US economic stimulus package allocates $300 million for DERA funding
19 February 2009
US President Obama has signed the economic stylus package, known as the American Recovery and Reinvestment Act. The new law includes $300 million for Diesel Emission Reduction Act (DERA) grants, which will be available to fund diesel emission retrofits and other clan diesel projects.
The Act also includes $300 million for a new a grant program through the Department of Energy’s Clean Cities Program, and $300 million for acquisition of vehicles for the federal fleet. All of the new funding is expected to become available on a fast implementation timeline.
Under the DERA program, fleets may receive grants towards the purchase of new hybrid trucks, and for projects that reduce emissions from existing vehicles. The new $300 million funding represents a six-fold expansion of the program compared to the 2008 DERA funding of $49.2 million.
Examples of eligible DERA projects include:
- Retrofit technologies verified by EPA or California ARB.
- EPA Emerging Technologies
- Engine repower, rebuild, or replacement.
- EPA-verified idle reduction technologies.
The US EPA is expected to issue a request for competitive DERA funding in late February 2009. DERA funding is limited to public and non-profit fleets. Private fleets that wish to receive funding have to establish partnerships with public/non-profit entities. For example, a private school bus company could partner with a school district to receive funding.
The economic stimulus package also provides $300 million through the DOE Clean Cities Program to encourage the use of plug-in electric drive vehicles or other emerging electric vehicle technologies, as well as funding for US government agencies to purchase plug-in hybrid vehicles.
Source: The White House