Clean_School_Bus_RFP_Final.docx

School Bus Replacement Grant Minnesota Diesel Replacement Program Volkswagen NOX Mitigation Settlement Phase 3 Request for Proposals (RFP)

FY25

The RFP assists applicants in applying for and managing state grants. This document describes the Phase 3 School Bus Replacement Grant, including information on who may apply for funding, the funding priorities for this grant round, match requirements, activities eligible for funding, and other information that will help applicants plan their project and submit a competitive application. Applications are due no later than 4:00 p.m. Central Time on May 14, 2025.

The applicant should check the SWIFT Supplier Portal for the most recent updates on a competitive grant, including questions and answers, and addendums.

Contents

10. Appendix 1: Application evaluation score sheet……………………………………………………………………………..…………11 Grant Application Form and Sample Grant Agreement can all be found at: SWIFT Supplier Portal.

Overview The Minnesota Pollution Control Agency (MPCA) requests proposals from eligible applicants from private, public, and nonprofit sectors to partially fund new diesel, propane and natural gas school bus replacements in Minnesota. The grant aims to reduce diesel emissions and improve air quality and public health by removing older diesel buses from operation and replacing them with new, cleaner buses. Projects funded will: 1) reduce diesel emissions in Minnesota; 2) fund new school buses across Minnesota; and 3) fund a mixture of fuel technologies.

1. Funding The MPCA anticipates awarding approximately $630,000 in grants to replace old diesel school buses with new diesel, propane, or natural gas models. Grants under this RFP are funded by the Volkswagen Mitigation Trust agreement for reducing diesel emissions in Minnesota. The grants are administered under Minn. Stat. §116.03, subd.2.

The funding is divided into two categories based on the location of vehicle operation. Proposed vehicle projects will be evaluated and awarded within their respective location category.

· 40% (approximately $252,000) of the funds are dedicated to replacing school buses that operate in Greater Minnesota

· 60% (approximately $378,000) of the funds are dedicated to replacing school buses that operate in the Twin Cities 7-County Metropolitan Area (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties)

If the amount listed for either category is not fully awarded, remaining funds will be awarded in the other category.

The maximum award per school bus is $15,000, or $20,000 for school districts where 40% or more of the students are eligible for free or reduced-cost lunch. To see if a school district qualifies for a $20,000 grant, visit this webpage.

The old school buses that are replaced as part of this grant must be destroyed. Grant funds cannot be used to expand fleets.

Grantees will be required to provide all remaining funds for purchase of replacement buses.

Payment schedule Grant funding for eligible costs will be paid upon completion of the approved project, after invoices and other required photos and documents are received and approved and the old bus is destroyed.

2. Eligible and ineligible applicants Eligible applicants For-profit, nonprofit, and public entities, including state, local, and Tribal governments that own or operate 1998 through 2009 model year diesel school buses in Minnesota are eligible applicants. Applicants must be based in Minnesota, have a branch office in Minnesota, or be located in Indian Country within Minnesota.

Ineligible applicants Entities or individuals that are currently suspended or debarred by the state of Minnesota and/or the federal government are not eligible applicants.

The MPCA may also deem an applicant not eligible because of, but not limited to: enforcement issues, labor standards, tax status, or other such issues.

3. Eligible and ineligible projects Eligible projects This grant is designed to replace older diesel school buses in Minnesota with new, lower-emitting school buses. For a list of propane and natural gas buses currently offered for sale in the US, visit the US Department of Energy’s Alternative Fuels Data Center website.

“School Bus” shall mean a Class 4-8 Gross Vehicle Weight Rating (GVWR) 14,001 pounds or higher bus sold or introduced into interstate commerce for purposes that include carrying students to and from school or related events. May be Type A-D.

School buses for replacement must be:

· Diesel-powered

· Engine model year 1998-2009

· Class 4-8, with a gross vehicle weight rating (GVWR) of 14,001 lbs. or greater

· Fully operational

· Currently using a minimum of 500 gallons of diesel fuel annually in Minnesota

· Not scheduled for replacement for at least three (3) years New buses must be:

· Diesel, propane, or natural gas-powered

· Model year 2024 or newer

· Certified to the applicable U.S. Environmental Protection Agency (EPA) or California Air Resources Board (CARB) emissions standards Ineligible projects A new bus powered by anything other than a diesel, propane, or natural gas engine Replacement of a gasoline-powered bus Vehicle replacements that are mandated under federal law Purchase of a bus to expand a fleet Leased vehicles

4. Eligible and ineligible costs Eligible costs Eligible project costs are costs for the purchase of a new 2024 model year or newer school bus powered by a US EPA or CARB-certified diesel, propane, or natural gas engine, and any sales tax on eligible costs.

