2024-dera-tribal-and-territory-notice-fund-opportunity-2024-05.pdf

Office of Transportation and Air Quality May 2024

AGENCY: ENVIRONMENTAL PROTECTION AGENCY (EPA)

TITLE: 2024 Diesel Emissions Reduction Act (DERA) Tribal and Territory Grants

ANNOUNCEMENT TYPE: Request for Applications

FUNDING OPPORTUNITY NUMBER: EPA-OAR-OTAQ-24-02

ASSISTANCE LISTING NUMBER: 66.039

IMPORTANT DATES

Tuesday, May 7, 2024 Notice of Funding Opportunity (NOFO) Opens Friday, November 8, 2024 Final Date to Submit Questions Friday, December 6, 2024 NOFO Closes – Application Deadline February 2025 to March 2025 Anticipated Notification of Selection May 2025 to June 2025 Anticipated Awards

Application packages must be submitted electronically to the EPA through Grants.gov (www.grants.gov) no later than Friday, December 6, 2024, at 11:59 p.m. Eastern Time (ET) to be considered for funding.

Applicants are encouraged to review the Questions and Answers document posted at the DERA Tribal and Territory Grants webpage for further clarification of this NOFO.

NOTE: If you intend to name a contractor (including an individual consultant or equipment vendor) or a subrecipient as a project partner or otherwise in your application, the EPA recommends that you carefully review, and comply with, the directions contained in the “Contracts, Subawards, and Participant Support Costs” clause that can be accessed under Appendix A of this NOFO and at EPA Solicitation Clauses. Refer to the EPA’s Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements and the EPA’s Subaward Policy and supplemental Frequent Questions for additional guidance.

Applicants must demonstrate that named contractors (including individual consultants and equipment vendors) were selected in compliance with the competitive requirements of the Procurement Standards in 2 CFR Part 200 as interpreted in the EPA guidance and/or that named subrecipients meet the eligibility requirements in EPA’s Subaward Policy for the EPA to consider their qualifications and role in the proposed project.

http://www.grants.gov/ http://www.epa.gov/dera/tribal-and-territory http://www.epa.gov/dera/tribal-and-territory http://www.epa.gov/grants/epa-solicitation-clauses https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients https://Grants.gov

TABLE OF CONTENTS

I. FUNDING OPPORTUNITY DESCRIPTION

A. Background and Summary

B. Program Goals and Objectives

C. Environmental Results and Strategic Plan Information

D. Statutory Authority

E. Additional Provisions for Applicants Incorporated into the Solicitation

II. FEDERAL AWARD INFORMATION

A. Amount of Funding Available

B. Number and Amount of Awards

C. Partial Funding

D. Additional Awards

E. Award Funding and Incremental/Full Funding

F. Period of Performance

G. Funding Type

III. ELIGIBILITY INFORMATION

A. Eligible Entities

B. Voluntary Cost Sharing/Matching Funds

C. Threshold Criteria

D. Eligible and Ineligible Activities

IV. APPLICATION AND SUBMISSION INFORMATION

A. How to Register to Apply for Grants under this Competition

Step 1. Register Your Organization in SAM.gov

Step 2. Create a User Account and Applicant Profile in Grants.gov

Step 3. Create Individual Grants.gov Accounts for Organization Members

Step 4. Learn How to Use Workspace in Grants.gov

B. Application Process

C. Project Narrative Instructions, Format, and Content

D. Coalition Coverage

E. Releasing Copies of Applications

V. APPLICATION REVIEW INFORMATION

A. Evaluation Criteria

B. Review and Selection Process

C. Other Factors

D. Anticipated Announcement and Federal Award Dates

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

B. Combining Successful Applications into One Award

C. Reporting Requirement

D. Build America, Buy America Requirements

E. Equipment Use, Management, and Disposition

VII. CONTACT INFORMATION

APPENDIX A – Further information Regarding Contracts, Subawards, and Participant Support Costs . 67

APPENDIX B – Application Submission Checklist

APPENDIX C – Quantifying Environmental Outcomes

APPENDIX D – Mandated Measures Justification

APPENDIX E – Priority Area List

I. FUNDING OPPORTUNITY DESCRIPTION

A. Background and Summary

This Notice of Funding Opportunity (NOFO) announces the availability of funds and solicits applications from eligible entities to incentivize and accelerate the upgrading or retirement of the nation’s legacy diesel engine fleet. Eligible activities include the retrofit or replacement of existing diesel engines, vehicles, and equipment with the EPA and California Air Resources Board (CARB) certified engine configurations and verified retrofit and idle reduction technologies.

