New Report Highlights Legacy of PM Pollution - Environmental Defense has issued a new report, The Clean Air Act at 35: Preventing Death and Disease from Particulate Pollution, documenting the human health legacy of the Clean Air Act and examining the challenge of preventing death and disease from particle pollution. The report estimates the death and disease that could be prevented through available cost-effective particle pollution reduction strategies, including: cutting pollution from the diesel engines in use today; strengthening the emission standards for new diesel marine engines and locomotives; transitioning the nation's fleet of coal plants to modern pollution controls; and lowering the pollution from industrial boilers. For a copy of the report, go to: www.environmentaldefense.org/go/CAA35.

ARB Issues Letter Clarifying Use of Biodiesel with Retrofit Devices - The California ARB has issued an advisory letter (MSC 05-21) clarifying the use of B20 in conjunction with diesel retrofit devices. Senate Bill 975 allows within California "any federal, state, or local agency; any regulated utility; and any owner or operator of solid waste collection vehicles to use B20 with retrofit devices through January 1, 2008 whether or not the device is verified with its use." ARB issued the letter to make clear the impact of the bill for end-users and technology vendors. Specifically, the letter states that: 1) the voluntary use of B20 by fleet owners in their vehicles with installed retrofit devices not verified as compatible with B20 nullifies the state's requirement for device manufacturers to carry a warranty of the device and 2) device manufacturers will not be required to include these vehicles as part of the in-use compliance portion of the verification process and will not be responsible for non-performance of their devices on B20. To view the advisory letter, go to: www.arb.ca.gov/msprog/mailouts/msc0521/msc0521.pdf.

Effort in NY to Reduce Petroleum Use in Transportation Sector Includes Diesel Retrofit - Five Hudson Valley counties in New York are banding together to reduce petroleum use in the transportation sector in order to better the region's air quality. The counties are part of the Hudson Valley Clean Communities Coalition (HVC3), which is a voluntary program that provides a structure for industry, government, and community groups to work together to promote the use of alternative fuels and technologies. In addition to strategies such as using vehicles that run on hydrogen, ethanol, and compressed natural gas and reducing idling, two counties, Rockland and Westchester, are developing bills that would retrofit diesel vehicles to lower emissions.

Ohio EPA Proposes Rules Governing New Diesel School Bus Retrofit Grant Program - The Ohio EPA is initiating a new grant program designed to lower air pollution emissions from school buses. The diesel school bus retrofit grant program was put in place by House Bill 66, which required Ohio EPA to establish rules that define guidelines and processes for a grant, with funding coming from civil penalties the Ohio EPA collects for violations. The proposed rules governing the program would allow grant awards for two purposes: 1) to allow Ohio school districts to add emission control equipment approved by the U.S. EPA's voluntary diesel retrofit program (e.g., DOCs and DPFs) on diesel school buses and 2) to offset the additional cost of using ultra-low sulfur diesel fuel that is not reasonably available in a specific geographic region. Buses privately owned but used exclusively to transport Ohio school children through an agreement with an Ohio school district are also eligible for the diesel retrofit grant program through the local school district. Priority will be given to applications from school districts in communities that do not meet air quality standards for particulate matter, as well as those districts that would employ additional measures, such as anti-idling programs, to reduce emissions from their school bus fleets. For a copy of the proposed rules, go to: www.epa.state.oh.us/pic/dir/rules/school_bus_grant.pdf.

New Jersey Voters Approve Funds for State Diesel Retrofit Program - On November 8, 2005, New Jersey voters overwhelmingly approved a ballot initiative that allows an existing state fund derived from a corporation business tax to be used for funding the purchase of retrofit equipment for diesel vehicles operated in the state. The initiative allocates an estimated $160 million over ten years to retrofit over 30,000 of the state's transit buses, school buses, and publicly-owned trucks with emission control technology. Voter approval of the initiative also ensures funding to support the New Jersey Department of Environmental Protection's (DEP) anti-idling enforcement program and will cover the cost of a research project conducted by the DEP to examine further steps needed to protect children from diesel school bus emissions. The initiative is expected to reduce diesel emissions by roughly 10 percent over the next decade, removing over 400 tons of pollution from the air annually. Governor-elect Jon Corzine has pledged to clean up private diesel trucks as well but has not specified the extent of those steps.

