State Clean Diesel Grant Program

Section 793 of the Energy Policy Act of 2005 authorizes EPA to award assistance agreements to States to develop and implement such grant and low-cost revolving loan programs in the State as are appropriate to meet State needs and goals relating to the reduction of diesel emissions.

Funding Priority-Fiscal
Year 2008: To the extent practicable, States receiving assistance under this program shall give priority to projects which: Maximize public health benefits; Are the most cost-effective; Serve areas with the highest population density, that are poor air quality areas (including nonattainment or maintenance of national ambient air quality standards for a criteria pollutant; Federal Class I areas; or areas with toxic air pollutant concerns); Serve areas that receive a disproportionate quantity of air pollution from diesel fleets, including truck stops, ports, rail yards, terminals, and distribution centers or that use a community-based multi-stakeholder collaborative process to reduce toxic emissions; Include a certified engine configuration, verified technology, or emerging technology that has a long expected useful life; Maximize the useful life of any certified engine configuration, verified technology, or emerging technology used or funded by the eligible entity; Conserve diesel fuel; and Utilize ultra low sulfur diesel fuel (15 parts per million of sulfur content) ahead of EPA's mandate (for nonroad projects).
Related Programs

Examples of Funded Projects

States may use funds under this program to develop and implement grant and loan programs that are designed to achieve significant reductions in diesel emissions and are appropriate to meet State needs and goals relating to the reduction of diesel emissions.

State grant and loan programs may fund projects relating to a certified engine configuration or a verified technology for vehicles, engines and equipment, including: buses; medium-duty or heavy-duty trucks; marine engines; locomotives; and nonroad engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv)mining; or v) energy production.

Projects under the State's grant program may include, but are not limited to, a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine repowers; engine upgrades; and/or vehicle or equipment replacement; and the creation of low-cost revolving loan programs to finance diesel emissions reduction projects.

Agency - Environmental Protection Agency

The mission of the Environmental Protection Agency is to protect human health and the environment. Since 1970, EPA has been working for a cleaner, healthier environment for the American people.

Office - EPA encourages potential applicants to communicate with the appropriate EPA Regional Office listed in Appendix IV of the Catalog or Jennifer Keller.

Selected Recipients for this Program

RecipientAmount Start DateEnd Date
Illinois Environmental Protection Agency $ 364,398   2021-10-012025-09-30
Environmental Quality, Utah Department Of $ 513,443   2021-10-012023-09-30
American Samoa Power Authority $ 126,269   2021-10-012023-09-30
Natural Resources, Missouri Department Of $ 524,064   2021-10-012023-09-30
Environmental Management, Rhode Island Dept Of $ 507,806   2021-10-012023-09-30
Public Health And Environment, Colorado Department Of $ 520,904   2021-10-012023-09-30
Environment Department, New Mexico $ 340,748   2021-10-012023-09-30
Environmental Services, New Hampshire Department Of $ 508,676   2021-10-012023-09-30
New Jersey Department Of Environmental Protection $ 355,530   2021-10-012023-09-30
Transportation, Texas Department Of $ 587,156   2021-10-012023-09-30

Program Accomplishments

There are no program accomplishments to report at this time. This is a new program.

Uses and Use Restrictions

Grants and cooperative agreements are available to support the development and implementation of such grant and low-cost revolving loan programs in a State as are appropriate to meet State needs and goals relating to the reduction of diesel emissions.

A grant or loan funded by the State using funds from the DERA State Program may be used for a project relating to a certified engine configuration or a verified technology.

Funds received under Subtitle G of the Energy Policy Act (Diesel Emissions Reduction) may not be used to pay a matching share under this program.

Funds may be used for projects involving EPA-verified and/or California Air Resources Board (CARB) -listed diesel emissions reduction technologies and/or EPA certified engines, or emerging diesel emissions reduction technologies or strategies.

Eligibility Requirements

Applicant Eligibility

Assistance under this program is available to the 50 States.

Beneficiary Eligibility

State, Local, Public Nonprofit Institution/Organization, Anyone/General Public.


Costs for State governments will be determined in accordance with Office of Management and Budget (OMB) Circular A-87, found at 2 CFR 225.

Aplication and Award Process

Preapplication Coordination

Regarding pre-application/pre-proposal assistance with respect to this program description, EPA will generally specify the nature of the pre-application/pre-proposal assistance, if any, that will be available to applicants.

