Grants & Funding
SmartWay Finance Program
EPA’s SmartWay Clean Diesel Program issues competitive grants to establish national low-cost revolving loans or other financing programs that help fleets reduce diesel emissions.
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Background
EPA’s SmartWay Clean Diesel Finance Program uses cooperative agreements to establish innovative finance programs for buyers of eligible diesel or alternatively fueled vehicles and equipment. Innovative finance projects include those where the loan recipient receives a specific financial incentive (i.e., better than current market rates or conditions) for the purchase of eligible vehicles or equipment. Particular emphasis is on establishing low cost loan programs for the retrofit of used pre-2007 highway vehicles and nonroad equipment with EPA or California Air Resources Board verified emission control technologies.
Eligible Applicants
- U.S. regional, state, local or tribal agencies or port authorities with jurisdiction over transportation or air quality
- Nonprofit organizations or institutions that:
- represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets; or
- have, as their principal purpose, the promotion of transportation or air quality
School districts, municipalities, metropolitan planning organizations (MPOs), cities and counties are all eligible entities under this assistance agreement program to the extent that they fall within the definition above.
Eligible Use of Funding
Finance Program cooperative agreements are used to establish innovative financing. The financing must:
- Lower costs to the buyer by providing lower interest rates, longer repayment terms, greater likelihood of loan approval, or some other financial incentive where the loan recipient receives a specific financial incentive (i.e. better than current market rates or conditions) for the eligible vehicle or equipment.
Finance proposals may include, but are not limited to, the following:
- Issuance of loan guarantees
- Issuance of tax exempt or taxable bonds to create a low-cost loan program
- Revolving loan funds