New Jersey's diesel retrofit program was passed earlier this summer by the New Jersey legislature and signed by Acting Governor Richard Codey, but required voter approval of the use of existing state funds to pay for retrofit equipment required by the program.

EPA Awards More Than $1 Million in Clean Diesel Grants - On November 7, 2005, EPA Administrator Stephen Johnson announced the recipients of 10 grants that total more than $1 million to support clean diesel projects. As part of the National Clean Diesel Campaign, the value of the grants will increase to $3 million with industry partners' contribution of almost two dollars for every dollar of federal funds. The grants seek to reduce emissions from nonroad engines, such as those used in construction and on port docks. Some of the technologies that will be implemented in the projects include the use of cleaner fuels, emission control devices (e.g., diesel oxidation catalysts and diesel particulate filters), and engine replacement. For more details on the separate grants that were awarded, go to: www.epa.gov/otaq/diesel/grantfund.htm#ncdc-grant-2005.

EPA Awards $2 Million for Local Environmental Protection Projects - On November 3, 2005, twelve communities across the United States received a share of $2 million in EPA grants to reduce the risk of exposure to toxic chemicals and enhance community education. The grants, awarded under EPA's new Community Action for a Renewed Environment (CARE) program, will help communities develop collaborative strategies to achieve local environmental protection goals. These twelve projects were chosen from more than 130 proposals, which were submitted in response to EPA's March 2005 Request for Initial Proposals. Award recipients will address a wide variety of environmental health issues in both rural and urban areas. Examples of projects include a watershed management and air toxics plan in New Haven, CT (the air toxics plan will mainly target diesel-powered on- and off-road vehicles for emissions reductions), an air toxics reduction program in the Grace Hill community of St. Louis, MO, and an outreach program to protect against contamination in lakes and drinking water in Muskegon County, MI. For more information about CARE and the 12 cooperative agreements, go to: www.epa.gov/care.

Caterpillar Retrofits Land-Based Equipment at Port of Cleveland - Caterpillar, Inc. is retrofitting all land-based equipment at the Port of Cleveland with its catalyzed converter muffler (a diesel oxidation catalyst) in order to demonstrate the effectiveness of retrofit technology. In collaboration with its local dealer, Ohio CAT, Caterpillar will retrofit 26 engines total at the Port of Cleveland. It is estimated that the retrofit of the engines will reduce diesel emissions by more than 5 tons per year over the remaining working life of the equipment. According to Senator Voinovich (R-OH), this retrofit project is a perfect example of the type of retrofit solution that can be supported nationwide under the Diesel Emissions Reduction Act and hopes that it will occur around the country as a result of the legislation. Joseph Koncelik, director of the state of Ohio Environmental Protection Agency, thinks that retrofit technology can play a significant role in achieving compliance with new federal air quality standards.

EPA Enforcement Action Against Mercury Marine Includes Diesel Retrofit Project- EPA's Region 5 office in Chicago has announced an agreement with the Mercury Marine Division of Brunswick Corp. concerning clean-air violations at a Mercury Marine aluminum production facility located in Fond du Lac, WI. As part of this settlement, Mercury Marine will pay a $40,000 penalty and complete three special environmental projects (SEPs). In one of these projects, Mercury Marine will spend $107,750 for the purchase and installation of diesel oxidation catalysts on vehicles owned by Mercury Marine, the city of Fond du Lac, Fond du Lac County, and other municipalities located near Fond du Lac.

