ESBD_File_350635_582-24-85016-CB-RFGA-FINAL-acc-V4.pdf

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Request for Grant Applications (RFGA) Texas Clean School Bus Program (TCSB)

Texas Commission on Environmental Quality (TCEQ) Texas Emissions Reduction Plan (TERP)

Solicitation No. 582-24-85016-CB

Este documento es la Solicitud de Aplicaciones de Subvenciones para el Programa de Autobuses Escolares Limpios de Texas [(TCSB) por sus siglas en inglés]. La información en este documento lo ayudará a determinar si califica para una subvención. Comuníquese al 800-919-TERP (8377) para obtener ayuda con esta información.

Key RFGA Events Date

Program Opening Date Feb. 14, 2024

Application Submission Deadline Oct. 14, 2024

Request for Reimbursement Deadline Apr. 30, 2026

Contact Information

TCEQ

Air Grants Division, MC-204 (TCSB) P.O. Box 13087 Austin, Texas 78711-3087

800-919-TERP (8377)

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Applications will be accepted for consideration during this grant period only if received by TCEQ via electronic mail (email) at TCSB-Apply@tceq.texas.gov, via TCEQ’s File Transfer Protocol Secure (FTPS) site, or via mail, no later than 5:00 p.m. Central Time on the application submission deadline listed on the cover page of this RFGA. Refer to Section 4.0 for detailed instructions for submitting an application.

The award of a TCSB grant is dependent upon the availability of funding. Any changes to this solicitation will be made through an addendum in the Electronic State Business Daily (ESBD), as well as posted on TERP’s TCSB webpage.

There will not be a pre-proposal conference.

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Table of Contents

1.0 Purpose

2.0 Program Requirements

2.1 Eligible Applicants

2.2 Eligible Project Categories

2.2.1 Retrofit Projects

2.2.2 Replacement Projects

2.3 Usage of Grant-funded Equipment

2.4 Marketable Emissions Reductions Credits

3.0 Available Funding, Grant Amounts, and Costs

3.1 Available Funding

3.2 Retrofit Activity Eligible Costs and Grant Amounts

3.3 Replacement Activity Eligible Costs and Grant Amounts for Replacement Activities

3.4 Ineligible Costs

3.5 Deduct Incentives from Eligible Grant Amounts

4.0 Grant Application and Administration

4.1 Application Forms

4.2 Application Process

4.3 Acceptance and Approval

4.4 Additional Considerations

4.5 Grant Award and Contracting

4.6 Reimbursement of Expenses

4.7 Disposition

4.7.1 Standard Disposition

4.7.2 Alternative Disposition

4.7.3 Permanent Removal from North America

4.8 Annual Usage and Reporting

4.9 Performance Evaluation

Appendix A: School Bus Types Appendix B: Maximum Grant Amount Table Maximum Grant Amount Table No. 1

1.0 Purpose

The Texas Commission on Environmental Quality (TCEQ) invites applications from public school districts, open-enrollment charter schools, and transportation systems provided by a county-wide school district that operate diesel-fueled school buses in Texas. Incentive funding is available for activities that will reduce children’s exposure to diesel exhaust in and around diesel-fueled school buses. Diesel exhaust is composed of one or more of the air pollutants emitted from an engine by the combustion of diesel fuel, including particulate matter (PM), nitrogen oxides (NOX), volatile organic compounds, air toxins, and carbon monoxide.

This grant program implements the portion of the Texas Emissions Reduction Plan (TERP) related to the Texas Clean School Bus (TCSB) Program, as authorized under Texas Health and Safety Code Chapter 390. TCEQ adopted rules to implement this program under 30 Texas Administrative Code (TAC), Chapter 114, Subchapter K, Division 4.

2.0 Program Requirements

All applicants and activities must meet the eligibility requirements listed in this section at the time of application submittal to be considered for a grant.

2.1 Eligible Applicants

Any Texas school district or open-enrollment charter school that operates one or more diesel-fueled school buses or a transportation system provided by a countywide school district may apply for and receive a grant under this program. A “school district” must be authorized and created pursuant to Chapter 11 of the Texas Education Code. A “charter school” must be a school authorized and created by Chapter 12 of the Texas Education Code. Private schools are not considered school districts for the purposes of this grant. A “private school” is any school that offers instruction for one or more grades from prekindergarten through grade 12 and is not operated by a governmental entity.

