2020.2.4 2020 DERA RFA - Amend 2.pdf

AGENCY: ENVIRONMENTAL PROTECTION AGENCY (EPA)

TITLE: 2020 Diesel Emission Reduction Act (DERA) National Grants

ACTION: Request for Applications (RFA)

RFA NUMBER: EPA-OAR-OTAQ-20-02

CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NO: 66.039

IMPORTANT DATES

Monday, December 9, 2019 RFA OPENS

Wednesday, February 26, 2020 RFA CLOSES – APPLICATIONS DUE

April-May 2020 ANTICIPATED NOTIFICATION OF SELECTION

June-October 2020 ANTICIPATED AWARD

Application packages must be submitted electronically to EPA through Grants.gov

(www.grants.gov) no later than Wednesday, February 26, 2020, at 11:59 p.m. (ET) to be considered for funding.

FUNDING / AWARDS: EPA anticipates awarding approximately $44 million in DERA funding under this announcement. Awards will be selected and managed by EPA’s ten regional offices. EPA anticipates 2 to 8 cooperative agreement awards per EPA region, subject to the availability of funds, the quality of applications received, and other considerations.

SUMMARY: EPA’s Office of Transportation and Air Quality is soliciting applications nationwide for projects that achieve significant reductions in diesel emissions.

Eligible diesel vehicles, engines and equipment may include buses, Class 5 – Class 8 heavy-duty highway vehicles, marine engines, locomotives and nonroad engines, equipment or vehicles such as those used in construction, handling of cargo, agriculture, mining or energy production.

Eligible diesel emissions reduction solutions include verified retrofit technologies such as exhaust after-treatment technologies, engine upgrades, and cleaner fuels and additives, verified idle reduction technologies, verified aerodynamic technologies, verified low rolling resistance tires, certified engine replacements and conversions, and certified vehicle or equipment replacement.

Eligible entities include regional, state, or local agencies; tribal governments (or intertribal consortia) and native villages; or port authorities, which have jurisdiction over transportation or air quality, and nonprofit organizations or institutions that: a) represent or provide pollution reduction or educational services to diesel fleets or b) have, as their principal purpose, the promotion of transportation or air quality. Although private fleet owners are not eligible to apply directly to EPA for DERA funding, both public and private fleets can benefit from the programs implemented by DERA national grant recipients.

http://www.grants.gov/

Priority for funding is given to fleets operating in areas designated as having poor air quality and fleets which service goods movement facilities. Further priority for funding is given to projects with outcomes that benefit affected communities, those that engage affected communities in the design and performance of the project, and those which demonstrate the ability to promote and continue efforts to reduce emissions after the project has ended.

Funding Opportunity Information Sessions

Wednesday, December 11, 2019 at 1:00 p.m. (ET)

Wednesday, December 18, 2019 at 3:00 p.m. (ET)

Tuesday, January 14, 2020 at 3:00 p.m. (ET)

The EPA will host several information sessions regarding this RFA. EPA encourages potential applicants to take advantage of these information sessions to learn more about the DERA program and the grant application process. EPA will highlight any changes to the program from previous years, review eligibility criteria, funding limits and mandatory cost share requirements, and discuss the available options for funding partner fleets. Participants will have the opportunity to have their questions answered by EPA in a public forum. Pre- registration is not required.

Webinar links and dial-in information for the information sessions can be found at:

www.epa.gov/cleandiesel/clean-diesel-national-grants#2020.

QUESTIONS AND ANSWERS: Applicants are encouraged to review the questions and answers posted at www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa for further clarification of this Request for Applications. EPA will respond to questions from applicants regarding threshold eligibility criteria, administrative issues related to the submission of the application, and requests for clarification about any of the language or provisions in the announcement through the questions and answers document.

Applicants may email written questions to: cleandiesel@epa.gov. All questions submitted via email by 4:00 p.m. ET each Friday during the RFA open period will be answered and posted in the questions and answers document the following week. The deadline for submitting questions via email is Friday, February 14, 2020 at 4:00 p.m. ET. The final posting of the questions and answers document will be Wednesday, February 19, 2020 at 4:00 p.m. ET.

Want to learn more about DERA?

www.epa.gov/cleandiesel DERA Fourth Report to Congress http://www.epa.gov/cleandiesel/clean-diesel-national-grants#2020 https://www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa mailto:xxxxx@epa.gov https://www.epa.gov/cleandiesel https://www.epa.gov/sites/production/files/2019-07/documents/420r19005.pdf

TABLE OF CONTENTS

TITLE: 2020 Diesel Emission Reduction Act (DERA) National Grants

I. FUNDING OPPORTUNITY DESCRIPTION

A. Background

B. Scope of Work

C. EPA Strategic Plan Linkage, Anticipated Outputs/Outcomes and Performance Measures

D. Statutory Authority

II. AWARD INFORMATION

A. What is the amount of funding available?

B. Partial Funding

C. How many agreements will EPA award in this competition?

D. What is the project period for awards resulting from this solicitation?

E. Funding Type

III. ELIGIBILITY INFORMATION

A. Eligible Entities

B. Cost Sharing

C. Threshold Eligibility Criteria

D. Funding Restrictions

IV. APPLICATION AND SUBMISSION INFORMATION

A. Project Location for Application Submission

B. Limits on Number of Applications that Can be Submitted

C. Requirement to Submit Through Grants.gov and Limited Exception Procedures

D. Grants.gov Application Submission Instructions (see Appendix A)

E. Content of Application Submission

F. Submission Date and Time

G. Information Sessions

H. Additional Provisions for Applicants Incorporated into the Solicitation

I. How to Fund Projects and Partnerships

V. APPLICATION REVIEW INFORMATION

A. Evaluation Criteria

B. Review and Selection Process

C. Other Factors

D. Additional Provisions for Applicants Incorporated Into the Solicitation

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

B. Administrative and National Policy Requirements

C. Reporting Requirement

D. Disputes

E. Additional Provisions for Applicants Incorporated Into the Solicitation

F. Delays or Favorable Developments:

G. Final Approved Workplan and Modifications

H. Equipment Use, Management, and Disposition

I. Combining Proposals into One Award

VII. AGENCY CONTACTS

APPENDIX A – Grants.gov Application Submission Instructions

APPENDIX B – Project Narrative Instructions, Format, and Content

APPENDIX C – Quantifying Environmental Outcomes

APPENDIX D – Mandated Measures Justification

APPENDIX E – How to Fund Projects and Partnerships

APPENDIX F – Application Submission Checklist

I. FUNDING OPPORTUNITY DESCRIPTION

A. Background

Reducing emissions from diesel engines is one of the most important air quality challenges facing the country. Despite EPA’s diesel engine and fuel standards for new engines, the nearly ten million legacy diesel engines already in use continue to emit large amounts of NOx and

PM2.5, which contribute to serious public health problems, including asthma, lung cancer and various other cardiac and respiratory diseases. These problems result in thousands of premature deaths, millions of lost work days, and numerous other negative health impacts every year.

To address these diesel emissions and protect public health and air quality, EPA is authorized under Diesel Emission Reduction Act (DERA) to offer funding assistance to accelerate the upgrade and turnover of legacy diesel fleet. Fiscal Year 2008 was the inaugural year of funding for DERA, and since then EPA has awarded over $749.0 million on 790 grant projects and 420 rebate projects to reduce diesel emissions nationwide. The DERA program promotes an array of diesel emission strategies by working with manufacturers, fleet operators, air quality professionals, environmental and community organizations and state and local officials to address the varying priorities of different regions and sectors. DERA supports environmental justice by prioritizing emissions reductions in areas receiving disproportionate impacts from diesel fleets to provide an environment where all people enjoy the same degree of protection from environmental and health hazards.

This DERA National Grants Request for Applications (RFA) is a competitive grant program.

The DERA program has two other competitive funding opportunities in addition to the DERA

National Grants program: the DERA School Bus Rebates program and the DERA Tribal Grants program. While school bus replacement is one of many eligible activities under the DERA

National Grant program (this RFA), the DERA School Bus Rebates program provides funding only for school bus replacement. Typically, the DERA School Bus Rebates program application period opens annually in the fall, requires a one-page application form, rebate recipients are selected through a lottery process, and requires that school bus replacements are completed in less than one year. Information on EPA’s School Bus Rebates program can be found at www.epa.gov/cleandiesel/school-bus-rebates-diesel-emissions-reduction-act-dera. Additionally, although tribes are eligible to apply for funding under this RFA, the DERA program also expects to issue a separate DERA Tribal Grants RFA in 2020. Please visit the following webpage for more information and updates: www.epa.gov/cleandiesel/clean-diesel-tribal-grants.

B. Scope of Work

DERA grants provide funding to eligible recipients so that they may implement programs which incentivize and accelerate the upgrading or retirement of the legacy diesel fleet. Eligible activities include the retrofit or replacement of existing diesel engines, vehicles and equipment with EPA and California Air Resources Board (CARB) certified engine configurations and verified retrofit and idle reduction technologies. DERA grants cannot fund research and https://www.epa.gov/cleandiesel/school-bus-rebates-diesel-emissions-reduction-act-dera http://www.epa.gov/cleandiesel/clean-diesel-tribal-grants development and DERA grants cannot fund technology demonstration, commercialization, certification or verification.

1. Summary of Program Requirements

a. Each application may only request funding from one EPA regional office as defined in

Section IV.A

b. The amount of federal funding requested per application must not exceed the amount specified for each Region as defined in Section II.A., Table 5.

c. Each applicant can an submit a total of ten separate and distinct applications, but no more than three per Region as defined in Section IV.B.

d. Recipients may directly implement projects by targeting vehicles and equipment that are owned by the recipient organization. Alternatively, a recipient may partner with public and private fleet owners and provide them with subgrants or rebates so that they may address the emissions from their fleets. See Appendix E for detailed information on how to fund projects and partnerships.

e. To be eligible for funding, new vehicles and technologies must meet the eligibility criteria defined in Section I.B.3. and 4.

f. To be eligible for funding, existing vehicle, engines, equipment and technologies must meet the ownership and usage criteria defined in Section I.B.6.

g. To be eligible for funding, existing vehicle, engines, equipment and technologies must have at least three years of remaining life as defined in Section I.B.6.c.

h. Eligible project costs directly related to the implementation, management, and oversight of the project include recipient and subrecipient personnel and benefits, equipment, contractual, travel, supplies, subgrants and rebates, and indirect costs. Specific eligible and ineligible project costs are provided in Section I.B.5. and funding restrictions are provided in Section III.D.

i. EPA funding for eligible vehicles, engines, equipment and associated installation costs is limited to the cost shares defined in Section III.B.1.

j. Replacement projects require scrappage of the existing engine and, for full vehicle/equipment replacement, the chassis as defined in Section III.D.8.

k. DERA project eligibility or approval does not waive any applicable regulatory requirements for equipment owners, operators, manufactures, installers and others.