Ineligible costs Ineligible costs include costs that are not directly related to the project. In addition, the following costs, even if they are directly related to the project, are ineligible.

Costs for the purchase or installation of any fueling infrastructure Any expenses incurred before the grant agreement is fully executed, including applicant’s expense for preparing the eligibility and cost applications Any expenses incurred during work plan application and final work plan development Costs incurred from equipment disabling Bad debts, late payment fees, finance charges or contingency funds, interest, and investment management fees Attorney fees Engineering/consultant fees Administrative expenses Lobbying, lobbyists, and political contributions Mark-up on purchases and/or subcontracts Taxes, except sales tax on eligible equipment and expenses Activities addressing permit fees Activities addressing enforcement actions Memberships (including subscriptions and dues) Food (other than staff per diem) Alcoholic refreshments Entertainment, gifts, prizes and decorations Merit awards and bonuses Donations and fundraising Computer(s), tablets, and software, unless unique to the project and specifically approved by the MPCA as a direct expense Purchase or rental of mobile communication devices such as cell phones, unless unique to the project and specifically approved by the MPCA as a direct expense

5. Application instructions All applicants must complete the Grant Application form.

If an applicant is requesting the replacement of multiple school buses, all projects must be included in one application using the application form provided.

6. Questions and answers We are obligated to be transparent in all aspects of our grant work. To meet our obligation, all questions must be submitted in the same manner, and answers are only provided via the SWIFT Supplier Portal. It is the applicant’s responsibility to check the SWIFT Supplier Portal for the most recent updates on this competitive grant, including addendums and the Q&A sheet.

Applicants who have any questions regarding this RFP must email questions to grants.pca@state.mn.us, subject line: “School Bus Grant 2025”, no later than 4:00 p.m. Central Time on April 24, 2025. All questions and answers will be included in the Q&A sheet and posted frequently in the SWIFT Supplier Portal.

MPCA personnel not listed are not authorized to discuss this RFP with applicants outside of the question and answer forum. Contact regarding this RFP with any MPCA personnel, other than via the above email address, may result in disqualification.

7. Application submission instructions Applications must be received electronically by the MPCA no later than 4:00 p.m. Central Time on May 14, 2025, through the SWIFT Supplier Portal. Application submissions received after the deadline will not be accepted.

Applicants must submit the following application materials in their original file formats for the application to be considered complete and eligible:

Grant Application (Microsoft Excel spreadsheet) The application form is available on the SWIFT Supplier Portal. If multiple replacements are being requested, all projects must be included in one application using the application forms provided.

Submit applications and required forms via the SWIFT Supplier Portal with the subject line: “School Bus Grant 2025”. The MPCA is not responsible for any errors or delays caused by technology-related issues, even if they are caused by the MPCA.

· Applicants do not need to log in to view the RFP and associated documents in the SWIFT system.

· Applicants interested in applying will need to register as a bidder in the system by clicking on the SWIFT Supplier Portal, then Register for an Account and Register as a Bidder.

· Applicants should allow up to two business days to become registered as a Bidder. If an applicant is already registered in the SWIFT system as a Supplier (previously known as a vendor), then the applicant does not need to register as a bidder. The applicant will need their Supplier ID.

Questions regarding submitting an application can be directed to the Vendor Assistance Help Desk at 651-201-8100, option 1 or by clicking on Supplier Portal Help within the SWIFT Supplier Portal.

Applications submitted via any other method, including but not limited to fax, mail, email, and in-person deliveries, will not be accepted.

All applications must be submitted their original file format (Excel spreadsheet).

8. Application review process A team of MPCA staff, using a two-stage process, will review applications received by the grant deadline. Late applications will not be considered for review.

Stage 1: Eligibility review The MPCA will determine if eligibility requirements are met. Any application found to be ineligible will be eliminated from further evaluation. Minimum requirements:

Applicant is eligible Application is received on time Project is eligible Vehicle Identification Number (VIN) is correct Applicants must supply in their application form the 17-digit VIN for each bus submitted for replacement. Prior to submittal, to ensure eligibility of the vehicle they apply to replace, applicants are encouraged to use an online VIN decoder to verify they have entered the correct VIN. MPCA will verify that the vehicle meets the eligibility requirements for engine model year, Class, and fuel type (diesel) by running a VIN check in the National Highway Transportation Safety Administration’s (NHTSA) online VIN decoder. If the NHTSA decoder cannot decode the VIN, MPCA will use the following decoder instead: . If the VIN check returns an ineligible model year, class, or fuel type, the project may be deemed ineligible. If the submitted VIN is not correct, the application may be deemed ineligible.

