FINAL DERA-Tribal-IA-22 RFA.pdf

Office of Transportation and Air Quality August 2022

AGENCY: ENVIRONMENTAL PROTECTION AGENCY (EPA)

Office of Air and Radiation, Office of Transportation and Air Quality

TITLE: 2022 Diesel Emissions Reduction Act (DERA) Tribal and Insular

Area Grants

ACTION: Initial Request for Applications (RFA)

RFA NUMBER: EPA-OAR-OTAQ-22-03

ASSISTANCE LISTING NO: 66.039

IMPORTANT DATES

Thursday, August 4, 2022………..…. 2022 DERA Tribal and Insular Area Grants RFA OPENS

Wednesday, October 26, 2022.......RFA CLOSES – APPLICATIONS DUE January 2023…………………..…………....ANTICIPATED NOTIFICATION

February 2023………………………...…….ANTICIPATED AWARD

Application packages must be submitted electronically to EPA through Grants.gov

(www.grants.gov) no later than Wednesday, October 26, 2022, at 11:59 p.m. (ET) to be considered for funding.

COVID-19 Update: EPA is providing flexibilities to applicants experiencing challenges related to COVID-19. Please see the Flexibilities Available to Organizations Impacted by COVID-19 clause in Section IV of EPA’s Solicitation Clauses.

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

TABLE OF CONTENTS

TITLE: 2022 Diesel Emissions Reduction Act (DERA) Tribal and Insular Area Grants

I. FUNDING OPPORTUNITY DESCRIPTION

A. Background

B. Scope of Work

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

D. Statutory Authority

E. Additional Provisions for Applicants Incorporated Into The Solicitation

II. AWARD INFORMATION

A. What is the amount of funding available?

B. Partial Funding

C. How many agreements will EPA award in this competition?

D. What is the period of performance for awards resulting from this solicitation?

E. Funding Type

III. ELIGIBILITY INFORMATION

A. Eligible Entities

B. Voluntary Cost Sharing/Matching Funds

C. Threshold Eligibility Criteria

D. Eligible Costs and Funding Restrictions

IV. APPLICATION AND SUBMISSION INFORMATION

A. Requirement to Submit Through Grants.gov and Limited Exception Procedures

B. Grants.gov Application Submission Instructions (see Appendix A)

C. Content of Application Submission

D. Submission Date and Time

E. Information Sessions

F. Engine Regulations

G. Coalition Coverage

V. APPLICATION REVIEW INFORMATION

A. Evaluation Criteria

B. Review and Selection Process

C. Other Factors

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

B. Administrative and National Policy Requirements

C. Reporting Requirement

D. Equipment Use, Management, and Disposition

H. Buy America Requirements

VII. AGENCY CONTACTS

APPENDIX A – Grants.gov Application Submission Instructions

APPENDIX B – Project Narrative Instructions, Format, and Content

APPENDIX C – Quantifying Environmental Outcomes

APPENDIX D – Mandated Measures Justification

APPENDIX E – How to Fund Projects and Partnerships

APPENDIX F – Priority Area List

APPENDIX G– Application Submission Checklist

I. FUNDING OPPORTUNITY DESCRIPTION

A. Background

Reducing emissions from diesel engines is one of the most important air quality challenges facing the country. From transportation to energy generation, the diesel engine powers almost every sector of the American economy. Due to improved EPA diesel engine regulations and emissions standards over the past few decades, engines currently coming off the manufacturing line are now sixty times cleaner1 than before. However, despite these tighter standards for new engines, the nearly eight million legacy diesel engines already in use continue to emit large amounts of PM2.5 and NOx.

2 These air pollutants contribute to serious public health problems like asthma, lung disease, and various other cardiac and respiratory illnesses, which result in thousands of premature deaths, millions of lost workdays, and numerous other negative health impacts every year in the United States.

To address these diesel emissions and protect public health and air quality, EPA is authorized under the Diesel Emissions Reduction Act (DERA) to offer funding assistance to accelerate the upgrade and turnover of the legacy diesel fleets. Since the inaugural year of funding for DERA in fiscal year 2008, EPA has awarded over $800 million to replace or retrofit approximately

73,700 engines or vehicles to reduce diesel emissions nationwide. The DERA program promotes an array of diesel emissions strategies by working with manufacturers, fleet operators, air quality professionals, environmental and community organizations and state and local officials to address the varying priorities of different regions and sectors. DERA supports environmental justice by prioritizing emissions reductions in areas receiving disproportionate impacts from diesel fleets to provide an environment where all people enjoy the same degree of protection from environmental and health hazards.

