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Diesel Industry Applauds EPA Funding for Diesel Retrofits

WASHINGTON April 2, 2008; The Diesel Technology Forum (the Forum), a non-profit organization representing companies across the diesel industry, applauds the Environmental Protection Agency for making almost $50 million in grant funding available for retrofitting diesel vehicles and equipment.

Because of their efficiency and durability, diesel engines are the workhorse of the U.S. economy and play a critical role in transportation, agriculture, construction, mining and other key industry segments. Since diesel engines often last hundreds of thousands of miles or run for hundreds of thousands of hours, retrofitting older but valuable vehicles and equipment with many remaining years of operation can significantly improve air quality for the benefit of all citizens.

The Diesel Emissions Reduction Program was established in the Diesel Emissions Reduction Act (DERA) and incorporated within the Energy Policy Act of 2005 to promote voluntary retrofit programs at both the national and state level. Under the program, EPA will distribute approximately $27 million through a competitive grant system that would favor the most cost-effective programs affecting the greatest number of Americans. The remaining funds will be used to support emerging technologies, new financing programs and provide matching funds for states that develop their own retrofit funding programs. A state matching funds component was included in order to further leverage the money appropriated by Congress.

Diesel retrofits are one of the most cost effective means to reducing particulate matter and nitrogen oxide emissions and as a result, DERA is considered to be one of the most fiscally responsible programs with some of the highest cost-benefit ratios of any federal initiative.

“These funds will offer significant benefits to counties across the nation struggling to comply with National Ambient Air Quality Standards for particulate matter and nitrogen oxide emissions,” said Allen Schaeffer, the Forum’s Executive Director.The DERA is supported by a unique national coalition more than 150 environmental and public health organizations, industry representatives, and state and local government associations including the American Lung Association, Caterpillar, Cummins, Diesel Technology Forum, Environmental Defense, National Association of Clean Air Agencies, National School Transportation Association and Union of Concerned Scientists. Together, they are urging Congress to expand DERA funding in FY2009 to $70million.