EPA-OAR-OTAQ-23-06.pdf

AGENCY: ENVIRONMENTAL PROTECTION AGENCY (EPA)

TITLE: 2023 Clean School Bus (CSB) Grant Program

ANNOUNCEMENT TYPE: Notice of Funding Opportunity (NOFO)

FUNDING OPPORTUNITY NUMBER: EPA-OAR-OTAQ-23-06

ASSISTANCE LISTING NUMBER: 66.045

IMPORTANT DATES

Monday, April 24, 2023 Notice of Funding Opportunity (NOFO) Opens Wednesday, July 26, 2023 Final Date to Submit Questions Tuesday, August 22, 2023 NOFO Closes – Application Deadline November 2023 to January 2024 Anticipated Notification of Selection February to March 2024 Anticipated Awards

Application packages must be submitted electronically to EPA through Grants.gov (www.grants.gov) no later than Tuesday, August 22, 2023, at 11:59 p.m. Eastern Time (ET) in order to be considered for funding.

http://www.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 & Assistance Listings E. Additional Provisions for Applicants Incorporated into the Solicitation

II. FEDERAL AWARD INFORMATION

A. Amount of Funding Available B. Number and Amount of Awards D. Partial Funding E. Additional Awards F. Award Funding and Incremental/Full Funding G. Period of Performance H. Funding Type

III. ELIGIBILITY INFORMATION

A. Eligible Entities B. Cost Sharing or Matching C. Threshold Criteria D. Project Requirements

IV. APPLICATION AND SUBMISSION INFORMATION

A. Requirement to Submit Through Grants.gov and Limited Exception Procedures B. Project Narrative Instructions, Format, and Content C. 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

a. Submission Date and Times

b. Information Sessions

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices B. Reporting Requirement C. Buy America Requirements D. Final Approved Workplan and Modifications

VII. CONTACT INFORMATION

APPENDIX A – Further information Regarding Contracts, Subawards, and Participant Support Costs .. 52 APPENDIX B – Application Submission Checklist

I. FUNDING OPPORTUNITY DESCRIPTION

A. Background and Summary

School buses travel over four billion miles each year, providing the safest transportation to and from school for more than 25 million American children every day.1 While new buses must meet EPA’s current emission standards, most buses on the road predate these standards and many are decades old. These buses emit dangerous levels of pollutants, including nitrogen oxides (NOx) and particulate matter (PM), in diesel exhaust. These pollutants contribute to poor air quality and negatively impact human health. Children are particularly vulnerable to air pollution inside and near older diesel school buses because they have a faster breathing rate than adults and their lungs are not yet fully developed; exposure to these pollutants thereby increases their risk of asthma and other respiratory illness, which has also been linked to students missing school.2

To address these harmful emissions, the Infrastructure Investment and Jobs Act, Public Law 117- 58, Section 741 of the Energy Policy Act of 2005 (42 U.S.C. 16091) (the “Bipartisan Infrastructure Law”) provides $5 billion over five years [Fiscal Year (FY) 22-26] for the replacement of existing school buses with low and zero-emission (ZE) school buses [the Clean School Bus (CSB) Program]. Under the statutory design for the CSB Program, half of the available funding is dedicated to ZE school buses and half is dedicated to clean school buses. A ZE school bus is a school bus that produces zero exhaust emissions of any criteria pollutant or greenhouse gas; a clean school bus reduces emissions by operating entirely or in part using an alternative fuel, such as propane or natural gas, or is a ZE bus.3 This funding to support clean and ZE vehicles that transport our nation’s children will benefit communities across the United States, especially communities that have been historically underserved. The reduction in greenhouse gas (GHG) emissions from these bus replacements also helps address the outsized role of the transportation sector in fueling the climate crisis.4 The ZE or clean school buses can also cost less to maintain or fuel than the older buses they are replacing, which can free up needed resources for schools.5 These replacement buses will ensure cleaner air for students, bus drivers, school staff working near bus loading areas, and the communities through which the buses drive each day.