EPA is offering a Diesel Emissions Reduction Act (DERA) Request for Applications (RFA) that is open to tribal governments (or intertribal consortia), Alaska Native Villages and insular area governments for projects that reduce emissions from older diesel engines. EPA began a separate competition for tribes in 2014 to address the unique needs and concerns of tribal grantees.

Similarly, DERA now offers separate funding under this competition for insular areas to encourage their participation in the DERA grants program.

This RFA is a competitive grant program. The DERA program has another competitive funding opportunity, DERA National Grants, which funds similar activities but is open to a wider range of applicant types. Another related EPA funding program is the Clean School Bus

Rebates. Information on these programs can be found at https://www.epa.gov/dera/national and www.epa.gov/cleanschoolbus.

1 https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P100O9ZZ.pdf 2 “Legacy diesel engines” are defined by the DERA program as the operating nonroad diesel and medium to heavy-duty highway diesel engines with engine model years 2009 and earlier. Previously, DERA defined legacy engines as

2006 and earlier, but this has been expanded to include 2007-2009 engines which do not meet current emission standards.

https://www.epa.gov/dera/national http://www.epa.gov/cleanschoolbus https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P100O9ZZ.pdf

B. Scope of Work

DERA grants provide funding to eligible recipients so that they may implement programs which incentivize and accelerate the upgrading or retirement of the legacy diesel fleet. Eligible activities include the retrofit or replacement of existing diesel engines, vehicles and equipment with EPA and California Air Resources Board (CARB) certified engine configurations and verified retrofit and idle reduction technologies. There are several ways DERA recipients may implement projects and fund project partners depending on the roles and responsibilities of each.

If the applicant is the owner of the target vehicles, the applicant may directly implement the project. If the applicant is partnering with diesel fleet owners, the applicant may award subawards or participant support costs (i.e., rebates). Please refer to Appendix E for detailed guidance on funding partnerships. The following sections define the project eligibility criteria that projects must meet as well as the programmatic priorities that applicants should address in their application:

1. Eligible Diesel Vehicles, Engines and Equipment: Applications must include projects which target the heavy-duty diesel emissions source types defined in Table 1, below.

Table 1: Eligible Diesel Vehicles, Engines and Equipment

School Buses3

Includes diesel powered school buses of Type A, B, C and D. To be eligible as a school bus, a vehicle should meet the definition of a school bus as defined by the National Highway Transportation Safety

Administration. This definition includes but is not limited to: 1) A bus that is used for purposes that included carrying students to and from school or related events on a regular basis; 2) Be identified with the words

“School Bus”; and 3) Be painted National School Bus Glossy Yellow.

Transit Buses Includes diesel powered medium-duty and heavy-duty transit buses (see below).

Medium-duty or heavy-duty trucks

Includes diesel powered medium-duty and heavy-duty highway vehicles with gross vehicle weight rating (GVWR) as defined below:

Class 5 (16,001 -19,500 lbs GVWR);

Class 6 (19,501 - 26,000 lbs GVWR);

Class 7 (26,001 - 33,000 lbs GVWR);

Class 8 (33,001 lbs GVWR and over)

Marine

Engines Includes diesel powered Category 1, 2, and 3 marine engines and vessels.

Locomotives Includes diesel powered line-haul, passenger, and switch engines and locomotives.

Nonroad engines, equipment or vehicles3

Diesel powered nonroad engines, equipment and vehicles including, but not limited to, those used in construction, handling of cargo4 (including at ports and airports), agriculture, mining, or energy production (including stationary generators and pumps).

3 Funding for school bus replacement is also available through EPA’s School Bus Rebates. Information on EPA’s

School Bus Rebates Program can be found at www.epa.gov/dera/rebates.

4 Eligible nonroad equipment includes transport refrigeration units (TRUs). Please see the TRU Factsheet found at www.epa.gov/dera/tribal-insulararea for information on TRUs and eligible TRU projects.

https://www.epa.gov/dera/rebates https://www.epa.gov/dera/tribal-insulararea

2. Eligible Diesel Emissions Reduction Solutions: Applications must include projects which implement one or more of the following diesel emissions reduction solutions that use a certified engine configuration and/or a verified technology.

a. Vehicle and Equipment Replacements: Nonroad and highway diesel vehicles and equipment, locomotives, and marine vessels can be replaced with newer, cleaner vehicles and equipment. Eligible replacement vehicles and equipment include those powered by diesel or clean alternative fuel engines (including gasoline), electric generators (gensets), hybrid engines, and zero tailpipe emissions power sources (grid, battery or fuel cell).

