The U.S. Environmental Protection Agency announced the availability of up to $20 million in FY 2012 grant funding to establish clean diesel projects aimed at improving air quality and Americans' health.

In addition to these grants, approximately $9 million will be available through direct state allocations. EPA estimates that for every $1 spent on clean diesel funding, up to $13 of public health benefit is realized.

"Technology has evolved to make diesel engines more efficient and cleaner than ever," says Gina McCarthy, assistant administrator for EPA's Office of Air and Radiation. "These grants enable owners of older diesel vehicles to make investments that modernize their vehicles while making the air in their communities cleaner and healthier to breathe."

This is the first competition since the Diesel Emission Reduction Program, also known as DERA, was reauthorized in 2011. The program cleans up existing diesel vehicles, many of which can be operated for decades, by targeting projects using the most cost-effective clean diesel strategies.

States, tribes, local governments and non-profits are eligible to apply for these grants. Projects can reduce air pollution from heavy-duty diesel trucks as well as other vehicles that use diesels, such as older school buses, transit buses, marine engines and locomotives. The closing date for receipt of proposals is June 4.

DERA was originally enacted in 2005, and since it was first funded in FY 2008, EPA has awarded more than 500 grants nationwide. These projects have reduced hundreds of thousands of tons of air pollution and saved millions of gallons of fuel.

For more information on DERA and EPA's clean diesel projects, go to http://epa.gov/diesel.

Related stories:

CARB Highlights Innovations in Clean Diesel Technology

Clean diesel - it's not just for trucks

Sutley Outlines Role, Challenges for Clean Diesel in Clean Energy Economy