engines" are defined by the DERA program as the operating nonroad diesel and medium
to heavy-duty highway diesel engines with engine model years 2006 and earlier. Most newer
engines are required to meet stricter emission standards.
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Executive Summary
2	PM2.5 will be referred to as PM for the rest of this Report.
3	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. EPA 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 final grant reports. The DEQ relies on EPA
emission models like MOVES2014a as well as documents like regulatory impact analyses for its
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 lifetime value of health benefits from the emission reductions
associated with FY 2008 through FY 2016 DERA awards range from $7.0 billion to $19 billion
(in 2017 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 were 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.
4	EPA estimates that the emission reductions achieved over the lifetime of the affected engines will
help avoid between 1,000 and 2,300 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).
5	In the prior DERA Third Report to Congress, the hydrocarbon reduction in the executive
summary was estimated to be 18,900 tons. EPA now considers this prior figure to be an
overestimation. The current figure of 17,700 tons is based on more accurate emission reduction
calculations.
6	The EPA technical support document estimating benefits per ton was updated with new values
in 2018 and can be found here: www.epa.gov/sites/production/files/2018-
02/documents/sourceapportionmentbpttsd 2018.pdf (accessed 6/ 12/2019).
7	Fuel cost savings are based on the total diesel gallons reduced in DERA projects and the average
price of diesel between 2008 and 2016. Fuel savings in DERA projects are largely a result of idle-
reduction technologies.
8	Many grant recipients installed more than one technology on each vehicle, so the total number
of technologies exceeds the 67,300 vehicles affected figure stated above.
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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
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, serving areas of poor air quality, such as
non-attainment areas for PM and ozone, and conserving diesel fuel.
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 School
Bus Rebate Program, but most are directed to a nationwide, competitive grant
program.
Exhibit 6: DERA Funding Appropriations, 2014-2016
2014
2015
2016
$20 million
$29.8 million
$49.5 million
Fiscal Year 2014- National Grants
EPA received a $20 million
appropriation for DERA in FY
2014. EPA funded 21 national
competitive grants across the
country for a total of $10.6
million. EPA received 50
applications requesting $32
million. See Exhibit 7 and Exhibit
8 for project details. Over the
lifetime of the affected engines,
DERA FY 2014 grants are
estimated to reduce 2,500 tons of
NOx; 100 tons of PM; 250 tons of
HC; 700 tons of CO; and 29,360
tons of CO2. These grants
upgraded 400 engines or pieces of
equipment, and the projects saved
more than 2.6 million gallons of fuel.
Exhibit 7: FY 2014 DERA Funding by Sector
Agriculture
Construction
Long Haul
Short Haul
Rail
Ports and Airports
Refuse Hauler
School Bus
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Exhibit 8: FY 2014 DERA Technologies
Section 1: DERA National Program
Diesel Oxidation Catalyst (DOC)
Diesel Particulate Filter (DPF)
DOC + Closed Crankcase Ventilation (CCV)
Engine Replacement
Idling Reduction Technologies
Truck Stop Electrification
Vehicle Replacement
50	100	150
Number of Units Funded
200
250
Fiscal Year 2015 - National Grants
In FY 2015, EPA received a $29.8 million appropriation for DERA. EPA funded 26
national competitive grants to reduce emissions from 479 diesel engines or pieces
of equipment for a total of $15.4
million. EPA received 42
applications seeking over $35
million in funding. See Exhibit 9
and Exhibit 10 for project
details.
DERA FY 2015 grants are
estimated to reduce 3,275 tons
of NOx; 180 tons of PM; 180 tons
of HC; 955 tons of CO; and
51,304 tons of CO2 over the
lifetime of the affected engines.
These projects also saved over
4.5 million gallons of fuel.
Exhibit 9: FY 2015 DERA Funding by Sector
Agriculture
I
Short Haul
Construction
Long Haul
Ports and Airports
School Bus'
Refuse Hauler
9

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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Exhibit 10: FY 2015 DERA Technologies
Diesel Particulate Filter (DPF)
Engine Replacement
Idling Reduction Technologies
Truck Stop Electrification |
Vehicle Replacement
Other |
50	100 150 200 250 300
Number of Units Funded
350
400
450
Fiscal Year 2016 - National Grants
In FY 2016, EPA received a
total appropriation of $49.5
million for DERA. EPA received
81 applications seeking almost
$87 million in funding. EPA
funded 35 competitive grants
in FY 2016 for a total of $32.9
million. These grants
retrofitted or replaced 966
engines or vehicles. See
Exhibit 11 and Exhibit 12 for
project details.