To be eligible for funding, vehicles and equipment must be powered by engines certified by EPA and, if applicable, CARB emission standards. Zero tailpipe emissions vehicles and equipment do not require EPA or CARB certification. EPA’s annual certification data for vehicles, engines, and equipment may be found at: www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment. 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. Please see the Low NOx Certified Engines

Factsheet found at www.epa.gov/dera/tribal-insulararea for guidance on identifying engines certified to meet CARB’s Optional Low NOx Standards.

b. Engine Replacement: Nonroad and highway diesel vehicles and equipment, locomotives, and marine vessels can have their engines replaced with newer, cleaner engines. Eligible replacement engines include those certified for use with diesel or clean alternative fuel (including gasoline), electric generators (gensets), hybrid engines, and zero tailpipe emissions power sources (grid, battery or fuel cell).

To be eligible for funding, replacement engines must be certified to EPA or, if applicable, CARB emission standards. However, zero tailpipe emissions engine replacements do not require EPA or CARB certification. EPA’s annual certification data for vehicles, engines, and equipment may be found at: www.epa.gov/compliance-and-fuel-economy-data/annual-certification-data-vehicles-engines-and-equipment. 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. Please see the Low-NOx Engine Factsheet found at www.epa.gov/dera/tribal-insulararea for guidance on identifying engines certified to meet CARB’s Optional Low NOx Standards.

c. Certified Remanufacture Systems: Generally, a certified remanufacture system is applied during an engine rebuild and involves the removal of parts on an engine and replacement with parts that cause the engine to represent an engine configuration which is cleaner than the original engine. Some locomotives and marine engines can be upgraded through the application of a certified remanufacture system (i.e., kit). Engine 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 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/dera/tribal-insulararea 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 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 remanufacture systems may not be available for all engines, and not all remanufacture systems may achieve an emissions benefit. Applications for certified remanufacture systems should include a discussion of the availability of engine remanufacture systems and indicate the pre- and post-project emission standard levels of the engines to demonstrate that the upgrade will result in a PM and/or NOx emissions benefit. If a certified remanufacture system is applied at the time of rebuild, funds under this award cannot be used for the entire cost of the engine rebuild; the funds may only be used for the cost of the certified remanufacture system and associated labor costs for installation of the kit.

To be eligible for funding, remanufacture systems for locomotives and marine engines must be certified by EPA at the time of acquisition. List of certified remanufacture systems are available at: www.epa.gov/compliance-and-fuel-economy-data/engine-certification-data, and additional information on remanufacture systems is available at:

www.epa.gov/vehicle-and-engine-certification/remanufacture-systems-category-1-and-2-marine-diesel-engines.

d. Verified Idle Reduction Technologies: An idle reduction project is generally defined as the installation of a technology or device that reduces unnecessary idling of diesel engines and/or is designed to provide services (such as heat, air conditioning, and/or electricity) to vehicles and equipment that would otherwise require the operation of the main drive or auxiliary engine(s) while the vehicle is temporarily parked or remains stationary.

The eligible idle reduction technologies by associated vehicle type are below. To be eligible for funding under 1) through 4) below, these technologies must be on EPA’s

SmartWay Verified Technologies list (www.epa.gov/verified-diesel-tech/smartway-technology) at the time of acquisition.

1) Long haul Class 8 trucks equipped with sleeper cabs:

a) Auxiliary power units and generator sets

b) Battery air conditioning systems

c) Thermal storage systems

d) Fuel operated heaters (direct fired heaters)

e) Electrified parking spaces (truck stop electrification)

2) School buses: Fuel operated heaters (direct fired heaters)

3) Transport refrigeration units: Electrified parking spaces (Please see the TRU

Factsheet found at www.epa.gov/dera/tribal-insulararea for information on TRUs and eligible TRU projects.)

4) Locomotives:

a) Automatic engine shut-down/start-up systems

b) Auxiliary power units and generator sets

c) Fuel operated heaters (direct fired heaters) http://www.epa.gov/compliance-and-fuel-economy-data/engine-certification-data http://www.epa.gov/compliance-and-fuel-economy-data/engine-certification-data http://www.epa.gov/vehicle-and-engine-certification/remanufacture-systems-category-1-and-2-marine-diesel-engines http://www.epa.gov/vehicle-and-engine-certification/remanufacture-systems-category-1-and-2-marine-diesel-engines http://www.epa.gov/verified-diesel-tech/smartway-technology http://www.epa.gov/verified-diesel-tech/smartway-technology

d) Shore power connection systems (No funds awarded under this RFA shall be used for locomotive shore connection system projects that are expected to be used less than 1,000 hours/year.)

