Title

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DERG_at_epa.state.oh.us http//epa.ohio.gov/oee/derg
.aspx Updated 11/14/11 Carolyn Watkins, Office
of Environmental Education Carolina Prado,
Division of Air Pollution Control
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Why clean diesel?

• Reduce our exposure to the harmful pollutants in
  diesel exhaust.
• Reduce the amount of air pollution created by
  diesel engines.
• Improve air quality in Ohio counties that do not
  currently meet national Clean Air standards

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Diesel Exhaust and Health

• Diesel exhaust contains small soot particles
  known as fine particulate matter
• Fine particles can lodge in the lungs and
  aggravate conditions such as asthma and
  bronchitis
• US EPA has determined that diesel exhaust is a
  likely human carcinogen

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(No Transcript)
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The 6 Rs of Diesel Cleanup

• REDUCE fuel use and engine idling
• REFUEL with cleaner fuels like propane and CNG
• RETROFIT existing vehicles with pollution
  controls
• REBUILD older diesel engines to reduce emissions
• REPOWER older diesel engines, to remove or
  replace with a newer, cleaner engine
• REPLACE older diesel vehicles and non-road
  equipment with newer, cleaner vehicles and
  equipment that meet more stringent emission
  standards

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DERG Grant Program

• Moved from the Ohio Department of Development to
  Ohio EPA July 1, 2011.
• ODOD and ODOT will continue to administer grants
  already awarded in the first two rounds
• Federal highway congestion mitigation and air
  quality (CMAQ) funds, 20 million over two years
• Grants will REIMBURSE up to 80 of eligible
  project costs
• Ohio EPA will also apply for additional US EPA
  funds when available

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Eligible Fleets

• Applications may be submitted from fleets in
  Ohio nonattainment counties those not meeting
  federal air quality standards for fine
  particulates (PM 2.5) or ozone (green counties on
  map), or those in maintenance status as
  determined by US EPA

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DERG Eligible Fleets

• All transportation sectors allowed in CMAQ,
  including highway construction
• Public sector diesel fleets (e.g., school buses,
  transit buses, other government fleets with some
  restrictions)
• Private sector (including non-profit) diesel
  fleets, e.g., short haul trucks, locomotives,
  highway construction equipment (working on a
  surface transportation construction project
  within an Ohio non-attainment area) that apply
  through a public sector partner such as a
  metropolitan planning organization
• Emission reduction calculation (PM 2.5 and NOx)
  must accompany application.

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DERG Eligible Expenses

• All types of projects, subject to CMAQ
  restrictions
• Rebuilding a diesel engine, with resulting
  emission reductions
• Full cost of replacement of traditional public
  transit vehicles, or partial cost of replacement
  of other diesel-powered vehicles equipment.
• Purchase and installation of verified retrofit
  technologies with resulting emission reductions
• Upgrades to long-haul trucks for idle reduction,
  aerodynamic fixtures, and efficient tire
  technologies
• Repowers (destruction of old engine must be
  certified)
• Labor costs if performed by an outside
  contractor/vendor to install approved DERG
  Program replacement engines or retrofit
  applications.

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DERG Eligible Projects

• CMAQ-invested projects or programs must reduce
  CO, ozone precursor (NOx and VOCs), PM2.5, or
  PM2.5 precursor (e.g., NOx) emissions from
  transportation.
• All projects shall be advertised and awarded
  through competitive bid standards
• Equipment must be operated in a nonattainment or
  maintenance area for a minimum 65 of the time
• Public-Private Partnerships (PPPs) must be
  documented and executed
• FHWA must issue formal eligibility determination

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Vehicle/Machinery Replacement

• New vehicles/machinery must meet higher emission
  standards.
• Verification that old vehicles/machinery have not
  been returned to service
• 80 of total project cost subject to CMAQ
  restrictions, less core or scrap value and other
  governmental financial purchase contributions
• For private and non-profit fleets, funding will
  be approved only for replacement vehicle
  components that contribute to the vehicles
  emission characteristics

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Repower (Engine Replacement)