EPA estimates that over the
lifetime of the affected engines
DERA FY 2016 grants reduced
8,050 tons of NOx; 460 tons of
PM; 490 tons of HC; 2,520 tons
of CO; and 40,130 tons of CO2.
These projects also saved more
than 3.5 million gallons of fuel.
Exhibit 11: FY 2016 DERA Funding by Sector
Transit Bus
Agriculture
Short Haul
L	Construction
School Bus
J
Refuse Ha
ulerv^
Ports and Airports
Stationary
Long Haul
10

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Section 1: DERA National Program
Exhibit 12: FY 2016 DERA Technologies
Diesel Oxidation Catalyst (DOC) I
Diesel Particulate Filter (DPF) I
Engine Replacement j
Idling Reduction Technologies I
Truck Stop Electrification i
Vehicle Replacement !
Other I
o
Number of Units Funded
Moving Forward - National Grants
EPA continues to target DERA funds to maximize cost-effectiveness and make
significant emission reductions in areas disproportionately exposed to diesel
exhaust. The Agency continues 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 has
been crafted to attract and fund the most impactful projects, often in the goods
movement sector. These projects may be in urban or rural areas.
For the national competitive program, demand
from applicants continues to exceed program
resources. During FY 2014 - FY 2016,
applications included 2,660 engines that were
not able to be funded through DERA 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.


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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Exhibit 13: Reducing Emissions on School Buses through Retrofits1
Nearly 13,000 Diesel Oxidation Catalysts (DOCs)
or DOCs + Closed Crankcase Ventilation (CCVs)
have been installed on school buses with DERA
funding, as well as approximately 1,400 Diesel
Particulate Filters (DPFs). 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.
EPA typically tested devices from prior grant
projects that were used on school buses in
normal operation for two to four years and had
accumulated 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.
Each row in the tables to the right represents the
emissions reduction for different models of DPFs
and DOCs tested by EPA. Per the tables on the
right, DOCs alone were shown to reduce PM
emissions up to 20%, and DPFs up to 99%.
EPA Tested Emissions
Reduction for DOCs
DOC Model
PM
HC
CO
1
20%
76%
63%
2
16%
81%
66%
3
20%
70%
37%

EPA Tested Emissions
Reduction for DPFs

DPF Model
PM
HC
CO
1
94%
37%
N/A
2
64%
57%
55%
3
65%
72%
61%
4
51%
51%
53%
5
82%
74%
65%
6
99%
86%
73%
7
97%
92%
77%
8
98%
86%
77%
9
97%
87%
73%
1 McCoy, B. J,, & Tariman, A. (2014). Emissions Performance and In-Use Durability of Retrofit After-
Treatment Technologies. SAE International Journal of Engines, 7(4). DOI: 10.4271/2014-01-2347.
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Section 1: DERA National Program
DERA Tribal Grants
Photo of Swinomish Indian Tribal Community fishing
vessel (2014 Tribal DERA engine replacement project)
2009/2010 and continues to offer
flexibility and incentives to tribes working
to address harmful diesel emissions.
A priority for the DERA program is to
work with Tribes to reduce diesel
emissions. There are 576 Federally
Recognized Tribes in the U.S. Of
those Federally Recognized Tribes
and Native Villages, 229 are in
Alaska. EPA began funding Tribal
grants through the national
competitive program in FY
Exhibit 14: FY 2014-2016 DERA Tribal
Funding by Sector
Stationary short Hau,
_ Construction
School Bus
Refuse Hauler
Between FY 2014-2016, EPA received 20
Tribal applications requesting nearly $4.4
million in funding. EPA awarded 13 tribal
grants in Alaska, Arizona, California, New
Mexico, Washington, and Wisconsin.
These grants have provided $3.7 million to
retrofit or replace marine vessels, mining
equipment, generators, municipal vehicles, and school buses.