5) Marine vessels: Shore power connection systems

Funding may support new installations, or expansions of existing shore power systems. More information on marine shore power connection systems may be found at www.epa.gov/verified-diesel-tech/learn-about-marine-technology. To be eligible for funding, marine shore power projects must meet the following criteria:

a) Applicants must attest to compliance with international shore power design standards (ISO/IEC/IEEE 80005-1:2012 High Voltage Shore Connection Systems or the IEC/PAS 80005-3:2014 Low Voltage Shore Connection Systems).

b) Shore power connection systems must be supplied with electricity from the local utility grid.

c) Demonstration that the proposed system has the capacity, demand, and commitment to be used for more than 1,000 megawatt-hours per year. Smaller projects will be considered if the applicant can demonstrate cost effectiveness.

d) Due to the unique nature and custom design of marine shore power connection systems, EPA will review and approve marine shore power connection systems on a case-by-case basis. If the project application is selected for funding, the final design of the marine shore power connection system will require specific EPA approval prior to purchase and installation.

e) Applicants must commit to reporting usage information to EPA for five years after the system is operational.

f) Shore power capable vessels docked at a berth where shore power is available must be required to turn off the vessel’s engines and use the shore power system, with limited exceptions for extreme circumstances.

g) Applicants proposing marine shore power connection systems will need to include the following information in their workplan:

i. the annual number of ship visits to berth where the shore power system is to be installed;

ii. average hoteling (or idling) time per visit; and

iii. information about the fleet of vessels that has, or will have, the ability to use the shore-side connection system, including:

• the estimated annual number of ship visits to the shore power enabled berth that will use the shore power system;

• estimated annual hoteling hours using shore power system;

• fuel type and average sulfur content of fuel used in the auxiliary engines for each vessel;

• auxiliary engine and boiler information for each vessel;

• estimated annual hoteling load requirements (megawatt-hours);

iv. any documented commitment of visits and hours by the fleet of vessels that has, or will have, the ability to use the shore-side connection system; and

v. estimated emissions reductions based on the methodology in Appendix C.

https://www.epa.gov/verified-diesel-tech/learn-about-marine-technology

e. Verified Retrofit Technologies: Diesel engine retrofits are one of the most cost-effective solutions for reducing diesel engine emissions. Retrofits include engine exhaust after-treatment technologies, such as diesel oxidation catalysts (DOCs), diesel particulate filters (DPFs), closed crankcase filtration systems (CCVs), and selective catalytic reduction systems (SCRs). Manufacturer engine upgrades which achieve specific levels of emission reductions by applying a package of components have been verified as retrofits for some nonroad and marine engines. Several systems which convert a conventional diesel engine configuration to a hybrid-electric system have been verified as retrofits. Some cleaner fuels and additives have been verified as retrofits by EPA and/or

CARB to achieve emissions reductions when applied to an existing diesel engine. Older, heavy-duty diesel vehicles that will not be retired for several years are good candidates for verified retrofit technologies. EPA suggests that applicants proposing to install verified retrofit technologies consult with suppliers to confirm that the proposed vehicles/engines and their duty-cycles are good candidates for the technology.

To be eligible for funding, verified retrofit technologies must be on EPA’s

(www.epa.gov/verified-diesel-tech/verified-technologies-list-clean-diesel) or CARB’s

(www.arb.ca.gov/diesel/verdev/vt/cvt.htm) Verified Technologies lists at the time of acquisition, must be used only for the vehicle/engine application specified on the lists, and must meet any applicable verification criteria. EPA will not fund stand-alone cleaner fuel/additive use. To be eligible for funding, verified fuels and additives must be for new or expanded use, and must be used in combination, and on the same vehicle, with a new eligible verified engine retrofit or an eligible engine upgrade or an eligible certified engine, vehicle, or equipment replacement funded under this RFA.

f. Clean Alternative Fuel Conversions: Existing highway diesel engines can be altered to operate on alternative fuels such as propane and natural gas by applying an alternative fuel conversion kit.

To be eligible for funding, alternative fuel conversion systems must be certified by EPA and/or CARB or must be approved by EPA for Intermediate-Age engines. EPA’s lists of

“Certified Conversion Systems for New Vehicles and Engines” and “Conversion Systems for Intermediate-Age Vehicles and Engines” are available at www.epa.gov/vehicle-and-engine-certification/lists-epa-compliant-alternative-fuel-conversion-systems; CARB’s list of “Approved Alternate Fuel Retrofit Systems” are available at:

www.arb.ca.gov/msprog/aftermkt/altfuel/altfuel.htm.

