amended DERA Ports RFP 11 04 14.pdf

AGENCY: ENVIRONMENTAL PROTECTION AGENCY (EPA)

TITLE: Projects to Improve Air Quality at Ports – 2014 Diesel Emissions

Reduction Act (DERA) Funding Opportunity

ACTION: Request for Proposals (RFP)

RFP NUMBER: EPA-OAR-OTAQ-14-07

CATALOG OF FINANCIAL DOMESTIC ASSISTANCE NUMBER: 66.039

IMPORTANT DATES

September 18, 2014 RFP OPENS

December 11, 2014 RFP CLOSES – PROPOSALS DUE

February 2015 ANTICIPATED NOTIFICATION OF SELECTION

March 2015 ANTICIPATED AWARD

The closing date for receipt of proposals is December 11, 2014. All proposals submitted through www.grants.gov, or via hard copy, must be received by December 11, 2014, 4:00 p.m. EST.

Proposals received after the closing date and time will not be considered for funding. See Section

IV of the RFP for further submission information.

SUMMARY

EPA’s Office of Transportation and Air Quality (OTAQ) is soliciting proposals that achieve significant reductions in diesel emissions in terms of tons of pollution produced by diesel engines and diesel emissions exposure, from fleets operating at marine and inland water ports located in areas of poor air quality1.

Eligible diesel emission reduction solutions include verified emission control technologies such as exhaust controls and engine upgrades, verified idle reduction technologies, certified engine repowers, and/or certified vehicle or equipment replacements. Please refer to Page 2 for a summary of important funding limits regarding these emission reduction solutions.

Eligible diesel vehicles, engines and equipment may include drayage trucks, marine engines, locomotives and nonroad engines, equipment or vehicles used in the handling of cargo at a marine or inland water port.

Eligible entities include public port authorities and state or local government agencies with jurisdiction over transportation or air quality. Community groups, terminal operators, shipping carriers, nonprofits, and other business entities involved in port operations are encouraged to participate through partnerships with eligible applicants. See Section III for further eligibility information.

1 Section III.B provides additional information and links to a list of counties and areas designated as poor air quality areas.

http://www.grants.gov/

This solicitation is being offered in addition to EPA’s annual National Clean Diesel Campaign

(NCDC) Funding Assistance Program. EPA intends to make future awards under the NCDC

Funding Assistance Program subject to the availability of adequate funding.

FUNDING / AWARDS

The total estimated funding for this competition is approximately $5 million. EPA anticipates awarding two to five cooperative/assistance agreements from this announcement, subject to availability of funds, the quality of proposals received, and other applicable considerations.

Applicants cannot request more than $2 million in federal funding – proposals requesting more than

$2 million in federal funds will not be reviewed. Funding will be in the form of cooperative agreements.

Summary of What EPA Will Fund:

Verified Exhaust Control Technologies: EPA will fund up to 100% of the cost of eligible verified exhaust control technologies.

Verified/Certified Engine Upgrades: EPA will fund up to 40% of the cost (labor and equipment) of eligible engine upgrades.

Verified Idle Reduction Technologies:

Verified Locomotive Idle Reduction Technologies: EPA will fund up to 40% of the cost of eligible idle reduction technologies on locomotives.

Verified Marine Shore Connection Systems: EPA will fund up to 25% of the cost of eligible shore connection systems.

Certified Engine Repower: EPA will fund up to 40% of the cost (labor and equipment) of an eligible engine repower.

Certified Vehicle/Equipment Replacement:

Nonroad Diesel Vehicles and Equipment: EPA will fund the incremental cost of a newer, cleaner vehicle or piece of equipment powered by a model year 2013 or newer certified nonroad diesel engine, up to 25% of the cost of an eligible replacement vehicle or piece of equipment.

Drayage Truck Replacement: EPA will fund up to 50% of the cost of eligible drayage trucks with a 2011 model year or newer heavy-duty engine.

Clean Alternative Fuel Conversions: EPA will fund up to 40% of the cost (labor and equipment) of an eligible clean alternative fuel conversion.

Pursuant to 42 USC 16132(d)(2), no funds awarded under this RFP shall be used to fund the costs of emission reductions that are mandated under federal law. Specifically, projects involving locomotives and marine engines will not be considered for funding under this RFP if the emissions reductions proposed for funding are required by EPA’s locomotive and marine rule, “Control of Emissions of Air Pollution from Locomotives and Marine Compression-

Ignition Engines Less than 30 liters per Cylinder.”

Proposals for emissions reductions from locomotives and/or marine engines that do not include a “Mandated Measures Justification and Substantiation Letter(s)” as an attachment to the proposal, as described in Section III.E.1 and Appendix D of this RFP, are not eligible for funding and will not be reviewed.