In its first year, the CSB Program conducted extensive program outreach and administered a national rebate competition. In August 2022, the rebate competition received an outstanding response from school districts across the country with nearly 2,000 applicants seeking to upgrade their school bus fleets with ZE or clean school buses. The response prompted EPA to almost double the funding level available for rebates in 2022 to nearly $1 billion. In October 2022, EPA announced the 2022 CSB Rebates selections; approximately 400 applications were selected to replace more than 2,600 buses, almost ninety-five percent of which will be electric.6

1 “EPA Clean School Bus fact sheet”. https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1013NR1.pdf 2 https://www.nature.com/articles/s41893-023-01088-7.pdf 3 https://www.epa.gov/system/files/documents/2023-02/420r23002.pdf 4 https://www.epa.gov/greenvehicles/fast-facts-transportation-greenhouse-gas-emissions 5 https://www.epa.gov/cleanschoolbus/benefits-clean-school-buses 6 EPA also awarded funding for 109 propane buses and 6 compressed natural gas buses.

https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1013NR1.pdf https://www.epa.gov/system/files/documents/2023-02/420r23002.pdf https://www.epa.gov/greenvehicles/fast-facts-transportation-greenhouse-gas-emissions https://www.epa.gov/cleanschoolbus/benefits-clean-school-buses

The 2022 Clean School Bus Rebates was the first of several funding opportunities for the multi-year CSB Program. EPA anticipates running both a grant competition, as detailed in the NOFO below, and a rebate competition in 2023.

EPA anticipates awarding approximately $400 million in CSB funding under this NOFO, subject to the availability of funds, the quantity and quality of applications received, and other applicable considerations. To ensure a healthy grant competition, this NOFO includes two sub-programs, one for school district and Tribal applicants (School District Sub-program) and one for third-party applicants (Third-Party Sub-program) to serve at least four school district beneficiaries.

EPA is providing two separate competitions under this single NOFO to address the unique needs and concerns of diverse recipients and encourage participation in the CSB grants program.

This notice announces the availability of funds and solicits applications from eligible entities to incentivize and accelerate the replacement of existing school buses with clean and ZE school buses. Eligible activities are further described in Section III.D Project Requirements.

Applications will be accepted from state and local governmental entities that provide bus service, including public school districts; eligible contractors7; nonprofit school transportation associations; Indian Tribes, Tribal organizations, or Tribally-controlled schools responsible for the purchase, lease, license, or contract for service of school buses or for providing school bus service for a Bureau of Indian Affairs (BIA) funded school. See Section III.A for more information about eligible entities.

Applications will be evaluated on the extent to which they propose to replace buses that serve high-need local educational agencies; rural school districts; Bureau of Indian Affairs-funded school districts; and school districts receiving basic support payments for children who reside on Indian land. Further priority for funding will be given to applicants that leverage additional external funds, such as public-private partnerships, grants from other entities, or the issuance of school bonds, in order to support the proposed project activities.

This CSB Grants NOFO is a competitive grant program. Unlike the 2022 CSB Rebate Program that utilized a lottery to select winners, this grant competition will require an application that will be scored based on the criteria included in this NOFO. The CSB program anticipates opening another CSB Rebates funding opportunity later this year, which would fund similar activities, though has a shorter application, different selection mechanism, and different program requirements.8 Information on all CSB programs can be found at www.epa.gov/cleanschoolbus.

B. Program Goals and Objectives While new buses meet EPA’s tougher emission standards, many older buses continue to emit pollutants that can be harmful to health like nitrogen oxides (NOx) or particulate matter (PM).

Students are particularly vulnerable to air pollution inside and near older diesel school buses.

7 ‘Eligible contractors’ is defined further below under the III. Eligibility Information section.

8 Funding for school bus replacement is also available through EPA’s CSB Rebate Program. The rebate program consists of an online application form and rebate recipients are selected through a lottery process. Information on EPA’s CSB Program can be found at www.epa.gov/cleanschoolbus.

http://www.epa.gov/cleanschoolbus

These pollutants increase students’ risk of asthma and other respiratory illness, which is also linked to missing school.9 Bus drivers and other school staff are also exposed to diesel exhaust.

The Bipartisan Infrastructure Law provides an unprecedented amount of funding to clean a substantial portion of the nation’s fleet of nearly 500,000 school buses. These new cleaner school bus replacements will produce either zero or low tailpipe emissions compared to their older diesel predecessors, and having these older buses replaced with cleaner ones is an important program goal. School bus upgrades funded under this program will result in cleaner air on the bus, in bus loading areas, and in the communities in which they operate.

