Federal NGV Grants

In an effort to reduce America’s dependence on foreign oil, reduce urban emissions and reduce greenhouse gases, the federal government provides a number of grant programs to encourage the purchase and use of NGVs. These include the following:

CMAQ
The Congestion Mitigation and Air Quality Improvement Program (CMAQ) is one of the largest sources of funding available for alternative fuel projects, funding hundreds of millions of dollars in investments in alternative fuel projects since its inception in 1991. This Department of Transportation program was first authorized in 1991 and has been extended each time the highway bill has been reauthorized. Funding levels for this program annually exceed $1 billion, and competition for funding is fierce. The Federal Highway Administration (FHWA), which administers the program along with the Federal Transit Agency (FTA), published a pamphlet titled “CMAQ and Alternative Fuel Vehicle Projects” that indicates that, through 2001, total CMAQ funding for alternative fuel projects exceeded $670 million, or slightly more than 5 percent of the total funding provided. CMAQ funding in generally limited to projects located in non-attainment areas unless the state does not have any non-attainment areas. Projects generally must be included in the transportation plan and transportation improvement plan for the area that is seeking funding.

SEP
The Clean Cities Program is designed to accelerate the use of alternative fueled vehicles throughout the country. The Clean Cities Program expands the use of proven alternative fuel vehicles in a number of key applications, such as school buses, transit buses, airport vehicles, taxis and delivery fleets. The Program expands strategic infrastructure partnerships and promotes advanced technology vehicles to the general public. Support for the various Clean Cities coalitions is provided through the DOE's State Energy Program (SEP) Special Projects. States apply for these grants, which are highly competitive and highly leveraged. States use the grants to support local alternative fuel vehicle and infrastructure initiatives.

Diesel Emissions Reduction Program (DERP)
This EPA program provides grants to assist government agencies, school districts and other interested parties to replace older diesel engines with new low-emitting ones (including natural gas engines) and to retrofit existing diesel trucks with emission reducing technologies. Repowering, and or rebuilding diesel engines and replacing them with natural gas engines would be considered a retrofit for the purpose of this program. The program is to be administered by the US Environmental Protection Agency (EPA).

Diesel Truck Retrofit and Fleet Modernization Program.
This EPA program provides grants to states to fund fleet modernization programs, with preference to be given to ports and other major hauling operations. Natural gas vehicles and retrofits are eligible for the program. Preference will be given to proposals that “will achieve the greatest reductions in emissions” and “involve the use of EPA or CARB verified emission control technologies.”

Idle Reduction Program
This EPA program supports the deployment of idle reduction and energy conservation technologies. Idle reduction technologies are defined as: truck stop electrification unit, auxiliary power unit or other technologies that are used to reduce idling, that allow the main engine to be shut down, and that can be employed on HD engines (HD engines are engines that weight 8500 lbs or more). Energy conservation technology is defined as any device, system of devices or equipment that improves fuel economy, including natural gas engines. There is a separate provision for reducing idling emissions from locomotive engines.

Clean School Bus Program.
This EPA program provides grants to school districts and related organizations for the replacement, repower or retrofit of school buses, the purchase of alternative fuels for school buses and alternative fuel infrastructure.