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Grants and Funding
Funding opportunities for clean diesel construction equipment projects can be found at the federal, state, regional, and local levels. Funding opportunities can take the form of grants, tax incentives, contract bonuses, or supplemental environmental projects. Many of the funding opportunities outlined below are grants. However, environmental and transportation agencies in your jurisdiction may offer other types of incentives. Links to resources that will help identify potential funding include:
EPA Funding
Non-EPA Federal Funding
Regional Funding
EPA Funding
EPA"s National Clean Diesel Campaign (NCDC) offers funding assistance to establish retrofit programs that fosters the adoption of cleaner diesel technologies and strategies. The National Clean Diesel Campaign encompasses several regional clean diesel collaboratives that implement NCDC projects at the local and regional levels. Grant opportunities can be announced at the national or regional level through the collaborative network.
2006 National Clean Diesel Campaign Program Funding
Congress has allocated $5 million for National Clean Diesel Campaign for 2006.
2005 National Clean Diesel Campaign Program Funding
In 2005, EPA awarded approximately $1.1 million to recipients of the 2005 National Clean Diesel Campaign Grant Competition. Eligible entities had to demonstrate the applicability and feasibility or implementation of EPA and/or California Air Resources Board verified (or certified) pollution reduction retrofit technologies in nonroad vehicles and equipment, such as those used in construction or port-related activities.
2004 Diesel Retrofit Demonstration Grant Projects
In December 2004, EPA awarded approximately $1.6 million to the recipients of the 2004 Diesel Retrofit Grant Competition. The construction sector"s recipients include Illinois EPA, Chicago and the Regional Air Quality Council in Denver, Colorado. These projects offer excellent examples of the innovative ways to reduce air pollution in their communities. See below for a description of these projects. For more information on all grant recipients, see the 2004 Diesel Retrofit Demonstration Grant Projects.
Non-EPA Federal Funding 
Other federal resources exist for funding clean diesel projects. Federal programs with funding for construction applications include:
Congestion Mitigation Air Quality (CMAQ) Improvement Program
The CMAQ program provides financial assistance to areas striving to attain federal air quality standards. State Departments of Transportation (DOTs), Metropolitan Planning Organizations (MPOs), and transit agencies can invest more than $1.6 billion annually until 2009 in projects that reduce criteria air pollutants regulated from transportation-related sources. Clean diesel retrofit projects are eligible for CMAQ consideration. CMAQ is jointly administered by the Federal Highway Administration (FHWA) and the Federal Transit Administration (FTA) at the federal level.
Clean Cities Program
The Clean Cities Program works to advance the economic, environmental, and energy security of the nation by supporting the adoption of practices that reduce petroleum consumption in the transportation sector. The program promotes alternative fuels and vehicles, fuel blends, fuel economy, hybrid vehicles, and idle-reduction. Clean Cities provides financial assistance to projects as well as maintains a database of state and federal assistance. The Clean Cities Program is administered by the Department of Energy.
Regional and State Funding
Clean diesel construction programs and funding sources are found throughout the country. Some state and local governments provide funds for clean construction through the contracting process, while others will provide funds through grants or tax incentives. In addition to the state and local incentives listed below, the National Clean Diesel Campaign encompasses many clean diesel regional collaboratives that provide federal funds in regional grant competitions. Explore the web sites below to find funding sources in your region.
West Coast Collaborative The West Coast Collaborative is a public-private partnership with leaders from federal, state, and local government, the private sector, and environmental groups in California, Oregon, Washington, Idaho, Arizona, Alaska, Hawaii, Canada and Mexico. The Collaborative is committed to reducing diesel emissions along the West Coast and is part of EPA&s National Clean Diesel Campaign. In addition to granting EPA funds, the West Coast Collaborative also maintains a list of additional funding resources.
Carl Moyer Program (California) The Carl Moyer Memorial Air Quality Standards Attainment Program is a state and local partnership that provides incentive grant funding to promote diesel emission reductions. Administered by the California Air Resources Board (CARB) and local and regional air pollution control districts, the program has provided over $154 million in grant awards to California-based private companies and public agencies since it began in 1998.
Texas Emissions Reduction Plan (TERP) (Texas) TERP is a comprehensive set of incentive programs aimed at improving air quality in Texas. The Emissions Reduction Incentive Grants Program is administered by the Texas Commission on Environmental Quality (TCEQ). The program provides grants to eligible projects to offset the incremental cost associated with the activities to reduce emissions of NOx from high-emitting mobile diesel sources in non-attainment areas and other affected counties in Texas. TERP expects to award more than $130 million in the 2006 fiscal year.
Oregon Clean Diesel Initiative (PDF) (2 pp, 100K, About PDF) The Oregon Department of Environmental Quality is working to promote retrofit of diesel engines, in both on- and off-highway situations. Users of heavy-duty diesel engines who retrofit with emission controls can qualify for a credit against Oregon income taxes of up to 35% of the retrofit costs. More information is provided in the following tax credit fact sheet: Oregon Truck Engine Tax Credit (PDF) (2 pp, 52K, About PDF)
Stopping the Soot (New Jersey) New Jersey&s diesel program aims to reduce diesel soot from publicly owned on-road and off-road diesel vehicles and equipment, school buses, garbage trucks, and transit buses. New Jersey also has regulations that limit engine idling to three minutes.
World Trade Center Rebuilding (New York) Clean Air Communities fund the use of ULSD fuel and retrofitting of selected equipment used by construction contractors working at 7 WTC. Funding has also been provided to construction corporations and transit fleets operating in the vicinity of 7 WTC in partnership with the Battery Park City Authority.