The CSB program aims to: 1) improve air quality by replacing highly polluting buses while accelerating the transformation to low and zero emission alternatives; 2) engage stakeholders in program development, 3) evolve the program, as needed, based on successes and lessons learned,

4) promote cost parity between bus technologies, 5) allow school districts multiple funding opportunities to apply for funding, 6) maximize the number of zero-emission and clean buses that get funded, and 7) ensure a broad geographic distribution of awards. To support development and implementation of the CSB Program, EPA utilized a variety of tools to engage with stakeholders, receive feedback, and transparently share information. EPA continues to coordinate with stakeholders and to develop an education and outreach plan that explains to potential grant and rebate applicants how to apply, describes eligible technologies and their benefits, and shares information on best practices and lessons learned. EPA has engaged in numerous efforts to gather feedback from stakeholders on the 2022 CSB Rebates, including a dedicated listening session for 2022 rebate applicants to provide feedback, a dedicated CSB email box for stakeholders to provide input, and other listening sessions at the regional level.

The 2022 CSB Rebates program was the fastest funding program to develop, provided the quickest timeline for fleets to receive funding, ensured straightforward rules that rebates were for bus replacements and infrastructure only, and included a streamlined application, selection, and funding process. Although a rebate program provides a variety of benefits, CSB is providing a grant program to give school districts multiple opportunities to apply for funding. Based on stakeholder feedback and lessons learned from the first funding opportunity, this NOFO intends to target beneficiaries with diverse needs and attempts to address gaps identified in the 2022 CSB rebate program. EPA intends to open another rebate application later this year. The agency encourages school districts to consider which competition structure best suits their needs.

In order to meet the unique needs of diverse recipients and address gaps identified in the 2022 CSB rebate program, the CSB grant program has designed two separate sub-programs under this NOFO: 1) School District Sub-program: for school district and Tribal applicants, targeting large single-fleet turnovers that may have been limited by the 25-bus maximum in the rebate program, and 2) Third-Party Sub-program: for third-party applicants to apply in partnership with school districts, particularly small, rural, Tribal, or low-income beneficiaries that may benefit from third-party technical support, grant administration and coordination (e.g., with utilities). Third- Party Sub-program applicants must serve at least four school district beneficiaries to be eligible for funding under this program. The sub-programs in the 2023 CSB grant program address several programmatic goals discussed throughout this section, along with other criteria listed throughout this NOFO. For additional details on each sub-program, please refer to:

9 https://www.nature.com/articles/s41893-023-01088-7.pdf

1) Project summary and approach

2) Environmental Results – Outputs, Outcomes and Performance Measures

3) Environmental Justice and Disadvantaged Communities

4) Project Location – Nonattainment or Maintenance Area

5) Programmatic Capability and Past Performance

6) Project Sustainability

7) Workforce Development

8) Project Resilience to Climate Impacts

9) Additional External Funds

10) Budget

The CSB program intends to increase program adoption by educating prospective applicants and stakeholders about the CSB program and the benefits of clean school buses. EPA continues to empower, engage, and support clean school bus stakeholders and recipients throughout program implementation by equipping them with the information and data needed to develop outreach plans, amplify key messages and collaborate with the other members of the clean school bus community beyond EPA. CSB funding opportunities continue to support underserved populations through meaningful and intentional outreach to increase the number of prospective applicants who would most benefit from reduced emissions through the replacement of buses in their communities.

Environmental Justice and Disadvantaged Communities Environmental justice (EJ) is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation and enforcement of environmental laws, regulations and policies. 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. EPA will evaluate environmental justice issues under criterion 3 of Section V.A. of this NOFO.

The Bipartisan Infrastructure Law allows EPA to prioritize certain communities that will benefit from the CSB program. The CSB program statute enables 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, CSB has been identified as part of the Justice40 Initiative, which provides a goal that 40 percent of applicable federal benefits flow to disadvantaged communities.10 In this program, “school district” refers to local education agencies (LEAs).11 A directory of school districts and corresponding NCES District ID can be found here: https://nces.ed.gov/ccd/districtsearch/. For the purposes of this funding opportunity “disadvantaged communities” must meet one or more of the following prioritization criteria:

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

11 42 U.S.C. § 16901(a)(6).

