Act Now To Fund Jobs That Save Lives

Legislation to create jobs is moving forward in Congress, and environmental health advocates have a great opportunity to significantly increase the funding to reduce diesel emissions. The request for $1 billion would potentially save or generate 19,000 jobs and increase economic output by over $3 billion.

It is a great opportunity to protect public health, curb greenhouse gases and otherwise protect the environment while putting Americans to work and boosting the economy. Please contact your House representative and two Senators to urge them to support $1 billion in the jobs package to reduce diesel emissions today. 

January 11, 2010

The Honorable Harry Reid
Senate Majority Leader
522 Hart Senate Office Building
Washington, DC 20510

Dear Majority Leader Reid:

We are writing as a broad-based group of environmental, health and industry organizations to urge you to include $1 billion for the Diesel Emissions Reduction Act of 2005 ("DERA") in the anticipated jobs package.

As you know, the DERA program received $300 million in funding under the American Reinvestment and Recovery Act of 2009 ("ARRA") for grants to allow purchase of clean vehicles and retrofit technologies that can greatly reduce emissions from diesel vehicles. Because of EPA’s existing administrative infrastructure and the tremendous demand for the program, EPA was able to solicit grant applications and awarded the grants within six months. The agency is to be commended. We understand that EPA has a backlog of $1.7 billion in applications from the earlier round of solicitations and could process $1 billion in high quality requests very quickly again should supplemental funds be made available, particularly if given authority to contract out administrative services. Additionally, the diesel retrofit industry has excess capacity because of the recession that can be easily activated to serve an increase in demand.

Independent economic analysis prepared a year ago showed that DERA funding can have a significant positive impact on the economy in terms of job creation and economic output. Dr. Robert Wescott, who served on the White House Council of Economic Advisors during the Clinton Administration, prepared an analysis of DERA for consideration during the ARRA deliberations. He estimated at that time that $1 billion in funding could, under certain conditions, save or generate 19,000 jobs and increase economic output by over $3 billion. The actual economic effect and jobs created depends upon types of projects that are funded. In addition to providing additional funding, Congress should make a few modest changes to prioritize job creation and allow EPA to use contracting to allow the funds to flow more quickly and efficiently.

A substantial increase in DERA funding will also contribute significantly toward a cleaner environment. According to EPA, there are 11 million heavy-duty vehicles and engines in use today. These in-use vehicles and engines are the primary source of diesel emissions. The installation of clean diesel retrofits on the existing fleet can reduce particulate matter emissions by over 90% and achieve substantial health benefits cost effectively. EPA estimates that $13 of health and economic benefits are generated from every $1 spent on the DERA program.

Moreover, increasing the installation of clean diesel retrofits through significant funding for DERA can generate global warming benefits. While U.S. EPA and others continue to study the issue, recent studies show that black carbon from diesel exhaust has global warming potential. Clean diesel retrofits can reduce this black carbon by over 90 percent.

Back in 2005, then-Senator Obama joined a bi-partisan group of 21 other Senators to co-sponsor DERA. The bill subsequently passed the Senate by a margin of 92 to 1 and was included in the Energy Policy Act of 2005, with the strong support of environmental groups, state governments, businesses, and trade associations. Rarely has an environmental initiative enjoyed such a broad base of support.

In light of all of these factors, we respectfully request that you provide supplemental funding for the DERA program of $1 billion to stimulate job creation. This constitutes good economic policy and good environmental policy, a winning combination.

Sincerely,

• American Lung Association
• American Lung Association in Illinois – Greater Chicago
• American Lung Association in Iowa
• American Lung Association in Indiana
• American Lung Association in Minnesota
• American Lung Association in New York
• American Lung Association in North Dakota
• American Lung Association in Rhode Island
• American Lung Association in South Dakota
• American Lung Association in Wisconsin
• American Lung Association of the Upper Midwest (ALAUM)
• American Trucking Associations
• BASF Catalyst LLC
• Blue Bird
• California Bus Association
• California Cotton Ginners Association
• California Cotton Growers Association
• Caterpillar Inc.
• Citizen Action -Illinois
• Citizens for Pennsylvania’s Future (PennFuture)
• Clean Air Board of Central Pennsylvania
• Clean Air Carolina
• Clean Air Task Force (CATF)
• Clean Water Action - National
• Clean Water Action - Connecticut
• Clean Water Action - District of Columbia
• Clean Water Action - Maryland
• Clean Water Action - Michigan
• Clean Water Action - Pennsylvania
• Clean Water Action - Rhode Island
• Corning Incorporated
• Cummins Inc.
• Diesel Technology Forum (DTF)
• Earthjustice
• Emissions Control Technology Association (ECTA)
• Environmental Defense
• Group Against Smog and Pollution (GASP)
• Johnson Matthey, Inc
• Mothers & Others for Clean Air
• National Association for Pupil Transportation (NAPT)
• National Association of State Directors of Pupil Transportation Services (NASDPT)
• National School Transportation Association (NSTA)
• Natural Resources Defense Council (NRDC)
• New York Public Interest Research Group (NYPIRG)
• NGK Automotive Ceramics USA, Inc.
• Ohio Environmental Council
• Respiratory Health Association of Metropolitan Chicago
• Southern Alliance for Clean Energy
• Thomas Built Buses, Inc.
• Umicore Autocat USA Inc.
• Union of Concerned Scientists
• United Motorcoach Association
• Western Agricultural Processors Association

cc: The Honorable Dick Durbin, Senate Majority Whip
The Honorable Byron Dorgan, Chairman, Democratic Policy Committee
The Honorable Daniel K. Inouye, Chairman, Committee on Appropriations
The Honorable Thad Cochran, Ranking Member, Committee on Appropriations
The Honorable Dianne Feinstein, Chairman, Subcommittee on Interior
The Honorable Lamar Alexander, Ranking Member, Subcommittee on Interior