To be eligible for funding, conversion systems for engine model years 2006 and earlier must achieve at least a 30% NOx reduction and a 10% PM reduction from the applicable certified emission standards of the original engine. To be eligible for funding, conversion systems for engine model years 2007 and newer must achieve at least a 20% NOx reduction with no increase in PM from the applicable certified emission standards of the original engine. Applications for clean alternative fuel conversions should include a discussion of the availability of conversion systems and indicate the pre- and post-project emission standard levels of the engines to demonstrate that the conversions result in the required emissions benefit.

http://www.epa.gov/verified-diesel-tech/verified-technologies-list-clean-diesel http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm http://www.epa.gov/vehicle-and-engine-certification/lists-epa-compliant-alternative-fuel-conversion-systems http://www.epa.gov/vehicle-and-engine-certification/lists-epa-compliant-alternative-fuel-conversion-systems http://www.arb.ca.gov/msprog/aftermkt/altfuel/altfuel.htm

g. Verified Aerodynamic Technologies and Verified Low Rolling Resistance Tires: To improve fuel efficiency, long haul Class 8 trucks can be equipped with aerodynamic trailer fairings and/or low rolling resistance tires.

To be eligible for funding, technologies must be on EPA’s verified aerodynamic technologies list (www.epa.gov/verified-diesel-tech/smartway-verified-list-aerodynamic-devices) and verified list for low rolling resistance new and retread tire technologies list

(www.epa.gov/verified-diesel-tech/smartway-verified-list-low-rolling-resistance-lrr-new-and-retread-tire) at the time of acquisition, must be used only for the application specified on the lists, and must meet any applicable verification criteria. EPA will not fund stand-alone aerodynamic technologies or low rolling resistance tires. To be eligible for funding, these technologies must be combined on the same vehicle with the new installation of an exhaust after-treatment retrofit funded under this RFA.

3. Project Eligibility Criteria: Applications may include projects which meet the eligibility criteria defined below.

Table 2: Medium and Heavy-Duty Truck, Transit Bus, and School Bus Project Eligibility

Current

Engine

Model

Year

(EMY)

DOC

CCV

DPF SCR

Verified

Idle

Reduction, Tires, or

Aero-dynamics

Vehicle or

Engine

Replacement

EMY 2016+

Vehicle or

Engine

Replacement:

EMY 2019+

Zero Emission2 or Low-NOx

Clean

Alternative

Fuel

Conversion older - 2006 Yes Yes Yes Yes Yes Yes Yes

2007 - 2009 No No Yes Yes1 Yes Yes Yes

2010 -newer No No No Yes1 No

Yes Yes

1Auxiliary power units and generators are not eligible on vehicles with EMY 2007 or newer.

2Eligible fuel cell projects are limited to hydrogen fuel cell engine replacements for eligible urban transit buses, shuttle buses and drayage trucks, and hydrogen fuel cell engine replacements for eligible urban transit buses, shuttle buses, and drayage trucks.

3 Please see the Low-NOx Engine Factsheet found at www.epa.gov/dera/tribal-insulararea for guidance on identifying engines certified to meet CARB’s Optional Low NOx Standards.

http://www.epa.gov/verified-diesel-tech/smartway-verified-list-aerodynamic-devices http://www.epa.gov/verified-diesel-tech/smartway-verified-list-low-rolling-resistance-lrr-new-and-retread-tire http://www.epa.gov/verified-diesel-tech/smartway-verified-list-low-rolling-resistance-lrr-new-and-retread-tire

Table 3. Nonroad Engine Project Eligibility

Current

Engine

Tier

Vehicle/Equipment Replacement4

Verified

Retrofit Compression Ignition Spark Ignition Zero

Emission2 Tier 1 Tier 2 Tier 3-4i Tier 4 Tier 2

Unregulated Yes1 Yes1 Yes1 Yes Yes Yes Yes

Tier 1 No Yes1 Yes1 Yes Yes Yes Yes

Tier 2 No No Yes1 Yes Yes Yes Yes

Tier 3 No No No Yes Yes Yes Yes

Tier 4 No No No No No Yes No

Current

Engine Tier

Engine Replacement4

Verified

Engine

Upgrade Compression Ignition Spark Ignition Zero

Emission3 Tier 1 Tier 2 Tier 3-4i Tier 4 Tier 2

Unregulated Yes1 Yes1 Yes1 Yes Yes Yes Yes

Tier 1 No Yes1 Yes1 Yes Yes Yes Yes

Tier 2 No No Yes1 Yes Yes Yes Yes

Tier 3 No No No Yes Yes Yes Yes

Tier 4 No No No No No Yes No

1Tier 1, Tier 2, Tier 3 and Tier 4i vehicles, equipment, and engines may be used only if Tier 4 is demonstrated to not be available or feasible through a best achievable technology analysis as defined in Section I.B.4., below.