Applications will be accepted from federally recognized Tribal governments (or intertribal consortia), Alaska Native Villages, or government agencies of the U.S. Virgin Islands, Guam, American Samoa, and Commonwealth of the Northern Mariana Islands, which have jurisdiction over transportation or air quality. The EPA anticipates awarding a total of approximately $9 million under this NOFO: $8 million for Tribes and $1 million for territories. The EPA anticipates awarding approximately twelve (12) to eighteen (18) grants or cooperative agreements to Tribal governments (or intertribal consortia) or Alaska Native Villages and three (3) to five (5) grants or cooperative agreements to territory government entities, subject to the availability of funds, the quantity and quality of applications received, and other applicable considerations.

There are several ways DERA recipients may implement projects and fund project partners depending on the roles and responsibilities of each. If the applicant is the owner of the target vehicles, the applicant may directly implement the project. If the applicant is partnering with diesel fleet owners, the applicant may award subawards or participant support costs (i.e., rebates) to project partners. Please refer to Appendix A for detailed guidance on funding partnerships.

Reducing emissions from diesel engines is one of the most important air quality challenges facing the country. From transportation to energy generation, the diesel engine powers almost every sector of the American economy. Due to more stringent EPA diesel engine emissions standards over the past few decades, engines currently coming off the manufacturing line are now sixty times cleaner. However, despite these tighter standards for new engines, the nearly eight million legacy diesel engines already in use continue to emit large amounts of particulate matter 2.5 (PM2.5) and nitrogen oxides (NOx). “Legacy diesel engines” are defined by the DERA program as the operating nonroad diesel and medium to heavy-duty highway diesel engines with engine model years 2009 and earlier. Previously, DERA defined legacy engines as 2006 and earlier, but this has been expanded to include 2007-2009 engines which do not meet current emission standards. These air pollutants contribute to serious public health problems like asthma, lung disease, and various other cardiac and respiratory illnesses, which result in thousands of premature deaths, millions of lost workdays, and numerous other negative health impacts every year in the United States.

https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P100O9ZZ.pdf

To address these diesel emissions and protect public health and air quality, the EPA is authorized under DERA to offer funding assistance to accelerate the upgrade, retrofit, and turnover of the legacy diesel fleet. Since the inaugural year of funding for DERA in 2008, the EPA has awarded over $800 million to replace or retrofit approximately 73,700 engines or vehicles to reduce diesel emissions nationwide. The DERA program promotes an array of diesel emissions strategies by working with manufacturers, fleet operators, air quality professionals, environmental and community organizations and state and local officials to address the varying 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 NOFO is a competitive grant program. Therefore, only applications that score well will be selected for funding by the review panels. The DERA program has another competitive funding opportunity, DERA National Grants, which funds similar activities but is open to a wider range of applicant types. Funding for school bus replacement is also available through the EPA’s Clean School Bus Program. More information and updates on funding opportunities for electrification and other zero-emissions technologies for ports and heavy-duty vehicles can be found on the EPA’s new Clean Ports Program and Clean Heavy-Duty Vehicle Program webpages.

The DERA Tribal and Territory Grants program was formerly known as the DERA Tribal and Insular Area Grants and changed in 2024 in response to partner feedback. All corresponding materials will reflect this name change moving forward.

B. Program Goals and Objectives

1. DERA Programmatic Priorities: DERA allows the EPA to prioritize certain applicants in the DERA Tribal and Territory Grants. The statute enables the program to prioritize projects that maximize public health benefits, are the most cost-effective, that serve areas with the highest population density or that are poor air quality areas (including nonattainment or maintenance areas, and areas with air toxic air pollutant concerns), that serve areas that receive a disproportionate quantity of air pollution from diesel fleets, and those that use a community-based multi-partner collaborative process to reduce toxic emissions. The following sections define the DERA Tribal and Territory Grants programmatic priorities under this NOFO. Applications which address and demonstrate that the project meets these programmatic priorities will receive priority for funding under the evaluation criteria defined in Section V.A. of this NOFO.

a. Goods Movement Facilities: Priority for funding is given to projects based on whether the vehicles/engines/equipment targeted for diesel emissions reductions are located at, or service, goods movement facilities as defined below. Applicants should include the name of the specific port, airport, rail yard, terminal, or distribution center where the affected vehicles operate. Points will be based upon the percentage of time targeted vehicles operate at, and/or the percentage of the total targeted vehicles that operate at, goods movement facilities.