2. Eligible Diesel Vehicles, Engines and Equipment: Projects may include the heavy-duty diesel emissions source type defined in Table 1, below.

Table 1: Eligible Diesel Vehicles, Engines and Equipment

School Buses1

Includes diesel powered school buses of Type A, B, C and D. To be eligible as a school bus a vehicle should meet the definition of a school bus as defined by the National Highway Transportation Safety

Administration. This definition includes but is not limited to: 1) A bus that is used for purposes that included carrying students to and from school or related events on a regular basis; 2) Be identified with the words

“School Bus”; and 3) Be painted National School Bus Glossy Yellow.

Transit Buses Includes diesel powered medium-duty and heavy-duty transit buses (see below).

Medium-duty or heavy-duty trucks

Includes diesel powered medium-duty and heavy-duty highway vehicles with gross vehicle weight rating (GVWR) as defined below:

Class 5 (16,001 -19,500 lbs GVWR);

Class 6 (19,501 - 26,000 lbs GVWR);

Class 7 (26,001 - 33,000 lbs GVWR);

Class 8 (33,001 lbs GVWR and over)

Marine

Engines Includes diesel powered Category 1, 2, and 3 marine engines and vessels.

Locomotives Includes diesel powered line-haul, passenger, and switch engines and locomotives.

Nonroad engines, equipment or vehicles

Includes diesel powered engines, equipment and vehicles used in construction, handling of cargo (including at ports and airports), agriculture, mining, or energy production (including stationary generators and pumps).

a. Drayage Trucks: Eligible heavy-duty trucks include drayage trucks. A “drayage truck” means any Class 8 highway vehicle operating on or transgressing through port or intermodal rail yard property for the purpose of loading, unloading or transporting cargo, such as containerized, bulk or break-bulk goods. If an application for the replacement of drayage trucks is selected for funding, the grant recipient will be required to establish guidelines to ensure that any existing truck replaced with grant funds has a history of operating on a frequent basis over the prior year as a drayage truck, and to ensure any new truck purchased with grant funds is operated in a manner consistent with the definition of a drayage truck, as defined above. Sample drayage truck guidelines can be found at: www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa.

b. Transport Refrigeration Units: Eligible nonroad equipment includes transport refrigeration units (TRUs). Please see the TRU Factsheet found at

1 Funding for school bus replacement is also available through EPA’s School Bus Rebate Program. The rebate program consists of a one-page application form and rebate recipients are selected through a lottery process.

Information on EPA’s School Bus Rebate Program can be found at www.epa.gov/cleandiesel/school-bus-rebates-diesel-emissions-reduction-act-dera.

http://www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa for information on TRUs and eligible TRU projects.

3. Eligible Diesel Emissions Reduction Solutions: Projects must include one or more of the following diesel emissions reduction solutions that use a certified engine configuration and/or a verified technology.

a. Vehicle and Equipment Replacements: Nonroad and highway diesel vehicles and equipment, locomotives, and marine vessels can be replaced with newer, cleaner vehicles and equipment. Eligible replacement vehicles and equipment include those powered by diesel or clean alternative fuel engines (including gasoline), electric generators (gensets), hybrid engines, and zero tailpipe emissions power sources (grid, battery or fuel cell).

To be eligible for funding, vehicles and equipment must be powered by engines certified by EPA and, if applicable, CARB emission standards. Zero tailpipe emissions vehicles and equipment do not require EPA or CARB certification. EPA’s annual certification data for vehicles, engines, and equipment may be found at: www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment. EPA’s engine emission standards may be found at: www.epa.gov/emission-standards-reference-guide/all-epa-emission-standards. Engines certified by CARB may be found by searching

CARB’s Executive Orders for Heavy-duty Engines and Vehicles, found at:

www.arb.ca.gov/msprog/onroad/cert/cert.php. Please see the Low-NOx Engine Factsheet found at www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa for guidance on identifying engines certified to meet CARB’s Optional Low NOx Standards.

b. Engine Replacement: Nonroad and highway diesel vehicles and equipment, locomotives, and marine vessels can have their engines replaced with newer, cleaner engines. Eligible replacement engines include those certified for use with diesel or clean alternative fuel (including gasoline), electric generators (gensets), hybrid engines, and zero tailpipe emissions power sources (grid, battery or fuel cell).

To be eligible for funding, replacement engines must be certified to EPA or, if applicable, CARB emission standards. However, zero tailpipe emissions engine replacements do not require EPA or CARB certification. EPA’s annual certification data for vehicles, engines, and equipment may be found at: www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment. EPA’s engine emission standards may be found at: www.epa.gov/emission-standards-reference-guide/all-epa-emission-standards. Engines certified by CARB may be found by searching CARB’s

Executive Orders for Heavy-duty Engines and Vehicles, found at:

www.arb.ca.gov/msprog/onroad/cert/cert.php. Please see the Low-NOx Engine Factsheet found at www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa for guidance on identifying engines certified to meet CARB’s Optional Low NOx Standards.

c. Certified Remanufacture Systems: Generally, a certified remanufacture system is applied during an engine rebuild and involves the removal of parts on an engine and replacement with parts that cause the engine to represent an engine configuration which http://www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa https://www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment https://www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment https://www.epa.gov/emission-standards-reference-guide/all-epa-emission-standards https://www.epa.gov/emission-standards-reference-guide/all-epa-emission-standards http://www.arb.ca.gov/msprog/onroad/cert/cert.php http://www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa https://www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment https://www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment https://www.epa.gov/emission-standards-reference-guide/all-epa-emission-standards https://www.epa.gov/emission-standards-reference-guide/all-epa-emission-standards http://www.arb.ca.gov/msprog/onroad/cert/cert.php http://www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa is cleaner than the original engine. Some locomotives and marine engines can be upgraded through the application of a certified remanufacture system (i.e. kit). Engine remanufacture systems may not be available for all engines, and not all remanufacture systems may achieve an emissions benefit. Applications for certified remanufacture systems should include a discussion of the availability of engine remanufacture systems and indicate the pre- and post-project emission standard levels of the engines to demonstrate that the upgrade will result in a PM and/or NOx emissions benefit. If a certified remanufacture system is applied at the time of rebuild, funds under this award cannot be used for the entire cost of the engine rebuild, but only for the cost of the certified remanufacture system and associated labor costs for installation of the kit.

To be eligible for funding, remanufacture systems for locomotives and marine engines must be certified by EPA at the time of acquisition. List of certified remanufacture systems are available at: www.epa.gov/compliance-and-fuel-economy-data/engine-certification-data, and additional information on remanufacture systems is available at:

www.epa.gov/vehicle-and-engine-certification/remanufacture-systems-category-1-and-2-marine-diesel-engines.

d. Verified Idle Reduction Technologies: An idle reduction project is generally defined as the installation of a technology or device that reduces unnecessary idling of diesel engines and/or is designed to provide services (such as heat, air conditioning, and/or electricity) to vehicles and equipment that would otherwise require the operation of the main drive or auxiliary engine(s) while the vehicle is temporarily parked or remains stationary.

The eligible idle reduction technologies by associated vehicle type are below. To be eligible for funding under 1) through 4) below, these technologies must be on EPA’s

SmartWay Verified Technologies list (www.epa.gov/verified-diesel-tech/smartway-technology) at the time of acquisition.

1) Long haul Class 8 trucks equipped with sleeper cabs:

a) Auxiliary power units and generator sets

b) Battery air conditioning systems

c) Thermal storage systems

d) Fuel operated heaters (direct fired heaters)

e) Electrified parking spaces (truck stop electrification)

2) School buses: Fuel operated heaters (direct fired heaters)

3) Transport refrigeration units: Electrified parking spaces

Please see the TRU Factsheet found at www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa for information on TRUs and eligible TRU projects.

4) Locomotives:

a) Automatic engine shut-down/start-up systems http://www.epa.gov/compliance-and-fuel-economy-data/engine-certification-data http://www.epa.gov/compliance-and-fuel-economy-data/engine-certification-data http://www.epa.gov/vehicle-and-engine-certification/remanufacture-systems-category-1-and-2-marine-diesel-engines http://www.epa.gov/vehicle-and-engine-certification/remanufacture-systems-category-1-and-2-marine-diesel-engines http://www.epa.gov/verified-diesel-tech/smartway-technology http://www.epa.gov/verified-diesel-tech/smartway-technology

b) Auxiliary power units and generator sets

c) Fuel operated heaters (direct fired heaters)

d) Shore power connection systems

No funds awarded under this RFA shall be used for locomotive shore connection system projects that are expected to be used less than 1,000 hours/year.

5) Marine vessels: Shore power connection systems

Funding may support new installations, or expansions of existing shore power systems. More information on marine shore power connection systems may be found at www.epa.gov/verified-diesel-tech/learn-about-marine-technology. To be eligible for funding, marine shore power projects must meet the following criteria:

a) Applicants must attest to compliance with international shore power design standards (ISO/IEC/IEEE 80005-1:2012 High Voltage Shore Connection Systems or the IEC/PAS 80005-3:2014 Low Voltage Shore Connection Systems).

b) Shore power connection systems must be supplied with electricity from the local utility grid.

c) Demonstration that the proposed system has the capacity, demand, and commitment to be used for more than 1,000 megawatt-hours per year. Smaller projects will be considered if the applicant can demonstrate cost effectiveness.

d) Due to the unique nature and custom design of marine shore power connection systems, EPA will review and approve marine shore power connection systems on a case-by-case basis. If the project application is selected for funding, the final design of the marine shore power connection system will require specific EPA approval prior to purchase and installation.

e) Applicants must commit to reporting usage information to EPA for five years after the system is operational.

f) Shore power capable vessels docked at a berth where shore power is available must be required to turn off the vessel’s engines and use the shore power system, with limited exceptions for extreme circumstances.

g) Applicants proposing marine shore power connection systems will need to include the following information in their workplan:

i. the annual number of ship visits to berth where the shore power system is to be installed;

ii. average hoteling (or idling) time per visit; and

iii. information about the fleet of vessels that has, or will have, the ability to use the shore-side connection system, including:

• the estimated annual number of ship visits to the shore power enabled berth that will use the shore power system;

• estimated annual hoteling hours using shore power system;

• fuel type and average sulfur content of fuel used in the auxiliary engines for each vessel;

• auxiliary engine and boiler information for each vessel;

• estimated annual hoteling load requirements (megawatt-hours);

https://www.epa.gov/verified-diesel-tech/learn-about-marine-technology

iv. any documented commitment of visits and hours by the fleet of vessels that has, or will have, the ability to use the shore-side connection system; and

v. estimated emissions reductions based on the methodology in Appendix C.

e. Verified Retrofit Technologies: Diesel engine retrofits are one of the most cost-effective solutions for reducing diesel engine emissions. Retrofits include engine exhaust after-treatment technologies, such as diesel oxidation catalysts (DOCs), diesel particulate filters (DPFs), closed crankcase filtration systems (CCVs), and selective catalytic reduction systems (SCRs). Manufacturer engine upgrades which achieve specific levels of emision reductions by applying a package of components have been verified as retrofits for some nonroad and marine engines. Several systems which convert a conventional diesel engine configuration to a hybrid-electric system have been verified as retrofits. Some cleaner fuels and additives have been verified as retrofits by EPA and/or

CARB to achieve emissions reductions when applied to an existing diesel engine. Older, heavy-duty diesel vehicles that will not be retired for several years are good candidates for verified retrofit technologies. EPA suggests that applicants proposing to install verified retrofit technologies consult with suppliers to confirm that the proposed vehicles/engines and their duty-cycles are good candidates for the technology.

To be eligible for funding, verified retrofit technologies must be on EPA’s

(www.epa.gov/verified-diesel-tech/verified-technologies-list-clean-diesel) or CARB’s

(www.arb.ca.gov/diesel/verdev/vt/cvt.htm) Verified Technologies lists at the time of acquisition, must be used only for the vehicle/engine application specified on the lists, and must meet any applicable verification criteria. EPA will not fund stand-alone cleaner fuel/additive use. To be eligible for funding, verified fuels and additives must be for new or expanded use, and must be used in combination, and on the same vehicle, with a new eligible verified engine retrofit or an eligible engine upgrade or an eligible certified engine, vehicle, or equipment replacement funded under this RFA.

f. Clean Alternative Fuel Conversions: Existing highway diesel engines can be altered to operate on alternative fuels such as propane and natural gas by applying an alternative fuel conversion kit.

To be eligible for funding, alternative fuel conversion systems must be certified by EPA and/or CARB or must be approved by EPA for Intermediate-Age engines. EPA’s lists of

“Certified Conversion Systems for New Vehicles and Engines” and “Conversion Systems for Intermediate-Age Vehicles and Engines” are available at www.epa.gov/vehicle-and-engine-certification/lists-epa-compliant-alternative-fuel-conversion-systems; CARB’s list of “Approved Alternate Fuel Retrofit Systems” are available at:

www.arb.ca.gov/msprog/aftermkt/altfuel/altfuel.htm.

To be eligible for funding, conversion systems for engine model years 2006 and earlier must achieve at least a 30% NOx reduction and a 10% PM reduction from the applicable certified emission standards of the original engine. To be eligible for funding, conversion systems for engine model years 2007 and newer must achieve at least a 20% NOx reduction with no increase in PM from the applicable certified emission standards of the http://www.epa.gov/verified-diesel-tech/verified-technologies-list-clean-diesel http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm http://www.epa.gov/vehicle-and-engine-certification/lists-epa-compliant-alternative-fuel-conversion-systems http://www.epa.gov/vehicle-and-engine-certification/lists-epa-compliant-alternative-fuel-conversion-systems http://www.arb.ca.gov/msprog/aftermkt/altfuel/altfuel.htm original engine. Applications for clean alternative fuel conversions should include a discussion of the availability of conversion systems and indicate the pre- and post-project emission standard levels of the engines to demonstrate that the conversions result in the required emissions benefit.

g. Verified Aerodynamic Technologies and Verified Low Rolling Resistance Tires: To improve fuel efficiency, long haul Class 8 trucks can be equipped with aerodynamic trailer fairings and/or low rolling resistance tires.

To be eligible for funding, technologies must be on EPA’s verified aerodynamic technologies list (www.epa.gov/verified-diesel-tech/smartway-verified-list-aerodynamic-devices) and verified list for low rolling resistance new and retread tire technologies list

(www.epa.gov/verified-diesel-tech/smartway-verified-list-low-rolling-resistance-lrr-new-and-retread-tire) at the time of acquisition, must be used only for the application specified on the lists, and must meet any applicable verification criteria. EPA will not fund stand-alone aerodynamic technologies or low rolling resistance tires. To be eligible for funding, these technologies must be combined on the same vehicle with the new installation of an exhaust after-treatment retrofit funded under this RFA.

4. Project Eligibility Criteria: Existing engines and new vehicles, engines, and technologies must meet the eligibility criteria defined below to be eligible for funding.

Table 2: Medium and Heavy-Duty Truck, Transit Bus, and School Bus Project Eligibility

Current

Engine

Model Year

(EMY)

DOC

CCV

DPF SCR

Verified

Idle

Reduction, Tires, or

Aero-dynamics

Vehicle or

Engine

Replacement:

EMY 2018+

(2014+ for

Drayage)

Vehicle or

Engine

Replacement:

EMY 2018+

Zero

Emission2 or

Low-NOx

Clean

Alternative

Fuel

Conversion older - 2006 Yes Yes Yes Yes Yes Yes Yes

2007 - 2009 No No Yes Yes1 Yes Yes Yes

2010 - newer No No No Yes1 No Yes Yes

1Auxiliary power units and generators are not eligible on vehicles with EMY 2007 or newer.

2Eligible fuel cell projects are limited to hydrogen fuel cell engine replacements for eligible urban transit buses, shuttle buses and drayage trucks, and hydrogen fuel cell engine replacements for eligible urban transit buses, shuttle buses, and drayage trucks.

3 Please see the Low-NOx Engine Factsheet found at www.epa.gov/cleandiesel/clean-diesel-national-grants#rfa for guidance on identifying engines certified to meet CARB’s Optional Low

NOx Standards.

http://www.epa.gov/verified-diesel-tech/smartway-verified-list-aerodynamic-devices http://www.epa.gov/verified-diesel-tech/smartway-verified-list-aerodynamic-devices http://www.epa.gov/verified-diesel-tech/smartway-verified-list-low-rolling-resistance-lrr-new-and-retread-tire http://www.epa.gov/verified-diesel-tech/smartway-verified-list-low-rolling-resistance-lrr-new-and-retread-tire

Table 3. Nonroad Engine Project Eligibility

Current Engine

Tier

Vehicle/Equipment Replacement: EMY 2020

Verified

Retrofit Compression Ignition

Spark

Ignition Zero

Emission3 Tier 0-2 Tier 3-4i Tier 4 Tier 2

Unregulated – Tier 2 No Yes1 Yes Yes Yes Yes

Tier 3 No No Yes Yes Yes Yes

Tier 4 No No No No No No

Current Engine

Tier

Engine Replacement Verified

Engine

Upgrade

Compression Ignition

Spark

Ignition Zero

Emission4 Tier 0-2 Tier 3-4i Tier 4 Tier 2

Unregulated – Tier 2 No Yes2 Yes Yes Yes Yes

Tier 3 No No Yes Yes Yes Yes

Tier 4 No No No No No No 1Tier 3 and Tier 4 interim (4i) allowed for vehicle/equipment replacement only when Tier 4 final is not yet available from OEM for 2020 model year equipment under the Transition Program for

Equipment Manufacturers (TPEM).

2Tier 3 and Tier 4i engines may be used for engine replacement only if Tier 4 is demonstrated to not be available or feasible through a best achievable technology analysis as defined in Section

I.B.4.a., below.

3Eligible fuel cell projects are limited to hydrogen fuel cell equipment replacements for eligible terminal tractors/yard hostlers, stationary generators, and forklifts.

4Fuel cell engine replacement is not eligible.

Table 4: Marine Engine Project Eligibility

Engine

Cate-gory

Engine

Horse-power

Current

Engine

Tier

Engine & Vessel Replacement

Certified Re-manufacture

System3

Verified

Engine

Upgrade

Compression

Ignition Spark

Ignition

Zero

Emission2 Tier

1-2

Tier

Tier

C1, C2

<803

Un-regulated

– Tier 2

No Yes No Yes Yes Yes Yes

C1, C2

≥804

Un-regulated

– Tier 2

No Yes1 Yes Yes Yes Yes Yes

C1, C2 <803 Tier 3 No No No Yes Yes No No

C1, C2 ≥804 Tier 3 No No Yes Yes Yes No No

C1, C2 ≥804 Tier 4 No No No No No No No

C3 All

Un-regulated

- Tier 2

No Yes No No No No No

C3 All Tier 3 No No No No No No No 1Tier 3 engines may be used for engine replacement only if Tier 4 is demonstrated to not be available or feasible through a best achievable technology analysis as defined in Section I.B.4.a., below. Over 800 HP, Tier 3 engines are not eligible for full vessel replacement.

2Fuel cell engine and vessel replacements are not eligible.

3Some marine engine projects may be subject to the restriction on mandated measures.

Table 5: Locomotive Engine Project Eligibility

Current

Locomotive

Tier

Engine & Locomotive

Replacement Verified

Retrofit

Idle-

Reduction2

Technology

Certified

Remanufacture

System4 Tier

0–2+

Tier

Tier

Zero

Emission1

Unregulated

- Tier 2+ No Yes3 Yes Yes Yes Yes Yes

Tier 3 No No Yes Yes Yes Yes Yes

Tier 4 No No No No No Yes No 1Fuel cell engine and locomotive replacements are not eligible.

2Automatic engine start-stop technologies are only eligible to be installed on locomotives currently certified to Tier 0 or unregulated, subject to the restriction on mandated measures.

3Tier 3 engines may be used for engine replacement only if Tier 4 is demonstrated to not be available or feasible through a best achievable technology analysis as defined in Section I.B.4.a., below. Tier 3 is not eligible for locomotive replacement.

4Some locomotive engine projects may be subject to the restriction on mandated measures.

Note: Tier 0+, Tier 1+, Tier 2+, Tier 3, and Tier 4 represent locomotives manufactured or remanufactured under the more stringent Tier standards promulgated under the 2008 (current) locomotive and marine rule. Tier 0, Tier 1, and Tier 2 represent locomotives originally manufactured or remanufactured under the less stringent Tier standards promulgated in 1997.

a. Best Achievable Technology: All new nonroad and locomotive engines are now manufactured to meet the EPA Tier 4 standards. All new Category 1 and 2, 804 horsepower and above marine engines are now manufactured to meet the EPA Tier 4 standards. Applicants must commit to using the best achievable technology for the project. Applicants replacing these nonroad, marine, and locomotive engines are expected to use Tier 4 engines if Tier 4 engines with the appropriate physical and performance characteristics are available. If selected for funding, applicants will be required to submit a best achievable technology analysis to EPA for approval before Tier

3 or Tier 4i engines can be purchased.

1) Application Requirements: Applicants must commit to using Tier 4 engines if Tier

4 engines with the appropriate physical and performance characteristics are available.

Applicants anticipating the use of Tier 3 or Tier 4i engines should discuss their rationale for proposing Tier 3 or Tier 4i engine replacements in Section 1 of their project narrative.

2) Best Achievable Technology Analysis Requirements: If selected for funding, applicants will be required to submit a best achievable technology analysis to EPA for approval before Tier 3 or Tier 4i engines can be purchased, as defined below. This analysis is not required at the time of grant application submittal to EPA but is required before Tier 3 or Tier 4i engines can be purchased with grant funds. Costs for engineering analysis may be included in the project budget.

a) The analysis must be prepared by the engine manufacturer or installer.

b) Using good engineering judgment, the engine manufacturer or installer must determine that no engine certified to Tier 4 is produced by any manufacturer with the appropriate physical or performance characteristics to repower the equipment.

c) If the engine manufacturer or installer determines that no engine certified to Tier

4 is available with the appropriate performance characteristics, explain why certified Tier 4 engines produced by them and other manufacturers cannot be used as a replacement because they are not similar to the engine being replaced in terms of power or speed.

d) If there are available engines with the appropriate performance characteristics but the engine manufacturer or installer determines that no engine certified to Tier 4 is available with the appropriate physical characteristics, explain why certified engines produced by them and other manufacturers cannot be used as a replacement because their weight or dimensions are substantially different than those of the engine being replaced, or because they will not fit within the equipment’s engine compartment.

e) In evaluating appropriate physical or performance characteristics, the engine manufacture or installer may account for compatibility with equipment components that would not otherwise be replaced when installing a new engine, including but not limited to transmissions or reduction gears, drive shafts, cooling systems, operator controls, or electrical systems. If the engine manufacturer or installer makes their determination on this basis, they must identify the equipment components that are incompatible with engines certified to Tier 4 and explain how they are incompatible and why it would be unreasonable to replace them.

f) Identify the proposed Tier 3 or Tier 4i engines to be used and discuss the physical and performance characteristics of the engines that will ensure compatibility with the existing equipment. Quantify proposed emission reductions, PM cost effectiveness and NOx cost effectiveness for the proposed options.

g) DERA project eligibility or approval does not supersede any regulatory requirements for equipment owners, operators, manufactures, installers and others, including but not limited to 40 CFR §1068.240, §1042.615, and

§1033.601.

5. Eligible and Ineligible Project Costs: Eligible project costs are those costs directly related to the implementation, management, and oversight of the project, including recipient and subrecipient personnel and benefits, equipment, contractual, travel, supplies, subgrants and rebates, and indirect costs. The following list is not exhaustive. See Section III.D for additional funding restrictions.

a. Eligible project costs include the purchase price of eligible vehicles, engines and equipment as defined above in Section I.B.3. and 4. These costs are subject to the mandatory cost share requirements defined in Section III.B.1.

b. Eligible project costs can include mechanic/driver training related to the maintenance and operation of new technologies.

c. Eligible costs for battery electric powered vehicle, equipment and engine replacement projects can include the purchase and installation of one charging unit per vehicle, including the unit and charging cable, mount and/or pedestal. These costs are subject to the mandatory cost share requirements defined in Section III.B.1. Ineligible costs include power distribution to the pedestal, electrical panels and their installation, upgrades to existing electrical panels or electrical service, transformers and their installation, wiring/conduit and its installation, electricity, operation and maintenance, stationary energy storage systems that power the equipment (e.g. batteries) and their installation, and on-site power generation systems that power the equipment (e.g., solar and wind power generation equipment) and their installation.

d. Eligible costs for drayage truck replacement projects include the required/scheduled vehicle maintenance, as specified in the owner’s manual, which is necessary to meet the warranty requirements for diesel particulate filters installed on drayage trucks. Funding for required maintenance is available for the duration of the project period.

e. Eligible costs for grid electric powered engine and equipment replacement projects can include the purchase and installation of certain equipment required for power delivery directly related to the new equipment. Eligible costs include design and engineering, electrical panels, upgrades to existing electrical panels or electrical service, transformers, wiring/conduit, and installation. These costs are subject to the mandatory cost share requirements defined in Section III.B.1. Ineligible costs include power distribution to the property line, electricity, operation and maintenance, stationary energy storage systems that power the equipment (e.g. batteries) and their installation, and on-site power generation systems that power the equipment (e.g., solar and wind power generation equipment) and their installation.

f. Eligible costs for engine replacement projects can include equipment and parts included in the certified engine configuration and/or are required to ensure the effective installation and functioning of the new technology. Eligible costs include design and engineering, parts and materials, and installation. For engine replacement with battery, fuel cell, and grid electric, eligible costs include electric motors, electric inverters, battery assembly, direct drive transmission/gearbox, regenerative braking system, vehicle control/central processing unit, vehicle instrument cluster, hydrogen storage tank, hydrogen management system and fuel cell stack assemblies. These costs are subject to the mandatory cost share requirements defined in Section III.B.1. Ineligible costs include cabs, tires, wheels, axles, paint, brakes, and mufflers.

g. Eligible costs for engine remanufacture system projects can include the associated labor costs for installation of the system. These costs are subject to the mandatory cost share requirements defined in Section III.B.1. Ineligible costs include the entire cost of an engine rebuild if a certified remanufacture system is applied at the time of rebuild.

h. Eligible costs for idle reduction technologies that are installed on the vehicle can include the associated labor costs for installation of the system. These costs are subject to the mandatory cost share requirements defined in Section III.B.1.

i. Eligible costs for electrified parking space projects can include the purchase and installation of certain equipment required for power delivery directly related to the new equipment. Eligible costs include design and engineering, design and engineering, electrical panels, upgrades to existing electrical panels or electrical service, transformers, wiring/conduit, and installation. These costs are subject to the mandatory cost share requirements defined in Section III.B.1. Ineligible costs include power distribution to the property line, electricity, operation and maintenance, stationary energy storage systems that power the equipment (e.g. batteries) and their installation, and on-site power generation systems that power the equipment (e.g., solar and wind power generation equipment) and their installation.

j. Eligible costs for locomotive shore power connection projects can include the purchase and installation of certain equipment required for power delivery directly related to the new equipment. Eligible costs include design and engineering, electrical panels, upgrades to existing electrical panels or electrical service, transformers, wiring/conduit, and installation. These costs are subject to the mandatory cost share requirements defined in

Section III.B.1. Ineligible costs include power distribution to the property line, electricity, operation and maintenance, stationary energy storage systems that power the equipment (e.g. batteries) and their installation, and on-site power generation systems that power the equipment (e.g., solar and wind power generation equipment) and their installation.

k. Eligible costs for marine shore power connection projects can include the purchase and installation of the shore side equipment and certain equipment required for power delivery directly related to the new equipment. Eligible costs include design and engineering, cables, cable management systems, shore power coupler systems, distribution control systems, grounding switches, service breakers, capacitor banks, electrical panels, upgrades to existing electrical panels or electrical service, transformers, wiring/conduit, and installation. These costs are subject to the mandatory cost share requirements defined in Section III.B.1. Ineligible costs include shipside modifications to accept shore-based electrical power, power distribution to the property line, electricity, operation and maintenance, stationary energy storage systems that power the equipment

(e.g. batteries) and their installation, and on-site power generation systems that power the equipment (e.g., solar and wind power generation equipment) and their installation.

l. Eligible costs for retrofit technologies that are installed on the vehicle can include the associated labor costs for installation of the system. These costs are subject to the mandatory cost share requirements defined in Section III.B.1. Eligible costs include design and engineering, DPF cleaning machines, spare DPFs for maintenance rotation, replacement CCV filters, and filter cleaning contracts during grant open period.

m. Eligible costs for alternative fuel conversions can include the associated labor costs for installation of the system. These costs are subject to the mandatory cost share requirements defined in Section III.B.1.

n. Eligible costs for aerodynamics and low rolling resistance tires can include the associated labor costs for installation. Eligible costs can include single-wide wheels only when a fleet is retrofitting from standard dual tires to SmartWay-verified single-wide low rolling resistance tires. These costs are subject to the mandatory cost share requirements defined in Section III.B.1. Ineligible costs include aluminum wheels.

Please note that although DERA grant funds and matching funds cannot be used for stationary energy storage systems that power the equipment (e.g. batteries) and their installation, and DERA grant funds and matching funds cannot be used for on-site power generation systems that power the equipment (e.g., solar and wind power generation equipment) and their installation, applicants and their partners may add these components at their own expense outside the scope of the grant.

6. Ownership, Usage and Remaining Life Requirements

a. The existing vehicle, engine, or equipment must be fully operational. Operational equipment must be able to start, move in all directions, and have all necessary parts to be operational.

b. The participating fleet owner must currently own and operate the existing vehicle or equipment and have owned and operated the vehicle during the twenty-four months prior to upgrade.

c. The existing vehicle, engine, or equipment must have at least three years of remaining life at the time of upgrade. Remaining life is the fleet owner’s estimate of the number of years until the unit would have been retired from service if the unit were not being upgraded or scrapped because of the grant funding. The remaining life estimate is the number of years of operation remaining even if the unit were to be rebuilt or sold to another fleet. The remaining life estimate depends on the current age and condition of the vehicle at the time of upgrade, as well as things like usage, maintenance and climate.

d. Highway Usage: To be eligible for funding, the existing vehicle must have accumulated at least 7,000 miles during each twelve months during the twenty-four months prior to upgrade. Vehicle mileage may be combined to reach the thresholds below where two vehicles will be scrapped and replaced with a single vehicle.

e. Nonroad, Locomotive and Marine Usage: The engine operating hours of two units may be combined to reach the thresholds below where two units will be scrapped and replaced with a single unit.

1) Agricultural Pumps: To be eligible for funding, agricultural pumps must operate at least 250 hours during each twelve-month period for the twenty-four months prior to upgrade.

2) All Other Nonroad Engines: To be eligible for funding, nonroad engines must operate at least 500 hours during each twelve-month period for the twenty-four months prior to upgrade.

3) Locomotive and Marine Usage: To be eligible for funding the existing locomotive and marine engines must operate at least 1,000 hours during each twelve-month period for the twenty-four months prior to upgrade.

f.…