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Grants and Funding

Funding opportunities for clean diesel 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. General information about writing a grant proposal is available and links to resources that will help identify potential funding sources include:

EPA Funding

EPA's National Clean Diesel Campaign (NCDC) offers funding and technical assistance to foster the adoption of cleaner diesel technologies and strategies.  NCDC encompasses several EPA regional clean diesel collaborative's that implement NCDC projects at the local levels.  Grant opportunities can be announced at the national level or through the EPA regional collaborative.

EPA Regional Collaboratives

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Non-EPA Federal Funding

Environmental Quality Incentives Program (EQIP)
EQIP was reauthorized in the Farm Security and Rural Investment Act of 2002 (Farm Bill) to provide a voluntary conservation program for farmers and ranchers that promotes agricultural production and environmental quality. EQIP offers financial and technical help to assist eligible participants install or implement structural and management practices on eligible agricultural land.   

Section 9006 of the Farm Bill (2002)
This program currently funds grants and loan guarantees to agricultural producers and rural small business for assistance with purchasing renewable energy systems and making energy efficiency improvements.  New for 2006, the program offers both grants and guaranteed loans for eligible projects. In addition, projects with total eligible costs under $200,000 can apply under a Simplified Application Process designed to streamline the application process for small projects.  On this site you will find information on the Section 9006 grant and guaranteed loan programs including details on project and applicant eligibility, application procedures, required forms and other useful information to assist you in the application process.

DSIRE- Database of State Incentives for Renewables and Efficiency
DSIRE is a comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency. DSIRE tracks federal financial incentives that promote renewable energy and energy efficiency – those designed primarily for residents, businesses, and other end-users rather than funding opportunities for research & development, outreach, or inter-governmental programs. New federal programs and incentives for renewable energy will be added to DSIRE as they become available.

USDOE Alternative Fuels Data Center
The Alternative Fuels Data Center (AFDC) is an online collection of data, including more than 3,000 documents and several interactive tools covering the topics of alternative transportation fuels, alternative fuel vehicles, hybrid electric vehicles, idle reduction technologies, fuel blends, and fuel economy. The AFDC is sponsored by the U. S. Department of Energy's Clean Cities and Energy Policy Act of 1992 (EPAct) fleet programs.

USDA Rural Development Energy Initiatives
Rural Development administers several programs that support President Bush's and USDA's goal of putting an energy policy into effect that meets America's current -- and future -- energy needs by using agriculture as a part of the energy solution. Rural Development's energy programs support the development of renewable energy systems and expansion of the economic viability of biomass projects.  Go to this site to learn about available grants and loans.

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State FundingExit EPA disclaimer

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.

Oregon Clean Diesel Initiative
The Oregon Department of Environmental Quality is working to promote voluntary 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 thirty-five percent 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).

Texas Emissions Reduction Plan (TERP)
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.

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