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State Grant Program
June 19, 2008: The State and Local Toolkit is a compilation of examples and procedures designed to help state, regional, and local governments develop programs to reduce diesel emissions.
Approximately $14.8 million is available for state activities to achieve significant reductions in diesel emissions. The State Clean Diesel Grant Program is not a competition, but an allocation process which allows states to build programs that reduce diesel emissions from the existing fleet.
Clean Diesel Programs
- About the State Clean Diesel Grant Program
- Key Steps in the Process
- Allocation of Funds to States
- Matching Funds
- Guidelines for Project Priorities in State Clean Diesel Grant Programs
- Application Procedures and Forms
About the State Clean Diesel Grant Program
State program funds may be used to develop and implement grant and loan programs for clean diesel projects using verified and/or certified retrofit technologies and EPA verified idle reduction technologies. States may also elect to include emerging diesel emission reduction technologies in their grant and loan programs.
An incentive is provided to states which match federal resources towards clean diesel programs. State agencies may also apply for funding through the National Clean Diesel Funding Assistance Program.
EPA is providing specific guidance in the Federal Register on the application process, permissible use of funds, and a streamlined annual renewal process. To support states in the development of clean diesel programs, EPA also has a toolkit for state and local governments including examples of existing programs, information about the cost effectiveness of emissions reduction technologies and verification of clean diesel technologies.
Key Steps in the Process
- EPA guidance has been issued in the Federal Register (March 10, 2008)
- State agency submits a Notice of Intent to Apply to EPA's Office of Transportation and Air Quality (April 24, 2008)
- EPA applies allocation formula and informs states of target allocation (May 9, 2008)
- State agencies submit application package work plan to EPA's Regional Offices on or before June 23, 2008
- EPA awards grants to states (August 2008)
- States execute work plan and report results (October 2008 – September 2010)
- States follow streamlined process for renewal for following year
- EPA provides guidance to states new to the program in fiscal year 2009
Allocation of Funds to States
EPA allocates funding to the states through a population-based formula outlined in the Energy Policy Act (2005) and indicated in the Federal Register Notice:
- Twenty percent of the total funds are provided to states participating in the program as base funding
- Ten percent of the total funds are provided to states as incentive for match
- Any unclaimed funds revert to the National Clean Diesel Funding Assistance Program
Matching Funds
EPA provides an incentive for state partners to match federal resources. A match is not required for this program, but if states match the entire amount dollar for dollar with cash or in-kind services, they qualify for an additional fifty percent of the base funding. This match must be met by eligible and allowable costs and is subject to the match provisions in the assistance agreement regulations. Other federal funds cannot be used as a match.
Guidelines for Project Priorities in State Clean Diesel Grant Programs
Under the law, priority projects are those that accomplish the following:
- Maximize public health benefits
- Are the most cost effective
- Serve areas with highest population density; that are in poor air quality areas, including
- non-attainment and maintenance areas, federal class 1 areas
- areas with toxic pollutant concerns
- areas that receive a disproportionate quantity of air pollution from diesel fleets including truck stops, ports, rail yards, terminals and distribution centers
- areas that use a community-based multi-stakeholder collaborative process to reduce toxic emissions
- Maximize the useful life of any certified engine configuration, verified technology, or emerging technology
- Conserve diesel fuel
- Use diesel fuel with a sulfur content of less than or equal to 15 ppm (for nonroad engines)
Application Procedures and Forms
Step 1:
States must submit a Notice of Intent to Apply that outlines the state’s plans for submitting an application to the State Clean Diesel Grant Program through EPA’s National Clean Diesel Campaign.
A Notice of Intent to Apply (PDF) (2 pp, 1.2M, March 2008, About PDF) form is provided. This form is due on or before April 24, 2008.
Per the Federal Register Notice, the state agency with jurisdiction over air quality is the lead agency for submitting the intent to apply and final application package. Guidance is provided in the Federal Register if an alternate agency is preferred.
Step 2:
Once states receive notice from EPA on their target budget (by May 9, 2008), states should complete the application package. The application package consists of required application forms including a Work Plan Narrative and Budget Narrative.
Instructions for completing and submitting the application package.
Template for completing the Work Plan Narrative and Budget Narrative (PDF) (9 pp, 66K, March 2008, About PDF).
The complete application package is due on or before June 23, 2008.
Note: It is important that states begin to work with the Regional Contacts early in the process.
Step 3:
Following receipt of the application package, regions will work with states to finalize the work plan and application package/forms.
A list of regional contacts for the State Clean Diesel Grant Program.