Funding Sources
Because diesel engines can last up to 20 to 30 years or longer, it will take many years before the bulk of the existing diesel engines may be retired and be replaced with diesel engines that meet more stringent emissions standards. Therefore, it is important to provide incentives for these in-use engines to be retrofitted with emission control devices or be replaced. There are many available sources to fund diesel retrofit projects. Funding sources include federal, state and local programs.
Below is a list of major potential funding sources currently available, depending on the type of retrofit project and your geographical area. (Note: List will be updated periodically.)
Clean School Bus USA
U.S. EPA initially launched the Clean School Bus USA program in April 2003 with the goal of upgrading the nation's entire school bus fleet to low emission buses by 2010. Clean School Bus USA is a public-private environmental partnership that seeks to reduce children's exposure to air pollution from diesel school buses. The program emphasizes three ways to reduce school bus emissions through anti-idling strategies, engine retrofit and clean fuels, and bus replacement.
For fiscal year 2005, Congress has allocated $7.5 million for school districts to upgrade their diesel fleets. EPA announced a solicitation for the applications that were due on July 22, 2005, and the selected projects will be announced during the fall of 2005. FY 2006 funding for this program is set at $7.0 million.
Carl Moyer Memorial Program
California's Carl Moyer Program is a statewide program that is designed to promote diesel emission reductions through grants for both the private and public sector. The program funds, overseen by California ARB, are used to offset the incremental costs of cleaner than required heavy-duty vehicles and equipments. Categories eligible for funding for replacement, repowering, or retrofits under the Moyer Program include:
- On-road motor vehicles (GVWR > 14,000 lbs)
- Off-road equipment (> 50 hp)
- Marine vessels
- Locomotives
- Stationary agricultural pump engines
- Forklifts
- Airport ground support equipment
- Heavy-duty auxiliary power units
Texas Emission Reduction Plan
Administered by the Texas Commission on Environmental Quality, Texas Emission Reduction Plan (TERP) consists of several voluntary financial incentive and other assistance programs for non-attainment or other eligible areas. Categories eligible for funding under TERP include:
- On-road motor vehicles
- Off-road equipment
- Marine vessels
- Locomotives
- Stationary agricultural pump engines
- Forklifts
- Airport ground support equipment
- Heavy-duty auxiliary power units
For a list of additional funding programs that are currently available, please visit: