Getting Federal Funding for your Clean Diesel Projects: Insights and Questions

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Apr 02, 2009

Passage of the American Reinvestment and Recovery Act (ARRA) in Congress has brought unprecedented ($300 M) funding for diesel retrofit projects, giving a significant boost to one of the most cost-effective clean air programs.   Air quality agencies and metropolitan planners in areas out of attainment with federal PM and ozone standards are working feverishly with fleet owners to navigate through the expedited application timeline and the need to develop job creation/retention figures as part of their proposal.    Here are some quick tips and insights on resources and the applications process.

Increase the chances of getting funds by submitting a competitive application.  Even if you’re familiar with the proposal guidelines, listen to the recorded webinar presented by the Diesel Technology Forum, www.dieselforum.org/multimedia that included presentations by EPA representatives and past grant awardees. You can also download individual speaker presentations from this site.  

Use the tools that are available.  Great resources such as a diesel emissions quantifier and a sample application are available on EPA’s National Clean Diesel website:  www.epa.gov/cleandiesel.  Many organizations have already received EPA funds for retrofit projects and have valuable insights to share.  Many EPA collaborative websites have lists of previously funded projects.  While they may be applying again and have limited time to advise new applicants, you can download the presentations of two such organizations from DTF’s February 12 webinar at the website provided above. 

EPA has  also been updating a PDF document with the questions it has received.  There is a significant amount of good information in the document.  Other EPA information related to the American Recovery and Reinvestment Act of 2009 (Recovery Act) can be found under the Recovery Act Funding for the National Clean Diesel Funding Assistance Program subhead. 

Ask your engine or vehicle manufacturer and retrofit technology providers for assistance. Among the most important resources for applicants are those that know the full range of options and what works and what doesn’t.  Diesel Technology Forum members are leaders in this field and many have established hotlines for interested applicants or have provided information and materials to their local dealer and distributor networks.  These folks can help provide a fleet assessment and quantify emissions reductions that can be gained by using their technology.  A partial list of such companies is available at the end of this article.

How to Calculate Job Creation - Follow the Flow. Finally, the issue which appears to be causing the most apprehension among applicants is the need to demonstrate how a project will preserve or create new jobs.  The sheer range of retrofit options (remember the 5 Rs of retrofit: retrofit, rebuild, repower, replace and refuel?) as well as the varying locations and productivity of individual equipment manufacturing facilities make it very challenging to offer solid figures of new jobs added.  But don’t despair.  Everyone is in the same situation, so applicants are advised to focus on writing a credible, well-reasoned narrative which highlights the general labor/job impacts along every step of the project flow.

For example:  project manager oversees grant award, progress, reporting; device manufacturers produce XXX new devices for the grant (incremental increases in manufacturing, packaging, processing, shipping jobs affected); equipment dealer schedules service to install devices (estimated XXX man-hours for mechanics, helpers and administrative); and so on, specific to your project.   If you are not installing equipment yourself, you can ask the equipment manufacturer who has helped assess the fleet to provide an estimate of time necessary to conduct the type of installation you’re seeking.  A formula which seeks to quantify jobs through use of a multiplier building on study by Keybridge Research is also available at www.meca.org.

Depending on the size of the fleet being retrofit and the type of retrofit being completed, the number of jobs for component parts may be substantial (ie. a whole vehicle vs. a technology application) or make additional types of jobs relevant (ie. vehicle testing/certification, fuel transportation, etc) – all factors which should be included in your narrative

Our advice.  Take advantage of available resources and be diligent, thorough, credible and quick.  April 28 will be here before you know it.  And if you’re not able to complete your application by the fast approaching ARRA/DERA deadline, don’t forget that the regular annual grant process still continues on with solicitations for the “regular” annual DERA funding ($60 million with an additional $15 million for California) taking place this fall.

Good luck!

 
• BASF Catalysts, which supports www.dieselretrofitdaily.com, has cosponsored a webinar on diesel retrofits and DERA (archived at: www.stnonline.com/stn/top_stories/Webinar_032509.htm) and is offering assistance to organizations interested in applying for funding (dieselretrofit@basf.com, 1-800-804-3701).
• Caterpillar, Cummins and John Deere have provided resources and webinars for their dealers and distributors who work most closely with individual fleet owners. 
• Donaldson Company has many verified products and provides a dedicated, trained sales force with several years of retrofit experience which can support DERA applicants through its sales department at emissionsales@donaldson.com or 1-866-675-2847.
• Eaton Corporation, a leading manufacturer of hybrid systems used in diesel trucks has also established its own program and email address (DERAFunding@Eaton.com).
• Johnson Matthey, which has several technologies on EPA’s verified and emerging technologies list has established a dedicated email address and phone line for those interested in developing projects (DERAHelp@jmusa.com, 1-800-RX FOR AIR ). 
• Volvo construction equipment and Volvo and Mack Trucks have partnered with HUSS to provide solutions and assistance in applying for DERA funds under ARRA.  More information is available at www.volvoce.com/na or through your local Volvo or Mack dealer.

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