https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1015S8Q.pdf https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1015S8Q.pdf https://www.epa.gov/dera/national https://www.epa.gov/cleanschoolbus https://www.epa.gov/cleanschoolbus https://www.epa.gov/clean-heavy-duty-vehicles-program https://www.epa.gov/ports-initiative/cleanports

i. Ports - places alongside navigable water with facilities for the loading and unloading of passengers and/or cargo from ships, ferries, and other vessels

ii. Airports - places where aircraft operate that have paved runways and terminals which include cargo, baggage, and/or passenger-movement operations

iii. Rail Yards - a system of tracks, other than main tracks and sidings, used for making up trains, for storing cars, and for other purposes

iv. Terminals - freight and passenger stations at the end of carrier lines, or that serve as junctions at any point with other lines, which have facilities for the handling of freight and/or passengers

v. Distribution Centers - facilities that perform consolidation, warehousing, packaging, decomposition, and other functions linked with handling freight, often in proximity to major transport routes or terminals, and which generate large amounts of truck traffic

b. Environmental Justice and Disadvantaged Communities: Environmental justice (EJ) is the just treatment and meaningful involvement of all people regardless of race, color, national origin, income, Tribal Affiliation, or disability in agency decision-making and other Federal activities that affect human health and the environment. Fair treatment means no group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental, and commercial operations or policies. Meaningful involvement means people have an opportunity to participate in decisions about activities that may affect their environment and/or health;

the public's contribution can influence the regulatory agency's decision; community concerns will be considered in the decision-making process; and decision makers will seek out and facilitate the involvement of those potentially affected. The EPA will evaluate environmental justice issues under Section V.A., Criterion 3 of this NOFO.

The DERA statute enables the program to prioritize projects that serve poor air quality areas (including nonattainment or maintenance areas and areas with air toxic air pollutant concerns), and those that use a community-based multi-partner collaborative process to reduce toxic emissions. This allows the program to target communities with environmental justice concerns; that is, communities adversely and disproportionately affected by environmental, climate change, and human health harms or risks, and support a broad geographic distribution of funds. Additionally, DERA has been identified as part of the Justice40 Initiative, which creates a goal that 40 percent of applicable federal benefits flow to disadvantaged communities.1

1Tackling the Climate Crisis at Home and Abroad, 86 Fed. Reg., 7619 (Feb. 1, 2021).

i. Disadvantaged Communities: For the purposes of this NOFO, “disadvantaged communities” are defined as meeting the following criteria:

a) Nonattainment or Maintenance Area: These counties are identified as priority project locations for the DERA program because they are designated as https://www.whitehouse.gov/environmentaljustice/justice40/ nonattainment areas or maintenance areas for the following National Ambient Air Quality Standards. Data is sourced from the EPA’s Green Book of Nonattainment Areas for Criteria Pollutants.

1. PM2.5 1997 Standard (Annual: 15 μg/m3, 24-hour: 65 μg/m3)

2. PM2.5 2006 Standard (Annual: 15 μg/m3, 24-hour: 35 μg/m3)

3. PM2.5 2012 Standard (Annual: 12 μg/m3, 24-hour: 35 μg/m3)

4. Ozone (O3) 2008 Standard (8-hour: 0.075ppm)

5. Ozone (O3) 2015 Standard (8-hour: 0.070ppm)

The term “project location” refers to the area(s) where the affected vehicles or engines equipment operate. A list of counties that have been designated as priority project locations can be found in Appendix E.

ii. Community Engagement: Priority for funding is given to applications which demonstrate engagement with the affected communities and/or populations, especially local residents, to ensure their meaningful participation with respect to the design, planning, and performance of the project. Meaningful involvement means people have an opportunity to participate in decisions about activities that may affect their environment and/or health; the public's contribution can influence the regulatory agency’s decision; community concerns will be considered in the decision-making process; and decision makers will seek out and facilitate the involvement of those potentially affected.

c. Project Sustainability: Priority for funding is given to projects which can demonstrate the ability of the applicant and project partners to promote and continue efforts to reduce emissions after the EPA funding for this project has ended. The EPA will evaluate this under Section V.A., Criterion 4 of this NOFO. Specifically, applications will be evaluated on whether the applicant and/or its project partners have existing policies or new commitments to, by the end of the project period, adopt idle-reduction policies, adopt contract specifications requiring the use of cleaner, more efficient vehicles and equipment, complete an up-to-date mobile source equipment inventory, or adopt other strategies to promote and continue efforts to reduce diesel emissions.

d. Project Resilience to Climate Impacts: Priority for funding is given to applications which demonstrate the ability to protect grant funded investments from severe weather events. The EPA will evaluate applications based on the quality and extent to which the project assesses and implements adaptation considerations described below to help ensure that the project achieves its expected outcomes even as the climate changes.

