EPA-R-OAR-CHDV-24-06 Updated.pdf

Office of Transportation and Air Quality April 2024

AGENCY: ENVIRONMENTAL PROTECTION AGENCY (EPA)

TITLE: Clean Heavy-Duty Vehicles Grants

ANNOUNCEMENT TYPE: Request for Applications (RFA)

FUNDING OPPORTUNITY NUMBER: EPA-R-OAR-CHDV-24-06

ASSISTANCE LISTING NUMBER: 66.049

IMPORTANT DATES

Wednesday, April 24, 2024 Notice of Funding Opportunity (NOFO) Opens Tuesday, April 30, 2024 Information Session Monday, July 8, 2024 Final Date to Submit Questions Thursday, July 25, 2024 NOFO Closes – Application Deadline November 2024 Anticipated Notification of Selection December 2024 Anticipated Awards

Application packages must be submitted electronically to the EPA through Grants.gov (www.grants.gov) no later than Thursday, July 25, 2024, at 11:59 p.m. Eastern Time (ET) in order to be considered for funding.

Applicants are encouraged to review the Questions and Answers document posted at the Clean Heavy-Duty Vehicles Program webpage for further clarification of this NOFO.

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

Applicants must compete contracts for services and products, including consultant contracts, and conduct cost and price analyses, to the extent required by the procurement provisions of the regulations at 2 CFR Part 200.

Applicants are not required to identify subrecipients and/or contractors (including consultants) in their grant application. However, if an applicant does so, the fact that an applicant selected for award has named a specific subrecipient or contractor (including consultants) in the application the EPA selects for funding does not relieve the applicant of its obligations to comply with subaward and/or competitive procurement requirements as described in Section http://www.grants.gov/ https://www.epa.gov/clean-heavy-duty-vehicles-program/clean-heavy-duty-vehicles-grant-program https://www.epa.gov/clean-heavy-duty-vehicles-program/clean-heavy-duty-vehicles-grant-program http://www.epa.gov/grants/epa-solicitation-clauses https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients https://www.ecfr.gov/current/title-2/part-200 www.grants.gov https://Grants.gov

IV.d. of EPA’s Solicitation Clauses. Please note that applicants may not award sole source contracts to consulting, engineering, or other firms assisting applicants with the application solely based on the firm's role in preparing the application or based on an assertion that the individual or firm has “unique qualifications.”

The EPA will not consider the qualifications, experience, and expertise of named subrecipients and/or named contractor(s) during the application evaluation process unless the applicant provides documentation that it has complied with the EPA’s competitive procurement requirements.

For additional guidance, applicants should review EPA’s Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements, EPA’s Subaward Policy, and EPA’s Subaward Policy Frequent Questions. The EPA expects recipients of funding to comply with competitive procurement contracting requirements in 2 CFR Parts 200 and 1500 as well as the EPA’s rule on Participation by Disadvantaged Business Enterprises in EPA Programs in 40 CFR Part 33. The Agency does not accept justifications for sole source contracts for services or products available in the commercial marketplace such as consulting, data analysis, or project management.

https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance https://www.epa.gov/sites/default/files/2020-11/documents/gpi-16-01-subaward-policy_attachments.pdf https://www.epa.gov/system/files/documents/2023-04/epa_subaward_policy_frequent_questions.pdf https://www.ecfr.gov/current/title-2/part-200 https://www.ecfr.gov/current/title-2/part-1500 https://www.ecfr.gov/current/title-40/part-33