Texas Starts Implementation of Low Emission Diesel Fuel- After several delays, the state of Texas' requirements for the sale of Texas Low Emission Diesel (TexLED) fuel began on November 1, 2005 in 110 counties in the eastern half of the state. Under these regulations diesel fuel sold for both on-road and off-road applications must essentially comply with California's CARB diesel fuel specification that include a 10 vol. % cap on aromatic hydrocarbons, a minimum cetane level of 48, and a fuel sulfur cap of 15 ppm. These Texas diesel fuel requirements were first adopted in 2000 and were originally set to begin in April 2005. That start date was delayed until October 1, 2005 and then further delayed until November 1, 2005 due to the fall out of the hurricanes that struck the Gulf Coast. Under the current TexLED requirements, biodiesel is not approved as an additive or as a neat fuel unless proven to reduce NOx emissions on an equivalent level as TexLED.

Washington State Requests Applications for Diesel Retrofit Grants- The Washington State Department of Ecology announces the availability of funds and solicits requests for grant funds to retrofit emission control technology on diesel vehicles and equipment owned by local governments throughout the State of Washington. The total funding for this opportunity is $2,000,000 and up to 100 grants will be awarded based upon the availability of funds. The Department of Ecology anticipates retrofitting approximately 1,000 vehicles statewide. All types of heavy-duty diesel vehicles and equipment with engines greater than 75 horsepower are eligible for retrofit funds. Eligibility is restricted to any city, county, or municipal association, including port or transit authorities within the State of Washington, that owns, leases, or operates heavy-duty diesel vehicles and equipment. Responses are due by Friday, December 2, 2005. For more information, go to: www.ecy.wa.gov/programs/air/cars/DieselGrantPage.htm.

ARB Holds Public Meeting on Funding Allocation for Clean School Buses - On October 14, 2005, ARB held a public meeting to discuss the funding allocation of $25 million for cleaner, safer school buses that was approved by Governor Schwarzenegger and to discuss updates on the Lower-Emission School Bus Program Guidelines. The legislation directs that $12.5 million of the funding be spent to replace pre-1977 school buses with new school buses that meet the most recent passenger safety standards. The remaining $12.5 million of the funding will be spent retrofitting in-use diesel school buses to reduce PM emissions. The funding will replace approximately 100 pre-1977 buses and retrofit approximately 1,000 in-use diesel school buses with retrofit devices.

Historically, new bus fund allocations have been based on a per capita basis; however, the new legislation specifically targets pre-1977 buses. ARB held a discussion on whether to allocate the $12.5 million funding based on population, the percentage of pre-1977 buses, or to replace the oldest buses first. Other proposed funding requirements include a $10,000 match for pre-1977 bus replacements, and air districts that self-administer must contribute a 10 percent match for the first two years of the program. Two-thirds of the $12.5 million must be spent to purchase alternative-fueled school buses and the remainder of the funding on diesel-fueled school buses. In addition, Assembly Bill 923 (AB 923) provides a way for local districts to implement an additional two-dollar motor vehicle registration surcharge to fund a variety of clean air projects, including the purchase of new school buses.

For the $12.5 million allocated to fund retrofit devices on in-use diesel school buses, allocations will be made on a per capita basis and air districts must spend their previous retrofit funds before receiving new funding for the program. All retrofit devices used to retrofit the existing school buses must meet Level 3 verification that reduces PM by at least 85 percent at or prior to the release of the district's request for proposal (RFP). After a school bus retrofit, California Highway Patrol (CHP) vehicle inspection is required before the bus can return to service.

In addition to the discussion on school bus funding allocation, technical changes to the Lower-Emission School Bus Program Guidelines were also discussed. Some of the changes to the guidelines, as mentioned above, are updating the retrofit component of the program to require 85 percent PM control for retrofit devices and to require CHP inspection after retrofit installation. Provisions were also added to allow the use of AB 923 funds for CNG fuel tank replacement and to require purchase requirements for 2007 and later model year school buses.