Ports and Airports
Exhibit 15: FY 2014-2016 DERA Tribal Technologies
Engine Replacement
Vehicle Replacement
10	15	20	25	30
Number of Units Funded
35
40
45
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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Moving Forward - Tribal Grants
During FY 2009-2013, Tribal funding was offered as a "set-aside" within the
framework of the National grant program. In response to Tribal feedback, EPA
began offering a stand-alone competitive tribal RFP in FY 2014 with SI million in
available funding, and again in FY 2015 and in FY 2016 with $1,5 million in
available funding for each year. EPA appreciated stakeholder feedback on the
Tribal Grants, which has largely supported stand-alone RFPs for Tribes. EPA is
committed to strengthening partnerships with Tribal communities and,
contingent upon future appropriations and Congressional direction, plans to
continue to offer a stand-alone RFP for Tribes with targeted Tribal outreach.
Tribal DERA Generator Replacement Project in Rampart Village, AK
Power generation in rural Alaska depends on diesel
generators, often operating in the center of a
village, close to homes, workplaces, and the school.
The age and proximity of generators to these
buildings may pose a risk to the health of the
community. Replacing the generators in these
facilities with ones that meet more stringent
emission requirements will reduce emissions.
This FY 2015 project included the replacement
of two stationary diesel generators used for
energy production in the Rampart Village with
cleaner, more efficient generators. EPA
contributed $158,883 (71%) of the total cost of
the project. The improved efficiency will
require less fuel, again reducing emissions,
with the added benefit of lowered costs. In
Rampart, Alaska, diesel fuel can cost upwards
of $6.50 a gallon, so these generators provide
significant cost savings.
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Section 2: DERA State Program
Section 2: DERA State Program
The DERA legislation requires EPA to offer 30% of the annual appropriation to
states and territories to implement their own clean diesel programs. Eligible
entities include government agencies in the fifty states, the District of Columbia,
Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern
Mariana Islands. Agencies run their own funding programs to implement projects
and offer funding to fleets within their states. State agencies must select projects
according to EPA's eligibility and cost-share requirements, but the selections are
made entirely by the states to best fit state and local needs. Per the DERA statute,
EPA offers states and territories a base funding amount, and if they match this
amount dollar-for-dollar, EPA offers additional DERA funds equal to 50% of the
base amount.
FY 2014-2016 State Grants
In total, states and territories received $23.2 million in FY 2014-2016 funds1.
EPA awarded grants to 48 of 56 eligible states and territories over these years to
fund the projects highlighted in Exhibit 16 and Exhibit 17. Over the lifetime of
the affected engines these projects are estimated to reduce 3,670 tons of NOx; 200
tons of PM; 360 tons of HC; 1,015 tons of CO; and 110,115 tons of CO2. These
projects also saved nearly 10 million gallons of fuel and retrofitted or replaced
1,520 engines or pieces of equipment.
1 FY 2014-2016 state grant results are combined because the FY15 and FY16 funds were awarded as
increases and extensions to the FY 14 grant awards.
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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Exhibit 16: FY 2014-2016 DERA State Funding by Sector
Emergency Vehicle^	^Construction
Stationary /
Long Haul -Transit Bus
Short Haul
Ports and Airports
Refuse Hauler
School Bus
Exhibit 17: FY 2014-2016 DERA State Technologies
Diesel Oxidation Catalyst (DOC)
Diesel Particulate Filter (DPF)
DOC + Closed Crankcase Ventilation (CCV)
Engine Replacement
Idling Reduction Technologies
Truck Stop Electrification
Vehicle Replacement
Other
100	200	300	400	500	600
Number of Units Funded
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Section 2: DERA State Program
Dray Truck Project Improving Air Quality at the Port of Virginia
The Virginia Department of
Environmental Quality
managed a diesel emission
reduction program for dray
trucks at the Port of VA, one
of the top ten busiest
American ports based on
import and export container
volume.
During the 3-year program period, six retrofits were installed on engine model
year 2007 and older dray trucks serving terminals at the Port of VA. The grant
funding paid for 100% of the cost of retrofit materials and installation. During
the second and third years of funding, truck replacements were added to the
State DERA grant. The replacement portion of the project offered up to $27,500
for a down payment on engine model year 2010 or newer dray trucks. There were
thirteen pre-2007 engine model year trucks scrapped and replaced as part of the
grant. These dray truck projects reduce the harmful diesel emissions from the
volume of trucks making multiple trips in and out of the port each day, which
benefits the port community.