TABLE OF CONTENTS PAGE

I. Funding Opportunity Description.………………………………....……………

A. Background……………………………………………………………

B. Scope of Work…………………………………………………...……………. 4

C. Programmatic Priorities..………………………………………...……………. 12

D. Linkage to EPA Strategic Plan and Anticipated Outputs/Outcomes…………. 13

E. Supplementary Information…………………………………………………... 15

II. AWARD INFORMATION………………………………….………………….. …… 15

A. Available Funding……………………………………………………………. 15

B. Partial Funding…………………….……………….…………………………. 16

C. Project Period……………………….………………..……………………….. 16

D. Funding Type……………………….………………..……………………….. 16

E. Technology Compatibility…………………………………………………….. 16

III. ELIGIBILITY INFORMATION…………..…………………………………... …

A. Eligible Entities……………………..…………………………………

B. Eligible Project Locations…………………………………………………….. 17

C. Cost-Share Requirement and Voluntary Cost-Share..…………………... …… 17

D. Threshold Eligibility Criteria………………………..………………..…..…

E. Funding Restrictions…………………………………..……………………… 20

IV. PROPOSAL AND SUBMISSION INFORMATION………………..………... ……. 24

A. How to Obtain a Proposal Package………….………………………..………. 24

B. Proposal Submission………………………………….…………...………….. 24

C. Content of Proposal Package………………………………..….………..…… 25

D. Submission Date and Time……………………………………………

E. Pre-Proposal Assistance and Communications……………………………….. 27

F. Contracts and Subawards……………………………………………………… 27

G. Additional Provisions for Applicants Incorporated Into the Solicitation……... 29

V. PROPOSAL REVIEW INFORMATION……………………………………………. 29

A. Evaluation Criteria……………………………………………………………. 29

B. Review and Selection Process…………………………………………

C. Other Factors……………………………………………………………

VI. AWARD ADMINISTRATION INFORMATION………………………….…

A. Award Notices……………………………………………………………

B. Administrative and National Policy Requirements…….…………

C. Reporting Requirement……………………………………………………….. 33

D. Disputes…………………………………………….……………………

E. Program Income………………………………………………………………. 33

F. Additional Provisions for Applicants Incorporated Into the Solicitation……... 33

VII. AGENCY CONTACTS………………………………………………………

Appendix A: Grants.gov Proposal Submission Instructions……..…………………

Appendix B: Project Narrative Instructions, Format, and Content…………………

Appendix C: Quantifying Environmental Outcomes and Public Health Benefits...…

Appendix D: Diesel Emissions Reduction Effectiveness……………………………

Appendix E: Mandated Measures Justification………………………………………….. 53

Appendix F: Proposal 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. In 2009, nationwide diesel emissions from mobile sources alone accounted for approximately 300,000 tons of directly emitted fine Particulate Matter (PM 2.5) and 6.4 million tons of oxides of nitrogen (NOx), which contribute to the formation of ozone and additional fine particles. Despite EPA’s diesel engine and fuel standards for new engines, the eleven million diesel engines already in use continue to emit large amounts of NOx and PM 2.5, 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.

Marine and inland water transportation is a key component of the U.S. national economy for both domestic and international trade. According to the U.S. Maritime Administration, more than 2.0 billion metric tons of goods were shipped via waterborne transportation in 2009. Several studies, including EPA’s National Air Toxics Assessment, have identified high levels of diesel emissions at or near marine and inland water ports. Most of the country’s busiest water ports are located in or adjacent to large metropolitan areas and, as a result, expose a significant number of citizens in nearby communities to high levels of diesel emissions. Additionally, many large water ports are located in non-attainment areas for ozone and particulate matter.

To protect public health and reduce port-related diesel emissions, EPA has initiated a dialogue with port stakeholders. The purpose of this dialogue is to promote clean air strategies by working with fleet operators, air quality professionals, environmental and community organizations and state and local officials to reduce diesel emissions. This effort supports EPA’s goal of furthering environmental justice by prioritizing emission reductions in areas receiving disproportionate impacts from diesel fleets and to provide an environment where all people enjoy the same degree of protection from environmental and health hazards.

The Diesel Emissions Reduction Act (DERA), codified at 42 U.S.C. 16131 et seq., authorizes EPA to offer funding assistance to eligible entities on a competitive basis. Fiscal Year (FY) 2008 was the inaugural year of funding for the DERA program, and since then EPA has awarded funds to over

500 projects to reduce diesel emissions nationwide. Specific information on these funded projects can be found at: www.epa.gov/cleandiesel/projects/.

B. Scope of Work

The goal of this Request for Proposals (RFP) is to fund projects that will result in significant reductions of diesel emissions at marine and inland water ports located in areas of poor air quality, promote partnerships among stakeholders to work together to create long-term sustainable plans for further reducing emissions, and benefit the health of communities near ports. A single proposal may target multiple fleets, fleet types and/or diesel emission reduction solutions.

