SmartWay Financing Program
DERA Grant Financing
The Diesel Emissions Reduction National Program (DERA) authorized by Title VII, Subtitle G (Sections 791 to 797) of the Energy Policy Act of 2005 (EPAct 2005) enables EPA to offer funding assistance to eligible entities on a competitive basis. In Fiscal Year (FY) 2008, the inaugural year of funding for the SmartWay Clean Diesel Finance Program, three cooperative agreements totaling $3.4 million were awarded to create finance programs.
On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (Public Law No. 111-05) (Recovery Act), which provided funding for DERA. Under the Recovery Act SmartWay Finance competition, EPA awarded five assistance agreements totaling $30 million for DERA projects that demonstrated the ability to start quickly, reduce diesel emissions, and maximize job creation and/or preservation and economic recovery through the creation of finance programs. In FY2009/2010, the SmartWay Financing Program awarded $13.5 million to support four truck financing programs.
Information on all the funded DERA projects can be found at this page.
For more information on grants and their eligibility requirements, visit the National Clean Diesel Campaign Grants and Funding web page.
SmartWay Finance Grant Awards
To date, the SmartWay Finance Program has awarded seven finance grant awards.
Click the project title to learn more about the grant recipient and the project details.
2008 SmartWay Clean Diesel Finance Program Awarded Projects
- Community Development Transportation Lending Services, Inc.-National Low Interest Revolving Loan Fund
Project Title: National Low Interest Revolving Loan Fund
Award Recipient: Community Development Transportation Lending Services, Inc. (CDTLS)
Award Amount: $1.3 million
Interest rates: 5.5% - 8.5%, varies based on, among other things, each applicants business history, available collateral, cash flow and credit score
Loan payback period: 3 - 6 years, varies based on, among other things, business history, available collateral, and cash flow
Geographic Location: Nationwide
Eligible activities: Purchase used trucks to upgrade with EPA SmartWay or CARB verified idle reduction and/or emission reduction technology.
Purchase used trucks that are upgraded with EPA SmartWay or CARB verified idle reduction and/or emission reduction technology.
Program Goal: Establish a revolving loan fund for the purchase of used trucks that have SmartWay upgrades or will receive SmartWay upgrades.
Program Director: Patrick Kellogg
(202) 737-9197 (fax)
1341 G St., NW, 10th Floor, Washington, DC 20005
Community Transportation Association Transit Financing Page
- Innovative Financing OOIDA Foundation (Owner-Operator Independent Drivers Association Foundation)
Award Amount: $1.13 M
Loan Interest Rate: Varies based on market SWAP rate
Geographic Location: 48 contiguous states
Eligible Activities: Purchase and installation of emission reduction and idle reduction technologies verified by EPA and/or CARB.
Program Goal: Offer rebates to selected applicants/truck owners to install emission reduction and/or idle reduction equipment on their trucks. The first rebate to the truck owner will be for the cost of the equipment installation. Then, every six months, depending on idle/fuel use reductions demonstrated, the truck owner will receive additional rebates until 40% of the total cost of the equipment is paid.
Contact Information:Director of Operations: Tom Weakley
1 NW OOIDA Dr., Grain Valley, MO. 64029
- Cascade Sierra Solutions (CSS) Everybody Wins USA Lease Program
Award Amount: $1.13 M
Loan Interest Rate: 8-11%, includes: 7% for Financing Cost, 1% Collection Fee, and 1-3% Reservation Loss
Loan Payback Period: 3 years
Geographic Location: Nationwide
Eligible Activities: Installation and leasing of EPA SmartWay or CARB verified emission and idle reduction technologies. Truck owners will purchase the equipment for $10 at the end of the loan period.
Program Goal: Establish a leasing program for the installation of emission reduction technology and idle reduction technology on 1,700 trucks.
Contact Information:(541) 302-0900
32670 Mill St., Coburg, OR 97408
2009 Recovery Act: SmartWay Clean Diesel Finance Program Awarded Projects
- Nonroad Equipment Diesel Emission Reduction Program
Project Title: Nonroad Equipment Diesel Emission Reduction Program
Award Recipient: Louisville/Jefferson County Metro Government
Award Amount: $2 million
Interest Rate: 0% - 5%
Loan Payback Period: Will vary for each loan
Geographic Location: Jefferson County, KY
Eligible Activities: Retrofit, repower and replace commercial, construction, industrial, port, rail yard and other nonroad diesel equipment
Establish a revolving loan program that will encourage owners of nonroad diesel equipment to replace, repower or retrofit their older diesel equipment to maximize diesel emission reductions; reduce emissions of PM2.5, ozone precursors and hazardous air pollutants.
Ellie Shipley, Economic Development Department
- Cascade Sierra Solutions Revolving Loan Fund
Project Title: Cascade Sierra Solutions Revolving Loan Fund
Award Recipient: Cascade Sierra Solutions
Award Amount: $9 million
Interest Rate: 5%-9%
Loan Payback Period: Up to 10 years
Geographic Location: National
Eligible Activities: New SmartWay certified class 8 trucks; engine repowers, exhaust retrofits, replacement of conventional fuel vehicles with alternative fuel vehicles for on-road diesel vehicles
Through a lease-to-own program, deploy new, clean SmartWay certified class 8 trucks and trailers, and transport refrigeration units (TRU); and install idle reduction technologies, exhaust retrofits, trailer aerodynamic kits, SmartWay tire sets and TRU replacements; reduce emissions of NOx, PM2.5, PM10, CO, VOC/HC.
Cascade Sierra Solutions
- National School Bus Equity Investment Lease Program
Project Title: National School Bus Equity Investment Lease Program
Award Recipient: National Association for Pupil Transportation (NAPT)
Award Amount: $5 million
Interest Rate: Rate varies
Loan Payback Period: 5-year lease
Geographic Location: Nationwide (where CNG infrastructure exists)
Eligible Activities: School bus engine repower with alternative fuel (CNG) engine
This program uses EPA funding to reduce monthly lease payments for repowering of about 175 school buses with compressed natural gas (CNG) engines. NAPT will leverage EPA funding with the Alternative Fuel Vehicle federal tax credit and any available state incentive programs. This allows school districts to use a portion of their project repower costs as a down payment and save on the cost of the conversion through a lower interest rate, making monthly lease payments more affordable to school districts. This program will give schools the option to add alternative fueled vehicles to their fleets, and to extend the useful life of buses.
- Bridge Loan Program to Support Clean Drayage
Project Title: Bridge Loan Program to Support Clean Drayage
Award Recipient: Houston-Galveston Area Council
Award Amount: $9 million
Interest Rate: Minimum rate will be 4 percent below current money center bank prime rate but not less than 4%.
Loan Payback Period: 5 7 years for truck loans, 3 5 years for equipment and retrofits
Geographic Location: Port of Houston and the Houston-Galveston-Brazoria region
Eligible Activities: Diesel replacements and repowers (Class 8a and 8b); and EPA or CARB verified idle reduction and emission reduction technology retrofits.
Establish a revolving loan program that will help drayage truck owner-operators purchase and operate cleaner trucks; help the Houston-Galveston-Brazoria region attain the 8-hr ozone standard and reduce emissions of hazardous air pollutants.
Please note, EPA does not endorse the products or services of commercial companies. Any reference to a specific commercial product or service by trade name, trademark, manufacturer, company or otherwise does not constitute or imply the endorsement or recommendation of EPA. The financial institutions and their loan programs listed are not government loans. If you obtain a loan from any of these financial institutions, you are subject to their terms and conditions.