Watching Government: Making a case for DERA

May 30, 2011
In a remarkable contrast to the usual congressional hearing that describes problems with a regulation's implementation or enforcement, a US Senate Environment and Public Works subcommittee recently heard about one where the federal government apparently is getting things right.

Nick Snow
Washington Editor

In a remarkable contrast to the usual congressional hearing that describes problems with a regulation's implementation or enforcement, a US Senate Environment and Public Works subcommittee recently heard about one where the federal government apparently is getting things right.

The 2005 Diesel Emissions Reduction Act (DERA) is working not because Congress imposed a mandate on the US Environmental Protection Agency, but because it authorized $200 million/year to facilitate voluntary incentives that have attracted support from more than 600 groups and organizations, the Clean Air and Nuclear Safety Subcommittee was told on May 12.

"DERA has improved America's air quality by modernizing older diesel engines and equipment through engine replacements and retrofits," Diesel Technology Forum Executive Director Allen Schaeffer testified. He noted that in its first year alone, the law cut 46,000 tons of nitrogen oxides and 464,000 tons of carbon dioxide while saving 3.2 million gal of diesel fuel, resulting in an $8 economic gain.

"Every dollar invested in diesel retrofits and replacements yields at least $13 in environmental and public health benefits," Schaeffer continued. DERA also has provided federal funds in a competitive process that encourages state, local, or private funding matches, he added. "By doing so, DERA has been able to leverage roughly $3 in state, local, or private funding for every federal dollar," he said.

Todd Parfitt, deputy director of Wyoming's Department of Environmental Quality, observed that new environmental regulations often don't adequately recognize their impacts not only on a regulated industry, but also state agencies that ultimately are charged with implementing the rules. "This is not the case with DERA," he told the subcommittee.

Four programs implemented

Wyoming has successfully implemented four voluntary programs under DERA that reduce diesel emissions from sources not covered under existing regulations, including emission control systems on nonroad construction equipment that natural gas producers use in Sublette County fields, according to Parfitt.

"Using the EPA Diesel Emissions Quantifier Tool, we estimate that this project resulted in the reduction of 744 tons/year of air pollutants," he said. "Through a combination of DERA funds and industry contributions, nonregulated reductions were successfully achieved as a result of engine retrofits."

Schaeffer said despite DERA's authorization for another 5 years in the 111th Congress, the Obama administration's proposed fiscal 2012 budget called for its termination.

"Although DERA funds have leveraged other dollars in support of additional retrofits, there is no question that the number of engines retrofitted or replaced to date represents only the tip of the iceberg," he continued. "If ever a program made sense and had the support of environmental, labor, public health, and industry groups, this is the one."

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