Inside AGC Industry Issues

May/June 2008

EPA Offers Record Funding for Clean-Diesel Incentives

AGC chapters support contractors’ retrofit projects through grant-writing partnerships and information sharing

AGC has long advocated for increased government investment in, and support for, the voluntary retrofit of off-road diesel construction equipment. In the past, the U.S. Environmental Protection Agency has awarded grants to assist in this effort, and AGC chapters have taken advantage. This year, EPA announced that nearly $50 million in grant funding is available to reduce emissions from the nation’s existing fleet of diesel engines currently in use, including the engines in construction equipment.

The funds are currently being administered by EPA’s National Clean Diesel Campaign and its network of seven collaboratives, made up of EPA regional offices and public and private sector partners, through four separate programs.

The National Clean Diesel Funding Assistance Program, which offers $27.6 million of the $50 million available, will be of particular interest to the construction industry. The unprecedented grant money was authorized by the Energy Policy Act (2005) to help reduce emissions from heavy-duty diesel engines and funded by Congress for the first time in fiscal year 2008.

Chapters Score Big in Previous EPA Grant Competition

AGC chapters have applied for grants in the past and found success. In 2007, AGC of Kentucky received a $50,000 grant from EPA to help member companies cut down on diesel engine emissions. While it was the first EPA grant for which the chapter had applied, John Brazel, AGC of Kentucky’s assistant executive director, noted that it was a good experience overall.

“The grant allowed us to retrofit nearly half of Messer Construction’s (Lexington, Ky.) fleet, helping them produce far less emissions than nonretrofitted equipment,” said Brazel. Messer Construction came forward following the chapter’s request for a partner in the grant.

“Messer’s generous in-kind contribution was the cost of installing the equipment, and we wanted to ensure they had the freedom to schedule the retrofits on their own terms so as not to affect the way they do business,” said Brazel. As a result of these efforts, AGC of Kentucky was named a partner in the Kentucky Excellence in Environmental Leadership program, and the chapter plans to submit a proposal in the next round of grants now available from EPA.

“Since we have established the process and seen the potential of these grants, we will soon be looking for other members to participate in the same way as Messer Construction,” said Brazel.

In addition, AGC’s Oregon-Columbia Chapter Foundation was awarded an EPA grant totaling $120,000 to implement diesel retrofits on heavy-duty diesel equipment used to repair Oregon’s highways and bridges. The value of the award to the AGC Foundation will likely be doubled with in-kind contributions from equipment manufacturers like Caterpillar Inc., Cummins NW, Fleetguard Nelson, Environmental Solutions Worldwide and Donaldson.

By partnering with the American Lung Association of Hawaii, AGC-member Grace Pacific Corp. also won a grant from EPA that totaled $135,000 to repower five pieces of the company’s off-road construction equipment with new, low-pollution engines. Since that time, the company has completed gas testing of their engines to measure the effectiveness of their efforts.

“This testing has given us a better feeling for what our company’s emission footprint is and taught us to understand how efficiently our engines are operating,” said Christopher Steele, Grace Pacific Corp., Kapolei, Hawaii. “It has saved us large sums of money in reducing our fuel consumption by understanding how our engines are burning fuel.”

Steele believes working with EPA is a worthwhile venture for any contractor. “We very much enjoy partnering with the regulating community. EPA has been outstanding in their willingness to think outside the box and work with the private sector,” he said.

Members of nonprofits such as AGC chapters are eligible to apply for funding, and construction companies may find themselves well positioned to partner with their AGC chapters or with other eligible agencies or organizations to create and implement clean diesel programs funded through EPA’s NCDC.

AGC recently produced an audio conference for AGC chapters to explain the latest funds available, including additional money from the Congestion Mitigation and Air Quality program, and how to apply. More information is available from AGC Senior Environmental Adviser Leah Pilconis at 703-837-5332 or pilconisl@agc.org.