2Eligible fuel cell projects are limited to hydrogen fuel cell equipment replacements for eligible terminal tractors/yard hostlers, stationary generators, and forklifts.

3Fuel cell engine replacement is not eligible.

4Stationary generators in the Alaska rural areas are eligible for replacement with certified marine engines.

Table 4: Marine Engine Project Eligibility

Current Engine Engine & Vessel Replacement4

Certified

Remanu-facture

System3

Verified

Engine

Upgrade

Cate-gory

HP Tier Compression Ignition

Spark

Ignition

Zero

Emis-sion2 Tier

Tier

Tier

Tier

C1, C2 <803 0 Yes1 Yes1 Yes No Yes Yes Yes Yes

C1, C2 <803 1 No Yes1 Yes No Yes Yes Yes Yes

C1, C2 <803 2 No No Yes No Yes Yes Yes Yes

C1, C2 <803 3 No No No No No Yes Yes Yes

C1, C2 ≥804 0 Yes1 Yes1 Yes1 Yes Yes Yes Yes Yes

C1, C2 ≥804 1 No Yes1 Yes1 Yes Yes Yes Yes Yes

C1, C2 ≥804 2 No No Yes1 Yes Yes Yes Yes Yes

C1, C2 ≥804 3 No No No Yes Yes Yes Yes Yes

C1, C2 ≥804 4 No No No No No No No No

C3 All 0 Yes1 Yes1 Yes No No No No No

C3 All 1 No Yes1 Yes No No No No No

C3 All 2 No No Yes No No No No No

C3 All 3 No No No No No No No No 1Tier 1, Tier 2, and Tier 3 engines may be used for vessel and engine replacement only if Tier 4 is demonstrated to not be available or feasible through a best achievable technology analysis as defined in Section I.B.4., below.

2Fuel cell engine replacements and fuel cell vessel replacements are not eligible.

3Some marine engine projects may be subject to the restriction on mandated measures.

4Stationary generators in the Alaska rural areas are eligible for replacement with certified marine engines.

Table 5: Locomotive Engine Project Eligibility

Current

Locomotive

Tier

Locomotive & Engine Replacement Verified

Retrofit

Idle-

Reduction2

Technology

Certified

Remanu-facture

System4

Tier

0+ - 2

Tier

2+

Tier

Tier

Zero

Emission1

Unregulated

- Tier 2 No Yes3 Yes3 Yes Yes Yes Yes Yes

Tier 2+ No No Yes3 Yes Yes Yes Yes Yes

Tier 3 No No No Yes Yes Yes Yes Yes

Tier 4 No No No No No No Yes No 1Fuel cell engine replacement and fuel cell locomotive replacements are not eligible.

2Automatic engine start-stop technologies are only eligible to be installed on locomotives currently certified to Tier

0 or unregulated, subject to the restriction on mandated measures.

3Tier 2+ and Tier 3 engines may be used for locomotive and engine replacement only if Tier 4 is demonstrated to not be available or feasible through a best achievable technology analysis as defined in Section I.B.4., below.

4Some locomotive engine projects may be subject to the restriction on mandated measures.

Note: Tier 0+, Tier 1+, Tier 2+, Tier 3, and Tier 4 represent locomotives manufactured or remanufactured under the more stringent Tier standards promulgated under the 2008 (current) locomotive and marine rule. Tier 0, Tier 1, and Tier 2 represent locomotives originally manufactured or remanufactured under the less stringent Tier standards promulgated in 1997.

4. Best Achievable Technology: All new nonroad and locomotive engines are now manufactured to meet the EPA Tier 4 standards. All new Category 1 and 2, 804 horsepower and above marine engines are now manufactured to meet the EPA Tier 4 standards.

Applicants replacing these nonroad, marine, and locomotive engines should demonstrate in their application that they commit to using Tier 4 engines if Tier 4 engines with the appropriate physical and performance characteristics are available. Applicants anticipating the use of lower tiered engines should discuss their rationale for proposing lower tiered engine replacements in their application.

If selected for funding, recipients will be required to submit a best achievable technology analysis to EPA for approval before Tier 1, Tier 2, Tier 3 or Tier 4i vehicles, equipment, or engines can be purchased, as defined below. The following analysis is not required at the time of application submittal.

a. Best Achievable Technology Analysis Requirements: Using good engineering judgment, the analysis should determine that no vehicle, equipment, or engine certified to

Tier 4 meets the appropriate physical or performance characteristics of the project.

b. If no vehicle, equipment, or engine certified to Tier 4 is available with the appropriate performance characteristics, explain why a certified Tier 4 vehicle, equipment, or engine cannot be used as a replacement because it is not similar to the vehicle, equipment, or engine being replaced in terms of power or speed.

c. If no vehicle, equipment, or engine certified to Tier 4 is available with the appropriate physical characteristics, explain why a certified Tier 4 vehicle, equipment, or engine cannot be used as a replacement because their weight or dimensions are substantially different than those of the engine being replaced, or because they will not fit within the equipment’s engine compartment or housing.

