US EPA announces 2013 construction equipment rebate program

25 November 2013

The US EPA’s National Clean Diesel Campaign (NCDC) opened the 2013 Construction Equipment Funding Opportunity. The program will provide rebate incentives to eligible public and private fleets for the retrofit and/or replacement of nonroad construction equipment engines. The total funding is approximately $2 million.

Eligible public sector applicants include regional, state, local, or tribal agencies or port authorities with jurisdiction over transportation or air quality. In particular, eligible applicants include municipalities, metropolitan planning organizations (MPOs), and counties. Private entities that operate nonroad construction equipment under a contract or lease with a public entity are also eligible.

The nonroad construction equipment must be located in a PM_2.5 or ozone nonattainment area. Following the installation of the technology option under the program, the equipment must operate in the application county for 12 months or 500 hours, whichever comes first.

There are two technology options under this rebate program:

1. Engines Eligible for Retrofits with Diesel Particulate Filters: Tier 2 and Tier 3, 2001-2010 nonroad construction engines with a power rating of 225 ≤ kW < 450 (301 ≤ hp < 603) are eligible for rebates on a DPF. EPA will pay for the full cost of the DPF, up to a maximum of $30,000 per DPF.
2. Engines Eligible for Engine Replacement:
   • Unregulated (Tier 0) and Tier 1, 1990-2002 nonroad construction engines with power rating between 130-225 kW (174 ≤ hp < 301) are eligible for engine replacements to either Tier 2 ($12,000 rebate) or Tier 3 ($15,000 rebate) engines.
   • Unregulated (Tier 0) and Tier 1, 1990-2000 nonroad construction engines with a power rating between 225-450 kW (301 ≤ hp < 603) are eligible for engine replacements to either Tier 2 ($49,000 rebate) or Tier 3 ($69,000 rebate) engines.

Application selections will be determined by a random lottery. Once the lottery list is generated, EPA will apply the following criteria to the lottery list:

• Each of the 10 EPA regions, with at least one eligible applicant, will have a selected applicant.
• It is anticipated that at least 50% of funds will be allocated to public construction equipment.

Applicants may submit one application that includes up to five engines, for a total maximum of $120,000 in rebate funding per applicant. EPA will accept applications until January 15, 2014. The agency will host a webinar on the rebate program on December 9, 2013, at 1:00 pm EST.

The rebate funding opportunity is provided through the Diesel Emissions Reduction Act (DERA). DERA grants supported retrofits and other emission reduction initiatives for in-use diesel engines in the United States since 2007, but the program is now in its sunset phase.

Source: US EPA