2.2 Eligible Project Categories

2.2.1 Retrofit Projects

This category is for the purchase and installation of eligible retrofit systems on eligible school buses. A school bus proposed for retrofit must be used on a regular daily route to and from a school during the regular school year and have at least five years of useful life remaining. All sizes of diesel-fueled school buses are eligible for retrofit.

Diesel-fueled school buses that are owned by a private leasing company, but are otherwise eligible for a TCSB grant, must have: 1) the applicant be the school district or open-enrollment charter school in which the buses are leased and operated; and 2) the private leasing company certify its willingness to be a party to the resulting grant agreement. Special terms and conditions relevant to such an arrangement will be negotiated prior to the signature of the contract.

Many retrofit systems are manufactured for application with only specific engines. Applicants are responsible for researching and confirming that the proposed retrofit system is compatible with the intended bus. Eligible retrofit systems are:

a) Closed crankcase filtration systems (CCFS). For this program, CCFS must be able to reduce crankcase PM emissions and reduce the PM emissions that are most likely to enter the bus interior. CCFS may be funded independently or in conjunction with another eligible retrofit system.

b) Diesel particulate filters (DPF) are for diesel-fueled school buses built from 1994 to 1998. A DPF must be verified by the EPA or the California Air Resources Board (CARB).

Most filter systems require the use of ultra-low sulfur diesel (15 parts per million or less sulfur). Applicants are responsible for ensuring the continued availability of ultra-low sulfur diesel in their area.

c) Diesel oxidation catalysts (DOC) for diesel-fueled school buses that are verified by the EPA or CARB to reduce PM emissions may be considered for:

1. Buses manufactured before 1994; and

2. Areas where ultra-low sulfur diesel fuel is not available.

Applicants are encouraged to consider combinations of these retrofit systems to create cost effective overall emissions reductions.

2.2.2 Replacement Projects

This category is for the replacement of a pre-2007 diesel-fueled school bus. A school bus proposed for purchase to replace a pre-2007 model year school bus must be of the current model year or the year before the current model year at the time the application is submitted.

The standards that apply to replacement projects are listed below:

a) The applicant must own the school bus at the time of application and must have continuously owned and have been listed as the owner on the title for a minimum of two years immediately preceding the application signature date.

b) Unless the vocational type of the school bus is exempt from inspection and registration requirements, the school bus must currently be registered and have been continuously registered for operation in Texas for the two years immediately preceding the application signature date.

c) Applicants must submit documentation with the application to show compliance with the ownership and registration requirements, including a copy of the school bus title and documentation of registration for the 12 months immediately preceding the application signature date.

d) The school bus must be currently, and for the two years immediately preceding the application signature date, operating on a regular daily route to and from a school during the regular school year.

e) A replacement school bus must be of the similar type as the school bus being replaced. For this grant round, school bus types are defined by the chassis configuration and the gross vehicle weight rating (GVWR), among other relevant features (see Appendix A: School Bus Types and Appendix B: Maximum Grant Amount Table).

2.3 Usage of Grant-funded Equipment

An applicant selected for funding will be contractually required to operate their bus on a regular daily route for five years, a period called the “activity life.” The activity life will start on the date TCEQ approves disposition for replacement projects or on the date of reimbursement for retrofit projects. Replacement equipment is not eligible for a grant under this program if it is used under a lease or lease-purchase agreement.

For any retrofit activity where the grant-funded equipment will be used under a lease, the period of the lease agreement must extend for at least the five-year activity life.

2.4 Marketable Emissions Reductions Credits

A project that would otherwise generate marketable credits under state or federal emissions reduction credit averaging, banking, or trading programs is not eligible for funding under this program unless:

a) the activity includes the transfer of the reductions that would otherwise be marketable credits to the state implementation plan, or the owner or operator as provided under Texas Health and Safety Code Section 386.055; and

b) the reductions are permanently retired.