Moving Forward - State Grants
Since FY 2014, EPA has allowed participants in the state grant program to
submit waiver requests from the programmatic eligibility requirements to best
accommodate the unique challenges that different states and territories face in
cleaning up their diesel fleets. EPA reviews and grants waiver requests on a case-
by-case basis to ensure that the waiver is justified and that projects will still
achieve emission reductions. Most participants complete projects without
waivers, but EPA has continued to offer waivers in this non-competitive program.
Starting in FY 2017, states have had the option to use their allocation of the
Volkswagen Environmental Mitigation Trust funds to match EPA state grants.
While these funds cannot cover the mandatory cost-shares for DERA projects,
states opting to use some or all of their allocation of Volkswagen trust funds for
the available "DERA Option" have had a broader list of diesel emission reduction
projects to choose from than are available under the other nine eligible mitigation
actions under the Mitigation Trust.
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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Section 3: DERA School Bus 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 uses a lottery system to select school bus rebate winners.
The simple rebate process allows EPA to run each rebate funding opportunity in a
short timeline, with the timespan between the application deadline and
disbursing funds being less than one year.
The 2014-2016 School Bus Rebate Program
School buses play an integral role in reducing emissions and improving public
health of children, which is a very high priority for EPA. The EPA National Clean
Diesel Campaign (NCDC) has a long and successful history implementing clean
diesel projects in the school bus sector.
Because of overwhelming interest in the $2 million 2012 School Bus Replacement
Rebate Program, EPA offered more funding for school bus replacements in 2014,
2015, and 2016. These funding opportunities were targeted at school bus fleet
owners with pre-2007 engine model year diesel buses seeking to replace those
buses with new school buses with modern exhaust control technologies. Eligible
replacement school buses may operate on ultra-low sulfur diesel, battery, or
alternative fuels like propane or compressed natural gas. Health benefits are
achieved by scrapping the old buses and replacing them with cleaner ones.
Over the FY 2014, 2015, and 2016 rebate programs, EPA received nearly 1,600
applications requesting $130 million dollars in rebate funds, see Exhibit 18. EPA
awarded $17 million in rebates for 224 fleets to replace 858 school buses. Given
the level of interest in the program, EPA lowered the rebate amount from
approximately 25% to 20% of the cost of a new bus to improve cost effectiveness.
Bus replacements funded through the rebate program result in reduced
particulate matter and NOx pollution exposure for children at schools, bus stops,
and on the buses themselves.
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Section 3: DERA School Bus Rebate Program
w

Improving Air Quality Through
Replacing Old School Bus Fleets
The Lawton-Bronson Community School
District in Law ton, Iowa participated in the
2016 School Bus Rebate Program. They
were awarded $80,000 in rebate funds to
replace four 1999-2001 engine model year
diesel school buses with four 2017 engine
model year propane school buses. The
rebate covered approximately 20% of the
cost of the new buses. The chassis and
engines from the old buses were scrapped
to prevent resale and further pollution.
Exhibit 18: School Bus Rebate Funds Awarded and Requested
$60
$52.3
$50
Funds Requested
Funds Awarded
$44.5
$40
M $30
$32.7
$20
$10
$0
2014
2015
2016
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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Moving Forward - Rebates
As a pilot, the FY 2015 and 2016 rebate programs offered funding for DOC
retrofits in addition to school bus replacements. Over these years, rebates for bus
replacements continued to be one of the most popular projects funded under
DERA, but we did not see significant interest in retrofits, with only 10 DOCs
being funded in the FY 2015 and 2016 rebate programs. Retrofits continue to be
popular and highly cost-effective when funded by DERA grants, but they may not
fit well with the simplified rebate program that targets individual school bus
fleets.
Given the success of the rebate program and the importance of children's health,
EPA intends to 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 4: DERA Funding at Ports
Section 4: DERA Funding at Ports
Ports play a significant role in the nation's transportation system and goods
movement supply chain. Many ports are in low-income and minority communities
which 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. Additionally, cargo handling equipment, drayage trucks,
and locomotives can be significant contributors to diesel pollution at ports. Port
authorities, terminal operators, fleet owners, drayage truckers, and rail operators
all have a role in reducing diesel emissions at ports and nearby communities
where tens of millions of people live and work. Reducing exposure to diesel
exhaust in and near ports is key for public health and the environment.