TABLE OF CONTENTS

TITLE: Clean Heavy-Duty Vehicles Grants

I. FUNDING OPPORTUNITY DESCRIPTION

A. Background and Summary

B. Program Goals and Objectives

C. Environmental Justice and Disadvantaged Communities

D. Environmental Results and Strategic Plan Information

E. Statutory Authority

F. Additional Provisions for Applicants Incorporated into the Solicitation

II. FEDERAL AWARD INFORMATION

A. Amount of Funding Available

B. Number and Amount of Awards

C. Funding Set-Asides

D. Partial Funding

E. Additional Awards

F. Period of Performance

G. Funding Type

III. ELIGIBILITY INFORMATION

A. Eligible Entities

B. Cost Sharing

C. Threshold Eligibility Criteria

D. Eligible Activities, Vehicles, and Costs

IV. APPLICATION AND SUBMISSION INFORMATION

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

Step 1. Register Your Organization in SAM.gov

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

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

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

B. Application Process

C. Project Narrative Instructions, Format, and Content

D. Releasing Copies of Applications

V. APPLICATION REVIEW INFORMATION

A. Evaluation Criteria https://Grants.gov

B. Review and Selection Process

C. Other Factors

D. Anticipated Announcement and Federal Award Dates

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

B. Reporting Requirement

C. Buy America Requirements

D. Prevailing Wage Requirements

E. Job Quality in the Clean School Bus Market

VII. CONTACT INFORMATION

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

APPENDIX B – Application Submission Checklist

I. FUNDING OPPORTUNITY DESCRIPTION

A. Background and Summary

To address harmful emissions from non-zero-emission heavy-duty vehicles, Section 60101 of the Inflation Reduction Act of 2022 (or IRA) created Section 132 of the Clean Air Act (CAA) (42 U.S.C. 7431) and provided $1 billion to fund the replacement of non-zero-emission (non-ZE) Class 6 or Class 7 heavy-duty vehicles (as defined in 40 CFR 1037.801) with zero-emission (ZE) vehicles.

This notice announces the availability of funds and solicits applications from eligible entities to incentivize and accelerate the replacement of existing non-ZE Class 6 and 7 heavy-duty vehicles with ZE vehicles. The EPA anticipates awarding up to $932 million in funds under this Clean Heavy-Duty Vehicles (CHDV) Grants NOFO, subject to the availability of funds, the quantity and quality of applications received, support for communities overburdened by air pollution, applicability of different business models, and other applicable considerations described in this document. This funding to support ZE vehicles will benefit communities across the United States (U.S.), especially communities that are disproportionately burdened by air pollution and marginalized by underinvestment. These replacement vehicles will ensure cleaner air for the communities in which they operate. The reduction in greenhouse gas emissions from these vehicle replacements will also help address the outsized role of the transportation sector in fueling the climate crisis. Fast Facts on Transportation Greenhouse Gas Emissions can be found here.

This NOFO includes two sub-programs: the School Bus Sub-Program and the Vocational Vehicles Sub-Program. The School Bus Sub-Program is for applicants replacing school buses;

the Vocational Vehicles Sub-Program is for applicants replacing non-school bus Class 6/7 vehicles. The EPA is providing two separate competitions under this single NOFO to meet the needs of diverse potential recipients and encourage participation in the CHDV Grants.

Applications will be accepted from States, municipalities, Indian Tribes, and nonprofit school transportation associations. See Section III.A. for more information about eligible entities.

The EPA anticipates awarding approximately 70 percent of the total funding to projects under a School Bus Sub-Program and approximately 30 percent of the total funding to projects under the Vocational Vehicles Sub-Program. In addition, the EPA anticipates awarding at least 15 grants across both sub-programs to eligible applicants from Tribes and territories under a Tribal/territory set-aside. The actual number of projects awarded under the set-aside may differ from the estimated amounts for many reasons including the number of meritorious applications received, and other factors identified in this document. As required by the Section 132 of the CAA, at least $400 million of the total funding for this program will be used to fund projects serving one or more communities in areas designated as in nonattainment with the National Ambient Air Quality Standards (NAAQS). The EPA sets NAAQS for six common air pollutants, including particulate matter (PM), photochemical oxidants (including ozone), carbon https://www.ecfr.gov/current/title-40/section-1037.801 https://www.epa.gov/greenvehicles/fast-facts-transportation-greenhouse-gas-emissions monoxide, sulfur oxides, nitrogen oxides, and lead. Nonattainment areas are areas of the country that do not meet these national air quality standards. Please visit the EPA Criteria Air Pollutants webpage for more information about the NAAQS.

This CHDV Grants NOFO is a competitive grant program. This grant competition will require an application that will be scored based on the criteria included in Section V.A. of this NOFO.