Adapting to climate change involves actions by individuals, businesses, governments, and others to build resilience and reduce vulnerability of human and natural systems to unavoidable climate impacts. Adaptation also reduces the long-term costs of responding to these impacts. Applicants can demonstrate consideration of climate change http://www.epa.gov/green-book http://www.epa.gov/green-book adaptation through measures taken to anticipate, prepare for, and avoid adverse impacts of climate change. For example, assessing project vulnerability to climate impacts can be incorporated into project planning, such as siting decisions and operational plans. Measures taken to avoid damages could include ensuring fleets and equipment are protected from impacts such as flooding and sea level rise and protecting infrastructure from storm damage.

e. Workforce Development: Evaluation criteria points will be given to applications that demonstrate plans and activities to prepare their workforce for the project, such as conducting robust workforce planning to ensure current drivers, mechanics, electricians, and other essential personnel receive training to safely operate and maintain the new vehicles, engines, infrastructure, and equipment, in order to maximize the useful life of any certified engine configuration, verified technology, or emerging technology used or funded by the eligible entity. Additionally, evaluation criteria points will be given to applications which demonstrate policies and protections that currently exist or will be put in place to prevent existing workers from being replaced or displaced because of new technologies purchased with funding awarded under this NOFO. Evaluation criteria points will be given to applicants who demonstrate that they engage with workers and their representatives directly in the development of workforce planning activities to incorporate worker voice into the project.

The EPA will evaluate this criterion based on the quality and extent of the workforce planning activities. Applicants can demonstrate workforce planning by clearly articulating which types of jobs will be impacted by the project, how they have or will engage those workers, how they will provide training, resources, and support to those workers for implementing the project (including the amount of time workers will spend in training and the skills they will develop), and clarifying if workers will be compensated with their regular wages for their time spent in training. Plans should make clear how they prioritize the health and safety of workers through evidence of a health and safety program that adheres to Occupational Safety and Health Administration regulations or other applicable regulations, including any modifications needed in response to the project. Where applicable, electricians working on Electric Vehicle Supply Equipment (EVSE) are strongly encouraged to be certified by the Electric Vehicle Infrastructure Training Program.

2. Diesel Vehicles, Engines, and Equipment: Projects may target in-use medium and heavy-duty diesel-powered highway vehicles and diesel powered nonroad vehicles and equipment, as defined in Table 1, below.

Table 1: Diesel Vehicles, Engines, and Equipment

School Buses

Includes diesel powered school buses of Type A, B, C, and D. A “school bus” is defined as a passenger motor vehicle designed to carry a driver and more than 10 passengers, that the Secretary of Transportation decides is likely to be used significantly to transport preprimary, primary, and secondary school students to or from school or an event related to school.

Transit Buses Includes diesel powered medium-duty and heavy-duty transit buses (see definition of eligible Class 5-8 vehicles 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

Diesel powered nonroad engines, equipment, and vehicles including, but not limited to, those used in construction, handling of cargo (including at ports and airports), agriculture, mining, or energy production (including stationary generators and pumps). Eligible nonroad equipment includes transport refrigeration units (TRUs). Please see the TRU Factsheet found on the DERA Tribal and Territory Grants website for information on TRUs and eligible TRU projects.

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 on the DERA Tribal and Territory Grants website.

b. Transport Refrigeration Units: Eligible nonroad equipment includes transport refrigeration units (TRUs). Please see the DERA TRU Factsheet found on the DERA Tribal and Territory Grants website for information on TRUs and eligible TRU projects.

3. Diesel Emissions Reduction Solutions: Projects may upgrade existing diesel vehicles and equipment using the diesel emissions reduction solutions defined in Table 2, below.

Table 2. Diesel Emission Reduction Solutions

Certified Vehicle and

Nonroad and highway diesel vehicles and equipment, locomotives, and marine vessels can be replaced with newer, cleaner, vehicles and equipment. Eligible replacement highway vehicles include those certified http://www.epa.gov/dera/tribal-and-territory http://www.epa.gov/dera/tribal-and-territory http://www.epa.gov/dera/tribal-and-territory http://www.epa.gov/dera/tribal-and-territory https://nepis.epa.gov/Exe/ZyPDF.cgi/P1017V8N.PDF?Dockey=P1017V8N.PDF https://nepis.epa.gov/Exe/ZyPDF.cgi/P1017V8N.PDF?Dockey=P1017V8N.PDF

Equipment by the EPA and/or CARB to run on diesel or clean alternative fuel engines Replacements (including gasoline), electric generators (gensets), hybrid engines, and zero emission power sources (grid, battery, or fuel cell). Eligible replacement nonroad equipment, locomotives, and marine vessels include those powered by EPA- and/or CARB-certified diesel or clean alternative fuel engines (including gasoline), electric generators (gensets), hybrid engines.

Nonroad equipment, locomotives, and marine vessels powered by zero emission power sources (grid, battery, or fuel cell) do not require EPA or CARB certification.

