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Diesel Emission Reduction Act Programs
American Recovery & Reinvestment Act of 2009
The Illinois Environmental Protection Agency (Illinois EPA) will be receiving
additional federal funding as a result of the economic recovery package approved
by Congress. The American Recovery and Reinvestment Act of 2009 (ARRA) includes
funding for the Diesel Emission Reduction Act program (DERA).
This summary is intended to update potential applicants and other interested
parties on the status of Illinois EPA’s planning efforts as we prepare
for distribution of the anticipated funding.
The Illinois EPA, in coordination with its partners in the Illinois Clean
Diesel Workgroup, will administer a grant program through the new “Illinois Clean
Diesel Grant Program” and the existing “Illinois Clean School Bus
Program.” The types of projects that will be part of this grant program
include the installation of diesel oxidation catalysts, closed crankcase ventilation
systems, particulate filters, the purchase of diesel hybrid vehicles, engine
repowers, and equipment to reduce or eliminate idling, such as direct-fired heaters
and auxiliary power units, where appropriate. There will be a focus on
school districts, local governments, businesses, and truck owners/operators to
assist them in reducing diesel emissions. The target vehicles include school
buses, shuttle buses, off-road equipment, and other diesel vehicles that operate
in urban and residential areas, along with over-the-road trucks that have significant
driving routes in Illinois and throughout the Midwest. We will also focus
on projects located in the Chicago and Metro-East nonattainment areas in reducing
ozone precursor emissions and particulate matter. Illinois is home to
Navistar, Caterpillar, and John Deere. The diesel engine and off-road equipment
industries are very important to the State’s economy. This grant
program will assist these manufacturers and the local diesel equipment distributors
in Illinois by helping to increase their revenues through the sale of clean diesel
products and retain or create new jobs.
Funding Assumptions
- The Diesel Emission Reduction Act includes $300 million, of which approximately
30 percent ($88 million) will be in direct grants to states and the District
of Columbia (State Clean Diesel Grant Program), and the other 70% in three
competitive grants. The United States Environmental Protection
Agency (U.S. EPA) invited applicants to compete for funds in three program
areas: (1) National Clean Diesel Funding Assistance Program ($156 million);
(2) Clean Diesel Emerging Technologies Program ($20 million)*; and (3) SmartWay
Clean Diesel Finance Program ($30 million)*.
- On April 13, U.S. EPA provided the Illinois EPA a formula-based state allocation
award of $1.73 million for clean diesel projects.
- On April 24, Illinois EPA submitted an application under the National Clean
Diesel Funding Assistance Program. This application identified specific
diesel retrofitting projects per U.S. EPA requirements, and if awarded, would
not be able to be applied for under the Clean Diesel or Clean School Bus
programs. U.S. EPA expects to make award announcements around June
1. (See “Additional Information” below)
- DERA funds are being provided to “be used on projects that spur job
creation, while achieving direct, measureable reductions in diesel emissions.”
- Monies available for clean diesel projects will be allocated through the
Illinois Clean Diesel Grant Program and the Illinois Clean School Bus Program,
with funds distributed by the Illinois EPA in the form of grants.
- As of May 2009, approximately $3 million is available (from ARRA and other
funding sources) for funding projects from applicants to the Clean Diesel
or Clean School Bus programs.
Program Implementation
The Illinois EPA requires submission of an application for financial
assistance. Below are the applicable documents for each program:
- Illinois Clean Diesel Grant Program
- Illinois Clean School Bus Grant Program
Program Eligibility
- The primary types of clean diesel technology options that will
be considered for funding include diesel retrofit products and idling
equipment. Diesel retrofit products must be on the U.S. Environmental
Protection Agency’s Verified
Technologies List and idling equipment, such as auxiliary power
units and direct-fired heaters, should be on the Idle
Reduction Technologies List.
- Eligible applicants for the Clean Diesel Projects include local
governments, colleges and universities, mass transit districts, businesses
(including small businesses), truck owners/operators, and non-profit
organizations with diesel vehicles located and domiciled in Illinois,
and the majority of driving miles and routes of the vehicles must
be in Illinois. For truck owners/operators, over-the-road trucks
will be considered for funding (e.g., auxiliary power units) if the
trucks are driven primarily in Illinois and throughout the Midwest.
- Eligible applicants for the Clean School Bus Projects include school
districts that own and operate their own school bus fleet, individual
schools that own and operate one or more buses, commercial school
bus companies that provide bus service to a school district in which
the buses invoiced in a “clean school bus project” will
stay with that district for at least five years, and school buses
located and domiciled in Illinois.
Additional Information
*Illinois EPA is not a recipient of funding under the Clean Diesel Emerging
Technologies Program or the SmartWay Clean Diesel Finance Program.
This page was last updated on:
June 8, 2009
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