Grants & Funding: State Grant Program
EPA's State Grant Program allocates funds to participating states to implement grant and loan programs for clean diesel projects. To support states in the development of clean diesel programs, EPA has developed a toolkit for state and local governments.
More helpful links
Background
In 2009, EPA’s National Clean Diesel Campaign is distributing funding for the State Clean Diesel Grant Program through two separate funding sources:
- EPA’s Fiscal Year (FY) 2009 Appropriations.
- American Recovery and Reinvestment Act of 2009 (Recovery Act) *CLOSED*
EPA allocates funding to the states through a formula outlined in the Energy Policy Act of 2005 (PDF) (551 pp, 1.3MB). According to the act, each state will receive one of two amounts, contingent on the provision of matching funds provided by the state. Two-thirds of the funds from the state program are provided to the participating states as base funding. The remaining third is awarded to states that provide matching funds. A match is not required for this program, but if a state matches the entire base amount dollar for dollar with cash or in-kind services, they will be awarded an additional amount equal to half of their base funding. The match must be spent on eligible and allowable costs and is subject to the match provisions in the assistance agreement. Other federal funds cannot be used as a match. Any unclaimed funds will revert to the National Clean Diesel Funding Assistance Program.
EPA’s FY 2009 Appropriations will be distributed as supplements/amendments to the FY 2008 Two-Year State Program Awards to those states that participated in FY 2008. States that did not establish a two-year award in 2008 will establish a new grant agreement (The Recovery Act funding is distributed separately).
This program is not a competition, but an allocation process in which the states and the District of Columbia submit their interest in participating to EPA. States electing to participate in the FY 2009 allocation must submit either a Notice of Intent to Apply or a Notice of Intent to Continue, depending on whether the state received a FY 2008 allocation.
| FY 2009 State Clean Diesel Funding Schedule | |
|---|---|
| Thursday, October 1, 2009 | Notice of Intent to Continue (Word) (2 pp, 145K) and Notice of Intent to Apply (Word) (2 pp, 145K), as applicable, sent to states via email (MS Word reader for document files |
| Thursday, October 15, 2009 | States' Notice of Intent to Continue due. Send to cleandiesel@epa.gov |
| Friday, October 16, 2009 | State allocation process begins |
| Tuesday, October 27, 2009 | Regions send funding allocation letters to states |
| Friday, December 11, 2009 | States' revised statement of work and other appropriate forms and submit to Regions |
The State Grant Program will receive $18 million of EPA’s Fiscal Year (FY) 2010 Appropriations. These funds will be allocated in spring 2010.
Application Tools and Resources
- FY 2009 State Clean Diesel Project Narrative Template for New Awards (Word) (12 pp, 225K, MS Word reader for document files)
- FY 2009 State Clean Diesel Project Narrative Template to Update FY2008 Two-Year Award (Word) (12 pp, 225K, MS Word reader for document files)

Eligible Use of Funding
States may use their allocation to fund grant and loan programs for clean diesel projects that use:
- Retrofit technologies that are EPA or CARB-certified or verified
- Idle reduction technologies that are EPA-verified
- Technologies from EPA's Emerging Technologies List
- Early replacement and repower with certified engine configurations (incremental costs)
Funds cannot be used to support federal, state and/or local mandates.
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