Through these criteria, the EPA will prioritize funding for projects that serve disadvantaged communities through prioritizing certain counties (see Section I.C. for the description of the counties that will be prioritized – including based in part on whether they contain one of more “disadvantaged communities”- under this competition).1 Further priority for funding will be given to projects that include climate resilience, project sustainability, and workforce development activities.

1 This funding program, like others in EPA, primarily funds the deployment of vehicles; these mobile sources and their resulting emissions (or avoided emissions) move and are not confined to small geographies like Census tracts or block groups. Consistent with M-23-09 (whitehouse.gov), EPA will identify disadvantaged communities via the Climate and Economic Justice Screening Tool, and prioritize using other program criteria (including tools and data) listed in Section I.C. This program utilizes county-level data which is available and aligns with the geographic reporting scale of National Ambient Air Quality Standards (NAAQS) areas of Nonattainment and Maintenance, as well as with the resolution available for mobile source emissions as tabulated in the National Emissions Inventory.

To support development and implementation of the CHDV Grants Program, the EPA utilized a variety of tools to engage with stakeholders, receive feedback, and transparently share information. In addition, the EPA has engaged with stakeholders to inform the development of an education outreach plan that explains to potential grant applicants how to apply, describes eligible technologies and their benefits, and shares information on best practices and lessons learned regarding planning for and deploying ZE vehicles. The EPA has also used feedback from previous similar funding opportunities, such as the Clean School Bus and Diesel Emission Reduction Act programs, to shape the CHDV Grants Program.

The CHDV Program intends to encourage applications by educating prospective applicants and stakeholders about the CHDV Program and the benefits of ZE vehicles. The CHDV Program will 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 eligible vehicles in their communities. The EPA plans to continue to empower, engage, and support ZE vehicle 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 ZE vehicle community beyond the EPA.

More information can be found on the Clean Heavy-Duty Vehicles Program webpage.

B. Program Goals and Objectives https://www.epa.gov/criteria-air-pollutants https://www.epa.gov/criteria-air-pollutants https://www.epa.gov/clean-heavy-duty-vehicles-program/ https://whitehouse.gov

Across the nation, over three million Class 6 and Class 7 vehicles are currently in use2, spanning a wide variety of vehicle types and vocations, including, but not limited to, school buses, refuse haulers, and utility and delivery trucks. The majority of these vehicles are non-ZE vehicles powered by internal combustion engines (ICE) that pre-date recent EPA emission standards.

These vehicles emit harmful pollutants like nitrogen oxide (NOx), fine particulate matter (PM2.5), and greenhouse gases. Because these engines can operate for 30 years or more, these older, higher-emitting engines are still powering the vehicles that travel the nation’s roads and highways every day. In the U.S., the transportation sector is one of the largest contributors to anthropogenic greenhouse gas and air pollution emissions.3 Despite comprising only 10% of vehicles on U.S. roads, medium- and heavy-duty vehicles account for 23% of greenhouse gas emissions, 34% of NOx emissions, and 22% of PM2.5 emissions4 for the entire transportation sector.5 These emissions disproportionately impact communities where these vehicles operate, leading to pollution that is associated with respiratory and cardiovascular disease, among other serious health problems. Children, older adults, those with preexisting cardiopulmonary disease, and those of lower socioeconomic status are particularly vulnerable and are at a higher risk for these health impacts.6

2 U.S. Federal Highway Administration. (2021-06). Linking FHWA and NHTSA Vehicle Types and Deciphering Various Truck Weight Data Methodology for Linking Vehicle Types. Accessed 2/22/2024.

3 Fast Facts: U.S. Transportation Sector Greenhouse Gas Emissions 4 U.S. EPA National Emission Inventories 5 Union of Concerned Scientists, Cars, Trucks, Buses and Air Pollution 6 U.S. EPA: Learn About How Mobile Source Pollution Affects Your Health

The IRA provides funding to replace in-use, non-ZE heavy-duty vehicles with new ZE vehicles.

