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State Clean Diesel Grant Program

EPA's State Grant Program allocates funds to participating states to implement grant and loan programs for clean diesel projects. To support states in the development of clean diesel programs, EPA has developed a toolkit for state and local governments.

2009 Funding Process

For FY 2009 State Clean Diesel Grant funding, specific guidance on the application process, permissible use of funds, and a streamlined annual renewal process will be provided in an upcoming Federal Register notice. EPA anticipates that the Federal Register notice for the State Clean Diesel Grant Program will be published in March 2009.

EPA allocates funding to the states through a formula outlined in the Energy Policy Act of 2005 (PDF) (551 pp, 1.3MB). According to the Act, each state will receive one of two amounts, contingent on the provision of matching funds provided by the state. Two-thirds of the funds from the state program are provided to the participating states as base funding. The remaining third is awarded to states that provide matching funds. Any unclaimed funds will revert to the National Clean Diesel Funding Assistance Program.

A match is not required for this program, but if a state matches the entire base amount dollar for dollar with cash or in-kind services, they will be awarded an additional amount equal to half of their base funding. The match must be spent on eligible and allowable costs and is subject to the match provisions in the assistance agreement. Other federal funds cannot be used as a match.

Eligible Use of Funding

States may use their allocation to fund grant and loan programs for clean diesel projects that use:

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