DERG@epa.state.oh.us http://epa.ohio.gov/oee/derg.aspx

Updated 11/14/11

Carolyn Watkins, Office of Environmental Education

Carolina Prado, Division of Air Pollution Control

Why clean diesel?Why clean diesel?

Reduce our exposure to the harmful pollutants in diesel exhaust.

Reduce the amount of air pollution created by diesel engines.

Improve air quality in Ohio counties that do not currently meet national Clean Air standards

Diesel Exhaust and HealthDiesel Exhaust and Health

Diesel exhaust contains small soot particles known as fine particulate matter

Fine particles can lodge in the lungs and aggravate conditions such as asthma and bronchitis

US EPA has determined that diesel exhaust is a likely human carcinogen

The 6 R’s of Diesel CleanupThe 6 R’s of Diesel Cleanup

REDUCE fuel use and engine idlingREFUEL with cleaner fuels like propane and CNGRETROFIT existing vehicles with pollution controlsREBUILD older diesel engines to reduce emissionsREPOWER older diesel engines, to remove or

replace with a newer, cleaner engineREPLACE older diesel vehicles and non-road

equipment with newer, cleaner vehicles and equipment that meet more stringent emission standards

DERG Grant ProgramDERG Grant Program

Moved from the Ohio Department of Development to Ohio EPA July 1, 2011.

ODOD and ODOT will continue to administer grants already awarded in the first two rounds

Federal highway congestion mitigation and air quality (CMAQ) funds, $20 million over two years

Grants will REIMBURSE up to 80% of eligible project costs

Ohio EPA will also apply for additional US EPA funds when available

Applications may be submitted from fleets in Ohio nonattainment counties: those not meeting federal air quality standards for fine particulates (PM 2.5) or ozone (green counties on map), or those in maintenance status as determined by US EPA

Eligible FleetsEligible Fleets

DERG Eligible FleetsDERG Eligible Fleets

All transportation sectors allowed in CMAQ, including highway construction

Public sector diesel fleets (e.g., school buses, transit buses, other government fleets with some restrictions)

Private sector (including non-profit) diesel fleets, e.g., short haul trucks, locomotives, highway construction equipment (working on a surface transportation construction project within an Ohio non-attainment area) that apply through a public sector partner such as a metropolitan planning organization

Emission reduction calculation (PM 2.5 and NOx) must accompany application.

DERG Eligible Expenses DERG Eligible Expenses

All types of projects, subject to CMAQ restrictions: Rebuilding a diesel engine, with resulting emission reductions Full cost of replacement of traditional public transit vehicles, or

partial cost of replacement of other diesel-powered vehicles & equipment.

Purchase and installation of verified retrofit technologies with resulting emission reductions

Upgrades to long-haul trucks for idle reduction, aerodynamic fixtures, and efficient tire technologies

Repowers (destruction of old engine must be certified) Labor costs if performed by an outside contractor/vendor to install

approved DERG Program replacement engines or retrofit applications.

DERG Eligible ProjectsDERG Eligible Projects

CMAQ-invested projects or programs must reduce CO, ozone precursor (NOx and VOCs), PM2.5, or PM2.5 precursor (e.g., NOx) emissions from transportation.

All projects shall be advertised and awarded through competitive bid standards

Equipment must be operated in a nonattainment or maintenance area for a minimum 65% of the time

Public-Private Partnerships (PPPs) must be documented and executed

FHWA must issue formal eligibility determination

Vehicle/Machinery ReplacementVehicle/Machinery Replacement

New vehicles/machinery must meet higher emission standards.