The objective of the CHDV Grants program is to reduce air pollution and greenhouse gas emissions, especially in nonattainment areas and areas with environmental justice concerns, by encouraging the sustainable deployment of ZE heavy-duty vehicles. Vehicle replacements funded under this program will result in cleaner air and improved health for the communities in which they operate, the children and other passengers on the vehicles, and the drivers and maintenance staff who work closely on these vehicles.

School Bus and Vocational Vehicles Sub-Programs There are two separate sub-programs under which applicants may apply to this NOFO:

(1) The School Bus Sub-Program: for applicants replacing Class 6-7 school buses.

Subject to the availability of funds, the quantity and quality of applications received, and other factors identified in this document considerations, the EPA anticipates awarding approximately 70 percent of the total funding to projects replacing school buses under this sub-program, under which only applications seeking to replace school buses will be considered. School Bus Sub-Program applicants must request a minimum of 10 zero-emission school buses.

https://www.fhwa.dot.gov/policyinformation/pubs/pl021029.pdf https://www.fhwa.dot.gov/policyinformation/pubs/pl021029.pdf https://www.epa.gov/system/files/documents/2023-06/420f23016.pdf https://awsedap.epa.gov/public/extensions/nei_report_2020/dashboard.html https://www.ucsusa.org/resources/cars-trucks-buses-and-air-pollution#:%7E:text=Heavy%2Dduty%20vehicles%20comprise%20only,60%20percent%20of%20direct%20PM2 https://www.epa.gov/mobile-source-pollution/learn-about-how-mobile-source-pollution-affects-your-health

(2) The Vocational Vehicles Sub-Program: for applicants replacing non-school bus Class 6 and Class 7 vehicle types.

Subject to the availability of funds, the quantity and quality of applications received, and other factors identified in this document, the EPA anticipates awarding approximately 30 percent of the total funding to projects replacing non-school bus Class 6/7 heavy-duty vehicles under this sub-program, under which only applications seeking to replace non-school bus Class 6/7 heavy-duty vehicles will be considered. Vocational Vehicles Sub-Program applicants must request a minimum of three zero-emission heavy-duty vehicles.

These two sub-programs will allow the EPA to meet the diverse needs of potential applicants.

Applicants may only submit one School Bus Sub-Program application in total. Similarly, applicants may only submit one Vocational Vehicles Sub-Program application in total. Tribal and territory applicants are not subject to vehicle minimums.

Eligible Activities Eligible activities under these sub-programs include:

• The replacement of existing ICE school buses and other Class 6 and Class 7 vehicles with ZE school buses and heavy-duty vehicles;

• Purchasing, installing, operating, and maintaining infrastructure needed to charge, fuel, or maintain ZE vehicles; and

• Workforce development and training to support the maintenance, charging, fueling, and operation of ZE vehicles.

Applicants must propose to replace eligible vehicles with comparable, eligible ZE vehicles.

Existing vehicles must be disposed of (i.e., scrapped, sold, or donated) according to program guidelines. Applicants may own the vehicles to be replaced, or applicants may work with fleet owners to carry out the project. See Section III.D. for specific information on eligible and ineligible vehicles, activities, and costs.

Program Priorities To encourage the deployment of ZE vehicles and infrastructure in the communities that are most impacted by emissions from heavy-duty vehicles, the EPA will prioritize funding for projects that serve disadvantaged communities (prioritization method at county level described in Section IV.C.2., Section 4 and under Section V.A., Criterion 4 below).

To encourage the sustainable deployment of ZE vehicles and infrastructure, the EPA will also prioritize funding for projects which address climate resilience, project sustainability, and workforce development. Accordingly, applications will be evaluated based on the extent and quality to which the applicant demonstrates how the project assesses and implements adaptation considerations to help ensure that the project achieves its expected outcomes even as the climate changes. In addition, applications will be evaluated based on the extent to which the applicant demonstrates that the project results and benefits are sustainable, and on the extent to which the applicant and project partners will promote and continue efforts to reduce emissions from vehicles after EPA funding for this project has ended. Applications will also be evaluated based on the extent to which the applicant demonstrates: 1) a plan to prepare the workforce for the project, 2) policies and protections to prevent existing workers from being replaced or displaced because of the new vehicles and infrastructure, and 3) activities to incorporate worker voice into the project. See Sections IV.C. and V.A. for additional details on evaluation criteria.