In order to achieve the objectives of the program, proposals must address the following two elements:

http://www.epa.gov/cleandiesel/projects/

1. Eligible Diesel Vehicles, Engines and Equipment: Projects are limited to diesel emission reduction solutions from the following heavy-duty diesel emission sources that operate at marine or inland water ports:

a. Drayage trucks2;

b. Marine vessels;

c. Locomotives; and

d. Nonroad engines, equipment or vehicles used in the handling of cargo.

2. Eligible Diesel Emission Reduction Solutions: Projects must include one or more of the following diesel emission reduction solutions that utilize a certified engine configuration and/or a verified technology.

A “retrofit” project is defined broadly to include any technology, device or system that, when applied to an existing diesel engine, achieves emission reductions beyond what is currently required by EPA regulations at the time of the engine’s certification.

Additional information about the diesel emission reduction solutions listed below, as well as technical tips and important points to consider, is available at www.epa.gov/cleandiesel/documents/420p11001.pdf. Technology changes may not be allowed after a proposal has been selected for funding. If technology compatibility issues arise during the project period, EPA may elect to terminate the cooperative/assistance agreement, at which time assistance funds must be returned to EPA.

a. Exhaust Controls: Exhaust Controls include pollution control devices installed in the exhaust system (such as oxidation catalysts and particulate matter filters), or systems that include crankcase emission control (like a closed crankcase filtration system). This funding can cover up to 100% of the cost (labor and equipment) for an eligible verified emission control. EPA suggests that each applicant requesting diesel particulate filters datalog the exhaust temperature of all vehicles to be considered before the application is submitted, so that there is evidence that the fleets can accommodate the technology. Datalogging for drayage trucks is particularly important because the low speed of operation and extended idling periods may not be compatible with certain diesel particulate filter devices.

A list of eligible, EPA verified exhaust control technologies is available at:

www.epa.gov/cleandiesel/verification/verif-list.htm; a list of eligible California Air

Resources Board (CARB) verified exhaust control technologies is available at:

www.arb.ca.gov/diesel/verdev/vt/cvt.htm. The types of technologies proposed for funding under this category must be on one of these lists for the specific vehicle/engine application specified in the proposal at the time of proposal submission to EPA. If selected for funding, the actual exhaust control technologies used by the grant recipient must be specifically named on EPA or CARB’s Verified Exhaust Control Technologies lists at the time of

2 Definition of Drayage Truck: any Class 8b in-use on-road vehicle with a gross vehicle weight rating (GVWR) of greater than 33,000 pounds 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.

http://www.epa.gov/cleandiesel/documents/420p11001.pdf http://epa.gov/cleandiesel/verification/verif-list.htm http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm acquisition, and used only for the vehicle/engine applications specified on the list, in order to be eligible for funding.

b. Engine Upgrades: Generally, an engine upgrade involves the removal of parts on an engine during a rebuild and replacement with parts that cause the engine to represent an engine configuration which is cleaner than the original engine. Some nonroad and marine engines are able to be upgraded to reduce their emissions by applying manufacturer upgrades that are retrofits currently verified by EPA or CARB as a package of components demonstrated to achieve specific levels of emission reductions. Some locomotives and marine engines are able to be upgraded through the application of a certified remanufacture system that is used to rebuild the engine to represent a cleaner engine configuration. Engine upgrades may not be available for all engines, and not all upgrades may achieve an emissions benefit.

Proposals for upgrades should include a discussion of the availability of engine upgrade kits/systems and indicate the pre- and post-project emission standard levels of the engines in order to demonstrate that the upgrade will result in an emissions benefit.

Funding can cover up to 40% of the cost (labor and equipment) of an eligible nonroad, locomotive or marine engine upgrade. To be eligible for funding, the upgrade must either be a verified retrofit as described above, or a certified remanufacture system that will result in an emissions benefit by rebuilding the engine to a cleaner engine configuration. For an engine to be eligible for an upgrade, the engine must be currently operating and performing its intended function. If a certified remanufacture system for a locomotive includes a full engine replacement, the requirements below in Section I.B.2.d.2 (Repower Criteria) will apply.

A list of eligible, EPA verified engine upgrade technologies is available at:

www.epa.gov/cleandiesel/verification/verif-list.htm. Lists of certified remanufacture systems for locomotives and marine engines, and additional information on remanufacture systems, are available at: www.epa.gov/otaq/certdata.htm. Engine upgrades proposed for funding under this category must exist on one of these lists for the specific vehicle/engine application specified in the proposal at the time of proposal submission to EPA. If selected for funding, the actual engine upgrades used by the grant recipient must be specifically named on EPA’s list of certified remanufacture systems or EPA or CARB’s Verified

Exhaust Control Technologies lists at the time of acquisition, and used only for the vehicle/engine applications specified on the lists, in order to be eligible for funding.