In evaluating appropriate physical or performance characteristics, the analysis may account for compatibility with equipment components that would not otherwise be replaced when installing a new engine, including but not limited to transmissions or reduction gears, drive shafts, cooling systems, operator controls, or electrical systems. If the analysis makes the determination on this basis, it should identify the equipment components that are incompatible and explain how they are incompatible and why it would be unreasonable to replace them.

d. Identify the proposed Tier 3 or Tier 4 vehicle, equipment, or engine to be used and discuss the physical and performance characteristics that will ensure successful operation or compatibility with the existing equipment. Quantify proposed emission reductions, PM cost effectiveness, and NOx cost effectiveness for the proposed options.

e. If proposing the use of Tier 2 or Tier 1 engines, repeat steps 1) - 4) above, as necessary for each Tier down to the level being proposed.

f. DERA project eligibility or approval does not supersede any regulatory requirements for equipment owners, operators, manufactures, installers and others, including but not limited to 40 Code of Federal Regulations (CFR) §1068.240, §1042.615, and §1033.601.

g. Costs for design and engineering analysis may be included in the project budget.

5. Ownership, Usage and Remaining Life Requirements: To be eligible for funding, vehicles and equipment targeted for upgrades must meet certain ownership, usage, and remaining life requirements. Applicants should demonstrate in their application that all funded vehicles and equipment will meet the criteria defined in a.–e., below.

If selected for funding, participating fleet owners must attest to each criterion in a.-e. below in a signed eligibility statement which includes each vehicle make, model, year, vehicle identification number, odometer/usage meter reading, engine make, model, year, horsepower, engine ID or serial number, and vehicle/equipment registration/licensing number and state.

This documentation will be required as part the grantees programmatic reporting to EPA to verify the eligible use of grant funds. A sample eligibility statement may be found at www.epa.gov/dera/tribal-insulararea. The signed eligibility statement is not required at the time of application submittal.

a. The existing vehicle, engine, or equipment should be fully operational. Operational equipment should be able to start, move, and have all necessary parts to be operational.

http://www.epa.gov/dera/tribal-insulararea

b. The participating fleet owner should currently own and operate the existing vehicle or equipment and have owned and operated the vehicle during the two years prior to upgrade.

c. The existing vehicle, engine, or equipment should have at least two years of remaining life at the time of upgrade. Remaining life is the fleet owner’s estimate of the number of years until the unit would have been retired from service if the unit were not being upgraded or scrapped because of the grant funding. The remaining life estimate is the number of years of operation remaining even if the unit were to be rebuilt or sold to another fleet. The remaining life estimate depends on the current age and condition of the vehicle at the time of upgrade, as well as things like usage, maintenance, and climate.

d. Highway Usage: The engine operating hours of two or more units may be combined to reach the thresholds below where two or more units will be scrapped and replaced with a single unit.

1) School Buses:

a) For Tribal government (or intertribal consortia) and Alaska Native Village applicants: To be eligible for funding, the existing vehicle should have accumulated at least 5,000 miles per year during the two years prior to upgrade.

b) For insular area government agency applicants: To be eligible for funding, the existing vehicle should have accumulated at least 1,000 miles per year during the two years prior to upgrade.

2) All Other Highway Engines:

a) For Tribal government (or intertribal consortia) and Alaska Native Village applicants: To be eligible for funding, the existing vehicles should have accumulated at least 5,000 miles per year during the two years prior to upgrade.

b) For insular area government agency applicants: To be eligible for funding, the existing vehicles should have accumulated at least 1,000 miles per year during the two years prior to upgrade.

e. Nonroad, Locomotive and Marine Usage: The engine operating hours of two or more units may be combined to reach the thresholds below where two or more units will be scrapped and replaced with a single unit.

1) Agricultural Pumps: To be eligible for funding, agricultural pumps should operate at least 250 hours per year during the two years prior to upgrade.

2) All Other Nonroad Engines: To be eligible for funding, nonroad engines should operate at least 300 hours per year during the two years prior to upgrade.

3) Locomotive and Marine Usage: To be eligible for funding the existing locomotive and marine engines should operate at least 500 hours per year during the two years prior to upgrade.