C. Environmental Justice and Disadvantaged Communities

The EPA is committed to accelerating environmental justice (EJ) in communities overburdened by air pollution through this program. This program is a covered program under the Justice40 Initiative set forth in Executive Order 14008: Tackling the Climate Crisis at Home and Abroad.

The goal of the Justice40 Initiative is to ensure that 40 percent of the overall benefits of certain Federal investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. The EPA is committed to meeting the objectives of the Justice40 Initiative.

Specifically, this program is seeking to prioritize projects that take place in or near and serve communities overburdened by air pollution, including those in designated PM2.5 and ozone nonattainment areas for the EPA’s NAAQS, and with high concentrations of diesel particulate matter (PM).

The EPA will evaluate applications on their benefits to disadvantaged communities experiencing poor air quality and the quality and extent of community engagement efforts, as defined in Section IV.C.2., Section 4 and under Section V.A., Criterion 4 of this NOFO.

Additional details on the contents of applications, including specifics on what should be included in the project narrative, are included in Section IV.C.

D. Environmental Results and Strategic Plan Information

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

1. Linkage to EPA Strategic Plan: The activities to be funded under this announcement support the EPA’s Fiscal Year (FY) 2022-2026 Strategic Plan. Awards made under this announcement will support Goal 1, “Tackle the Climate Crisis;” Objective 1.1, “Reduce https://www.federalregister.gov/documents/2023/04/26/2023-08955/revitalizing-our-nations-commitment-to-environmental-justice-for-all https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad https://www.whitehouse.gov/environmentaljustice/justice40/ 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

Emissions that Cause Climate Change.” Under this objective, “the EPA will cut pollution that causes climate change and increase the adaptive capacity of Tribes, states, territories, and communities.” All applications must be for projects that support the goals and objectives above. 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.

Selected applicants will report on project outputs in progress reports and the final project report.

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

• Number and type of vehicles replaced

• Number of fleets that replaced one or more vehicles

• Number and type of electric vehicle charging infrastructure installed

• Number and type of hydrogen fueling infrastructure installed

• Workforce development plan created

• Number of drivers, electricians, and/or mechanics trained in operating and maintaining ZE heavy-duty vehicles and associated infrastructure

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

• Engaging affected communities with respect to the design and performance of the project

• Establishment of a clear point of contact in a public platform for community input and concerns

• A publicly documented policy or process for community input on projects, like the one proposed, that impact air quality, including the process for receiving input, as well as the process for sharing how that input was taken into consideration in the final project decisions

• Documentation of a commitment to continue to identify and address air quality issues in the affected community

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

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

• The number of hours of ICE idling reduced

• Number of trainings provided to staff, drivers, mechanics, or other electric and/or hydrogen fuel cell vehicle service providers

• Documentation of support such as, but not limited to, sharing information, working with interested fleets, and addressing specific geographic needs

• Dissemination of project/technology information via listservs, 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, but are not limited to:

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

• Reduction of emitted greenhouse gas and criteria pollutants from replaced vehicles

• Expansion of the nation’s charging and refueling infrastructure for ZE vehicles

• Number of drivers, school children, and/or other passengers riding ZE vehicles rather than non-ZE vehicles, and therefore exposed to fewer exhaust emissions on their school commutes and/or routes

• Workforce training programs established for ZE vehicles and 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:

• Increased community engagement on air pollution reduction projects and the transition to ZE vehicles

• Improved community health, such as reduced asthma rates

• Changes in driver behavior, such as efficiency of electric vehicle powertrain operations

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

• Increased public awareness of the project and its results

• Widespread adoption of ZE heavy-duty vehicles

• Increased availability of domestic manufacturing and workforce capacity to support the production, operation, and maintenance of ZE vehicles, engines, and other key components (e.g., batteries)

E. Statutory Authority

The statutory authority for this action is Section 60101 of the Inflation Reduction Act of 2022, codified as Section 132 of the CAA, 42 U.S.C. 7432, which authorizes the EPA to offer grant funding assistance for projects to replace Class 6 and Class 7 non-ZE vehicles with ZE vehicles.