The draft version of the funding allocation methodology and program guideline changes are expected to be available for public review in January 2006, with Board action at the February 23-24, 2006 Board hearing. ARB is expected to enter into funding agreements with the local air districts and the California Energy Commission by March 31, 2006. School districts will be able to apply for new bus and/or retrofit funding by no later than September 2006. More information on the Lower-Emission School Bus Program and school bus funding can be found at: www.arb.ca.gov/msprog/schoolbus/schoolbus.htm.

EPA Enforcement Action Against ExxonMobil Includes Funding for Diesel Retrofit Projects - EPA and the U.S. Department of Justice have announced the terms of a consent decree with ExxonMobil stemming from violations to the Clean Air Act associated with excess emission from a number of ExxonMobil refineries. As part of this settlement, ExxonMobil has been ordered to perform $1.3 million in supplemental environmental projects associated with implementation of diesel emission reduction projects located near refineries in Torrance, California; Billings, Montana; Joliet, Illinois; Baytown, Texas; and Beaumont, Texas. These projects will include the retrofit of existing diesel municipal bus fleets operating in each of these communities with emissions control technology such as diesel oxidation catalysts and/or diesel particulate filters. These projects need to be completed by December 31, 2009. Details of the ExxonMobil consent decree are available at: www.epa.gov/compliance/resources/cases/civil/caa/exxonmobil05caa.html.

NJ Governor Signs Diesel Retrofit Legislation - On September 7, 2005, New Jersey's acting Governor Richard Cody (D) signed into law legislation aimed at reducing emissions from diesel engines used in school buses, refuse haulers, transit buses and other publicly owned vehicles operated in the state. The legislation will reduce diesel emissions from these vehicles by limiting engine idling, requiring that off-road diesel engines use ultra-low sulfur diesel fuel starting in 2007 (three years ahead of the federal requirement), and by spending up to $160 million over 10 years to retrofit more than 30,000 existing diesel engines with emission controls such as diesel oxidation catalysts, diesel particulate filters, and closed crankcase filters. Funding for diesel retrofits would be provided from the state's existing 4% corporate business tax. New Jersey voters must approve the use of the state's business tax fund for diesel retrofits as part of the upcoming November 8, 2005 state elections. If approved, the retrofit program would be administered by the New Jersey Department of Environmental Protection. The state's 16,000 school buses would be the first targets for retrofit emission controls.

EPA Enforcement Action Against Cargill Includes Funds for Diesel Retrofits - On September 1, 2005, the U.S. EPA and the U.S. Department of Justice announced the terms of a settlement with Cargill, Inc. over Clean Air Act emission violations at several Cargill manufacturing facilities. The settlement of this enforcement action requires Cargill to spend an estimated $130 million on the installation of air pollution control equipment at 27 corn and oilseed processing facilities located around the country. In addition, Cargill will pay a civil penalty of $1.6 million and spend $3.5 million on special environmental projects. Included in these special environmental projects is funding for the Mid-South Clean Air Coalition Diesel Retrofit Program located in the states of Arkansas and Tennessee (greater Memphis metropolitan region). Details of the EPA consent decree with Cargill are available at: cfpub.epa.gov/compliance/cases/.

West Coast Collaborative/EPA Announce Funding for 16 Diesel Emission Reduction Projects - The West Coast Collaborative and EPA have awarded funds to 16 projects in California, Oregon, and Washington that target the reduction of diesel exhaust emissions in a variety of sectors, including construction equipment, port equipment, highway trucks, railyards, and locomotives. EPA will be providing $1.4 million in grants for these projects, with an additional $5.8 million in funds provided by West Coast Collaborative partners. Included in the projects are a number of diesel retrofit demonstrations on construction equipment, cargo handling equipment, and locomotives. Details about the projects selected for funding are available at: www.westcoastcollaborative.org/grants/index.htm.

