Diesel Retrofits Funded in Economic Stimulus Bills

Clean Diesel Technology Brings Economic and Environmental Benefits; Webinar Scheduled February 12, 2009

WASHINGTON--(BUSINESS WIRE)--As Congress crafts the final text of its economic stimulus package, diesel vehicle and equipment owners are anticipating the benefits of upgraded equipment and cleaner air thanks to the inclusion of $300 million in funding for the Diesel Emissions Reduction Act (DERA) in both the House and Senate versions of the bill.

“This funding will bring immediate benefits to the economy by supporting jobs while simultaneously improving air quality – a winning solution for all Americans,” said Allen Schaeffer, executive director of the Diesel Technology Forum. “Modernizing and upgrading existing diesel engines and equipment is one of the most proven and cost-effective uses of public funds,” Schaeffer added. “From manufacturers to equipment dealers and service technicians, the diesel industry is gearing up to produce and install this equipment to make older equipment run cleaner.”

In anticipation of the passage of the economic stimulus package, the Diesel Technology Forum is offering a webinar on the DERA program Thursday, February 12 on “How to Prepare a Competitive Application”. EPA representatives will discuss how proposals are evaluated and two previous award winners will provide case studies of their experiences. A recorded version of the webinar and all presentations will be posted on the DTF website for those unable to participate. Visit http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.dieselforum.org%2Fwebinars&esheet=5894095&lan=en_US&anchor=http%3A%2F%2Fwww.dieselforum.org%2Fwebinars&index=1 to register, and for more information.

According to independent research done by Keybridge Associates, DERA is likely to generate approximately $6 of increased economic output for every $1 of federal funding. This economic impact is likely to be greatest in the auto parts manufacturing and heavy-duty truck manufacturing sectors, which have sustained job losses at nearly 9 and 7 times the national rate respectively.

Last month more than 300 industry, environmental and governmental organizations signed a letter to congressional leaders requesting funding for DERA, citing more than $116 million in unfunded projects after the program’s first year. The program also enjoys support from both Republicans and Democrats, as evidenced by its original passage by a vote of 92 to 1 as part of the Energy Policy Act of 2005.

To date only $49.2 million has been provided for the Diesel Emissions Reduction Act. This additional $300 million will substantially help reduce emissions from the nation’s estimated 11 million diesel engines. DERA was originally enacted as part of the Energy Policy Act of 2005, and authorized for $1 billion over five years.

DERA funds can be awarded for any one of the five options available to reduce emissions, also known as the 5 Rs: refuel (using cleaner diesel fuel); rebuild (engine upgrades); repower (new engine); replace (new equipment); and retrofit (emission filters/catalysts). These solutions can be applied to both on-road and off-road diesel vehicles and equipment.

“From California to Connecticut, from school buses to skid steer loaders, our members have national experience with retrofitting a wide variety of engines, vehicles and equipment,” said Schaeffer. “Clean diesel technology provides efficient, clean power affecting virtually all sectors of the economy and all communities across the country.”