F. 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 the applicant is 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 up to $932 million. Funding is dependent upon the number of meritorious applications received and other applicable considerations described in this document.

B. Number and Amount of Awards

The EPA anticipates awarding a total of approximately 40 to 160 grants and/or cooperative agreements under this announcement, ranging from $500,000 to $60 million per award.

As described in Section I.A. and per the statute, the EPA intends to award a minimum of $400M for projects serving nonattainment areas.

As described in Section I.B., the EPA intends to award approximately 70 percent of the total funding to projects replacing school buses under the School Bus Sub-Program and approximately 30 percent of the total funding to projects replacing non-school bus Class 6/7 heavy-duty vehicles under the Vocational Vehicles Sub-Program. Additional detail about the number and amount of awards under each sub-program are provided below.

The EPA also anticipates awarding approximately the following amounts in each of the EPA’s ten Regions, as listed in Table 1 below, to ensure geographic diversity of projects, subject to the availability of funds, the quantity and quality of applications received, and other applicable considerations described in this document.

Table 1. Total Anticipated Funding by Region Region Total Anticipated Funding per Region

1 $ 50,000,000 2 $ 92,000,000 3 $ 83,000,000 4 $ 90,000,000 5 $ 100,000,000 http://www.epa.gov/grants/epa-solicitation-clauses

6 $ 117,000,000 7 $ 64,000,000 8 $ 67,000,000 9 $ 218,000,000

10 $ 51,000,000

Allocation is based on the percentage of the population that is living in PM2.5 and ozone nonattainment areas that are attributable to the region, and the percentage of the total NOx and diesel PM emissions from mobile sources that are attributable to the region.

The actual award amounts and number of projects awarded under each of the sub-programs and in each Region may differ from the estimated amounts for many reasons, including the number of meritorious applications received and other applicable considerations described in this document. In addition, the EPA reserves the right to increase or decrease (including decreasing to zero) the total number and amount of awards under each sub-program and in each Region, or to change the ratio of assistance agreements it awards among the sub-programs and Regions.

C. Funding Set-Asides

Tribal and Territory Set-Aside Subject to the availability of funds, the quantity and quality of applications received, and other applicable considerations, the EPA anticipates awarding at least 15 awards to eligible applicants from Tribes and territories.

The actual award amounts and number of projects awarded under this set-aside may differ from the estimated amounts for many reasons including the number of meritorious applications received, and other applicable considerations described in this document. In addition, the EPA reserves the right to increase or decrease (including decreasing to zero) the total number and amount of awards under this set-aside.

Please note, grants awarded under this set-aside may also be considered and counted when determining award amounts and the number of projects awarded across sub-programs, Regional funding levels, and nonattainment funding as described above in Section II.B.

D. Partial Funding

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

E. Additional Awards

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

F. 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 start date for awards is January 2025.

G. Funding Type

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

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

III. ELIGIBILITY INFORMATION

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

A. Eligible Entities

Consistent with Assistance Listing No. 66.049 and EPA’s Policy for Competition of Assistance Agreements (EPA Order §5700.5A1), competition under this solicitation is available to:

1. States, including U.S. territories;

2. Municipalities, including public school districts;

3. Indian Tribes; and https://www.ecfr.gov/current/title-2/section-200.317 https://www.ecfr.gov/current/title-2/section-200.318 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

4. Nonprofit school transportation associations.

The term “Municipality” is defined as “a city, town, borough, county, parish, district, or other public body created by or pursuant to State law.” 42 U.S.C. §7602(f). This definition includes the governmental bodies (such as school districts) that make up municipal governments.

The term “Indian Tribe” means any Indian Tribe, band, nation, or other organized group or community, including any Alaska Native Village, which is Federally recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians, as defined in section 302(r) of the Clean Air Act. The EPA has determined that based on the exclusion of Alaskan Native Corporations (ANCs) from this definition that ANCs are not eligible for direct grants from the EPA under this program. ANCs may, however, receive subawards from eligible CHDV grantees.

