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.
Overview
In 2009, EPA’s National Clean Diesel Campaign is distributing funding for the State Clean Diesel Grant Program through two separate funding sources:
- the American Recovery and Reinvestment Act of 2009 (Recovery Act) ($88 Million), and
- EPA’s Fiscal Year (FY) 2009 Appropriations.
An expedited process is currently underway for distribution of the Recovery Act funding. The distribution of the FY 2009 Funding will occur later in 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. 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. Any unclaimed funds will revert to the National Clean Diesel Funding Assistance Program.
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.
Eligible Use of Funding
States may use their allocation to fund grant and loan programs for clean diesel projects that use:
- Retrofit technologies that are EPA or CARB-certified or verified
- Idle reduction technologies that are EPA-verified
- Technologies from EPA's Emerging Technologies List
- Early replacement and repower with certified engine configurations (incremental costs)