3.0 Available Funding, Grant Amounts, and Costs

3.1 Available Funding

a) The total amount to be awarded under this grant program will depend upon the amount of revenue received into the TERP Fund. TCEQ will not be obligated to fund projects up to these amounts and may adjust or exceed these amounts without an addendum to this RFGA or other notice.

b) TCEQ may offer to fund less than the dollar amount requested in an application. TCEQ may make funding contingent upon additional conditions or changes to the project pertaining to equipment, logistical considerations, expenses, and other program elements.

c) To assist applicants in determining whether sufficient funds will be available to cover their application, TCEQ may post updates on the TERP website terpgrants.org regarding the amount of unobligated funds that remain available for TCSB grants. Information will also be available by emailing TERP@tceq.texas.gov or calling the TERP toll free number at (800)

919-TERP (8377).

3.2 Retrofit Activity Eligible Costs and Grant Amounts

The grantee may be eligible for reimbursement of up to 100% of the cost to purchase and install the retrofit device and associated equipment. Eligible budget categories include Equipment, Supplies and Materials, and Contractual Costs as defined below:

a) Equipment is defined as non-construction related, tangible personal property having a unit acquisition cost of $5,000 or more (including sales tax and delivery, protective in-transit insurance, and freight charges) with an estimated useful life of over one year. Equipment purchased with grant funds should be budgeted as Equipment if the sum of the separate component parts (including tax and delivery) has an original value of $5,000 or more.

Installation costs may include costs to re-engineer the school bus for the retrofit system to fit technical design, testing and other engineering services required as part of the installation work should also be listed under the category. An itemized invoice and proof of payment will be required for reimbursement of all equipment costs. Equipment costs that do not involve an arms-length transaction (e.g., use of inventory without a proof of purchase) are not reimbursable.

b) Supplies and Materials are defined as non-construction related costs for goods and materials having a unit acquisition cost (including sales tax and delivery) of less than $5,000. Basic items such as telephones, tools (wrenches, screwdrivers, etc.) and office supplies are considered to be a cost of doing business and will not be funded. An itemized invoice and proof of payment will be required for reimbursement of all supplies and materials costs.

Food and drinks are not reimbursable expenses.

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c) Contractual expenses are defined as non-construction related costs for professional services or tasks provided by a firm or individual who is not employed by the applicant. Each subcontractor/ consultant should be listed separately.

3.3 Replacement Activity Eligible Costs and Grant Amounts

a) The grantee may be eligible for reimbursement of up to 80% of the eligible incremental costs associated with the purchase of the replacement school bus, not to exceed the maximum grant amount established by TCEQ for that activity. The incremental cost is the cost to purchase the replacement school bus minus the scrap value of the school bus being replaced. TCEQ has established a default scrap value of $1,000.

b) A Maximum Grant Amount Table is included in Appendix B of this RFGA and is available for viewing and download on the TERP website at terpgrants.org. Applicants replacing a school bus must refer to Maximum Grant Amount Table No. 1 to determine the eligible grant amount.

c) Eligible costs include the invoice cost of the new school bus, including taxes, duty, protective in-transit insurance, and freight charges.

3.4 Ineligible Costs

a) Any costs paid prior to the opening date of the grant round.

b) Administrative costs and other internal costs to the grantee, including personnel expenses, internal salaries, indirect costs, and travel will not be eligible for reimbursement. This restriction also applies to situations where the grantee acts as the freight/delivery provider for delivery of the grant-funded school bus before or after acceptance of the school bus.

c) Consultant fees for the preparation of a grant application and administration of the grant, either directly or as an addition to the cost basis of the grant-funded school bus or equipment by the vendor or installer will be considered administrative costs and are not eligible.

3.5 Deduct Incentives from Eligible Grant Amounts

Initial grant amounts for any project types must be reduced by the value of any existing financial incentives that directly reduces the cost of the proposed project. This includes:

a) Tax credits or deductions;

b) Other grants; or

c) Any other public financial assistance.