The model year that the VIN check returns will be used for emissions reductions evaluations in Stage 2 of the application review process.

If an applicant submits a vehicle for replacement with an engine model year different from the model year returned by a VIN check as a result of an engine replacement (example: a 2008 engine in a 1991 vehicle chassis), the applicant must submit verification of the engine replacement. The applicant must also supply the engine model year for eligibility verification and emissions evaluations.

Stage 2: Application scoring Only applications meeting the eligibility criteria under Stage 1 will be scored in Stage 2. Reviewers will evaluate applications using the weighted criteria listed in Appendix 1.

The MPCA may request clarification of submitted information from one or more applicants and will only accept written responses for evaluation purposes. The response to the request for clarification may be considered along with the original application for application scoring.

In addition to its authority to offer reduced awards, the MPCA reserves the right to withdraw the award or to refrain from awarding any grants. At its discretion, the MPCA may perform an appropriate cost and pricing check of an application. The applicant’s past performance as a grantee of that state agency will be considered when evaluating a grant application.

Priorities It is the policy of the state of Minnesota to ensure fairness, precision, equity, and consistency in competitive grant awards. This includes implementing diversity and inclusion in grant-making. The Policy on Rating Criteria for Competitive Grant Review establishes the expectation that grant programs intentionally identify how the grant serves diverse populations, especially populations experiencing inequities and/or disparities. This grant prioritizes emissions reductions in communities with higher concentrations of low-income residents and people of color, including Tribal communities, by awarding points for bus replacements in environmental justice areas and areas of higher vulnerability to negative health outcomes related to diesel air pollution. Environmental justice areas are defined in state statute as census tracts meeting any of the following criteria: 40% or more of the population is nonwhite, 35% or more of the households have an income at or below 200% of the federal poverty level, 40% or more of the population over the age of five has limited English proficiency, or located within Indian Country.

A map of environmental justice areas in Minnesota can be found online here. This map is subject to change. MPCA will use the most current map available at the time of evaluation.

Three points will be awarded to busses with accessibility technology.

Two points will be awarded to busses that are equipped with idle reduction technology.

Notification All applicants will be notified by MPCA staff approximately 45 days after application due date. Applicants selected for funding will be contacted concerning the next steps in the award process, including execution of the appropriate agreements and workplan submissions.

9. Grantee responsibilities Awardees are required to be a registered vendor in SWIFT and will sign the grant agreement using DocuSign. To register, go to the Supplier Portal webpage SWIFT and click on the Vendor Registration Link.

Applicants should allow up to two business days to become registered as a Bidder. If an applicant is already registered in the SWIFT system as a Supplier (previously known as a vendor), then the applicant does not need to register as a bidder. The applicant will need their Supplier ID.

Questions regarding registering can be directed to the Vendor Assistance Help Desk at 651-201-8100, option 1 or by clicking on Supplier Portal Help within the SWIFT Supplier Portal.

Awardees are required to submit a quote from the new vehicle vendor to verify the new vehicle’s cost information used in the application. Awardees must submit this information within 14 days of receiving their award notification, or the project may be deemed ineligible. This information will be included in the award notification.

Grant agreement Each awardee must formally enter into a grant agreement. The agreement will address the conditions of the award, including implementation of the project. Once the agreement is signed, the recipient is expected to read and comply with all conditions of the agreement.

A sample state of Minnesota Grant Agreement can be found on SWIFT Supplier Portal for your reference. Much of the language reflected in the agreement is required by statute.

Survey The MPCA may survey grantees at 6 and 12 months following the award. Information requested focuses on vehicle operation and may include, but is not limited to:

Hours of use Miles driven Miles per gallon average Idle reduction technology Survey information may be used to report out on effectiveness of projects and to formulate future RFPs.

Equipment disabling The replaced school bus must be scrapped or rendered permanently disabled prior to any funds being distributed under this grant agreement. Permanently disabling the chassis and disabling the engine while retaining possession of the school bus is an acceptable scrapping method.

Disabling the chassis may be completed by cutting through the frame/frame rails on each side at a point located between the front and rear axles. Disabling the engine may be completed by cutting a 3-inch diameter hole in the engine block to permanently disable the engine. Photographs of the disabled chassis and engine must be submitted with the reimbursement request prior to disbursements of any funds under this contract. Please see the Grantee Reimbursement Guide for additional information and photo examples.

Note: Other acceptable scrappage methods may be considered but require prior written approval from the MPCA. Vehicle/equipment components that are not part of the engine or chassis may be salvaged from the unit being replaced (e.g. lights, signs, seats, etc.) If a vehicle is sold for salvage prior to destruction, a certificate of destruction and photos of disabled engine and chassis must be sent to the MPCA prior to any funds being distributed under this grant agreement.

