EPA Diesel Plan Faces FY07 Budget Limits After Deal On State Air Grants

Supporters of a new EPA program intended to encourage diesel engine retrofits have agreed to drop their push for a $150 million increase over the Bush administration's requested levels after state and local regulators raised objections that full funding for the diesel plan could prevent lawmakers from restoring funds for state clean air grants, sources involved with the discussions say. Key senators joined by a coalition of industry and environmental groups, who had been seeking the full $200 million in...