Note: Projects involving locomotives and marine engines will not be considered for funding under this RFP if the upgrade/remanufacture proposed for funding is required by EPA’s locomotive and marine rule, “Control of Emissions of Air Pollution from Locomotives and Marine Compression-Ignition Engines Less than 30 liters per

Cylinder.” Proposals for emission reductions from locomotives and/or marine engines that do not include a “Mandated Measures Justification and Substantiation Letter(s)” as an attachment to the proposal, as described in Section III.E.1 and Appendix E of this RFP, are not eligible and will not be reviewed.

c. 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 http://www.epa.gov/cleandiesel/verification/verif-list.htm http://www.epa.gov/otaq/certdata.htm vessels and equipment that would otherwise require the operation of the main drive or auxiliary engine(s) while the equipment or vessel is temporarily parked or remains stationary. The reduction in idling will conserve diesel fuel and must also lower emissions.

The technology categories eligible for funding under this solicitation include: verified idle reduction technologies for locomotives and marine shore power connection systems.

Please note that technologies for the electrification of engines/vessels/equipment other than those specifically listed below, cannot be considered verified idle reduction technologies, but may be eligible as a Repower (removal of a diesel engine and its replacement with an electric power source, see Section f, below) or a Replacement (replacement of a diesel powered engine/vehicle/equipment with an eligible electric engine/vehicle/equipment, see

Section g, below).

1) Verified Idle Reduction Technologies on Locomotives: Funding can cover up to 40% of the cost (labor and equipment) of the installation of eligible verified idle reduction technologies on locomotives. A list of verified Automatic Shut-down/Start-up Systems, Auxiliary Power Units and Generator Systems, and Shore Power Connection Systems for Locomotives can be found at:

www.epa.gov/smartway/forpartners/technology.htm#tabs-4

Verified idle reduction technologies for locomotives must exist for the specific vehicle/engine application specified in the proposal at the time of proposal submission to

EPA. If selected for funding, verified idle reduction technologies for locomotives used by the grant recipient must be specifically named on EPA’s SmartWay Verified

Technologies list at the time of acquisition, and used only for the specific vehicle/engine applications specified on the list, in order to be eligible for funding.

Note: Projects involving locomotives will not be considered for funding under this

RFP if the technology installation proposed for funding is required by EPA’s locomotive rule, “Control of Emissions of Air Pollution from Locomotives and

Marine Compression-Ignition Engines Less than 30 liters per Cylinder.” Proposals for emission reductions from locomotives and/or marine engines that do not include a

“Mandated Measures Justification and Substantiation Letter(s)” as an attachment to the proposal, as described in Section III.E.1 and Appendix E of this RFP, are not eligible and will not be reviewed.

2) Marine Shore Power Connection Systems: Funding can cover up to 25% of the cost (labor and equipment) of eligible shore connection systems, including various components such as cables, cable management systems, shore power coupler systems, distribution control systems, and power distribution. For the purposes of this funding opportunity, EPA will fund expansions or power capacity upgrades of shore power systems currently operating at a marine terminal. Applicants must include a complete description and attest to compliance with international shore power design standards

(ISO/IEC/IEEE 80005-1-2012) for both the currently operating system as well as the expansion/capacity upgrade components. In addition, the past twelve (12) months of records of the following information must be provided by applicants proposing marine shore power connection systems: name of each vessel that connected to the current system, fuel type and average sulfur content of fuel for each vessel, propulsion (main) http://www.epa.gov/smartway/forpartners/technology.htm#tabs-4 and auxiliary engine information for each vessel, average berthing time for each vessel per visit, average power requirements for each vessel while at berth, total number of visits made to the port and number of times (including amount of time) connected to shore power. Applicants must also provide information on the vessels that will utilize the proposed shore power connection expansion.

Due to the unique nature of marine shore power connection systems, EPA will review the information provided by the applicant in order to verify the specific shore power system for the project being considered for funding. If the project proposal is awarded, the marine shore power connection system will be subject to EPA written approval prior to funding.

Shore power connection systems must be supplied with electricity from the local utility grid and meet the technical requirements necessary for connection with vessels equipped to receive shore power. Funding may only be used to cover the cost of shore-side connection systems and cannot be used for shipside modifications to accept shore-based electrical power. In order to be eligible for funding, shore connection systems must be utilized for more than 2,000 MW-hours per year. Priority will be given to those systems with the ability to match various voltage requirements.

d. Certified Engine Repowers: “Repower” refers to replacing an existing engine with a newer, cleaner engine that is certified to a more stringent set of engine emission standards.

Repower includes, but is not limited to, diesel engine replacement with an engine certified for use with a clean alternative fuel, diesel engine replacement with an electric power source

(battery or fuel cell3), and/or the replacement of a nonroad engine with a highway engine.

Proposals for repowers should include the pre- and post- project standard emission levels of the engines to be repowered, in order to ensure that the repower will result in a net emissions reduction. This funding can cover up to 40% of the cost (labor and equipment) of an eligible engine repower. All-electric (i.e zero emission) repowers do not require EPA or CARB certification.