1. High-need school districts and low-income areas, limited to:

a. School districts listed in the Small Area Income and Poverty Estimates

(SAIPE) School District Estimates for 2021 as having 20% or more students living in poverty.

b. Title 1-funded school districts and charter school districts not listed in the SAIPE dataset. See the Prioritization Self-Certification Instructions, which can be found on the CSB Grants webpage, for more information on this option.

c. Title I-funded large public-school districts, defined as districts with more than 35,000 students and/or 45 public schools, that are in SAIPE but do not meet the 20% poverty threshold, may be eligible to self-certify the low-income prioritization status for part or all of their district. See the Prioritization Self- Certification Instructions, which can be found on the CSB Grants webpage, for more information on this option.

d. School districts located in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

2. Rural school districts, limited to school districts identified with locale code “43- Rural: Remote” by the National Center for Education Statistics (NCES).

3. Bureau of Indian Affairs-funded school districts

4. School districts that receive basic support payments under section 7703(b)(1) of title

20 for children who reside on Indian land.

School districts that qualify under one or more prioritization criteria above, except for 1.b and 1.c, are identified in EPA’s Prioritized School District List, found on the CSB Grants Webpage.

This program criteria for “disadvantaged communities” is drawn from the prioritization authorization described in the CSB statute.12 The methodology for calculating covered program benefits to disadvantaged communities may be updated in the future as additional funding opportunities are offered under the program and EPA receives input on previous funding opportunities.

C. Environmental Results and Strategic Plan Information

EPA assistance agreements must be results-oriented, aligned with the Agency’s strategic goals, and must demonstrate achievement of environmental results and/or public health protection. EPA 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 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 goal identified below.

11 42 U.S.C. § 16091(b)(4) (2023) (as amended by Consolidated Appropriations Act, 2023, H.R. Res. 2617, 117th Cong. § 405 (2022) (enacted)).

https://www.census.gov/data/datasets/2021/demo/saipe/2021-school-districts.html https://www.census.gov/data/datasets/2021/demo/saipe/2021-school-districts.html https://www.epa.gov/cleanschoolbus/clean-school-bus-program-grants https://www.epa.gov/cleanschoolbus/clean-school-bus-program-grants https://nces.ed.gov/programs/edge/Geographic/SchoolLocations https://uscode.house.gov/view.xhtml?req=(title:20%20section:7703%20edition:prelim)%20OR%20(granuleid:USC-prelim-title20-section7703)&f=treesort&num=0&edition=prelim https://uscode.house.gov/view.xhtml?req=(title:20%20section:7703%20edition:prelim)%20OR%20(granuleid:USC-prelim-title20-section7703)&f=treesort&num=0&edition=prelim https://www.epa.gov/cleanschoolbus/clean-school-bus-program-grants https://www.epa.gov/cleanschoolbus/clean-school-bus-program-grants 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

1. Linkage to EPA Strategic Plan: The activities to be funded under this announcement support 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.” Under this objective, “EPA will reduce air pollution on local, regional, and national scales to achieve healthy air quality for people and the environment.” All applications must be for projects that support this goal and objective. For more information see 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:

• Number of replaced school bus vehicles

• Number of school districts that replaced one or more school bus vehicles

• Number of school children transported on ZE or clean buses rather than diesel buses

• Number and type of electric vehicle charging infrastructure installed

Note: Third-party applicants should identify direct metrics for each school district beneficiary.

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

• Engaging affected communities with respect to the design 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

• Documentation of a 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

• The number of hours of ICE idling reduced

• A publicly documented policy or process for getting community input on operations and projects that impact air quality

• Number of trainings provided to staff, bus drivers, mechanics, or other electric vehicle service providers (including EVSE service providers)

• Provide support such as, but not limited to, sharing information, working with interested fleets, and addressing specific geographic needs. Documentation of the support must be provided.

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

• Number of trainings provided to staff, bus drivers, mechanics, or other electric vehicle service providers (including EVSE service providers)

• Dissemination of project/technology information via list serves, websites, journals, and outreach events https://www.epa.gov/planandbudget/strategicplan

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

“Reporting Requirement” of this NOFO.

