Over 90 percent of funding for a diesel reduction program paid for by the stimulus law was misspent, according to a report by the Environmental Protection Agency’s (EPA) Office of Inspector General (OIG).
An audit analyzing $26.3 million in funding to non-profit organizations and state governments meant to reduce truck emissions and create jobs found that the program had “significant financial management issues.”
The OIG reviewed six projects under the Diesel Emissions Reduction Act (DERA) program, finding four “did not meet all the objectives of the award,” or their requirements under the Recovery Act. Five of the six projects “did not have a financial management systems that met federal requirements that applied to the grant award.”
“As a result, we questioned a total of $23.8 million of the $26.3 million claimed under the assistance agreements,” the OIG said.
The OIG said the entirety of a $9 million grant given to Cascade Sierra Solutions was wasted after the non-profit failed to accomplish any of the project’s goals. The grant was intended for upgrading diesel trucks made before 2007 with emission control technologies.