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Truckers - Clean Diesel Grants and Loans
- Basic Information
- Financial Assistance
- Grants
- Eligible Projects
- Frequently Asked Questions
- Contact Information
Basic Information
This page is designed for truck owners seeking information about loans and grants for eligible clean diesel projects under the National Clean Diesel Campaign.
For fiscal year 2008, Congress appropriated funds for the first time under the Energy Policy Act (2005) to help reduce emissions from heavy-duty diesel engines, including trucks. Through the National Clean Diesel Campaign, EPA will award grants to assist its eligible partners in building diesel emission reduction programs across the country that improve air quality and protect public health.
Eligible projects include:
- retrofitting an existing truck with a pollution control device or idling reduction equipment
- using a cleaner fuel
- repowering or upgrading an existing engine to a cleaner standard
- replacing an older engine or vehicle with a newer, cleaner engine or vehicle
- creating a low-cost loan program to finance diesel emissions reduction projects
Financial Assistance
If you are interested in obtaining a loan for a SmartWay Certified Tractor, SmartWay Certified Trailer or SmartWay approved fuel savings and emissions reducing technologies, you can submit a loan application at www.smartwayfinance.com
. This web site allows you to submit one simple, free application which is distributed to participating lenders for their consideration.
In September 2008, EPA awarded $3.4 million in grants to provide financial assistance for truckers under the SmartWay Clean Diesel Finance Program. These innovative loans will help small trucking firms lower their fuel costs and carbon footprints through the use of innovative loans to purchase idling and emissions reduction technologies.
The information provided below is based on each grant recipient's proposed loan/lease program and is subject to change. Interested applicants should contact each organization for specific application information.
Community Development Transportation Lending Services, Inc. (CDTLS) National Low Interest Revolving Loan Fund
| Loan Interest rates: | 5.5 - 8.5 percent, varies based on, among other things, each applicants business history, available collateral, cash flow and credit score |
| Loan payback period: | 3 - 6 years, varies based on, among other things, business history, available collateral, cash flow |
| Geographic Location: | Nationwide |
| Eligible activities: | Purchase used trucks to upgrade with EPA SmartWay or CARB verified idle reduction and/or emission reduction technology. Purchase used trucks that are upgraded with EPA SmartWay or CARB verified idle reduction and/or emission reduction technology. |
| Program Goal: | Establish a revolving loan fund for the purchase of used trucks that have SmartWay upgrades or will receive SmartWay upgrades. |
| Service Fee: | 2 - 3 percent |
| Contact Information: | Program Director: Patrick Kellogg (kellogg@ctaa.org) Phone Number: 202-415-9682 Fax Number: 202-737-9197 Address: 1341 G St., NW, 10th Floor, Washington, DC 20005 |
| Web site: | Community Transportation Association Transit Financing Page |
Cascade Sierra Solutions (CSS) Everybody Wins USA Lease Program
| Loan Interest rates: | 8-11 percent, includes: 7 percent for Financing Cost, 1 percent Collection Fee, and 1-3 percent Reservation Loss |
| Loan payback period: | 3 years |
| Geographic Location: | Nationwide |
| Eligible activities: | Installation and leasing of EPA SmartWay or CARB verified emission and idle reduction technologies. The truck owners will purchase the equipment for $10 at the end of the loan period. |
| Program Goal: | Establish a leasing program for the installation of emission reduction technology and idle reduction technology on 1,700 trucks. |
| Service Fee: | N/A |
| Contact Information: | Phone Number: 541-302-0900 E-mail: info@cascadesierrasolutions.org Fax Number: 202-737-9197 Address: 32670 Mill St., Coburg, OR 97408 |
| Web site: | www.cascadesierrasolutions.org |
Innovative Financing OOIDA Foundation (Owner-Operator Independent Drivers Association Foundation)
| Loan Interest rates: | Based on SWAP rate |
| Loan payback period: | N/A |
| Geographic Location: | 48 contiguous states |
| Eligible activities: | Purchase and installation of emission reduction and idle reduction technologies verified by EPA and/or CARB. |
| Program Goal: | Offer rebates to selected applicants/truck owners to install emission reduction and/or idle reduction equipment on their trucks. The first rebate to the truck owner will be for the cost of the equipment installation. Then, every six months, depending on idle/fuel use reductions demonstrated, the truck owner will receive additional rebates until 40% of the total cost of the equipment is paid. |
| Service Fee: | N/A |
| Contact Information: | Director of Operations: Tom Weakley (tom_weakley@ooida.com) Phone Number: 816-229-5791 Fax Number: 816-427-4468 Address: 1 NW OOIDA Dr., Grain Valley, MO. 64029 |
| Web site: | www.ooida.com |
Additional innovative financing opportunities may be established by recipients of EPA’s State Clean Diesel Grant Program and National Clean Diesel Funding Assistance Program. Visit this page frequently to find organizations ready to administer their new programs. More information on EPA's Smartway Innovative Financing.