4.0 Grant Application and Administration

4.1 Application Forms

a) The applications and this RFGA may be downloaded from the TCEQ website at terpgrants.org. Copies of the forms may also be obtained by calling the TERP toll free number at 800-919-TERP (8377).

b) All applications for funding must be submitted within the application submission period listed on the cover page of the RFGA. If an application is found to be incomplete, TCEQ will notify the applicant in writing and provide details about what is missing from the application. Applicants will be provided a deadline to submit the missing information to TCEQ. A complete application must include:

1) All pages of the application;

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2) All required attachments;

3) Applicant’s contact information;

4) All required signatures; and

5) All the information necessary for TCEQ to review the eligibility of the project and subsequently award grant funds.

c) Applicants are limited to applying for a maximum of five (5) replacement or retrofit activities. If funding is available, TCEQ may publish an addendum to this solicitation and increase this maximum number. Applicants would then be allowed to submit additional application(s) and exceed the original maximum number of five (5) activities.

d) TCEQ reserves the right to limit the amount awarded to a single applicant. For the purposes of this limitation, applicant includes an individual or business and all of its associated legal affiliates. At the sole discretion of TCEQ this may include reducing the requested grant amount of one or more applications from an applicant.

e) Make sure to use the application that matches your project type. Applications must only contain one project type. Multiple project types must be separated into multiple applications.

4.2 Application Process

a) Applications will be accepted for consideration during this grant period only if received by

TCEQ no later than 5:00 p.m. Central Time on the application submission deadline listed on the cover page of this RFGA, as long as funds are available.

b) Applications may be submitted electronically using one of the methods listed below. It is preferable that the application and its attachments be submitted as a single PDF, but it is not required. If the attachments for an application will be submitted as separate files, each attachment must be grouped by activity and clearly labeled with the activity number at the top of each page.

1) Submitting Applications via TCEQ’s FTPS Server. Applications may be submitted securely by uploading the file to our FTPS site and selecting the share file(s) button.

Enter TCSB-Apply@tceq.texas.gov as the email address. See detailed directions for using TCEQ’s FTPS site. Please note: applications uploaded to the FTPS site without completing the share file(s) step will not be considered as submitted. Learn how to create an account and submit your application via the FTPS site.

2) Submitting Applications via Email. Applications may be submitted via email to TCSB-Apply@tceq.texas.gov. Only one application may be submitted per email at a maximum total file size of 25MB. Please note: submitting your application by standard email is not secure. Use TCEQ’s FTPS site to send it securely.

c) Applications may also be submitted by mailing a physical copy to one of these addresses:

Standard Mail:

TCEQ

Air Grants Division, MC-204 (TCSB) P.O. Box 13087 Austin, TX 78711-3087

Express Mail:

TCEQ

Air Grants Division, MC-204 (TCSB) 12100 Park 35 Circle, Building F, 1st Floor, Suite 1301 Austin, TX 78753 https://ftps.tceq.texas.gov/ https://ftps.tceq.texas.gov/help/ https://ftps.tceq.texas.gov/help/ https://www.youtube.com/watch?v=GW4eEe_uUwc https://www.youtube.com/watch?v=GW4eEe_uUwc mailto:TCSB-Apply@tceq.texas.gov

d) Consultants & Third-Party Preparers. Applicants may enlist private consultants to assist with completing and submitting an application. TCEQ neither encourages nor discourages the use of a consultant to assist with the application process. Consultants do not represent TCEQ, and TCEQ has no agreements where applications submitted by a particular consultant will receive more favorable treatment than other applications. As noted under the requirements of Section 3.4, any fees charged by a consultant are the responsibility of the applicant and may not be charged to the grant, either directly or as an addition to the cost basis of the grant-funded school bus or equipment.

The applicant must indicate in the application if the application was prepared by a third party (someone other than the applicant or an employee of an applicant). If a third party prepares the application, the third party must also sign the application and certify that the information provided in the application is true and correct and as represented to the third party by the applicant. A third party’s failure to sign the application or signing it with a false statement may make the application ineligible, may make any resulting contracts voidable, and may subject the third-party preparer to criminal or civil penalties.

e) Application Certifications. By signing the application, the applicant is certifying its understanding and compliance with the statements in the application, including the General Certifications. If any of these certifications materially change after submittal of the application, you will provide prompt notification to TCEQ within three (3) business days of becoming aware of the change. Failure to notify TCEQ and/or any changes to your certifications may make the application ineligible and may make any resulting contracts voidable.