Georgia-Pacific Environmental Fund Supports School Bus Retrofits in Atlanta - Atlanta Public Schools will be leveraging grants from Georgia-Pacific's environmental fund with funding from the U.S. EPA to retrofit nearly 400 diesel school buses with crankcase ventilation filters, oxidation catalysts, and/or diesel particulate filters. The Georgia-Pacific environmental fund was established as part of an earlier emissions enforcement settlement between Georgia-Pacific, the U.S. EPA, and the Georgia Environmental Protection Division. This retrofit project is another of the many school bus projects supported by EPA's Clean School Bus USA program.

APCT Center Seeks Independent Testing Organizations for Verification Tests - The Air Pollution Control Technology (APCT) Center is seeking qualified independent testing organizations to perform verification tests on emissions controls for heavy-duty diesel engines. The technologies that may be tested for verification include: retrofit devices, such as diesel oxidation catalysts and diesel particulate filters; selective catalytic reduction systems; fuel modifications, such as additives and reformulations; biodiesel fuels; and lubricants. The testing organization must be capable of testing multiple types of technologies that are submitted to the APCT Center. In addition, the testing organization must meet the requirements for Quality Management Plans, test protocols, and test/quality assurance plans. For details on this announcement, go to: etv.rti.org/apct/tech/TestOrganizationAnnouncement.pdf.

Final EPA FY 2006 Budget Includes Funds for Retrofits - President Bush signed a FY 2006 appropriations bill in early August that includes the FY 2006 U.S. EPA budget. This final bill includes $7.73 billion in funds for the EPA during FY 2006, down $295 million from the FY 2005 EPA budget. Included in the FY 2006 EPA budget are $7 million for EPA's popular Clean School Bus USA program (see: www.epa.gov/cleanschoolbus) that provides grants to school districts for the replacement or retrofit of diesel school buses. The $7 million funding level for school buses is below the President's original $10 million request and slightly less than the $7.5 million budgeted in FY 2005. EPA's FY 2006 budget also includes $5 million in funding for EPA's National Clean Diesel Campaign (the President's original budget request had included $15 million for the National Clean Diesel Campaign). This new EPA program will be targeting diesel retrofits/engine replacements in other mobile source sectors besides school buses. A significant fraction of the $5 million will go to the West Coast Collaborative (see: www.westcoastcollaborative.org), a public-private partnership targeting the reduction of diesel engine emissions along the western coast of the U.S., Canada, and Mexico.

APCT Center Posts Vendor Guide for Verification Process - Air Pollution Control Technology (APCT) Verification Center posted a Vendor Guide to help companies looking to verify their technologies understand the verification process. The guide provides step-by-step explanation of the verification process, explains the roles and responsibilities of the participants, and provide information on the relationship between the ETV program, managed by EPA's Office of Research and Development, and the Voluntary Diesel Retrofit Program, managed by EPA's Office of Transportation and Air Quality. The Vendor Guide is available at: etv.rti.org/apct/pdf/VendorGuide.pdf.

Final Transportation and Energy Bills Signed by Bush; Include Significant Funds for Diesel Retrofits - President Bush signed the Transportation Equity Act on August 10, 2005 and the Energy Policy Act on August 8, 2005. The U.S. Senate and House of Representatives both passed final negotiated, conference reports at the end of July on the large energy and transportation bills that have been the focus of Congressional action for much of the past two years. Each bill will have a significant impact on diesel retrofit programs in the U.S. through a variety of measures included in both pieces of legislation. The final energy bill includes the $1 billion ($200 million/year for five years) diesel retrofit/engine replacement incentive plan originally proposed by Senator Voinovich (R-OH) for ozone and particulate matter (PM) non-attainment areas. The grants for this incentive program will be split between federal grants administered by the EPA (70%) and state grants (30%). In addition to this large retrofit incentive program, the final energy bill also includes $3.2 billion in funds for research on hydrogen energy and fuel cells; $110 million over 3 years for research into emission improvements for locomotives; tax credits through 2010 for the purchase of advanced technology vehicles including hybrids, clean diesel, and fuel cell vehicles; extension of the biodiesel tax credit through 2008; and a mandate for the use of 7.5 billion gallons of ethanol or biofuels by 2012.