• Removing the engine from a piece of equipment and
  replacing it with a new, rebuilt or
  remanufactured engine (including CNG or propane
  repowers) that meets higher emission standards
• Verified equipment, verification that old engine
  is remanufactured or destroyed
• Reimburse 80 of equipment invoiced cost, less
  core value or scrap value
• Reimburse 80 of installation invoiced cost
  performed by authorized outside vendor

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Retrofits

• Adding on emission reduction technologies to
  reduce pollution
• Retrofit technology must be verified by US EPA or
  CARB, specific to engine type and model year
• Reimburse 80 of invoiced purchase cost including
  delivery charges
• Reimburse 80 of invoiced installation cost if
  performed by an authorized outside vendor
• Reengineering costs by an authorized outside
  vendor, if vehicle/equipment must be modified for
  retrofit (less any scrap or resale value)

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Idle Reduction

• Adding anti-idle technologies to reduce pollution
• Equipment must be verified by USEPA
• Reimburse 80 of invoiced purchase cost of
  anti-idle equipment including delivery
• Reimburse 80 of installation costs if installed
  by an authorized outside vendor
• Reimburse 80 of reengineering costs by an
  authorized outside vendor if the vehicle or
  equipment must be modified for the anti-idle
  technology

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Technology Options

• U.S. EPA Verified Technologies http//epa.gov/clea
  ndiesel/verification/verif-list.htm
• California Air Resources Board (CARB) Verified
  Technologies www.arb.ca.gov/diesel/verdev/verdev.h
  tm

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Ineligible Expenses

• Operating expenses and fuel costs, including
  incremental costs of fuel. The use of cleaner
  fuels such as ULSD and biodiesel blends is
  encouraged, but is not reimbursable.
• Any project required by any law or other
  agreement
• Work done on purchases made prior to official
  notice of project funding approval, or for costs
  incurred for work or purchases not included in
  the approved project costs.
• Installation costs incurred from in-kind services
  or by an unauthorized vendor
• Administrative costs.

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DERG Grant Administration

• Ohio EPA issues request for proposals (November
  2011) with application deadline in January 2012
• Ohio EPA and ODOT choose best mix of projects
  that meet Federal Highway requirements
• ODOT administers grants to public sector fleets
• Ohio EPA administers grants to private sector
  fleets
• Like all federal grant programs, project costs
  are reimbursed
• 20 non-federal match required on all projects
• Calculation of emission reductions required with
  each application

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Factors Considered in Awarding Grants

• Anticipated level of PM 2.5 and/or nitrogen oxide
  emission reductions
• Cost effectiveness of the emission reductions
• Strength of match provided by the applicant (20
  minimum)
• Percent of emission reductions that will occur in
  nonattainment or maintenance areas (65 minimum)
• Geographic balance of grants awarded across
  eligible counties within Ohio
• Minimum grant award 20,000. Projects under
  100,000 are encouraged to submit in combination

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Timeline (approximate)

• October 2011 Website and application under
  development (http//epa.ohio.gov/oee/derg.aspx),
  Ohio EPA seeking comments and suggestions
• October - November 2011 information sessions in
  several cities, Request for Proposals (RFP)
  released
• January 2012 proposals due
• March 2012 DERG grant awards announced
• April 2012 projects under contract
• September 2012 Next round of applications due

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Another funding source Ohio Clean Diesel School
Bus Fund www.epa.ohio.gov/oeef/schoolbus.aspx

• Retrofits and Idle Reduction Equipment (no
  repowers or replacements)
• Grants up to 300,000
• Maximum 600,000 available to award each year
  from state civil penalties
• Applications due March 1 and September 1, 2012
  and March 1, 2013

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School Buses Cleaned Up So Far

• Since the program began in 2006, Ohios Clean
  Diesel School Bus Fund provided 7 million to
  retrofit 2,337 school buses with pollution
  controls, installed idle reduction equipment onto
  another 544 buses, and removed more than 145
  tons of pollutants from the air.

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Questions? DERG_at_epa.ohio.gov

• Funding questions Carolyn Watkins
• Office of Environmental Education
• [phone]
• carolyn.watkins_at_epa.state.oh.us
• Technology questions Carolina Prado
• Division of Air Pollution Control
• [phone]
• carolina.prado_at_epa.state.oh.us