f) Sample Contract. A Portable Document Format (PDF) version of the draft contract may be viewed and downloaded from the TERP website at terpgrants.org. This draft contract is for reference only and contain terms and conditions that are standard provisions for grants awarded under this program. Any requested changes to a draft contract must be submitted to TCEQ in writing at the time the application is submitted. However, by signing and submitting the application, the applicant understands that TCEQ will not normally change the contract language in response to individual requests from grant recipients and is under no obligation to do so. Requesting to negotiate contract terms may also result in a delay in receiving an award and may result in TCEQ rescinding an award if the parties are not able to come to a mutual agreement. TCEQ reserves the right to modify the draft contract terms as necessary due to statutory, rule, or policy changes. Modifications will be posted to the TERP website at terpgrants.org and the ESBD.

g) Upon submission, all proposals become the property of the State of Texas and as such become subject to public disclosure under the Texas Public Information Act (PIA), Texas Government Code, Chapter 552.

h) Individuals are entitled to request and review their personal information the agency gathers on its forms. They may also have any errors in their information corrected. To review such information, contact TERP staff at 800-919-TERP (8377) or TERP@tceq.texas.gov.

4.3 Acceptance and Approval

Applications will be date stamped as they are received by TERP program staff. Properly completed applications with eligible projects will be processed for approval and awarded on a first-come, first-served basis until all available funding is exhausted. Incomplete or ineligible applications will be denied and may be returned to the applicant. Corrected or changed applications will be considered based on the date and time at which the corrected or changed versions are received by TERP program staff.

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4.4 Additional Considerations

Regardless of the date and time that an otherwise eligible application is received, TCEQ may consider the following factors when reviewing applications for grant funding:

a) TCEQ is not obligated to fund any project for any reason or may offer to fund less than the eligible grant amounts for any reason.

b) TCEQ is not obligated to fund projects from applicants:

1) With an outstanding invoice from TCEQ or who are not in compliance with existing or prior TERP grants;

2) Where the proposed projects are required by any state or federal law, rule, or regulation, memorandum of agreement, or other legally binding contract;

3) Under federal, state, or local enforcement action for violation of environmental laws or permit conditions; or

4) With an overall compliance history classification of Unsatisfactory (greater than 55.00) on TCEQ’s Compliance History Database for applicants that are subject to the rating.

c) TCEQ may also:

1) Require additional conditions or changes to the project pertaining to equipment, logistical considerations, expenses, and other program elements;

2) Make a determination of risks associated with the applicant and/or project and may include additional conditions to the contract to address identified risks;

3) Hold applications to be funded at a later date.

d) If an applicant is applying for the same project under this RFGA and an RFGA under a separate TERP or Texas Volkswagen Environmental Mitigation Plan (TxVEMP) grant program, funding will only be awarded under the first program that awards a grant for the submitted project.

e) Applicants must cooperate with TCEQ, the State of Texas, the State Auditor’s Office, and any of their authorized representatives to allow access to all vehicles and equipment being replaced and all grant-funded vehicles, equipment, and refueling infrastructure for the purpose of on-site inspections and/or audit. Failure to respond to or cooperate with any authorized review, inspection, or audit of the grant activities will result in the application being determined ineligible and make any resulting contracts voidable.

4.5 Grant Award and Contracting

Applicants selected to receive grant funding will be required to sign a contract with TCEQ. The approved activities outlined in the application will be represented in the contract’s Scope of Work.

Grant recipients commit to taking all actions necessary to ensure the successful completion and subsequent operation of the new vehicle (referred to in the contract as Grant Equipment) within the contract’s time frames and funding limitations.

Successful applicants will be notified by phone, email, or other means of their selection and the amount of grant funds that may be awarded. Upon the applicant’s signature and final execution of the contract by TCEQ, a copy of the signed contract will be returned to the applicant, at which time the grant will be considered awarded and executed.

4.6 Reimbursement of Expenses

a) Eligible expenses must have been incurred on or after February 14, 2024, to be considered for funding.

b) Payments will be made on a reimbursement basis for eligible costs paid in full by the grantee minus the scrappage value and any other financial incentives, as referenced in Sections 3.3 and 3.5.

c) Grantees will be required to provide documentation in accordance with the contract to show that grant-funded vehicles or equipment have been received and costs have been paid in full before reimbursement will be provided by TCEQ unless otherwise approved.

d) All costs must be paid in full by the grantee; grant-funded vehicles or equipment must be received, retrofit equipment installed, and operational; and final requests for reimbursement submitted to TCEQ by the request for reimbursement deadline listed in the contract.