Public data Applications are private or nonpublic until opened. Once the applications are opened, the name and address of the applicant and the amount requested is public. All other data in an application is private or nonpublic data until all grant agreements are fully executed. After MPCA has executed all agreements, all remaining data in the applications is public with the exception of trade secret data as defined and classified in Minn. Stat. §13.37. A statement by a grantee that the application is copyrighted or otherwise protected does not prevent public access to the application (Minn. Stat. §13.599, subd. 3).

Conflict of interest Minnesota state agencies must work to deliberately avoid actual, potential and perceived conflicts of interest at the individual and organizational levels. Please refer to the state of Minnesota, Office of Grants Management for information on any potential, actual, or perceived conflicts of interest: http://www.mn.gov/admin/images/grants_policy_08-01.pdf.

Grant monitoring Minn. Stat. §16B.97 and Policy on Grant Monitoring require the following:

One monitoring visit during the grant period on all state grants of $50,000 and higher.

Annual monitoring visits during the grant period on all grants of $250,000 and higher.

Conducting a financial reconciliation of grantee’s expenditures at least once during the grant period on grants of $50,000 and higher. For this purpose, the grantee must make expense receipts, employee timesheets, invoices, and any other supporting documents available upon request by the State.

The monitoring schedule will be determined at a later date.

Grantee bidding requirements For NGOs (non-governmental organizations):

Any grant-funded services and/or materials that are expected to cost:

$100,000 or more must undergo a formal notice and bidding process.

Between $25,000 and $99,999 must be competitively awarded based on a minimum of three (3) verbal quotes or bids.

Between $10,000 and $24,999 must be competitively awarded based on a minimum of two (2) verbal quotes or bids or awarded to a targeted vendor.

For grant-funded projects that include construction work of $25,000 or more, prevailing wage rules apply, per Minn. Stat. §§177.41 through 177.44. The bid request must state the project is subject to prevailing wage. These rules require that the wages of laborers and workers should be comparable to wages paid for similar work in the community as a whole. A prevailing wage form should accompany these bid submittals.

The grantee must take all necessary affirmative steps to assure that targeted vendors from businesses with active certifications through these entities are used when possible:

State Department of Administration's Certified Targeted Group, Economically Disadvantaged and Veteran-Owned Vendor List Metropolitan Council’s Targeted Vendor list: Minnesota Unified Certification Program Small Business Certification Program through Hennepin County, Ramsey County, and City of St. Paul: Central Certification Program The grantee must maintain:

Written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts.

Support documentation of the purchasing and/or bidding process utilized to contract services in their financial records, including support documentation justifying a single/sole source bid, if applicable.

The grantee must not contract with vendors who are suspended or debarred in MN: http://www.mmd.admin.state.mn.us/debarredreport.asp For municipalities:

Grantees that are municipalities must follow:

The contracting and bidding requirements in the Uniform Municipal Contracting Law as defined in Minn. Stat.§471.345 The requirements of prevailing wage for grant-funded projects that include construction work of $25,000 or more, per Minn. Stat. §§177.41 through 177.44 The bid request must state the project is subject to prevailing wage. These rules require that the wages of laborers and workers should be comparable to wages paid for similar work in the community as a whole. A prevailing wage form should accompany these bid submittals.

The grantee must not contract with vendors who are suspended or debarred in Minnesota: http://www.mmd.admin.state.mn.us/debarredreport.asp

Required financial and grantee capacity review

Minn. Stat. §16B.981/Chapter 62 - MN Laws, Article 7, Section 11 requires that a pre-award risk assessment is conducted for grant awards of $50,000 or more.

All grantees as defined in Minn. Stat. §16B.981 Subd. 1 (c) applying for grants in the state of Minnesota must undergo a financial and capacity review prior to a grant award of $50,000 and higher.

In order to comply with this requirement, the following information and documents will need to be submitted before the grant contract agreement is fully executed (but do not submit them until you are contacted and requested to do so):

1. Capacity Responses: All potential grantees: Exhibit C

· Please describe your history of performing the work that will be funded by the grant:

· This includes describing your organization’s current staffing, current budget.