1) Electric Generator Repower:

a) For a repower that involves the replacement of an existing diesel propulsion engine with a stationary or auxiliary diesel powered electric generator (genset), the electric generator and the newer, cleaner engine comprising the genset are both eligible costs of the repower, subject to the cost-share requirement defined above.

b) Repower of an existing genset involves replacing the existing diesel engine in the genset with a newer, cleaner engine. Only the newer, cleaner engine (labor and equipment) is an eligible cost of the repower, subject to the cost-share requirement defined above.

2) Repower Criteria: Repower projects are eligible for funding on the condition that the following criteria are satisfied:

a) The repowered vehicle, engine or equipment must continue to perform the same function as before the repower.

3 Hydrogen fuel cells are only eligible for repowers for eligible drayage trucks as defined in this RFP.

b) The replacement engine must be of similar horsepower as the engine being replaced.

Horsepower increases of more than 10 percent will require specific approval by EPA prior to purchase.

c) Repower Scrappage: Evidence of appropriate disposal (such as a photograph of the scrapped engine), including the engine serial number, is required in a final cooperative/assistance agreement report submitted to EPA.

i. The engine being replaced must be scrapped or rendered permanently disabled or returned to the original engine manufacturer for remanufacturing to the cleanest certified emission standard possible.

ii. Drilling a hole in the engine block and manifold is an acceptable scrapping method. Other methods may be considered and will require prior EPA approval.

iii. If scrapped or salvaged engines are to be sold, program income requirements may apply.

d) Early Attrition: Repowers that would have occurred through normal attrition are considered to be the result of normal fleet turnover and are not eligible for funding under this program. Normal attrition is generally defined as a repower that is scheduled to take place within 3 years of the project start date. Normal attrition is typically defined by the vehicle or fleet owner’s budget plan, operating plan, standard procedures, or retirement schedule. For example, if a nonroad fleet typically repowers its equipment after 20 years, a piece of equipment that is currently in its

18th or 19th year of service is not eligible for repower. A piece of equipment that is currently in its 17th year of service and has three years of useful life remaining (as defined by the fleet’s repower schedule) is eligible for repower. Normal attrition does not include repowers that must occur due to a State or Local mandate.

Proposals which include repowers must include a detailed discussion of the fleet owner’s normal attrition/engine repower schedule and must explain how the proposed emissions reductions are not a result of vehicle/equipment repowers that would have occurred through normal attrition/engine repower within three years of the project start date.

e) Additional funding restrictions for repower projects are described in Section III.E.

Note: Projects involving locomotives and marine engines will not be considered for funding under this RFP if the repower proposed for funding is required by EPA’s locomotive and marine rule, “Control of Emissions of Air Pollution from Locomotives and Marine Compression-Ignition Engines Less than 30 liters per Cylinder.” Proposals for emission reductions from locomotives and/or marine engines that do not include a

“Mandated Measures Justification and Substantiation Letter(s)” as an attachment to the proposal, as described in Section III.E.1 and Appendix E of this RFP, are not eligible and will not be reviewed.

e. Vehicle and Equipment Replacements: Nonroad and highway diesel vehicles and equipment can be replaced under this program with newer, cleaner vehicles and equipment that operate on diesel or alternative fuels and use engines certified by EPA and, if applicable, CARB to meet a more stringent set of engine emission standards. Replacement projects can include the replacement of diesel vehicles/equipment with newer, cleaner diesel, electric (battery or fuel cell4), hybrid or alternative fuel vehicles/equipment. All-electric (i.e. zero emission) vehicles and equipment do not require EPA or CARB certification. Marine vessels and locomotives are not eligible for full replacement.

1) Nonroad Diesel Vehicles and Equipment: This funding can cover the incremental cost of a newer, cleaner vehicle or piece of equipment powered by a 2013 model year or newer certified nonroad engine, up to 25% of the cost of an eligible replacement vehicle/equipment. Nonroad engine emission standards can be found at:

www.epa.gov/otaq/standards/nonroad/index.htm. Please see Section III.C for additional information on cost-share requirements.

a) Electric Generator Replacement: For stationary or auxiliary diesel powered electric generator (genset), replacement means the removal of the entire genset and its replacement with a newer, cleaner genset. The electric generator in a genset together with the newer, cleaner engine is an eligible cost of the replacement, subject to the cost-share requirement defined above.

