Federal Budget Proposal Aims to Slash DERA Funding

April 10, 2013

The Diesel Emissions Reduction Act (DERA) could be slashed by 70 percent if President Obama’s FY 2014 budget proposal is passed by Congress, a move that the diesel technology industry said would “decimate” the clean-air program.

The National School Transportation Association, which is a leading proponent of DERA for school bus projects, said it was disappointed but understood the need to make cuts due to the current “difficult current budgetary situation.”

“In this environment, any funding requested by EPA has to be viewed as a success,” added Ronna Weber, NSTA’s executive director. “Working to restore program funding is not a new challenge, but we appreciate that Congress sees the importance of this program and continues to restore its necessary and important funding.

Meanwhile, the Diesel Technology Forum (DTF) issued a more terse rebuke of Obama’s proposal to cut a program, of which its “effectiveness has never been questioned.”

“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,” said Allen Schaeffer, executive director for DTF, adding that DERA also supports local jobs in servicing and installing these systems and devices. “We challenge the Administration to identify any other program as effective as DERA, where $1 in government investment returns $13 worth of health and environmental benefits to the American people. This is a time to leverage and restore funding for this program to help meet national clean air goals,”

Schaeffer noted that DERA has been a major contributor to reducing U.S. diesel emissions to near-zero levels and has been the most successful of its kind worldwide. Diesel technology such as particulate matter filters and diesel oxidation catalysts, coupled with ultra-low sulfur diesel fuel, have reduced particulate matter and nitrogen oxides by as much as 98 percent over the past 25 years. DERA has also targeted the repowering of existing engines and equipment.

Meanwhile, Schaeffer said the Obama Administration is increasing by 30 percent direct funding to other countries to increase their climate and clean-energy programs.

“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,” he 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.

The school-bus industry has been one of the biggest benefactors of DERA since it began in 2007 and effectively encompassed the previous Clean School Bus USA program administered by the U.S. EPA. The school bus segment has received the largest share of funds from among eligible fleets. Overall, the EPA said DERA has funded more than 60,000 projects. They include vehicle replacement, alternative-fuel adoption and installation of emission reduction technologies.

“The school transportation community has been a great partner for EPA’s diesel emissions reduction program,” Jim Blubaugh, deputy director of EPA’s Transportation and Climate Division, told School Transportation News last March. “School bus fleets across the country, both public and private, have retrofitted and replaced older diesel buses, providing a healthier ride for thousands of school children daily. We look forward to more collaboration in the future.”

That future now seems to be in question.