The final transportation bill includes two important diesel retrofit-related provisions. States will now be able to use funds included in the transportation bill for Congestion Mitigation and Air Quality (CMAQ) programs to purchase diesel retrofit controls for construction equipment used in federally-funded highway projects in ozone or PM non-attainment areas. Total CMAQ program funds included in the bill amount to approximately $12 billion (over six years). The transportation bill also provides approximately $55 million per year of funding for EPA's popular Clean School Bus USA program. Funds from this program are used to help pay for the replacement of older school buses and the retrofit of diesel school buses with emission controls such as oxidation catalysts and diesel particulate filters.

Final Report Issued on Incentives for Diesel Retrofit Programs - A final report is now available that details existing and proposed federal, state, and local incentives available for diesel retrofit programs in the U.S. (specifically programs using off-road diesel equipment). The report, Emission Reduction Incentives for Off-Road Diesel Equipment Used in the Port and Construction Sectors, was prepared for the U.S. EPA's Sector Strategies Program, which works with specific industry sectors to address the most significant impediments to better environmental performance in each sector. The report highlights available grant programs such as EPA's retrofit grants, California's Carl Moyer program, and the Texas Emissions Reduction Plan (TERP); tax incentives such as Oregon's Pollution Control Tax Credit Program; modified contracting procedures that provide incentives for the use of vehicles and equipment that have been retrofit with emission controls; and other incentives including state implementation plan credits and emissions trading programs. A full copy of this report is available from a number of websites, including the website of the Association of General Contractors (AGC) using the following link: www.agc.org/galleries/default-file/Retrofit%20Incentives%20Report%20FINAL.pdf.

California 2005-2006 State Budget Approved with Funds for Air Quality Initiatives - California Governor Arnold Schwarzenegger (R) signed the 2005-2006 state budget bill on July 11, 2005 after quickly reaching a bi-partisan compromise with leaders of the California legislature. The approved state budget includes funding for a number of important air quality initiatives, including $88.5 million in state funds for ARB's Carl Moyer incentive program for reducing emissions from diesel-powered vehicles and equipment, $25 million to replace and retrofit diesel school buses in the state, and $6.5 million for the Governor's Hydrogen Highway Initiative. Half of the school bus funds are targeted for replacing pre-1977 school buses, with the remaining half allocated for diesel retrofit projects on school buses. The $6.5 million budget for the Hydrogen Highway Initiative is considerably below the more than $10 million included in the Governor's original budget request. Details of the approved 2005-2006 California budget are available at: www.dof.ca.gov.

New Jersey Diesel Retrofit Legislation Passes Both Houses - The New Jersey Senate and Assembly both passed legislation in late June that requires the use of diesel retrofit controls on diesel-powered public vehicles, including school buses, transit buses, and garbage trucks, operating in the state. The legislation allocates $160 million of state funds over 10 years to help with the purchase of retrofit technologies such as oxidation catalysts, particulate filters, and crankcase filters for more than 30,000 public vehicles operating in New Jersey. The legislation is backed by acting Governor Richard Codey (D) and will now go before the New Jersey voters for approval in the November 2005 elections. The legislation also contains stricter enforcement of anti-idling laws and requires the use of ultra-low sulfur diesel (15 ppm S max.) by off-road diesel vehicles in 2007, more than three years in advance of federal requirements. Copies of the New Jersey Senate Bill No. 1759 and the Assembly Bill No. 3182 covering diesel retrofits are available at: www.njleg.state.nj.us/.