Certified Engine Replacement

Nonroad and highway diesel vehicles and equipment, locomotives, and marine vessels can have their engines replaced with newer, cleaner, engines. Eligible replacement highway engines include those certified by the EPA and/or CARB for use with diesel or cleaner alternative fuels (including gasoline), electric generators (gensets), and hybrid engines, and zero emission power sources (grid, battery, or fuel cell). Eligible replacement nonroad, locomotive, and marine engines include those powered by EPA- and/or CARB-certified diesel or clean alternative fuel engines (including gasoline), electric generators (gensets), and hybrid engines. Nonroad equipment, locomotives, and marine vessel engine replacement with zero emission power sources (grid, battery, or fuel cell) do not require EPA or CARB certification.

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 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 EPA-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 Particulate Matter (PM) and/or NOx emissions benefit.

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. EPA SmartWay verified technologies currently include options to reduce idling for long haul Class 8 trucks equipped with sleeper cabs, school buses, transport refrigeration units, locomotives, and marine vessels.

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 ventilation systems (CCVs), and selective catalytic reduction systems (SCRs). Manufacturer engine upgrades which achieve specific levels of emission 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 for some nonroad and marine engines. Some cleaner fuels and additives have been verified as retrofits by the 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. The 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.

Clean Alternative Fuel Conversions

Existing highway diesel engines can be altered to operate on alternative fuels such as propane and natural gas by applying a certified alternative fuel conversion kit.

Verified Aerodynamic Technologies and Low Rolling Resistance Tires

To improve fuel efficiency, long haul Class 8 trucks can be equipped with EPA verified aerodynamic devices and/or low rolling resistance tires.

C. Environmental Results and Strategic Plan Information

Pursuant to Section 6.a. of the EPA Order 5700.7A1, “Environmental Results under EPA Assistance Agreements,” the EPA must link proposed assistance agreements with the Agency’s Strategic Plan. The EPA also requires that grant applicants and recipients adequately describe environmental outputs and outcomes to be achieved under assistance agreements (see EPA Order 5700.7A1, Environmental Results under EPA Assistance Agreements). Applicants must include specific statements describing the environmental results of the proposed project in terms of well-defined outputs and, to the maximum extent practicable, well-defined outcomes that will demonstrate how the project will contribute to the Strategic Plan goals listed below.

1. Linkage to the EPA’s Strategic Plan: The activities to be funded under this announcement support the EPA’s Fiscal Year (FY) 2022-2026 Strategic Plan. Awards made under this announcement will support Goal 1, “Tackle the Climate Crisis” Objective 1.1, “Reduce Emissions that Cause Climate Change,” of the EPA’s Strategic Plan. All applications must be for projects that support the goals and objectives above. For more information see the EPA’s FY 2022 - FY 2026 EPA Strategic Plan.

2. Outputs: The term “output” means an environmental activity, effort, and/or associated work product related to an environmental goal and objective that will be produced or provided over a period of time or by a specified date. Outputs may be quantitative or qualitative but must be measurable during an assistance agreement funding period.

Expected outputs from the projects to be funded under this announcement include, but are not limited to:

• Number of replaced or retrofitted engines/vehicles/equipment; and/or

• Hours of idling reduced, if applicable.

Progress reports and a final report will also be required outputs, as specified in Section VI.C.

“Reporting Requirement,” of this NOFO.

Other potential outputs may include, but are not limited to:

• Engaging with local residents to ensure their meaningful participation with respect to the design, planning, and performance of the project

• The project’s inclusion in a broader-based environmental or air quality plan

• The implementation of contract specifications requiring the use of cleaner vehicles and equipment

• A documented commitment to continue to identify and address air quality issues in the affected community

• Establishing a clear point of contact in a public platform for community issues and complaints

• A publicly documented policy or process for getting community input on operations and projects that impact air quality http://www.epa.gov/sites/production/files/2015-03/documents/epa_order_5700_7a1.pdf http://www.epa.gov/sites/production/files/2015-03/documents/epa_order_5700_7a1.pdf https://www.epa.gov/planandbudget/strategicplan

• Adoption of an idle reduction policy

• The completion of a baseline mobile source emission inventory for PM2.5 and or NOx;

• Providing support to clean diesel coalitions by sharing information, working with interested fleets, and addressing specific geographic needs

• Number of subawards; and/or

• Dissemination of project/technology information via list serves, websites, journals, and outreach events

3. Outcomes: The term “outcome” means the result, effect or consequence that will occur from carrying out an environmental program or activity that is related to an environmental or programmatic goal or objective. Outcomes may be environmental, behavioral, health-related, or programmatic in nature, but must also be quantitative. They may not necessarily be achievable within an assistance agreement funding period.