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:

• Improved ambient air quality in communities in which the buses operate

• Number of school children transported on ZE or clean buses rather than diesel buses, and therefore exposed to fewer diesel exhaust emissions on their school route commute

• Establishment of workforce training programs for zero emission vehicles and charging infrastructure

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

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

• Community engagement

• Health benefits achieved

• Changes in driver behavior, such as reducing idling operations of clean school buses or optimizing efficiency of EV powertrain operations

• 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

• An increased availability of domestic manufacturing and workforce for zero - and near zero-emission vehicles, engines, and other key components (e.g., batteries)

D. Statutory Authority & Assistance Listings

The statutory authority for this action is the Infrastructure Investment and Jobs Act (or The Bipartisan Infrastructure Law), codified at 42 U.S.C. 16091 (as amended by Consolidated Appropriations Act, 2023, H.R. Res. 2617, 117th Cong. § 405 (2022) (enacted)) which authorizes EPA to offer funding assistance for projects to replace existing school buses with clean school buses and ZE school buses. For each fiscal year between 2022 and 2026, $500 million is available to fund ZE and clean school buses, and $500 million is available to fund only ZE school buses. The statute outlines several funding mechanisms for the new CSB Program including grants, rebates, and contracts. While EPA has authority under CSB to support grant programs, 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 Sections III, IV, V, and VI, 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 must 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 $400 million. Funding and awards for each sub-program are dependent upon the number of meritorious applications received under each program, Agency appropriations, funding availability, Agency priorities, and other applicable considerations.

Funding awards are dependent on the bus fuel type, bus class size, number of buses being replaced, and prioritization status as shown in the table below.

Table 1: Per-Bus Funding Levels and Prioritization Status School District Prioritization Status

Replacement Bus Fuel Type and Size ZE* – Class 7+ ZE* – Class

3-6

CNG–

Class 7+

CNG –

Class 3-6

Propane – Class 7+

Propane – Class 3-6

Buses serving school districts that meet one or more prioritization criteria

Up to $395,000

(Bus + Charging Infrastructure)

Up to $315,000

(Bus + Charging Infrastructure)

Up to $45,000

Up to $30,000

Up to $35,000

Up to $30,000

Buses serving school districts that are not prioritized

Up to $250,000

(Bus + Charging Infrastructure)

Up to $195,000

(Bus + Charging Infrastructure)

Up to $30,000

Up to $20,000

Up to $25,000

Up to $20,000

*Funding levels include combined bus and EV charging infrastructure. Recipients have flexibility to determine the split between funding for the bus itself and the supporting infrastructure.

B. Number and Amount of Awards

EPA anticipates awarding a total of approximately 25 to 50 cooperative agreement(s) under this announcement, subject to the availability of funds, the quantity and quality of applications received, Agency priorities, and other applicable considerations.

http://www.epa.gov/grants/epa-solicitation-clauses

Applicants in the School District Sub-Program must request a minimum of 15 school buses and can request up to a maximum of 50 school buses. Applicants in the Third-party Sub-Program must request a minimum of 25 school buses and may request up to a maximum of 100 school buses.

Applicants may submit a total of one application per EPA region under this solicitation. A single application may target multiple fleets, school districts, and/or bus types. Third-party Sub-program applicants are required to support at least four different school district beneficiaries, although there is no minimum number of buses per beneficiary (as long as the total number of buses for the third-party grant are between 25 and 100).

Applicants must request funding from the EPA regional office that covers their geographic project location. The term “project location” as used in this NOFO refers to the area(s) where the affected vehicles operate. See Section IV.B for additional information on project location and the geographic boundaries for each EPA regional office.

The anticipated award amounts and the relative allocations for the regions listed in Table 2 are approximations that are subject to change based upon a number of considerations including, but not limited to, the number of meritorious applications received by each region, Agency appropriations, funding availability, Agency priorities, and other applicable considerations.

Table 2. Total Funding and Funding Limits by Region13

Region Total Anticipated Funding per Region 1 $27,393,700 2 $37,062,100 3 $37,282,600 4 $59,670,700 5 $51,600,400 6 $51,033,400 7 $28,292,500 8 $27,740,200 9 $52,089,700 10 $27,834,700

D. Partial Funding

In appropriate circumstances, EPA reserves the right to partially fund applications by funding discrete portions or phases of proposed projects. If EPA decides to partially fund an 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.

