The New Mexico Clean Diesel Program, funded by the U.S. Environmental Protection Agency (EPA) through the Diesel Emission Reduction Act (DERA), provides financial assistance for projects that reduce harmful diesel emissions. This program encourages applications for projects that effectively minimize emissions from heavy-duty diesel-fueled vehicles and equipment. “Truck scrappage credits” are among the potential activities that can benefit from this program.
Who is Eligible to Participate?
Any public or private organization, or non-profit organization based in New Mexico, that has been in continuous existence for at least three consecutive years and has vehicles/equipment registered (or with an International Registration Plan) in the State of New Mexico is eligible to apply.
What Projects are Eligible for Funding?
Eligible projects include, but are not limited to:
- Verified emission control technologies: Help reduce emissions directly at the source.
- Aerodynamic technologies: Improve fuel efficiency and reduce emissions.
- Retrofit or replacement: Of diesel vehicles and equipment statewide.
Eligible diesel vehicle, engine, and equipment types:
- Buses (school and transit Class 5+ vehicles).
- Heavy-duty highway Class 5 – Class 8 freight trucks (e.g., tow trucks, commercial transport).
- Marine engines.
- Locomotives.
- Non-road engines, equipment, or vehicles used in construction, cargo handling (including at ports and airports), agriculture, mining, or energy production (including generators and stationary pumps).
Conditions for vehicles, engines, or equipment:
- Existing vehicles, engines, or equipment must be fully operational.
- Replacement vehicles, engines, or equipment must be similar in type and function to the replaced unit.
- Participating fleet owners must own and operate the existing vehicle or equipment and have owned and operated it for the two years prior to upgrade.
- Existing vehicles, engines, or equipment must have at least three years of remaining life at the time of upgrade.
- Funding cannot be used to purchase vehicles, engines, or equipment for fleet expansion.
- The replaced vehicle, engine, or equipment must be scrapped or permanently disabled within 90 days of replacement.
Funding Sources and Project Priorities
Funding will be used to purchase and install technologies verified/certified by EPA or the California Air Resources Board (CARB), or to replace vehicles, engines, or equipment with zero-emission power sources. Priority consideration will be given to projects in and adjacent to non-attainment areas, Class I areas, areas with high volumes of diesel-fueled vehicles, and economically distressed areas.
Application Process and Required Documents
Applications are only accepted during open enrollment periods, which will be announced. To apply, please download the guidance documents and prepare the necessary appendices, including:
- Appendix A: Documentation verifying time of operation in New Mexico.
- Appendix B: Project Location Map (for fleets that travel statewide).
- Appendix C: Vehicle Information Sheet.
- Appendix D: Fleet Replacement Schedule.
- Appendix E: Restriction on Use of Funds Form.
- Appendix F: Diesel Emission Quantification (DEQ) Report.
- Appendix G: EJSCREEN ACS Report.
- Appendix H: Location Map of Affected Facility.
- Appendix I: Map showing proximity to Federal Class I Area.
Conclusion
The New Mexico Clean Diesel Program offers an opportunity to “sell old truck scrappage credits” and invest in cleaner vehicles, contributing to improved air quality and public health. Contact Neal Butt at (505) 629-2972 or email neal.butt@env.nm.gov for more information about the program and the application process.