2. Certification: No current principals have been convicted of a felony financial crime in the last ten years: All potential Grantees: Exhibit D

3. Evidence of good standing: For-profit and nonprofit potential grantees: Exhibit E

· For-profit and nonprofit grantees: Filed and up-to-date with the Secretary of State

4. Nonprofit grantees as applicable: Exhibit F

· Most recent Form 990 or Form 990-EZ

· Most recent audited financial statement of a charitable organization which has received total revenue in excess of $750,000 for the 12 months of operations covered by the statement per Minn. Stat. §309.53

· Most recent board-reviewed (or managing group if applicable) financial statements, description of internal controls over business expenditures and outcomes of grant funds, if awarded, and evidence of exemption

5. For-profit Certification Disclosure and required documents: Exhibit G

· Most recent federal and state tax returns:

· If not in business long enough to have a tax return, description of internal controls over business expenditures and outcomes of grant funds, if awarded

· Current balance sheet

· Current income statement

· Statement of cash flows

· Certification that business is not under bankruptcy proceedings

· Disclosure of any liens on assets

The submission of inaccurate or misleading information may be grounds for disqualification from the grant contract agreement award and may subject an organization to suspension or debarment proceedings, as well as other remedies available to the State, by law.

Based on Minn. Stat. §16B.981/Chapter 62 - MN Laws, Article 7, Section 11, Subd. 3-5 establishes the authority for a granting agency to:

· Provide or require enhanced grant oversight

· Request additional information from a potential grantee to determine whether there is a substantial risk that the potential grantee cannot or would not perform the required duties of the grant agreement.

· The potential grantee has 30 business days to respond

· Develop a plan to address the risk or concerns identified

· Not award the grant.

· The granting agency must provide notice of this determination to not award the grant to the grantee and the Commissioner of Administration.

· The notice must include the following:

· The reason for postponing/not awarding the grant

· The timeline for the process for contesting the agency’s decision Please note, only awarded applicants will be required to fill out the referenced forms.

Audits Per Minn. Stat. §16B.98 Subdivision 8, the grantee’s books, records, documents, and accounting procedures and practices of the grantee or other party that are relevant to the grant or transaction are subject to examination by the granting agency and either the legislative auditor or the state auditor, as appropriate. This requirement will last for a minimum of six years from the grant agreement end date, receipt, and approval of all final reports, or the required period of time to satisfy all state and program retention requirements, whichever is later.

Affirmative action and non-discrimination requirements for all grantees:

A. The grantee agrees not to discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status in regard to public assistance, membership or activity in a local commission, disability, sexual orientation, or age in regard to any position for which the employee or applicant for employment is qualified. Minn. Stat. §363A.02. The grantee agrees to take affirmative steps to employ, advance in employment, upgrade, train, and recruit minority persons, women, and persons with disabilities.

B. The grantee must not discriminate against any employee or applicant for employment because of physical or mental disability in regard to any position for which the employee or applicant for employment is qualified. The grantee agrees to take affirmative action to employ, advance in employment, and otherwise treat qualified disabled persons without discrimination based upon their physical or mental disability in all employment practices such as the following: employment, upgrading, demotion or transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. Minnesota Rules, part 5000.3500 C. The grantee agrees to comply with the rules and relevant orders of the Minnesota Department of Human Rights issued pursuant to the Minnesota Human Rights Act.

Voter registration requirement The grantee will comply with Minn. Stat. §201.162 by providing voter registration services for its employees and for the public served by the grantee.

Appendix 1: Application evaluation score sheet Evaluation factors A 100-point scale per bus will be used to evaluate eligible applications. Scores will be used to develop final recommendations. For more information, review the evaluation methods document in the SWIFT portal.

Projects will be scored and ranked in their respective categories (Greater Minnesota versus Twin Cities 7-County Metropolitan Area) according to the following criteria:

· Top 20%: 25 points

· Next 20%: 20 points

· Next 20%: 15 points

· Next 20%: 10 points

· Bottom 20%: 5 points

· Zero or negative: 0 points

· Top 20%: 10 points

· Next 20%: 8 points

· Next 20%: 6 points

· Next 20%: 4 points

· Bottom 20%: 2 points

· Zero or negative: 0 points

· Top 20%: 10 points

· Next 20%: 8 points

· Next 20%: 6 points

· Next 20%: 4 points

· Bottom 20%: 2 points

· Zero or negative: 0 points

1. Environmental justice and vulnerable population considerations (35 points max):

a. Emissions reduced in environmental justice areas: up to 30 points in such areas in Greater Minnesota and up to 25 points in the Twin Cities 7-county Metro area. Points are based on the primary ZIP code of operation.

b. Vulnerable population considerations: up to 5 points. Points are based on written answers to the vulnerable population question in the application.

1. Other: (10 point max) Alternative-fuel replacement: 5 points for projects purchasing a new propane or natural gas-fueled bus Accessibility technology: 3 points Idle reduction technology: 2 points

Minnesota Pollution Control Agency

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