2) Replacements for Drayage Vehicles: EPA will fund up to 50% of the cost of eligible drayage trucks.

a) Definition of Drayage Truck: A “Drayage Truck” means any Class 8b in-use on-road vehicle with a gross vehicle weight rating (GVWR) of greater than 33,000 pounds 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.

b) Vehicle Eligibility Requirements: EPA will fund up to 50% of the cost of eligible drayage trucks with a 2011 model year or newer heavy-duty engine equipped with a diesel particulate filter (or catalyst equipped in the case of a CNG engine).

c) Scrappage Requirements for Drayage Vehicles: The purchaser of the eligible drayage truck must scrap an existing drayage truck, following the Replacement

Criteria described in Section I.B.2.e.3, below. If the proposal is selected for funding, the grant recipient will be required to establish guidelines to ensure that the scrapped vehicle has a history of operating on a frequent basis over the prior year as a drayage truck. For an example of sample guidelines, see:

www.epa.gov/cleandiesel/documents/fy14-sample-drayage-operating-guidelines.pdf

d) Drayage Operating Guidelines: If a proposal for the replacement of drayage trucks is selected for funding, the grant recipient will be required to establish guidelines to ensure that all drayage trucks purchased with grant funds are operated in a manner consistent with the definition of a drayage truck, as defined above. For an example of sample guidelines, see www.epa.gov/cleandiesel/documents/fy14-sample-drayage-operating-guidelines.pdf

e) Required/Scheduled Maintenance: EPA will fund 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.

4 Hydrogen fuel cell vehicles and equipment are only eligible as replacements for eligible drayage trucks as defined in this RFP and eligible forklifts.

http://www.epa.gov/otaq/standards/nonroad/index.htm http://www.epa.gov/cleandiesel/documents/fy14-sample-drayage-operating-guidelines.pdf http://www.epa.gov/cleandiesel/documents/fy14-sample-drayage-operating-guidelines.pdf http://www.epa.gov/cleandiesel/documents/fy14-sample-drayage-operating-guidelines.pdf

3) Replacement Criteria: Replacement projects are eligible for funding on the condition that the following criteria are satisfied:

a) The replacement vehicle/equipment must be of the same type and similar gross vehicle weight rating or horsepower as the vehicle/equipment being replaced.

Horsepower increases of more than 10 percent will require specific approval by EPA prior to purchase.

b) The replacement vehicle/equipment must perform the same function as the vehicle/equipment that is being replaced (e.g., an excavator used to dig pipelines would be replaced by an excavator that continues to dig pipelines).

c) Replacement Scrappage: The purchase of new vehicles or equipment to expand a fleet is not covered by this program. Evidence of appropriate disposal (such as a photograph of the scrapped vehicle/equipment), including engine serial number and vehicle identification number (VIN), is required in a final assistance agreement report submitted to EPA.

i. Nonroad Vehicles and Equipment: The vehicle/equipment being replaced must be scrapped or rendered permanently disabled or returned to the original engine manufacturer for remanufacturing to the cleanest certified emission standard possible.

ii. Drayage Vehicles: The vehicle being replaced must be scrapped or rendered permanently disabled or returned to the original engine manufacturer for remanufacturing to engine MY 2007 or newer certified emission standard.

iii. Drilling a hole in the engine block and manifold and disabling the chassis is an acceptable scrapping method. Other methods may be considered and will require prior EPA approval.

iv. Equipment and vehicle components that are not part of the engine or chassis may be salvaged from the unit being replaced (e.g. seats, tires, etc.). If scrapped or salvaged vehicles/parts are to be sold, program income requirements may apply.

d) Early Attrition: Replacements that would have occurred through normal attrition are considered to be the result of normal fleet turnover and are not eligible for funding under this program. Normal attrition is generally defined as a replacement that is scheduled to take place within 3 years of the project start date. Normal attrition is typically defined by the vehicle or fleet owner’s budget plan, operating plan, standard procedures, or retirement schedule. For example, if a port typically retires equipment after 20 years, a piece of equipment that is currently in its 18th or 19th year of service is not eligible for replacement. Equipment that is currently in its 17th year of service and has three years of useful life remaining (as defined by the fleet’s retirement schedule) is eligible for replacement. Normal attrition does not include replacements that must occur due to a State or Local mandate. Proposals which include replacements must include a detailed discussion of the fleet owner’s normal attrition schedule and must explain how the proposed emission reductions are not a result of vehicle/equipment replacements that would have occurred through normal attrition/fleet turnover within three years of the project start date.

e) Additional funding restrictions for replacement projects are described in Section

III.E.

f. Clean Alternative Fuel Conversions: Conventional, original equipment manufacturer

(OEM) highway diesel vehicles and engines that are altered to operate on alternative fuels such as propane, natural gas, alcohol, or electricity are classified as aftermarket clean alternative fuel conversions. Clean alternative fuel conversions are accomplished by applying a certified or compliant alternative fuel conversion “kit” to an existing highway diesel engine. Funding can cover up to 40% of the cost (labor and equipment) of an eligible certified or compliant clean alternative fuel conversion. Proposals 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 in order to demonstrate that the conversion will result in an emissions benefit.