For additional information, contact the individual(s) listed as "Information Contacts" or see Appendix IV of the Catalog.

This program is eligible for coverage under E.O.

12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

EPA requires final applications to be made on Standard Form 424, Application for Federal Assistance. Requests for application kits must be submitted to the Environmental Protection Agency, Grants and Interagency Agreements Management Division, 3903R, Washington, DC 20460. Standard Form 424 is also available for download at EPA's Office of Grants and Debarment (OGD) website,, from, or from EPA Regional Collaborative assistance agreement websites. Applicants may be able to use to electronically apply for certain grant opportunities under this CFDA.

Award Procedures

EPA's Office of Air and Radiation and/or the 10 EPA Regions will review and evaluate applications, proposals, and/or submissions in accordance with the terms, conditions, and criteria stated in the Federal Register Notice of Availability of Funds for this program.


Deadlines will be specified in the Federal Register Notice of Availability of Funds for this program.


FY 2008 Interior, Environment and Related Agencies Appropriations Act, H.R. 2764; The Energy Policy Act of 2005, Public Law 109-58.

Range of Approval/Disapproval Time

Approximately 180 days after the request for applications.


Disputes will be resolved under 40 CFR 30.63 or 40 CFR 31.70, as applicable.


Permitted. Generally, EPA incrementally funds cooperative agreements. Approval of subsequent funding increments is dependent on satisfactory project progress, continued relevance of the projects to EPA's priorities, availability of funds, and Agency policy on the cooperative agreement process as outlined in the Federal Register Notice of Availability of Funds.

Assistance Considerations

Formula and Matching Requirements

This program has a statutory allocation formula (Subtitle G - Diesel Emissions Reduction, Section 793(c)(2)). There is no match requirement for this program. However, there is an incentive match provision (Subtitle G - Diesel Emissions Reduction, Section 793(c)(3)).

Length and Time Phasing of Assistance

Grants and cooperative agreements funded under this program may have up to a seven-year project period. Applicants will be notified of an award in accordance with the information specified in the Federal Register Notice of Availability of Funds.

Post Assistance Requirements


EPA includes reporting requirements for grants and cooperative agreements in the terms and conditions of the agreements.

Agreements may require quarterly, interim and final progress reports, and financial, equipment, and invention reports.

Specific reporting requirements are also identified in the Grant Regulations at 40 CFR Part 31.


Grants and cooperative agreements are subject to inspections and audits by the Comptroller General of the United States, the EPA Office of Inspector General, other EPA staff, or any authorized representative of the Federal government. Reviews by the EPA Project Officer and the Grants Specialist may occur each year. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend $500,000 or more in a year in Federal awards shall have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in OMB Circular No. A-133.


Recipients must keep financial records, including all documents supporting entries in accounting records and to substantiate changes in grants available to personnel authorized to examine EPA recipient grants and cooperative agreement records. Recipients must maintain all records until 3 years from the date of submission of the final expenditure reports. If questions, such as those raised as a result of an audit remain following the 3-year period, recipients must retain records until the matter is completely resolved.

Financial Information

Account Identification



FY 07 $0; FY 08 $14,800,000; and FY 09 est $15,000,000.

Range and Average of Financial Assistance

There is no minimum or maximum amount of assistance. The range is estimated from $300,000 to $3,000,000 with an average award of $300,000, depending on the number of States participating.

Regulations, Guidelines, and Literature

State Clean Diesel Grant Program grants and cooperative agreements are subject to EPA's general grant regulations (40 CFR Part 31). Guidelines for applying for funds under this program will be published in the Federal Register.

Information Contacts

Regional or Local Office

EPA encourages potential applicants to communicate with the appropriate EPA Regional Office listed in Appendix IV of the Catalog or Jennifer Keller.

Headquarters Office

For program information, contact: Jennifer Keller, US Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W., Mail Code: 6405J, Washington, DC. 20460; Telephone: (202) 343-9541; Fax: (202) 343-2803; E-mail:

Criteria for Selecting Proposals

The evaluation and selection criteria for awards under this CFDA description will be described in the Federal Register Notice of Availability of Funds.

REDF, a San Francisco-based nonprofit, will receive a $7 Million grant from the federal Social Innovation Fund program.

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Edited by: Michael Saunders

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