Intertribal consortia may be eligible applicants under Section III.A.3. if they meet the following conditions. For the purposes of this NOFO, “intertribal consortium” is defined as a partnership between two or more eligible Tribal agencies as defined above, that is authorized by the governing bodies of those Tribes to apply for and receive assistance under this program.

Intertribal consortia are eligible to receive assistance under this program only if the consortium demonstrates that all members of the consortium meet the eligibility requirements for the program and authorize the consortium to apply for and receive assistance by submitting to the EPA documentation of (1) the existence of the partnership between Indian Tribal governments and (2) authorization of the consortium by all its members to apply for and receive the assistance.

For entities applying as nonprofit school transportation associations, 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 and is not organized primarily for profit; and uses net proceeds to maintain, improve, or expand the operation of the organization. The term includes tax-exempt nonprofit neighborhood and labor organizations. 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.

For-profit organizations are not eligible entities for this funding opportunity. Additionally, nonprofit organizations described in Section 501(c)(4) of the Internal Revenue Code that engage in lobbying activities as defined in Section 3 of the Lobbying Disclosure Act of 1995 are not eligible to apply.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1

B. Cost Sharing

Applicants are subject to a mandatory cost share as described below under Section III.B.1. The mandatory cost share for territory applicants (the U.S. Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands) and Tribal applicants will be waived, but territory and Tribal applicants are still subject to the combined vehicle and infrastructure per-vehicle cost caps described below under Section III.B.1.

Applicants may choose to also commit to a voluntary cost share and/or leveraged resources, as described below under Sections III.B.2 and III.B.3. The EPA will award evaluation points for voluntary cost share and leveraged funding commitments, as described in Section V.A. Any form of cost share, mandatory or voluntary, must be included in the budget detail portion of the project narrative, and the applicant must describe in the application how and when the applicant will obtain the cost share and how the cost share funding will be used.

Mandatory cost share and voluntary cost share contributions must be for eligible costs.

Applicants may use their own funds or other sources for cost share if the standards of 2 CFR Part 200, as applicable, are met. If the source of an applicant’s proposed cost share is a named project partner, the applicant must provide a letter of commitment from the named project partner. Note that even if a project partner provides a letter of commitment, it is the recipient who is ultimately responsible for ensuring that the cost share is met.

1. Mandatory Cost Share

Projects are subject to the mandatory cost share and cap requirements on total project costs shown below in Table 2. In-kind administrative costs may count towards the applicant cost share, if it meets the requirements of 2 CFR 200.306. Non-federal funding may be used as the applicant’s mandatory cost share.

Applicants must include the costs or contributions for cost share in the project budget on the SF-424 and SF-424A. The following applies to mandatory cost share:

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

• Cost share may only be met with eligible and allowable costs.

• For this program, the recipient may not use other sources of federal funds, including pass-through federal funds, to meet either the mandatory or voluntary cost share.

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

Specifically, the mandatory cost share funds must be indicated in at least one of the following blocks in Section 18, Estimated Funding, on the SF-424: b. Applicant; c. State; d. Local; or e.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.306 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.306 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1

Other. The mandatory cost shared funds must also be indicated on the SF-424A in Section A Column (f), Section B columns (2), (3) and/or (4), and Section C.

The EPA will fund the EPA cost share percentage of the new vehicle, up to the per-vehicle funding cap, as shown in the table below. The applicant is responsible for providing or securing the remaining costs. Note, the applicant cost share is waived for territory and Tribal applicants, but territory and Tribal applicants are still subject to the per-vehicle cost caps as shown in the table below. Per-vehicle caps include combined vehicle and infrastructure costs. Recipients have flexibility to determine the split between funding for the vehicle itself and the supporting infrastructure (see example below table). Note, the EPA will also cover project implementation costs, as defined in Section III.D.5. of this NOFO. Project implementation costs are not included in or subject to the per-vehicle caps listed in Table 2.