In the United States, all clean alternative fuel conversions (except pure battery electric) must meet applicable EPA standards pursuant to 40 CFR Parts 85 and 86. Lists of certified and compliant clean alternative fuel conversion systems, and additional guidance, can be found at www.epa.gov/otaq/consumer/fuels/altfuels/altfuels.htm. Vehicles operating in California must follow conversion rules issued by CARB. Fuel cells are not eligible as conversion under this solicitation. Clean alternative fuel conversions must be “dedicated” or “mixed fuel”, meaning the engine runs only on the alternative fuel, or uses a small amount of diesel mixed with the alternative fuel. Dedicated or mixed fuel engines do not have the ability to operate solely on diesel fuel. “Dual fuel” or “bi-fuel” conversions, meaning the engine can switch between fuel sources and still has the capability of running on 100% diesel are not eligible for funding under this solicitation.

C. Programmatic Priorities

In addition to the requirements of Section I.B, proposals should also demonstrate how the project will address the following four elements:

1. Benefits to Communities and Public Health: Proposals should address how the project will benefit communities surrounding the marine or inland water port(s), including minority or low-income communities as well as others that are, or historically have been, disproportionately impacted by diesel emissions originating from port operations. Proposals should identify the affected communities, their proximity to the project area, and the impacts diesel emissions have had on the health and environmental conditions of the communities. Proposals should describe the population and identify groups with increased sensitivity to air pollution that are impacted by diesel emissions originating from the project area, as well as how the proposed project will benefit the surrounding communities and maximize public health benefits. Applicants may refer to Appendix C for information about quantifying environmental outcomes and public health benefits.

Proposals should also describe how the applicant will engage surrounding communities in the development and implementation of the project. Examples of community engagement include but are not limited to soliciting input from community groups on efforts to reduce emissions, conducting public outreach events, and providing publically accessible information about the proposed project, the applicant’s air quality improvement plans, and/or the applicant’s progress toward reducing diesel emissions/exposure from port operations.

2. Partnerships: Proposals should identify partnerships with relevant port stakeholders.

Partnerships between port authorities, government agencies, terminals, communities, shipping http://www.epa.gov/otaq/consumer/fuels/altfuels/altfuels.htm carriers, and other non-profit and private stakeholders can greatly benefit from one another’s experience, and help to ensure longer-term emissions reductions.

If a working partnership already exists or is under development, the proposal should identify all parties involved, as well as provide a clear description of the roles of each partner in the project’s components/tasks and how each partner will contribute to the success of the project.

The applicant’s proposal package should include letters of commitment from all existing partners. Letters of commitment should describe the extent to which the partner will engage with the applicant to help effectively complete the project.

If a partnership does not yet exist, proposals should describe how the applicant plans to engage partners and establish working partnerships to successfully complete the project. If the applicant does not intend to have partners, then an explanation should be provided on how it will effectively perform the project without partners.

3. Promote and Sustain Efforts to Reduce Emissions from Port Areas: Proposals should address how the project will promote and sustain ongoing efforts to reduce emissions from port operations after EPA funding for this project has ended. Examples include but are not limited to the project’s inclusion in a broader-based environmental or air quality improvement plan, a documented commitment to continue to identify and address air quality issues at the port, the availability of a port emissions inventory and a plan for regular updates, and/or implementation of idling control plans. Promotion of ongoing efforts should include opportunities for public/community input, reporting components to ensure the plans are implemented, and emissions reductions are lasting.

4. Diesel Emissions Reduction Effectiveness: Proposals will be evaluated on the project’s effectiveness at reducing diesel emissions, based on the expected life and activity level of the vehicle or equipment, and the cost and effectiveness of the emissions reduction strategy applied to the vehicle or equipment. See Appendix D for additional information.

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

EPA Order 5700.7, “Environmental Results under EPA Assistance Agreements,” requires that all assistance agreements be aligned with the Agency’s Strategic Plan. EPA requires that grant applicants and recipients adequately address environmental outputs and outcomes to be achieved under assistance agreements. Grantees will be expected to report progress toward the attainment of project outputs and outcomes during the performance period. Applicants will be evaluated on the effectiveness of their plan for tracking and measuring progress toward achieving anticipated outputs and outcomes.

EPA Order 5700.7, Environmental Results under Assistance Agreements, may be found at:

www.epa.gov/ogd/epa_order_5700_7a1.pdf.

1. Linkage to EPA Strategic Plan: All proposals must support EPA’s 2014-2018 Strategic Plan

Goal 1, ‘Take Action on Climate Change and Improve Air Quality’; Objective 1.2 ‘Improve Air

Quality’, which states, “Achieve and maintain health-based air pollution standards and reduce risk from toxic air pollutants and indoor air contaminants.” Specifically, the proposed activities will reduce emissions from diesel fleets, thereby reducing local and regional air pollution.

http://www.epa.gov/ogd/epa_order_5700_7a1.pdf

EPA’s 2014-2018 Strategic Plan may be found at: www2.epa.gov/planandbudget/strategicplan.

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.

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

adoption of an idle reduction policy; and/or dissemination of project/technology information via community engagement events, list serves, websites, journals and outreach events.