Grantees experiencing project delays may submit a written extension request to TCEQ via electronic mail at terp_revise@tceq.texas.gov. Unless otherwise approved by TCEQ, an extension request must be submitted no later than 60 days prior to the request for reimbursement deadline. TCEQ’s decision to grant or deny an extension request will be provided in writing to the grantee and will depend on factors including the availability of grant funds.

e) If the grantee finances the grant-funded vehicles or equipment, the reimbursement will be assigned to the company that provided the financing. To be paid directly, the grantee must show that the grantee paid eligible expenses that are equal to, or greater than, the reimbursement amount with cash-on-hand (non-borrowed funds).

f) For retrofit activities only, if the grant-funded equipment is leased, the lease must have a term sufficient to extend to the end of the activity life or a binding commit to purchase at the end of the term.

g) TCEQ may advance funds to grantees who are governmental entities on a case-by-case basis. These grantees must agree to any special terms or conditions that may be required by TCEQ. If TCEQ advances funds to the grantee, TCEQ will reconcile the advanced funds with the actual documented, eligible, final project costs to ensure the grantee only received sufficient funds to reimburse those costs.

4.7 Disposition

This section applies to school bus replacement projects only. If selected for a grant, the grantee is responsible for completing the disposition of the old bus and engines being replaced within 90 days after the reimbursement is issued by TCEQ.

4.7.1 Standard Disposition

Disposition requires that the old bus and engine be destroyed and rendered permanently inoperable. The structural damage to the bus(es) must be such that repairs are not possible. Within 90 days after the reimbursement, the grantee must dispose of the old bus and engine by:

a) Completely crushing the bus and engine; or

b) Making a 3-inch or larger hole in the engine block and cutting the frame rails of the bus.

For all replacement projects, a Texas non-repairable vehicle title is required as proof of destruction.

4.7.2 Alternative Disposition

TCEQ may consider alternative methods of rendering the buses and engines permanently inoperable in lieu of the standard method of disposition. See the Alternative Disposition section of the application.

The applicant must provide a detailed explanation of the alternative method of disposition, in writing to the TCEQ. If approved, TCEQ will include the alternative disposition method in the

Special Conditions of the contract. If TCEQ does not approve the alternative method, the grantee must follow the Standard Disposition requirements as outlined above in Section 4.7.1.

Failure to comply with these requirements and those included in the contract with TCEQ, including providing TCEQ with disposition verification within 90 days of TCEQ issuing the reimbursement payment, may invoke the contract’s remedies, including termination of the contract and the return of grant funds.

4.7.3 Permanent Removal from North America

TCEQ may consider proposals for the permanent removal of buses from North America in lieu of the standard method of disposition or an alternative method. Permanent removal will only be approved for the export of school buses to a destination outside of North America (United States, Canada, and the United Mexican States). See the Permanent Removal from North America section of the application.

The applicant must provide a detailed plan of the export and transfer of ownership, in writing to the TCEQ. The plan must include:

a) A detailed explanation of the transfer of ownership of the school bus(es), including any available information about the final destination of the export;

b) The receiving entity’s identity and contact information;

c) The method by which the applicant will transfer ownership, and any additional details explaining what will happen to the school bus(es) and engine; and

d) Drafted contractual language to be included in any transfer agreement stating that the transferee is prohibited from operating the school bus(es) in North America and that if this term is breached, the transferee will pay an amount sufficient to cover any return of funds required by the TERP program.

If a request is approved, the conditions of the plan for the permanent removal will be included in the Special Conditions of the contract. If TCEQ does not approve the plan for the permanent removal, the grantee must follow the Standard Disposition requirements as outlined above in Section 4.7.1.

Failure to comply with these requirements and those included in the contract with TCEQ, including providing TCEQ with disposition verification within 90 days of TCEQ issuing the reimbursement payment, may invoke the contract’s remedies, including termination of the contract and the return of grant funds.