Since 2008, fleets at marine and inland water ports have been a priority for DERA
funding with $93 million ($38 million from ARRA) going to ports projects from
2008-2013. In FY 2013, EPA set aside $4 million for the first year of a stand-
alone Ports DERA RFP. Eligible entities included public port authorities at marine
or inland ports. Community groups, local governments, terminal operators,
shipping carriers, and other business entities involved in port operations were
encouraged to partner with these port authorities.
In FY 2014 EPA issued a second stand-alone Ports RFP and received 15
applications requesting over $15.7 million in funding. EPA awarded $5 million for
four projects that replaced drayage trucks, retrofitted cargo handling equipment,
replaced a diesel crane with an electric crane, and replaced ferry engines. This FY
2014 Ports RFP projects reduced an estimated 2,290 tons of NOx; 69 tons of PM;
80 tons of HC; 323 tons of CO; and 55,990 tons of C02over the lifetime of the
affected engines. These projects also saved nearly 5 million gallons of fuel. In
addition to the FY 2014 Ports RFP, an additional $4 million was awarded for ports
projects through the National and State DERA grant programs in 2014.
In subsequent years, EPA did not issue a stand-alone ports RFP in order to
reduce the burden associated with multiple grant opportunities. Instead, ports
and goods movement were prioritized in the DERA National grant program by
awarding additional points for ports and goods movement projects. The total
funding for ports projects under the National and State grant programs was $6
million in 2015 and increased to $14 million in 2016.
Moving Forward - Ports
DERA funding has been instrumental in furthering emission reductions through
ports-related clean diesel projects. EPA anticipates that DERA will continue to
prioritize diesel emission reductions at ports and other freight distribution
centers to complement the work being done by the port industry, communities,

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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
and all levels of government to improve environmental performance and increase
economic prosperity.
EPA has launched a Ports Initiative to further address air quality issues at and
near ports. EPA is taking into consideration recommendations in the Clean Air
Act Advisory Committee (CAAACj's September 2016 report to the EPA
Administrator. This Report, produced by a Ports Initiative Work Grou ; under the
Mobile Source Technical Review Sub-Committee, contains recommendations on
how funding can be targeted to communities at and near ports, among others.
As of 2017, the DERA National grant review process has prioritized applications
which include benefits to affected communities, community engagement and
partnerships, and project sustainability at and near ports. As a result, benefits
are multiplied in the form of both emissions reductions as well as community
involvement.
Port of LA: Electric Crane
Project
Cargo handling equipment at the Port of
L.A. is a major contributor of pollutants
in the South Coast Air Basin, emitting
over 500 tons of NOx per year. Pollution
from off-road heavy duty equipment at
the San Pedro Bay ports (L.A. and Long
Beach) and the Southern California
freight industry comprises over 10% of
fine particulate matter (PM2.5) emissions
and nearly a third of NOx emissions in
the basin.
These pollutants can contribute to significant health problems such as
premature mortality, increased hospital admissions for heart and lung
disease, increased cancer risk, and increased respiratory symptoms -
especially for children, the elderly, outdoor workers, and other sensitive
populations.
In 2014, the EPA granted $1.3 million of DERA funding for a new electric
crane. This is the LA Harbor Department's first electric mobile ship-
loading crane for non-container cargo, an important step in the port's goal
of becoming a zero-emission green port.
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Looking Ahead for the DERA Program
Lessons Learned for the DERA Program
The DERA program is committed to strong stewardship of the funding and
continued strengthening of management and oversight of the program. Following
recommendations from the U.S. EPA's Office of Inspector General's 2014 report,
the program revised methodologies for emissions reporting, offered yearly project
officer and grantee training, created technical guidance related to DERA -specific
assistance agreement management, and continued baseline and advanced
monitoring on the DERA program. In addition, a third-party audit is planned for
the school bus rebate program in 2018-2019.
EPA evaluates every DERA funding opportunity each fiscal year to ensure that
funding continues to yield significant environmental benefits and also to improve
the experience for applicants. The program welcomes feedback from potential
beneficiaries through our website, helplines, regional collaboratives, conferences,
and webinars. We adapt the program as technologies and demands change.
