In 2010, a provision was added to the EPA’s Diesel Emissions Reduction Act that allows the agency to give rebates to fleet owners taking action to reduce emissions.
The 2013 Construction Equipment Funding Opportunity will provide rebates to selected applicants to either: 1) retrofit with a DPF or 2) replace their off road construction equipment engine.
For those looking to retrofit Tier 2 or Tier 3 equipment with a DPF, equipment with engines rated between 174 and 301 horsepower are not eligible for a rebate. However, engines models between 2001 and 2010 rated between 301 and 603 horsepower are eligible for up to a $30,000 rebate.
Those looking to fully replace a Tier 0 or Tier 1 engine have a few options. Replacing that engine with a Tier 2 engine, model year 1990-2002 and rated between 174 and 301 horsepower are eligible for a $12,000 rebate. The Tier 2 engine between 301 and 603 horsepower with a model year between 1990 and 2000 is eligible for a $49,000 rebate.
A Tier 3 engine replacement will net a $15,000 rebate if it is rated between 174 and 301 horsepower and has a model year between 1990 and 2002. Tier 3 engines with a model year between 1990 and 200 rated at between 301 and 603 horsepower are eligible for a $69,000 rebate.
As detailed on the DERA rebate website, the EPA is accepting applications for the rebates now through January 15, 2014 at 4 p.m. EST. The EPA will look over the applications to make sure applicants meet certain eligibility requirements and will then randomly select a limited number of applicants for funding. Those selection letters will go out in February 2014.
Those applicants not selected will be placed on a wait list that will be posted on the DERA rebate site. Those wait-listed applicants have the chance of being selected should one of the selected applicants not complete the terms and conditions of the program.
Applicants an apply for both options in one application. Applicants are also allowed to request rebates for up to five engine replacements for up to $120,000 in rebates.
Here are the eligibility requirements for the program:
If selected, applicants must data log the proposed engine(s) with the DPF vendor and submit the results of the data logging to EPA within 45 days of receiving the selection letter. Within 90 days selectees must submit a purchase order for each new DPF or new engine that must not pre-date the date of the selection letter.
Within a year of being selected, the EPA requires selectees to have their retrofit or new engine installed, scrap the old engine and submit a payment request form and scrap page documentation. Once those conditions are met, the agency will disburse the rebate payments electronically.
To read more about the program, you can visit the EPA’s DERA rebate program website, or click here to view a PDF about the program.