Additional Resources Save and Share Related Links The Diesel Emissions Reduction Program – Background Information and Fact Sheet   Read letters sent to House and Senate Appropriators by a national coalition urging Congressional support for DERA. Read a letter sent to the President of the United States, co-signed by more than 250 industry and environmental groups urging full funding for DERA. Read a section by section summary of the DERA legislation Read more on congressional support for DERA

 

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A Smart Clean Air Investment

The Diesel Emissions Reduction Act (DERA) establishes a voluntary national and state-level grant and loan program to reduce emissions from existing diesel engines through clean diesel retrofits. This program is intended to build on the success of EPA’s Clean School Bus USA program and its Clean Diesel Initiative.  

Clean diesel retrofits deliver up to 90 percent emissions reductions from trucks, school buses, construction equipment and other diesel vehicles.  Retrofitting has proven to be one of the quickest and most cost-effective clean air strategies available for states and localities striving to meet federal clean air standards.

Current Funding Status: February 2008

In December President Bush signed an Omnibus Appropriations bill which provided $49.2 million for EPA’s Diesel Emission Reduction Program, which would not be limited to nonattainment and maintenance areas. An additional $10 million was also appropriated to fund diesel retrofits in the state of California and would be divided between the San Joaquin Valley and South Coast Air Quality Management Districts. The majority of these funds will be made available through EPA’s Regional Diesel Collaboratives. Up to 10 percent could be made available for emerging technologies and 30 percent will be allocated to states that have their own retrofit funding program.

National, Local Support Urged for Retrofit Funding

A diverse, national coalition has requested that Congress expand funding for clean diesel retrofit programs. In October 2007, a unique and broad group -- comprised of more than 250 environmental and public health organizations, industry representatives, and state and local government associations -- called on President Bush to fully fund the Diesel Emissions Reduction Act ($200 million) in FY2009, saying the investment "is needed and fiscally responsible."

The EPA estimates that, if DERA is fully funded, it would reduce particulate matter emissions by 70,000 tons, generate nearly $20 billion in economic benefit, and return $13 of benefit for every one dollar invested.

Taking Action

The renowned durability of the diesel engines that power school buses, trucks, railroads, and emergency response vehicles means that older vehicles can last for hundreds of thousands of miles over a lifetime of up to 30 years. The Diesel Emissions Reduction Act of 2005 establishes voluntary national and state-level grant and loan programs to promote the reduction of diesel emissions from older diesel fleets. This legislation:

• Authorizes $1 billion over 5 years ($200 million annually).
• Provides that 70 percent of the funds are distributed by EPA.
• Allocates 20 percent of funds to states to develop retrofit programs with an additional 10 percent available as an incentive for state's to match the federal dollars being provided.
• Establishes priority areas for projects (such as those that are more cost-effective and affect the most amount of people) and focuses the federal program on public fleets.
• Includes provisions to help develop new technologies, encourage more action through non-financial incentives, and require EPA to outreach to stakeholders and report on the success of the program.

EPA estimates that this billion dollar program would leverage an additional $500 million leading to a net benefit of almost $20 billion with a reduction of about 70,000 tons of particulate matter. This is a 13 to 1 benefit-cost ratio.