KMK Law Real Estate Blog

Ohio EPA will award $10 million by May 2012 and another $10 million by fall 2012 to private and public sector entities for clean diesel projects.  Funded by the Federal Highway Administration, the grants are targeted to improve air quality and public health in areas of Ohio not currently meeting air quality standards by reducing diesel exhaust emissions, upgrading diesel fleets and promoting the use of alternative and cleaner burning fuels.  The funds can be used for transit and school  buses, snow plows, refuse collection trucks, long and short haul trucks, locomotives and highway construction equipment.

Ohio EPA is seeking applications from public and private sector entities for the following eligible projects:

1. Replacement of diesel vehicles or equipment with new vehicles or equipment;
2. Removal of a diesel engine from equipment and replacing it with a new, rebuilt or re-manufactured engine that meets higher emission standards;
3. Adding verified emission reduction technologies (such as diesel oxidation catalysts or diesel particulate filters) to existing vehicles and equipment; and
4. Adding verified anti-idling technologies (such as auxiliary power units or direct-fuel heaters) to existing diesel vehicles and equipment.

Private sector applications need a public sector sponsor and must be accompanied by a written agreement between the private and public entity.  Grants may not be used for vehicle or equipment purchases made prior to execution of the grant contract.  Each application must contain a request for at least $20,000 to be considered. 

Selected projects may receive reimbursement of up to 80% of eligible costs.  Eligible vehicles and equipment must operate at least 65% of the time in PM_2.5 and/or ozone non-attainment or maintenance areas in Ohio. 

Criteria for project selection will focus on:

1. The projected emission reductions of particulate matter (PM_2.5) and/or nitrogen oxides, reported in kilograms per day; and
2. The cost effectiveness of the emission reductions.

Vehicles or equipment to be replaced must be in working condition and have a least 5 years of remaining useful life.  Replacement vehicles can include hybrid or alternatively fueled vehicles.  Vehicles or equipment to be repowered or have engine replacement must also be in good working condition, and the rebuilt or remanufactured engine must meet or exceed the original equipment manufacturer’s specifications.  Projects that involve the installation of emission reduction technologies or idling reduction technologies must use technologies verified by U.S. EPA.   

Grant applications must be received by Ohio EPA via mail or delivery by 5:00 p.m., March 30, 2012.  Ohio EPA is scheduled to make grant awards on May 15, 2012.  Applications and additional information are available at the following link. 

(http://epa.ohio.gov/oeef/derg.aspx)

Should you have any questions or need assistance, please contact Brian Babb at (513)579-6963.