Federal Government

Despite the recognized cost-effectiveness of diesel retrofit as an air-quality improvement measure, growing and competing priorities have limited the amount of funds available for voluntary retrofit projects. Some key programs include:

• Diesel Emissions Reduction Program
• Congestion Mitigation and Air Quality Program
• Environmental Quality Incentives Program
• Supplemental Environmental Projects

State Governments

Since the late 1990s, individual states started taking additional responsibility for improving their air quality problems through the creation of state-funded emissions reduction programs. Although California and Texas have some of the oldest, largest and most established programs, other states – including North Carolina, New Jersey and Ohio – have undertaken efforts to designate state funds to support emissions reductions through diesel retrofit.

Thanks to the state grant program under DERA, in FY08 all 50 states received a minimum of $197 million for their own diesel retrofit program, with those agreeing to match these funds receiving additional funds for a total of just under $500 million. The distribution of these funds are determined by each individual state and the amount available can change each year based upon Congressional appropriations and a state’s willingness to provide matching funds.

• California’s Carl Moyer Program
• Texas Emission Reduction Program (TERP)
• North Carolina Mobile Source Emissions Reduction Grant Program
• New Jersey Diesel Risk Reduction Program
• Ohio
• State Infrastructure Banks

Other Retrofit Resources and Promotion Efforts

Diesel retrofit projects are also being financed through a variety of other innovative sources including:

• Contracting Requirements
• Tax Incentives
• Grant Opportunities