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

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 qualitative and 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:

Intermediate Outcomes:

net reduction in annual pounds or tons of fine particulate matter (PM 2.5), nitrogen oxides (NOx), greenhouse gases (GHG) such as carbon dioxide (CO2) and black carbon, and/or volatile organic compounds (VOCs); and/or net reduction in gallons of diesel fuel used.

End Outcomes:

improved ambient air quality; and/or health benefits achieved (Monetary health benefits must be described consistent with the instructions provided in Appendix C.)

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

additional and/or accelerated progress toward implementing existing air quality improvement plans;

new or strengthened partnerships that support future progress toward improved air quality;

changes in driver behavior regarding idling practices;

http://www2.epa.gov/planandbudget/strategicplan an increased understanding of the environmental or economic effectiveness of the implemented technology;

increased public awareness of project and results; and/or widespread adoption of the implemented technology.

4. Performance Measures. The applicant should also develop performance measures for tracking, measuring and reporting its progress towards achieving the proposed outputs and outcomes, and describe them in their proposal. It is expected that the description of performance measures will include the following:

oversight of project partners, subgrantees, and/or contractors and vendors;

tracking and reporting project progress on expenditures, purchases, and other fiscal activities;

tracking and reporting actual accomplishments versus proposed outputs/outcomes 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 EPA’s Diesel Emission Quantifier; and a plan for corrective action if timelines/milestones are not met; if necessary.

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 this project support the port’s ongoing air quality improvement objectives?

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?

E. Supplementary Information

The Diesel Emissions Reduction National Program (DERA) is authorized by Title VII, Subtitle G of the Energy Policy Act of 2005 (Public Law 109-58), as amended and reauthorized by the Diesel

Emissions Reduction Act of 2010 (Public Law 111-364) and codified at 42 USC 16131 et seq.

II. AWARD INFORMATION

A. Available Funding

EPA anticipates awarding two to five cooperative agreements from this announcement for a total of approximately $5 million under this announcement, subject to the availability of funds, the quality of proposals received, and other applicable considerations. Applicants are advised not to request more than $2 million in federal funding – proposals requesting more than $2 million in federal funds will not be reviewed.

EPA reserves the right to make additional awards under this announcement, consistent with Agency policy and other applicable considerations, if additional funding becomes available after the original selections. Any additional selections for awards will be made no later than six months from the date of the original selections.

In addition, EPA reserves the right to reject all proposals and make no awards under this announcement or to make fewer awards than anticipated.

B. Partial Funding

In appropriate circumstances, EPA reserves the right to partially fund proposals by funding discrete portions or phases of proposed projects. If EPA decides to partially fund a project, it will do so in a manner that does not prejudice any applicants or affect the basis upon which the proposal or portion thereof, was evaluated and selected for award, thereby maintaining the integrity of the competition and selection process.

C. Project Period

The estimated project period for awards resulting from this solicitation is expected to begin on April

1, 2015, with an expected project completion date no later than March 31, 2017.

D. Funding Type

The funding for selected projects will be in the form of a cooperative agreement. Cooperative agreements permit substantial involvement between EPA and the selected applicants in the performance of the work supported. Although EPA will negotiate precise terms and conditions relating to substantial involvement as part of the award process, the anticipated substantial federal involvement for these projects will be:

close monitoring of the successful applicant’s performance to verify the results proposed by the applicant;

collaboration during performance of the scope of work;

in accordance with 40 CFR 31.36(g), review of proposed procurement;

approving qualifications of key personnel (EPA will not select employees or contractors employed by the award recipient); and review and comment on reports prepared under the cooperative agreement (the final decision on the content of reports rests with the recipient).

E. Technology Compatibility

Technology changes may not be allowed after a proposal has been selected for funding. If technology compatibility issues arise during the course of the project, EPA may elect to terminate the assistance agreement, at which time assistance funds must be returned to EPA.

III. ELIGIBILITY INFORMATION

A. Eligible Entities

Under this solicitation, only public port authorities or state and local government agencies with jurisdiction over transportation and air quality are eligible to apply for funding.

A public port authority is generally defined as a governmental or quasi-governmental public authority formed by a legislative body to operate ports, harbors, and other transportation infrastructure.

Community groups, terminal operators, shipping carriers, and other related entities involved in port operations are encouraged to participate through partnerships with eligible port authorities and state/local government agencies. EPA award funds may be used to make subawards and subgrants to project partners, provided that the recipient complies with applicable requirements contained in

40 CFR Parts 30 or 31, as appropriate. See Section IV.F for additional information.

B. Eligible Project Locations

Projects must reduce diesel emissions at a marine or inland water port located in an area of poor air quality. A list of eligible counties and areas can be found at:

www.epa.gov/otaq/ports/documents/fy14-ports-county-area-list.pdf. Proposals for projects not located in an eligible area will not be considered for funding.

The term “project location” as used in this RFP, refers to the primary area where the affected vehicles/engines operate and/or the primary area where the emissions benefits of the project will be realized.

These counties and areas have been…