Air Pollution Control Program
Diesel Emission Reduction Act Funding
In 2005, the U.S. Congress passed the Diesel Emission Reduction Act, also known as DERA, as an amendment to the Energy Policy Act. DERA was designed to reduce diesel emissions from existing diesel fleets that do not meet recently adopted federal emission standards. The U.S. Environmental Protection Agency, or EPA, is responsible for overseeing and distributing DERA funds at the federal level. EPA has additional information about the federal DERA program on their website.
In 2009, DERA was included as a program under the American Recovery and Reinvestment Act. Under this act, DERA received $300 million nationwide
There are four different pools of funding within DERA, and each of the four different pools is allocated a certain percentage of total DERA funds appropriated by Congress each year, as illustrated by the graph on the right. The four different funding pools are:
- State DERA Funding.
- National Clean Diesel Funding Assistance Program.
- Emerging Technology Program.
- SmartWay Innovative Finance Program.
The State Allocation Program is non-competitive funding divided evenly among all fifty states. The Missouri Department of Natural Resources’ Air Pollution Control Program is responsible for implementing and overseeing Missouri's allocated funding.
The funding must be used to develop grant or low cost revolving loan programs to fund clean diesel projects. Examples of projects include emission control retrofits (exhaust controls), idle reduction retrofits, SmartWay technology retrofits, the incremental cost difference for alternative fuel, engine replacements and early vehicle replacements. This funding has a match incentive, through which the states are awarded an additional 50 percent of the original award if they can match the entire amount of the original award.
Additional information about a particular past, current or upcoming State Allocated Clean Diesel Grants in Missouri, is available below.
- Current State Allocated Clean Diesel Grants: Past State Allocated Clean Diesel Grants:
National Clean Diesel Funding Assistance Program (National Competitive DERA Funding)
The National Clean Diesel Funding Assistance Program is a competitive grant program. Approximately 60 percent of the DERA funding is allocated to this pool of funding each year. The following entities are eligible to apply for funding under this program: regional, state, local or tribal agencies or port authorities with jurisdiction over transportation or air quality and nonprofit organizations or institutions that represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets, or have as their principle purpose, the promotion of transportation or air quality. Non-eligible entities are allowed to partner with an eligible entity to apply for a project; however the eligible entity must submit the application to EPA and assume responsibility for the project.
The following types of projects are eligible uses of funding through this program: EPA or California Air Resources Board verified emission control retrofits, EPA verified Idle Reduction Retrofits, the incremental cost difference for alternative fuel, EPA certified engine repowers and early vehicle replacements that utilize an EPA certified engine configuration.
The Air Program has applied for funds under this program each year ever since DERA has been appropriated funding by congress back in 2008. In past years the Air Program has partnered with public and private fleet owners and submitted the application as the eligible entity. Typically, the Air Program invites interested fleet owners in some of the more air quality challenged areas of the state to apply for a chance to receive federal funds from this program to reduce diesel emissions. While some entities that partner with the Air Program on applications under this program are eligible entities themselves, they have still decided to partner with the Air Program to avoid the requirement to develop a detailed competitive proposal that may or may not be selected by EPA to receive funding. To view information about potentially partnering with the Air program on a future National Competitive DERA Grant, visit the 2012 National Clean Diesel Funding Assistance Program Web page.
Past National Competitive DERA Grants
Current National Competitive DERA Grants
Upcoming National Competitive DERA Grants
Emerging Technology Program DERA Funding
The Emerging Technology Program is a competitive grant process that may be used by emerging technology manufacturers to implement their technologies that may not yet be commercialized on existing diesel fleets. The funding may not be used for testing of the emerging technology equipment, but only implementation. Emerging technology manufacturers must be included on the EPA Emerging Technology List, and they must partner with an eligible entity, which would submit the application. Eligible entities include:
- Regional, state, local or tribal agencies or port authorities with jurisdiction over transportation or air quality.
- Nonprofit organizations or institutions that represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets, or have as their principle purpose the promotion of transportation or air quality.
The Air Program has not ever applied for funding under this program. The Air Program is, however, assembling an emerging technology distribution list. If you are a manufacturer with a product listed on the EPA Emerging Technology List, and would like to receive updates and information about potential grant projects that could be applied for please email the Air Program with your information. Include your company’s name, the name of the technology that your company manufactures that is listed on the EPA Emerging Technology List, along with your personal contact information including name, phone number and email address. If you are a fleet owner interested in applying for a grant to install an emerging technology on your fleet, please email the Air Program with your information. Include your company’s name, the name or type of the technology you are interested in installing that is listed on the EPA Emerging Technology List, along with your personal contact information including name, phone number and email address.
Smartway Innovative Finance Program
The SmartWay Finance Program is a competitive grant program used to establish innovative finance funds for clean diesel projects, such as a revolving loan fund. Examples of projects include those where the loan recipient receives a specific financial incentive (e.g., better than regular market rates or conditions) for the purchase or lease of retrofitted vehicles or equipment. Eligible entities include regional, state, local or tribal agencies or port authorities with jurisdiction over transportation or air quality and nonprofit organizations or institutions that represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets, or have as their principle purpose, the promotion of transportation or air quality.
The Air Program has never applied for funding under this program in the past. It is unlikely the Air Program would apply for funding under this program in the future due to a lack of resources to implement such a program. However, the Air Program would likely support another eligible entities' application for funding under this program if the focus of the project was located in Missouri. It is possible the Air Program could provide information about air quality in Missouri that could be used to strengthen an application for an eligible entity that is applying for funding for a Smartway Innovative Finance Project that is focused in Missouri. If you represent an eligible entity and are interested in applying directly to EPA for a Smartway Innovative Finance Program Grant that would be focused in Missouri, please email the Air Program with your information. Include your company’s name, a summary of your plan for an innovative finance program, along with your personal contact information including name, phone number and email address.