12 Allocation is based on a methodology that relies on the National Center for Educational Statistics' Elementary/Secondary Information System (NCES ELSI) dataset.

E. Additional Awards 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, EPA reserves the right to reject all applications and make no awards under this announcement or to make fewer awards than anticipated.

F. 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. In appropriate circumstances, EPA may incrementally fund applications. If an applicant is selected for incremental funding, 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.

G. Period of Performance

The estimated project period for awards resulting from this solicitation will be up to 24 months, however initial project periods of up to 36 months will be allowed where justified by the activities, timeline, and milestones detailed in the workplan. The estimated project period of performance start date for awards will begin starting April 1, 2024.

H. Funding Type

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

Successful applicant(s) will be issued a grant or cooperative agreement as appropriate. 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. 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 may include:

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

• Collaboration during performance of the scope of work;

• EPA prior review or approval of project phases or the substantive provisions of proposed contracts found within the scope of the cooperative agreement;

• In accordance with 2 CFR § 200.317 and 2 CFR § 200.318, review of proposed procurement;

• Approving qualifications of key personnel (EPA will not select employees or contractors employed by the award recipient); and

• Reviewing and commenting on reports prepared under the cooperative agreement (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

Under this solicitation, only the following entities are eligible to apply for assistance, in accordance with Assistance Listing 66.045 and EPA’s Policy for Competition of Assistance Agreements (EPA Order § 5700.5A1):

1. Public School Districts

a. One or more local or State governmental entities14 responsible for:

i. Providing school bus service to one or more public school systems; or

ii. The purchase, lease, license, or contract for service of school buses;

b. A public charter school district responsible for the purchase, lease, license, or contract for service of school buses for that charter school; or

2. Tribal Applicants

a. An Indian Tribe (as defined by section 4 of the Indian Self-Determination and

Education Assistance Act, 25 U.S.C. 5304), Tribal organization (as defined by the same section), or Tribally-controlled school (as defined by section 5212 of the Tribally Controlled Schools Act of 1988, 25 U.S.C. 2511) that is responsible for:

i. Providing school bus service to one or more Bureau-funded schools (as defined by section 1141 of the Education Amendments of 1978, 25 U.S.C.

2021); or

ii. The purchase, lease, license, or contract for service of school buses;

3. Third Parties

a. A nonprofit school transportation association; or

b. An eligible contractor.

Applicants falling under III.A.1 (school districts) and III.A.2 (Tribal applicants) must apply under the School District Sub-Program; Applicants falling under III.A.3 (third parties) must apply under the Third-Party Sub-Program.

Eligible contractor, as defined by the Infrastructure Investment and Jobs Act, Public Law 117-58 (42 U.S.C. 16091), means any for-profit, not-for-profit, or nonprofit entity that has the capacity

(1) to sell, lease, license, or contract for service clean school buses, ZE school buses, charging or fueling infrastructure, or other equipment needed to charge, fuel, or maintain clean school buses or zero-emission school buses, to individuals or entities that own, lease, license, or contract for service a school bus or a fleet of school buses; or (2) arrange financing for such a sale, lease, license, or contract for service. This group generally includes school bus dealers, Original Equipment Manufacturers (OEMs), school bus service providers, and private school bus fleets that provide student transportation services.

14 Includes public school districts. In this program, “school district” refers to local education agencies (LEAs). A directory of school districts and their corresponding NCES District ID can be found here:

https://nces.ed.gov/ccd/districtsearch/.

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

Consistent with the definition of nonprofit organization at 2 CFR § 200.1, the term nonprofit organization means any corporation, trust, association, cooperative, or other organization that is operated mainly for scientific, educational, service, charitable or similar purpose in the public interest; is not organized primarily for profit; and uses net proceeds to maintain, improve, or expand the operation of the organization. Note that 2 CFR § 200.1 specifically excludes Institutions of Higher Education from the definition of nonprofit organization because they are separately defined in the regulation.

Nonprofit organizations that are not exempt from taxation under section 501 of the Internal Revenue Code must submit other forms of documentation of nonprofit status, such as certificates of incorporation as nonprofit under state or Tribal law. Nonprofit organizations exempt from taxation under section 501(c)(4) of the Internal Revenue Code that lobby are not eligible for EPA funding as provided in the Lobbying Disclosure Act, 2 U.S.C. 1611.

