Diesel Emissions Reduction Act funding cut 70% in proposed budget

(April 11, 2013) The proposed 70 percent reduction in funding for the Diesel Emissions Reduction Act (DERA) in the Obama Administration’s 2014 budget “will nearly decimate one of the nation’s most successful clean air programs,” according to Allen Schaeffer, executive director of the Diesel Technology Forum.

The 2014 budget proposal that now goes to Congress would reduce DERA funding from $20 million in FY 2013 to $6 million in 2014. The landmark DERA grant program was originally authorized as part of the Energy Policy Act of 2005 to fund upgrades and modernize the oldest, higher-emitting diesel engines, complementing the stringent emissions standards EPA set for new diesel engines beginning in 2007.

The program has evolved to also include deployment of many fuel-saving technologies as well.

“The DERA program has a consistent record of delivering very high environmental, fuel-saving and clean air value to large, small and disadvantaged communities throughout the nation for relatively small investments,” Schaeffer said.

“EPA has estimated DERA has provided $13 in benefits for every $1 dollar invested.

“Ironically, just as state and local clean air officials develop plans to help meet President Obama’s new and more stringent clean air standards, this proposed budget virtually eliminates a valuable and proven means of emissions reductions to many non-attainment areas. DERA is also a program that supports local jobs in servicing and installing these systems and devices.

“At the same time proven clean air programs here in the U.S. are being slashed by 70 percent, the President is increasing direct funding to other countries for climate and clean energy programs by over 30 percent.

“Despite these devastating reductions, we’re hopeful that the highly leveraged and competitive nature of this program will still allow meaningful projects to be undertaken,” Schaeffer said. “In the past, every $1 dollar in government funding has been leveraged into $2 or $3 or more privately funded dollars. But make no mistake about it - the total environmental and economic benefits of the program will be diminished by this 70 percent reduction."