Grants
For-profit companies, including owner-operators and trucking companies, cannot apply directly to EPA for National Clean Diesel Campaign Grants & Funding. Only regional, local and state governments, and certain nonprofits, are eligible to apply. However, EPA encourages for-profit companies to partner with eligible organizations in their region to participate in these grant programs.
Some FY 2008 grant recipients will be establishing clean diesel programs to assist owner-operators and trucking companies in obtaining cleaner trucks and idling and emissions reduction technologies. Owner-operators and trucking companies may receive a sub-award, sub-grant, and/or loan from organizations which establish these types of clean diesel programs. For-profit companies will be able to apply directly to these organizations when they set up their assistance programs. Programs which make such assistance available will be listed here as they become available.
Eligible Projects for Trucks
Eligible projects for trucks may include any of the following
- A truck retrofitted with an EPA or California verified pollution control device, like a filter or catalyst add-on device, or
- A truck retrofitted with an EPA or California verified idle reduction technology, like an auxiliary power unit, generator set, fuel operated heater, or battery heating and/or air conditioning system, or
- A truck fueled with EPA or California approved cleaner fuels, such as compressed natural gas, biodiesel, liquefied natural gas, propane, and emulsions or additives (funding covers the difference between the conventional fuel and the cleaner fuel), or
- A truck with its existing engine removed and replaced with a newer, cleaner engine (repower). Repowers may include engine replacement for use with a cleaner fuel such as compressed natural gas, re-calibrations, and/or other components and/or the addition of newer, cleaner technologies to reduce the emissions from the engines, or
- A truck engine upgraded to reduce its emissions by applying manufacturer recommended upgrades or kits to certified or verified configurations, or
- A truck with a newer or cleaner replacement engine. Nonroad and highway diesel vehicles and equipment can be replaced with newer, cleaner vehicles and equipment that operate on diesel or alternative fuels. Replacement projects can include the replacement of diesel vehicles and equipment with newer, cleaner diesel or hybrid or alternative fuel vehicles/equipment. These projects can also include the replacement of nonroad vehicles/equipment with highway models if the engine’s operating cycles make the replacement technically feasible.
Frequent Questions and Answers
- What is the purpose of this funding?
The purpose of these grants is to reduce emissions from existing diesel engines through a variety of strategies, including but not limited to, solutions such as:
- add-on emission control retrofit technologies;
- idle reduction technologies;
- cleaner fuel use;
- engine repowers;
- engine upgrades; and/or
- vehicle or equipment replacement; and
- the creation of low-cost revolving loan programs to finance diesel emissions reduction projects.
- Who qualifies for a grant?
In the Energy Policy Act of 2005, the entities which can receive grants under this program are limited to:
- a regional, State, local or tribal agency or port authority with jurisdiction over transportation or air quality; and
- a nonprofit organization or institution that –
- represents or provides pollution reduction or educational services to persons or organizations that own or operate diesel fleets; or
- has, as its principal purpose, the promotion of transportation or air quality.
School districts, municipalities, metropolitan planning organizations (MPOs), cities and counties are all eligible entities under this assistance agreement program within the extent that they fall within the definition above.
- What is the process to get a grant?
Eligible entities must apply to posted Requests for Proposals (RFPs) by the deadline. Instructions for submission and content vary by RFP. Proposals will be evaluated per the criteria listed in the RFP. Selectees will be notified by EPA to submit final paperwork. There will be a five-day Congressional waiting period before the grant is awarded by EPA. The process for awarding grant from the closing date of the RFP to award takes approximately 60 days.
- How do for-profit companies participate?
For-profit companies, including owner-operators and trucking companies, can receive a sub-award, sub-grant, and/or loan from an organization that is awarded an EPA grant under the NCDC. For-profit companies will be able to apply directly to the organizations when they set up their assistance programs. Programs which make such assistance available will be listed here as they become available.
Contact Information
Grants - Please submit questions regarding grants to CleanDiesel@epa.gov.
Loans - Questions regarding clean truck loans may be directed to 734-214-4767 or smartway_transport@epa.gov.