B. Cost Sharing or Matching

No cost sharing or matching is required under this funding opportunity. Although cost sharing/matching is not required as a condition of eligibility under this competition, EPA will award evaluation points, under Section V.A. of this announcement, for applicants that demonstrate that they have leveraged or plan to leverage additional external funds in order to support the proposed project activities, such as public-private partnerships, grants from other entities, or the issuance of school bonds. For the purpose of this NOFO, these additional external funds will be considered “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. Unlike funding awarded as part of this funding opportunity, leveraged resources do not need to be spent on eligible or allowable costs as listed in Section III.D Project Requirements. Additionally, these resources should only be described in the budget detail described in Section 10 of the project narrative template in Section IV.B of this NOFO and should not be included in the project budget on the SF-424 or SF-424A.

If applicants propose to leverage funds, 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, EPA may reconsider the legitimacy of the award and/or take other appropriate action authorized under 2 CFR Part 200.

C. Threshold Criteria

All applications will be reviewed for eligibility and must meet the eligibility requirements described in Sections III.A, B, C, and D to be considered eligible. If necessary, 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

a. 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 15-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.

b. In addition, applications must be submitted through Grants.govGrants.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.A 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.A, which include both the requirement to contact Grants.gov and email a full application to EPA prior to the deadline.

c. Applications submitted outside of Grants.gov will be deemed ineligible without further consideration unless the applicant can clearly demonstrate that it was due to EPA mishandling or because of technical problems associated with Grants.gov or SAM.gov. An applicant’s failure to timely submit their application through Grants.gov because they did not timely or properly register in SAM.gov or Grants.gov will not be considered an acceptable reason to consider a late submission.

See Section IV of this solicitation for instructions on how to submit an application through Grants.gov. EPA recommends the grantee maintains an active account throughout the project period of performance in order to avoid technical issues and delays.

2. Applications must support Goal 1 “Tackle the Climate Crisis”; Objective 1.1: “Reduce

Emissions that Cause Climate Change” of EPA’s Strategic Plan described in Section I.C.

3. School districts and Tribal applicants, as defined in Section III.A, must apply under the School District Sub-Program; third-party applicants, as defined in Section III.A, must apply under the Third-Party Sub-Program.

4. Applicants in the School District Sub-Program must request a minimum of 15 school buses and can request up to a maximum of 50 school buses. Applicants in the Third-Party Sub- Program must request a minimum of 25 school buses and may request up to a maximum of 100 school buses. If more than the maximum number of school buses are requested, an application will be considered for the maximum number of school buses allowable under the applicable sub-program.

https://www.grants.gov/ https://www.grants.gov/ https://grants.gov/ https://www.sam.gov/SAM/ https://www.grants.gov/ https://www.sam.gov/SAM/ https://grants.gov/

5. Third-Party Sub-Program applicants must serve at least four school district beneficiaries in a single application to be eligible for funding under this program. Third-Party Sub-Program applicants must include documentation, such as the Third-Party Approval Certification Template, that the school district(s) being served are aware and approve of the third party’s application. School districts not supported by a Third-Party Approval Letter or other documentation will not count towards eligibility.

6. Applicants may only submit one application per EPA region. Applicants that submit more than one application per EPA region will be contacted prior to EPA review of any of the applications to determine which application(s) the applicant will withdraw from the competition.

D. Project Requirements

CSB grants provide funding to eligible recipients so that they may replace existing school buses with clean and ZE models. Eligible activities include the replacement of existing internal-combustion engine (ICE) school buses with electric, propane, or compressed natural gas (CNG) school buses, as well as the purchase of electric vehicle supply equipment (EVSE) infrastructure and EVSE installations.

1. Eligible Existing School Buses: Applications must include projects which target school buses as further defined in this section. 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.15 Buses to be replaced must:

a. Be a vehicle model year 2010 or older diesel-powered school buses that will be scrapped if selected for funding. If a fleet has no eligible 2010 or older diesel school buses and is requesting zero-emission school bus replacements, the fleet may either:

i. Scrap 2010 or older non-diesel internal combustion engine buses; or

ii. Scrap, sell, or donate 2011 or newer diesel or non-diesel internal combustion engine buses

b. Have a Gross Vehicle Weight Rating (GVWR) of 10,001 lbs or more.

c. Be fully operational at the time of application submission. Operational vehicles should be able to start, move, and have all necessary parts to be operational.

d. Have provided bus service to a public school district for at least 3 days/week on average during the 2022/2023 school year at the time of applying, excluding COVID-related or disaster-related school closures.