Expected outcomes from the projects to be funded under this announcement include, but are not limited to:

• Tons of pollution reduced over the lifetime of the vehicles/engines/equipment, specifically:

o fine particulate matter (PM2.5) o nitrogen oxides (NOx) o carbon monoxide (CO) and carbon dioxide (CO2), and/or o volatile organic compounds (VOCs)

• Tons of pollution reduced annually

• Lifetime total project cost effectiveness for NOx and PM2.5

• Lifetime capital cost effectiveness for NOx and PM2.5

• Net reduction in gallons of diesel fuel used

• Benefits to disadvantaged communities, including improvements to human health and the environment, the local economy, social conditions, and the welfare of residents in such communities

Applicants should follow the instructions in Appendix C of this announcement for calculating emissions reductions and cost effectiveness.

Other potential outcomes may include, but are not limited to:

• Community engagement and partnership

• Improved ambient air quality

• Health benefits achieved

• Changes in driver behavior regarding idling practices

• An increased understanding of the environmental or economic effectiveness of the implemented technology

• Increased public awareness of project and results

• Widespread adoption of the implemented technology

• Demonstration and deployment of zero and near-zero emission vehicles and engines

• Emissions reductions along freight transportation corridors

4. Performance Measures: The applicant should also develop performance measures they expect to achieve through the proposed activities and describe them in their application.

These performance measures will help gather insights and will be the mechanism to track progress concerning successful processes and output and outcome strategies and will provide the basis for developing lessons to inform future recipients. Additional details on reporting requirements are included in Section VI.C. It is expected that the description of performance measures will directly relate to the project outcomes and outputs.

The description of the performance measures should directly relate to the project’s outcomes and outputs, including but not limited to:

• Overseeing subrecipients, and/or contractors and vendors

• Tracking and reporting project progress on expenditures and purchases

• Tracking, measuring, and reporting accomplishments and proposed timelines/milestones

• Tracking and reporting project progress on installations/replacements by maintaining an accurate project fleet description

• Measuring and reporting on outcomes by maintaining an accurate project fleet description and using the EPA’s diesel emissions quantifier

• Efforts should be made to track, measure, and report the actual vehicle miles traveled, hours of use/operation, and fuel use for all vehicles and equipment involved in the project

The following are questions to consider when developing output and outcome measures of quantitative and qualitative results:

• What are the measurable short term and longer term results the project will achieve?

• How does the plan measure progress in achieving the expected results (including outputs and outcomes) and how will the approach use resources effectively and efficiently?

D. Statutory Authority

The Diesel Emissions Reduction Program is authorized by Title VII, Subtitle G of the Energy Policy Act of 2005, 42 USC 16131, et seq., as amended. DERA authorizes the award of grants to reduce diesel emissions and diesel emissions exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas. While the EPA has authority under DERA to support grant programs, the EPA’s authority to obligate grant funds is subject to the availability of appropriated funds.

E. Additional Provisions for Applicants Incorporated into the Solicitation

Additional provisions that apply to Section III, IV, V, and VI of this solicitation and/or awards made under this solicitation, can be found at EPA Solicitation Clauses. These provisions are important for applying to this solicitation and applicants should review them when preparing applications for this solicitation. If you are unable to access these provisions electronically at the website above, please contact the EPA point of contact listed in Section VII of this solicitation to obtain the provisions.

II. FEDERAL AWARD INFORMATION

A. Amount of Funding Available

The total estimated funding expected to be available for awards under this competitive opportunity is approximately $9 million. A total of approximately $8 million will be made available to Tribal governments (or intertribal consortia) or Alaska Native Villages, and approximately $1 million will be made available to eligible territory government entities.

Funding is dependent upon Agency appropriations, funding availability, Agency priorities, and other applicable considerations.

B. Number and Amount of Awards

The EPA anticipates awarding a total of approximately twelve (12) to eighteen (18) grants or cooperative agreements to Tribal governments (or intertribal consortia) or Alaska Native Villages and three (3) to five (5) grants or cooperative agreements to territory government entities under this announcement, subject to the availability of funds, the quantity and quality of applications received, Agency priorities, and other applicable considerations. If the EPA selects multiple applications from an applicant, the EPA may combine the selected applications into one grant award for the successful applicant (See Section VI.B. “Combining of Successful Applications into One Award”).

The amount of federal funding requested per application by the Tribal governments (or intertribal consortia) or Alaska Native Villages must not exceed $800,000, and the amount requested per application by the territory government entities must not exceed $400,000.

Individual applications requesting EPA funding for more than the amounts specified will not be considered.

Applicants can submit a total of two (2) applications overall under this solicitation. However, each application must be for a different project and must be submitted separately. A single application may target multiple fleets, fleet types, and/or diesel emission reduction solutions.