Table 2. Mandatory Cost Share and Caps Per-Vehicle

Vehicle Type

Battery-Electric Vehicles (BEVs) Hydrogen Fuel Cell Vehicles

EPA Cost Share Percentage of New Vehicle

Price

Per-Vehicle Funding Cap

(Vehicle + Infrastructure)

EPA Cost Share Percentage of New Vehicle

Price

Per-Vehicle Funding Cap

(Vehicle + Infrastructure)

School Bus 75% $280,000* N/A N/A

Straight/Box Truck $190,000 $400,000

Step Van $160,000 $340,000

Septic Truck or Bucket Truck

65% $330,000

80% $670,000

Other Vocational Vehicle $355,000 $720,000

Refuse Hauler 50%

$260,000 70%

$600,000

Street Sweeper $315,000 $720,000

Transit Bus 33% $265,000 60% $780,000

*ADA-compliant school buses are eligible for an additional $20,000 per-vehicle funding cap (i.e., a total per-vehicle funding cap of $300,000).

Funding Example: An applicant seeking to replace 15 refuse haulers with battery-electric refuse haulers may request funding up to $3,900,000 ($260,000 per refuse hauler x 15 refuse haulers) to purchase the new battery-electric refuse haulers and associated infrastructure. The EPA will fund up to, but not more than, 50% of the cost of the new refuse hauler. There is no similar cost share for infrastructure, but infrastructure costs are included in the per-vehicle funding cap.

The applicant may also request funding, beyond the $3,900,000, for project implementation costs, as defined in Section III.D.5. of this NOFO.

2. Voluntary Cost Sharing/Matching Funds

Voluntary cost sharing is when an applicant voluntarily proposes to legally commit to provide costs or contributions to support the project beyond what is required by the mandatory cost share. Voluntary cost share is subject to the same requirements as the mandatory cost share discussed above. The EPA will evaluate applicants’ voluntary cost share as described in Section V.A. Applicants who propose to use a voluntary cost share must include the costs or contributions for the voluntary cost share in the project budget on the SF-424 and SF-424A.

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

3. 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 that they are requesting. The EPA will evaluate applicants’ leveraged funding commitments as described in Section V.A. Examples of leveraged resources include, but are not limited to, public-private partnerships, grants from other entities, incentive vouchers, or the issuance of school bonds. Unlike funding awarded as part of this funding opportunity, these resources do not need to be spent on eligible or allowable costs under the program.

Additionally, these resources should only be described in the applicant’s project narrative and should not be included in the project budget on the SF-424 or SF-424A.

If applicants propose to leverage funds, the EPA expects them to secure the leveraged resources described in their applications. If the proposed leveraging does not materialize during the performance period of the grant or cooperative agreement, the EPA may reconsider the legitimacy of the award and/or take other appropriate action authorized under 2 CFR Part 200.

C. Threshold Eligibility Criteria

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

1. Applications must substantially comply with the application submission instructions and requirements set forth in Section IV. or else they will be rejected. However, as expressed in Section IV.C. 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, as well as a readable file type (e.g., .docx, .pdf, .xlsx, .xls, .jpeg, or .png).

2. All applications must be submitted through Grants.gov as stated in Section IV.A. of this announcement on or before the application submission deadline published in Section IV.B. of this solicitation. Applicants are responsible for following the submission instructions in Section IV.B. of this solicitation to ensure that their application is timely and properly submitted. Please note that applicants experiencing technical issues with submitting through Grants.gov should follow the instructions provided in Section IV.B., which include both the requirement to contact Grants.gov and email a full application to cleanhdvehicles@epa.gov prior to the deadline.

The EPA will only consider accepting applications outside of Grants.gov from applicants that are able to demonstrate that they are unable to submit through Grants.gov due to Grants.gov or relevant SAM.gov system issues or for unforeseen exigent circumstances, such as extreme weather interfering with internet access (except in the limited circumstances where another mode of submission is specifically allowed for as explained in Section IV.). Failure of an applicant to submit prior to the application submission deadline date because they did not properly or timely register in SAM.gov or Grants.gov is not an acceptable reason to justify acceptance of an application outside of Grants.gov. NOTE: Registering in SAM.gov or Grants.gov can take a month or more.

Applicants are advised to begin their registration process early so it does not interfere with drafting the application near the deadline.

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

4. Applicants seeking to replace school buses must apply under the School Bus Sub- Program and cannot include non-school bus vehicles on their School Bus Sub-Program application.