Is there anyone who has been on our nation’s roads during the last few months that has not seen—and possibly at times been bothered by—road construction and repair accompanied by signage that proudly announces that the improvements have been funded by the American Recovery and Reinvestment Act? Of course, folks in the trucking industry generally applaud road improvements since they tend to increase operational efficiency—unless construction delays happen to affect our personal plans.
However, in addition to road repairs and rebuilding, we need to recognize that the American Recovery and Reinvestment Act also provides funds through the SmartWay Finance Program that can benefit fleet operators. In August 2009, EPA awarded $25 million in Recovery Act grants through the SmartWay Clean Diesel Finance Program to support projects that reduce diesel emissions and maximize job creation and preservation through the creation of national, state or local financing programs.
In addition, Congress continues to appropriate funds to the EPA through the Diesel Emissions Reduction Act (DERA). Funded by these sources, the EPA, through SmartWay, has established several financing programs for buyers of qualifying diesel-powered vehicles and equipment.
EPA’s SmartWay Clean Diesel Finance Program establishes innovative finance programs for buyers of eligible diesel or alternatively-fueled vehicles and equipment. Innovative finance projects include those in which the loan recipient receives a specific financial incentive (i.e., better than current market rates or conditions) for the purchase of eligible vehicles or equipment. Particular emphasis is on establishing low cost loan programs for the retrofit of used pre-2007 highway vehicles and non-road equipment with EPA or California Air Resources Board verified emission control technologies.
For truck owners, a range of financing options, including low-interest loans, extended payback periods, lease-to-own and similar programs, are available through several organizations. Funds available through these organizations can be used for the purchase of newer, cleaner used trucks and/or emission reduction technologies that will help small fleets lower their fuel costs and reduce their carbon footprints. While trucking companies are not able to apply directly for EPA funding, they can receive a sub-award, sub-grant or loan from an organization that does qualify and has received funding to establish clean diesel programs.
In particular, Sierra Cascade Solutions has a project it calls its Revolving Loan Fund, which is available nationally. Eligible activities include the purchase of new SmartWay-certified Class 8 trucks, engine repowers, exhaust retrofits, as well as replacement of conventional fuel on-road diesel vehicles with alternative fuel vehicles. Through a lease-to-own program, the project’s goal is to deploy new, clean SmartWay-certified Class 8 trucks, trailers and transport refrigeration units; install idle reduction technologies, exhaust retrofits, trailer aerodynamic kits, SmartWay tire sets and reefer replacements; and reduce exhaust emissions of NOx, CO and particulates.
There also are a number of states that offer various incentives to trucking operations to lower exhaust emissions and, as a result, to save fuel. Wisconsin, for example, supports a program that provides grants to motor carriers (common, contract and private fleets) headquartered within the state to purchase and install idling reduction units for newer truck tractors. Idling reduction units, of course, offer an alternative source of power to heat, cool or provide electricity to the cab or other parts of a truck in lieu of operating the truck’s main drive engine to power these services. The use of idling reduction units on heavy-duty diesel trucks saves fuel and lowers air pollution emissions.
It only makes sense for a fleet to look into the possibility of getting financed to save money. There are programs available that will help fund the purchase of technology that will not only reduce exhaust emissions, but help reduce fuel consumption. Start by looking at SmatWay’s homepage, www.epa.gov/smartway, and clicking on SmartWay Financing Options.