4.8 Annual Usage and Reporting

a) The applicant must agree to operate the bus(es) or use the retrofit equipment for a five-year activity life. The activity life will start on the date TCEQ approves disposition for replacement projects or on the date of reimbursement for retrofit projects. TCEQ will notify the grantee to start keeping records beginning on the specified activity life start date.

b) Usage reports on the use of the grant-funded school buses will be required throughout the life of each activity, using forms provided by TCEQ. These forms will be required annually, or more frequently as determined by TCEQ.

4.9 Performance Evaluation

TCEQ will notify the grantee in writing upon the end of performance of the activity life or more frequently, as deemed necessary.

Appendix A: School Bus Types For school bus replacement activities under this grant program, maximum grant amounts are based upon school bus type according to the descriptions listed below. If the applicant wishes to replace a school bus type that is not included in one of these descriptions, the applicant must contact TCEQ for assistance in determining whether the activity may be eligible for consideration under this grant program.

a) TYPE A: A van conversion or body constructed utilizing a cutaway front-section vehicle with a left side driver’s door. The Type A bus shall be no less than 10,000 lbs. and may not exceed 19,500 Gross Vehicle Weight Rating (GVWR). The entrance door is behind the front wheels. No single rear wheel vehicles will be allowed.

b) TYPE B: A school bus constructed utilizing a stripped chassis. The entrance door is behind the front wheels and has a GVWR of greater than 10,000 lbs.

c) TYPE C: A body installed upon a flat back cowl chassis or an integrated conventional chassis/body combination, with a hood and front fender assembly and a GVWR of more than 10,000 lbs. The engine is in front of the windshield and the entrance door is behind the front wheels. This type is also known as a "conventional school bus.”

d) TYPE D: A body installed upon a chassis, with the engine mounted in the front, mid-bus, or rear with a GVWR of more than 10,000 lbs. The engine may be behind the windshield and beside the driver's seat; at the rear of the bus, behind the rear wheels; or between the front and rear axles. The entrance door is ahead of the front wheels. This type is also known as "transit-style school bus."

Appendix B: Maximum Grant Amount Table Determining your Maximum Grant Amount

The Maximum Grant Amount Table for replacement projects is included below and is also available for viewing and download on the TERP website at terpgrants.org. Funding amounts for retrofit projects are determined based upon eligible costs and are not included in the following maximum grant amount table (see Section 3.2 of this RFGA for eligible costs for retrofit projects).

Step 1: Use Appendix A: School Bus Types to identify the type of school bus you will replace.

Step 2: Select the school bus type of the school bus that you will replace within the left column of the appropriate Maximum Grant Amount Table.

Step 3: Select the two columns representing the fuel type of the school bus that you will purchase.

Step 4: From those two columns, select the one column representing the engine year of the school bus that you will replace.

Step 5: Trace down the selected column to the school bus type row selected in Step 2 above. The dollar value in the box where the selected column and rows intersect is your maximum grant amount, not to exceed 80% of the incremental cost of the replacement school bus.

See the Maximum Grant Amount Table No. 1 on next page.

Maximum Grant Amount Table No. 1

Engine Year of Old School Bus and Ignition Type of New School Bus

≤2003 ≤2003 ≤2003 2004-2006 2004-2006 2004-2006

School Bus Type

CI SI Zero CI SI Zero

Type A N/A $104,720 $238,000 N/A $65,450 $148,750

Type B $100,375 $103,768 N/A $62,734 $64,855 N/A

Type C $87,822 $126,616 $333,200 $53,699 $79,135 $208,250

Type D $112,811 $153,510 $380,800 $70,508 $95,944 $238,000

Ignition Types are as follows: CI = compression-ignition (e.g., diesel), SI = spark-ignition (e.g., LPG, CNG, gasoline), Zero = zero emission vehicles (e.g., electric, hydrogen).

Note: For applicants proposing to replace a school bus with another Type, please use the guidance below:

a) Applicants proposing to replace a Type B School Bus with a Type C School Bus should use the Type C table amounts and proposed fuel type for the new bus.

b) Applicants proposing to replace a Type C School Bus with a Type D School Bus should use the Type C table amounts and proposed fuel type for the new bus.

c) Applicants proposing to replace a Type D School Bus with a Type C School Bus should use the Type D table amounts and proposed fuel type for the new bus.