C. Partial Funding

In appropriate circumstances, the EPA reserves the right to partially fund applications by funding discrete portions or phases of proposed projects. If the EPA decides to partially fund an http://www.epa.gov/grants/epa-solicitation-clauses application, it will do so in a manner that does not prejudice any applicants or affect the basis upon which the application, or portion thereof, was evaluated and selected for award, thereby maintaining the integrity of the competition and selection process.

D. Additional Awards

The EPA reserves the right to make additional awards under this solicitation, consistent with Agency policy and guidance, if additional funding becomes available after the original selections are made. Any additional selections for awards will be made no later than six months after the original selection decisions. In addition, the EPA reserves the right to reject all applications and make no awards under this announcement or to make fewer awards than anticipated.

E. Award Funding and Incremental/Full Funding

Awards may be fully or incrementally funded, as appropriate, based on funding availability, satisfactory performance, and other applicable considerations. If an applicant is selected for incremental funding, the EPA and the applicant will negotiate a final workplan, timeline, and budget which has clearly delineated activities or phases with separate budget estimates for each activity/phase of a project within the project period. A portion of the total requested funding will be awarded at the beginning of the project period for the specified activities/phases. Subject to the availability of funds, and other applicable considerations, additional funding may be awarded later as an incremental budget amendment to fund the remaining activities/phases of the project.

F. Period of Performance

The estimated project period for awards resulting from this solicitation is two years; however initial project periods of up to three years will be allowed where justified by the activities, timeline, and milestones detailed in the workplan. The estimated project start date for awards will begin by June 2025.

G. Funding Type

It is anticipated that grants and/or cooperative agreements will be funded under this solicitation.

Successful applicant(s) will be issued a grant or cooperative agreement as appropriate. A cooperative agreement is an assistance agreement that is used when there is substantial federal involvement with the recipient during the performance of an activity or project. The EPA awards cooperative agreements for those projects in which it expects to have substantial interaction with the recipient throughout the recipient’s performance of the project. The EPA will negotiate the precise terms and conditions of “substantial involvement” as part of the award process. The anticipated substantial federal involvement for cooperative agreements under this NOFO may include close monitoring of the recipient’s performance; collaboration during the performance of the scope of work; in accordance with 2 CFR §200.317 and 2 CFR §200.318, as appropriate, review of proposed procurements, reviewing qualifications of key personnel, and/or review and comment on the content of printed or electronic publications prepared. The EPA does not have the authority to select employees or contractors employed by the recipient. The final decision on the content of reports rests with the recipient.

III. ELIGIBILITY INFORMATION

Note: Additional provisions that apply to this section can be found at EPA Solicitation Clauses.

A. Eligible Entities

In accordance with Assistance Listing 66.039, and the EPA’s Policy for Competition of Assistance Agreements (EPA Order § 5700.5A1), competition under this solicitation is available to Tribal governments (or intertribal consortia), Alaska Native Villages, or territory government agencies which have jurisdiction over transportation or air quality.

Tribal governments are defined as Federally recognized Indian Tribal governments, which are any Indian Tribe, band, nation, or other organized group or community (including Alaska Native Villages) certified by the Secretary of the Interior as eligible for the special programs and services provided through the Bureau of Indian Affairs as well as any organization or intertribal consortium that represents Federally recognized Tribes.

For the purposes of this NOFO, “intertribal consortium” is defined as a partnership between two or more eligible Tribal governments as defined above, that is authorized by the governing bodies of those Tribes to apply for and receive assistance under this program. Intertribal consortia are eligible to receive assistance under this program only if the consortium demonstrates that all members of the consortium meet the eligibility requirements for the program and authorize the consortium to apply for and receive assistance by submitting to the EPA documentation of (1) the existence of the partnership between Indian Tribal governments, and (2) authorization of the consortium by all its members to apply for and receive the assistance.

For the purposes of this NOFO and as defined in 48 U.S.C. §1469a, eligible territories include the U.S. Virgin Islands, Guam, American Samoa, and Commonwealth of the Northern Mariana Islands.

B. Voluntary Cost Sharing/Matching Funds

No cost sharing/matching funds or leveraged resources are required as a condition of eligibility under this competition.

Although cost sharing is not required as a condition of eligibility under this competition, applicants may propose to provide voluntary cost share as described below. Applicants will not https://www.epa.gov/grants/epa-solicitation-clauses https://www.epa.gov/grants/epa-order-57005a1-epas-policy-competition-assistance-agreements https://www.epa.gov/grants/epa-order-57005a1-epas-policy-competition-assistance-agreements be evaluated specifically on whether a voluntary cost share is provided; however, providing a voluntary cost share may improve the environmental outputs and outcomes defined in Section I.C.2 and Section I.C.3 of this NOFO. Applications will be evaluated on the environmental outputs and outcomes of the project under Section V.A., Criterion 7.