In recent years, the program has seen greater interest in vehicle replacements
and reduced interest in after-market tailpipe technologies. The program continues
to fund 100% of the cost of these tailpipe technologies, as they are one of the
most cost-effective emission reduction solutions. In addition, the program has
responded to changing interest by increasing EPA cost-shares for replacements,
including zero-emission technologies. These newer technologies yield greater
emission reductions, but cost more upfront, such as engines that meet
California's optional low-NOx emissions standard. As more communities and
fleets become interested in zero-emission technologies, the program will seek to
balance the types of technologies available in relation to the resources available.
Similarly, the program has continually updated its web-based emission
reductions calculator, the Diesel Emissions Quantifier (DEQ), to improve the
accuracy of its emission reduction estimates. The updates include emission
factors based on EPA's MOVES model and useful life estimates for the replaced
engines.
In summary, because of changes in demand for retrofits, improvements to our
emissions calculator and reductions in the pool of legacy diesel vehicles over time,
the cost per ton of emission reductions of the DERA program has increased
slightly. However, even with these changes, DERA remains a highly cost-effective
program for reducing harmful emissions.
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Fourth Report to Congress: Highlights from the Diesel Emissions 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 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, mobile sources will still make
up about 45% of total NOx sources, with the legacy fleet contributing 11% of
mobile source NOx emissions. In addition, mobile sources will represent about
6% of the direct PM emissions, with the legacy fleet contributing approximately
14% of the direct PM emissions from mobile sources in the year 2025.1 The DERA
program is designed to target retrofit, removal and replacement of these
remaining engines of the legacy fleet to protect public health and the
environment.
The public health impact of diesel engine emissions has received significantly
more attention since the first projects were funded under DERA in 2008.
Accordingly, many countries around the world and states within the USA are
devoting more resources to diesel emission reductions. One new major source of
funding available to states and tribes are the Volkswagen Environmental
Mitigation Trusts. These Trusts offer nearly $3 billion to fully mitigate the total,
lifetime excess NOx emissions from the violating vehicles. Beneficiaries to the
Trusts may use these funds for the replacement or repower of medium and
heavy-duty diesel engines or pieces of equipment and light-duty zero emission
vehicle supply equipment.
Along with the Volkswagen Environmental Trusts, state programs like the Texas
Emissions Reduction Plan (TERP), California's Carl Mover program, and other
funding opportunities like the Department of Transportation's Congestion
Mitigation and Air Quality Improvement (CMAQ) Program all provide financial
incentives to help to reduce the size of the legacy diesel fleet. However, with
i 2025 estimates based on MOVES2014b and marine inventory modeling
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Looking Ahead for the DERA Program
nearly 10 million legacy heavy-duty diesel engines still in operation today, these
programs, in addition to DERA, can only address a fraction of these dirty engines.
The Diesel Emissions Reduction Act was authorized through 2016 but received
annual appropriations of $60 million in FY 2017 and $75 million in FY 2018. In
FY 2017, EPA awarded 35 grants in the National Program, 49 grants to states and
territories in the State Program, 3 grants in the Tribal Program, and funds for 415
school bus replacements in the Rebate Program. EPA will report on the results of
FY 2017 and FY 2018 DERA projects in the next Report to Congress.
As the program looks ahead to the challenges of cleaner goods movement through
the nation's supply chain, reducing black carbon pollution, and assisting
environmentally challenged communities, the DERA program will continue to
prioritize the following statutory and programmatic goals and objectives:
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.
Design each DERA program opportunity to fund the most beneficial
projects and maximize cost-effectiveness.
Continue building partnerships with key stakeholders to achieve program
goals.
Aid 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.
Seek sustainable projects which promote community driven solutions in
those communities most impacted by diesel emissions.
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Fourth Report to Congress: Highlights from the Diesel Emissions Reduction Program
Appendix A: List of DERA Projects
DBRA and ARRA-funded national competitive and Ports RFP projects:
www.epa.gov/cleandiesel/clean-diesel-national-grants-awarded
Tribal projects:
www.epa.gov/cleandiesel/tribal-awarded-grants
State Allocations:
www.epa.gov/cleandiesel/state-allocations
Rebates:
www.epa.gov/cleandiesel/awarded-rebates
For other information about the DERA funding opportunities, please see
www.epa.gov/cleandiesel.
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