Senate Committee Includes $20 Million for National Diesel Retrofit Program

WASHINGTON July 5, 2006

- The $20.127 million for the Diesel Emissions Reduction Program included in the Senate Appropriations Committee 2007 Interior Appropriations Bill is a symbolic starting point, but the program should be fully funded at the President's initial request of $49.5 million, the diesel industry urged today.

"With the nationwide availability of clean, ultra-low sulfur diesel fuel starting October 15, the opportunities for realizing far-reaching clean air benefits from clean diesel retrofit technologies have never been greater. This makes the need for adequate funding of the diesel emission reduction program all the more important," said Allen Schaeffer, executive director of the Diesel Technology Forum. "New diesel trucks and buses hitting the roads in 2007 will reduce emissions by over 90%. These same emissions reduction technologies can benefit some of the 11 million existing diesel engines already powering our economy, and we urge the Senate to fully fund the Diesel Emission Reduction Program at the president's requested level."

The Diesel Emissions Reduction Program, which resulted from passage of the Diesel Emissions Reduction Act (DERA), establishes a voluntary national and state-level grant and loan program to reduce emissions from existing diesel engines through clean diesel retrofits. DERA was incorporated into the Energy Policy Act of 2005 by a vote of 92 to 1.

In his 2007 budget proposal, President Bush requested $49.5 million to reduce emissions through expanded installation of clean diesel retrofit technologies. The U.S. Environmental Protection Agency estimates that $49.5 million for a national retrofit program would attract an additional $100 million in funding assistance and yield an estimated $2 billion in public health benefits.

"I am terribly disappointed in the committee's decision to allot only $20 million for diesel emissions reduction," Senator George Voinovich stated following the committee mark-up. "I will work with conferees to ensure that this receives the funding it deserves in the final bill."

Senator Voinovich will not be alone in his efforts. A broad and unique coalition comprised of industry, environment organizations, public health groups and elected officials have rallied around establishment of a national diesel retrofit program.

Clean diesel retrofit projects have proven themselves to be one of the most cost-effective, immediate solutions for cities and states striving to meet federal clean air standards. Older diesel vehicles and equipment can reduce their emissions by nearly 85% with the retrofit of after treatment devices, such as particulate traps and diesel oxidation catalysts when used in combination with ultra-low sulfur diesel fuel, which will be available nationwide later this year.