Truck operators who purchase new Kenworth medium duty hybrid trucks and tractors or Kenworth T800 liquefied natural gas (LNG) vehicles, then permanently remove an equal number of aged existing diesel-fueled trucks from the marketplace in exchange, are eligible to apply for grant money available under the American Recovery and Reinvestment Act.

This economic stimulus package contains significant funding to support various clean diesel activities. The National Clean Diesel Funding Assistance Program ($156 million) will award grants on a competitive basis to support diesel emission reduction programs. The EPA SmartWay Clean Diesel Finance Program ($30 million) will support creation of national, state or local innovative clean diesel financing programs. The State Clean Diesel Grant Program ($88 million) will support clean diesel grant and loan programs administered by the states and the District of Columbia.

Grant money, subject to certain conditions, may cover up to 25 percent of the cost of a new clean diesel, hybrid, or alternative fuel truck that replaces an older, higher emissions truck.  

Qualifying truck operators must submit their application for Diesel Emissions Reduction Act (DERA) grants to one of two groups. The first is to regional, state, local and port agencies with jurisdiction over transportation or air quality. The second is to non-profit organizations or institutions which represent or provide pollution reduction or educational services to organizations or persons that operate diesel fleets, or have the promotion of transportation or air quality as its principle purpose. These groups then will send the applications to the appropriate Environmental Protection Agency (EPA) regional office for grant consideration.

Kenworth is working with professional grant writers to help customers quickly apply for these funds as time is of the essence in the grant application process. Contact your Kenworth dealer for the required forms and more information. DERA funding may be combined with current Internal Revenue Service federal tax credits. Kenworth T270 Class 6 and T370 Class 7 hybrid trucks qualify for IRS credits of up to $6,000 and $12,000, respectively, while Kenworth T800 LNG trucks qualify for up to $28,800 in IRS tax credits.

Detailed program information is available at the following EPA websites: www.epa.gov/otaq/eparecovery/index.htm and www.epa.gov/cleandiesel.