FHWA Issues Guidance on Use of Highway Air Quality Funds for Diesel Retrofit

Another key provision in the SAFETEA-LU legislation advocated successfully by AGC was to make a certain category of highway funds eligible to be used to help contractors pay for the cost of retrofitting their off road equipment to comply with contract and other requirements in clean air non-attainment areas on highway projects.

FHWA has now issued guidance to states to advise them in the use of these funds for diesel retrofits. As part of a state's annual apportionment of Federal-aid highway dollars, a portion of the funds are provided in the "Congestion Mitigation and Air Quality" (CMAQ) category. These funds can only be used for certain types of projects, such as: transit, traffic light signalization, bike trails and other projects that do not increase highway capacity.

As more areas of the country fall into non-attainment for clean air standards, off road construction equipment is being targeted for emission reductions.The SAFETEA-LU provision directs States to give priority use of CMAQ funds to funding diesel retrofits, particularly where necessary to facilitate contract compliance, and other cost-effective emission reduction activities. The FHWA guidance identifies a number of project types in the diesel retrofit area for which CMAQ funds are eligible.

Projects include diesel engine replacement; full engine rebuilding and reconditioning; and purchase and installation of after-treatment hardware, including particulate matter traps and oxidation catalysts, and other technologies; and support for heavy-duty vehicle retirement programs. Project agreements involving replacements of either engine or full vehicle should include a provision for disposal of the engine block and a process to verify the retirement of this equipment.