15 49 U.S.C. § 30125, available at https://uscode.house.gov/view.xhtml?req=(title:49%20section:30125%20edition:prelim).

2. Eligible School Bus Replacements and Infrastructure Equipment: Applications must include projects which replace existing ICE school buses with propane, CNG, and/or electric school buses. If applicants are purchasing electric school buses, they may also receive funding for eligible charging infrastructure and installations.

a. Replacement School Buses: All replacement school buses purchased with grant funding must:

i. Have a battery electric, CNG, or propane drivetrain. Biofuels will not be included as an eligible replacement technology for this funding opportunity.16

ii. Be a new EPA or California Air Resources Board (CARB) certified vehicle model year 2021 or newer.17 EPA’s engine emission standards may be found at: www.epa.gov/emission-standards-reference-guide/all-epa-emission-standards. Engines certified by CARB may be found by searching CARB’s Executive Orders for Heavy-duty Engines and Vehicles, found at:

www.arb.ca.gov/msprog/onroad/cert/cert.php. Note, EPA is not funding the conversion of old school buses to operate on battery electric, CNG, or propane drivetrains in this funding opportunity.

iii. Have a Gross Vehicle Weight Rating (GVWR) of 10,001 lbs or more.

iv. Be ordered after receiving official notification of selection for EPA funding.

v. Be purchased, not leased or leased-to-own.

vi. Serve the school district listed on the application for at least five years from the date of delivery, unless the award is to an eligible contractor and the contract with the school district ends before the end of the 5-year period, in which case those school buses may be operated as part of another school district eligible for the same or higher priority consideration.

vii. Meet federal safety standards and be maintained, operated, insured, registered, and charged/fueled according to manufacturer recommendations and state requirements.

viii. Not be manufactured or retrofitted with, or otherwise have installed, a power unit or other technology that creates air pollution within the school bus, such as an unvented diesel passenger heater.

ix. Not be purchased or otherwise subsidized with other federal grant funds. The total of funds from the CSB grant and other eligible external funds allocated for the bus replacements cannot exceed the cost of the new buses.

x. Upon request, be made available for inspection by EPA or its authorized representatives for 5 years from the date of delivery.

16 There are no unique biofuels engines or buses at this time. All diesel buses can run on a mix of regular diesel and biodiesel, making it very difficult to ensure that biofuel blends of a certain percentage are used exclusively in the vehicle from the start, much less over the vehicle’s lifetime. A vehicle which operates on a biofuels mix may have some small emissions benefits depending on numerous factors, but there are no differences in emissions standards between a regular diesel bus and one that may use biofuels as an in-use fuel. Thus, a bus that runs on a biofuel mix will not provide significant environmental benefits beyond the current diesel bus market options. Similarly, there are currently no hydrogen or LNG product offerings so hydrogen and LNG will not be included as eligible replacement technologies for this funding opportunity.

17 EPA Heavy-Duty Vehicle Certification Data is posted here: https://www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment.

https://www.epa.gov/emission-standards-reference-guide/all-epa-emission-standards https://www.epa.gov/emission-standards-reference-guide/all-epa-emission-standards http://www.arb.ca.gov/msprog/onroad/cert/cert.php https://www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment https://www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment

b. Infrastructure Equipment: Eligible infrastructure is limited to installations and upgrades between the electrical meter and the charging port. This can include, but is not limited to, charging equipment (such as alternating current (AC) Level 2 charging equipment, direct-current (DC) fast charging equipment, or vehicle-to-grid (V2G) enabled equipment); design and engineering; installation costs such as trenching, wiring and electrical upgrades, labor, and permitting; and related intelligent equipment and software designed to monitor bus and infrastructure performance (such as telematics or charge management software).

i. EPA funds must not be used for any infrastructure costs associated with work on the utility’s side of the electrical meter. Funds can be used for battery energy storage systems (BESS) associated with new electric school buses funded in the program, as well as renewable…