1. Voluntary Cost Sharing Voluntary cost sharing is when an applicant voluntarily proposes to legally commit to provide costs or contributions to support the project when a cost share is not required.

Applicants who propose to use a voluntary cost share must include the costs or contributions for the voluntary cost share in the project budget on the SF-424 and SF-424A.

Voluntary cost share will not be evaluated under the selection criteria in Section V.A. If an applicant proposes a voluntary cost share, the following apply:

• A voluntary cost share is subject to the applicable provisions of 2 CFR §200.306, Cost sharing or matching.

• A voluntary cost share may only be met with eligible and allowable costs.

• The recipient may not use other sources of federal funds to meet a voluntary cost share unless the statute authorizing the other federal funding provides that the federal funds may be used to meet a cost share requirement on a federal grant or cooperative agreement.

The recipient is legally obligated to meet any proposed voluntary cost share that is included in the approved project budget. If the proposed voluntary cost share does not materialize during the performance period of the grant or cooperative agreement, the EPA may reconsider the legitimacy of the award and/or take other appropriate action as authorized by 2 CFR Part 200.

2. Leveraged Resources Leveraged resources or “leveraging” is when an applicant proposes to provide additional resources to support or complement the proposed project which are above and beyond the EPA grant funds, they are requesting. These resources do not need to be eligible or allowable costs under the program. Additionally, these resources should only be described in the applicant’s project narrative and should not be included in the project budget on the SF-424 or SF-424A. If applicants propose to leverage funds, the EPA expects them to secure the leveraged resources described in their applications. If the proposed leveraging does not materialize during the performance period of the grant or cooperative agreement, the EPA may reconsider the legitimacy of the award and/or take other appropriate action authorized under 2 CFR Part 200.

3. Volkswagen Environmental Mitigation Trust Please note: The Volkswagen Environmental Mitigation Trust for Indian Tribe Beneficiaries, under Environmental Mitigation Action Number 10 (the DERA Option), allows Tribal entities to use trust funds as non-federal voluntary matching funds under the EPA’s DERA Tribal Grants program. For additional information on the Volkswagen settlement and the DERA Option, please visit the Volkswagen (VW) Settlement: DERA Option webpage on the EPA https://www.epa.gov/dera/volkswagen-vw-settlement-dera-option website. DERA funds may not be used to meet mandatory cost sharing requirements for projects funded with environmental mitigation funds resulting from federal settlements (e.g., Volkswagen Environmental Mitigation Trust).

C. Threshold Criteria

All applications will be reviewed for eligibility and must meet the eligibility requirements described in Section III A., B., and C. to be considered eligible. Only applications from eligible applicants will be evaluated against the ranking criteria in Section V.A. of this NOFO. If necessary, the EPA may contact applicants to clarify threshold eligibility questions prior to making an eligibility determination. Applicants deemed ineligible for funding consideration due to the threshold eligibility review will be notified within 15 calendar days of the ineligibility determination.

1. Application Content and Submission: Applications must substantially comply with the application submission instructions and requirements set forth in Section IV or else they will be rejected. However, where a page limit is expressed in Section IV.B. with respect to the application, or parts thereof, pages in excess of the 14-page limitation will not be reviewed. Applicants are advised that readability is of paramount importance and should take precedence in application format, including selecting a legible font type and size for use in the application.

All applications must be submitted through Grants.gov as stated in Section IV.A. of this announcement (except in the limited circumstances where another mode of submission is specifically allowed for as explained in Section IV) on or before the application submission deadline published in Section IV.B. of this solicitation. Applicants are responsible for following the submission instructions in Section IV.A. of this solicitation to ensure that their application is timely and properly submitted. Please note that applicants experiencing technical issues with submitting through Grants.gov should follow the instructions provided in Section IV.B., which include both the requirement to contact Grants.gov and to email a full application to the EPA point of contact prior to the deadline.

The EPA will only consider accepting applications from applicants that are able to demonstrate that they are unable to submit through Grants.gov due to Grants.gov or relevant SAM.gov system issues or for unforeseen exigent circumstances, such as extreme weather interfering with internet access. Failure of an applicant to submit prior to the application submission deadline date because they did not properly or timely register in SAM.gov or Grants.gov is not an acceptable reason to justify acceptance of an application outside of Grants.gov. NOTE: Registering in SAM.gov or grants.gov can take a month or more. Applicants are advised to begin their registration process early so it does not interfere with drafting the application near the deadline.

2. Applications must support Goal 1, “Tackle the Climate Crisis” Objective 1.1, “Reduce Emissions that Cause Climate Change,” of the EPA’s Strategic Plan described in Section I.C.

https://www.epa.gov/dera/volkswagen-vw-settlement-dera-option…