Verification that old vehicles/machinery have not been returned to service

80% of total project cost subject to CMAQ restrictions, less core or scrap value and other governmental financial purchase contributions

For private and non-profit fleets, funding will be approved only for replacement vehicle components that contribute to the vehicles’ emission characteristics

Repower (Engine Replacement)Repower (Engine Replacement)

Removing the engine from a piece of equipment and replacing it with a new, rebuilt or remanufactured engine (including CNG or propane repowers) that meets higher emission standards

Verified equipment, verification that old engine is remanufactured or destroyed

Reimburse 80% of equipment invoiced cost, less core value or scrap value

Reimburse 80% of installation invoiced cost performed by authorized outside vendor

RetrofitsRetrofits

Adding on emission reduction technologies to reduce pollution

Retrofit technology must be verified by US EPA or CARB, specific to engine type and model year

Reimburse 80% of invoiced purchase cost including delivery charges

Reimburse 80% of invoiced installation cost if performed by an authorized outside vendor

Reengineering costs by an authorized outside vendor, if vehicle/equipment must be modified for retrofit (less any scrap or resale value)

Idle ReductionIdle Reduction

Adding anti-idle technologies to reduce pollutionEquipment must be verified by USEPAReimburse 80% of invoiced purchase cost of anti-

idle equipment including deliveryReimburse 80% of installation costs if installed by an

authorized outside vendorReimburse 80% of reengineering costs by an

authorized outside vendor if the vehicle or equipment must be modified for the anti-idle technology

Technology OptionsTechnology Options

U.S. EPA Verified Technologies http://epa.gov/cleandiesel/verification/verif-list.htm

California Air Resources Board (CARB) Verified Technologies www.arb.ca.gov/diesel/verdev/verdev.htm

Ineligible ExpensesIneligible Expenses

Operating expenses and fuel costs, including incremental costs of fuel. The use of cleaner fuels such as ULSD and biodiesel blends is encouraged, but is not reimbursable.

Any project required by any law or other agreement Work done on purchases made prior to official notice of

project funding approval, or for costs incurred for work or purchases not included in the approved project costs.

Installation costs incurred from in-kind services or by an unauthorized vendor

Administrative costs.

DERG Grant AdministrationDERG Grant Administration

Ohio EPA issues request for proposals (November 2011) with application deadline in January 2012

Ohio EPA and ODOT choose best mix of projects that meet Federal Highway requirements

ODOT administers grants to public sector fleetsOhio EPA administers grants to private sector fleetsLike all federal grant programs, project costs are

reimbursed20% non-federal match required on all projectsCalculation of emission reductions required with each

application

Factors Considered in Awarding GrantsFactors Considered in Awarding Grants

Anticipated level of PM 2.5 and/or nitrogen oxide emission reductions

Cost effectiveness of the emission reductionsStrength of match provided by the applicant (20% minimum)Percent of emission reductions that will occur in

nonattainment or maintenance areas (65% minimum)Geographic balance of grants awarded across eligible

counties within OhioMinimum grant award: $20,000. Projects under $100,000 are

encouraged to submit in combination

Timeline (approximate)Timeline (approximate)

October 2011: Website and application under development (http://epa.ohio.gov/oee/derg.aspx), Ohio EPA seeking comments and suggestions

October - November 2011: information sessions in several cities, Request for Proposals (RFP) released

January 2012: proposals dueMarch 2012: DERG grant awards announcedApril 2012: projects under contractSeptember 2012: Next round of applications due

Another funding source Another funding source : Ohio Clean Diesel School Bus : Ohio Clean Diesel School Bus Fund www.epa.ohio.gov/oeef/schoolbus.aspx Fund www.epa.ohio.gov/oeef/schoolbus.aspx

Retrofits and Idle Reduction Equipment (no repowers or replacements)

Grants up to $300,000Maximum $600,000

available to award each year from state civil penalties

Applications due March 1 and September 1, 2012 and March 1, 2013

School Buses Cleaned Up So FarSchool Buses Cleaned Up So Far

Since the program began in 2006, Ohio’s Clean Diesel School Bus Fund provided $7 million to retrofit 2,337 school buses with pollution controls, installed idle reduction equipment onto another 544 buses, and removed more than 145 tons of pollutants from the air.

Questions? DERG@epa.ohio.gov Questions? DERG@epa.ohio.gov

Funding questions: Carolyn Watkins

Office of Environmental Education

(614) 644-3768

carolyn.watkins@epa.state.oh.us

Technology questions: Carolina Prado

Division of Air Pollution Control

(614) 644-2310

carolina.prado@epa.state.oh.us