6. DERA Programmatic Priorities: Priority for funding is given to projects which meet the following programmatic priorities. As applicable, applicants should include in their application project narrative detailed discussions of how the proposed project meets the criteria below.

a. Priority Location – Areas of Poor Air Quality: Priority for funding is given to vehicles, engines and equipment operating in areas designated as having poor air quality.

EPA will evaluate this under criterion 2. under Section V.A. of this RFA. The term

“project location” refers to the area(s) where the affected vehicles or engines equipment operate.

A list of counties that have been designated as priority project locations can be found in

Appendix F, and also at www.epa.gov/dera/tribal-insulararea. To receive points under this criterion, vehicles or equipment proposed for funding must be operated a majority of the time in one or more of the priority project locations. These counties were identified as priority project locations for the DERA program because they are designated, as of the release date of this RFA, as nonattainment areas or maintenance areas for the following

National Ambient Air Quality Standards. Data is sourced from EPA’s Green Book of

Nonattainment Areas for Criteria Pollutants. (www.epa.gov/green-book).

1) PM2.5 1997 Standard (Annual: 15 µg/m3, 24-hour: 65 µg/m3)

2) PM2.5 2006 Standard (Annual: 15 µg/m3, 24-hour: 35 µg/m3)

3) PM2.5 2012 Standard (Annual: 12 µg/m3, 24-hour: 35 µg/m3)

4) Ozone (O3) 2008 Standard (8-hour: 0.075ppm)

5) Ozone (O3) 2015 Standard (8-hour: 0.070ppm)

b. Environmental Justice and Underserved Communities: Priority for funding is given to projects which promote environmental justice and benefit underserved communities. EPA will evaluate this under criterion 3, Section V.A. of this RFA.

Environmental justice 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. For purposes of this competition and the evaluation of applications, “underserved communities” means people/communities of color, low income, tribal and indigenous populations, and other vulnerable populations such as the elderly, children, and those who pre-existing medical conditions.

http://www.epa.gov/dera/tribal-insulararea https://www.epa.gov/green-book

In addressing these criteria, as applicable, applicants should describe how the project benefits underserved communities including those that have experienced a lack of resources or other impediments to addressing the adverse impacts described above.

Additionally, applicants should describe the extent to which the project addresses engagement with these communities and/or populations, especially local residents, to ensure their meaningful participation with respect to the design, planning, and performance of the project.

c. Project Sustainability: Priority for funding is given to projects which can demonstrate the ability of the applicant and project partners to promote and continue efforts to reduce emissions after EPA funding for this project has ended. EPA will evaluate this under criterion 5, Section V.A. of this RFA. Specifically, applications will be evaluated on whether the applicant and/or its project partners have existing policies or new commitments to, by the end of the project period, adopt idle-reduction policies, adopt contract specifications requiring the use of cleaner, more efficient vehicles and equipment, complete an up-to-date mobile source equipment inventory, or adopt other strategies to promote and continue efforts to reduce diesel emissions.

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

Measures

Pursuant to Section 6.a. of EPA Order 5700.7A1, “Environmental Results under EPA Assistance

Agreements,” EPA must link proposed assistance agreements with the Agency’s Strategic Plan.

In their project narrative, applicants must adequately describe environmental outputs and outcomes to be achieved under assistance agreements (EPA Order 5700.7A1, Environmental

Results under Assistance Agreements). Applicants should 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 priorities described above.

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,” of EPA’s Strategic Plan. Applications must be for projects that support this goal and objective. For more information see: EPA's FY 2022-2026

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 should be measurable during an assistance agreement funding period.

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

• Number of replaced or retrofitted engines/vehicles/equipment; and/or

• Hours of idling reduced.

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 https://www.epa.gov/system/files/documents/2022-03/fy-2022-2026-epa-strategic-plan.pdf https://www.epa.gov/system/files/documents/2022-03/fy-2022-2026-epa-strategic-plan.pdf

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 and equipment

• A documented 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

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

• Adoption of an idle reduction policy

• The completion of a baseline mobile source emission inventory for PM2.5 and or NOx

• Providing support to clean diesel coalitions by sharing information, working with interested fleets, and addressing specific geographic needs

• Number of subawards

• Dissemination of project/technology information via list serves, websites, journals and outreach events

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

“Reporting Requirement,” of this RFA.

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 should also be quantitative. They may not necessarily be achievable within an assistance agreement funding period. Applicants should follow the instructions in Appendix C of this announcement for calculating emissions reductions and cost effectiveness.

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

• Tons of pollution reduced over the lifetime of the vehicles/engines/equipment, specifically:

o Fine particulate matter (PM2.5) o Nitrogen oxides (NOx) o Carbon monoxide (CO) and carbon dioxide (CO2) o Volatile organic compounds (VOCs)

• Tons of pollution reduced annually

• Lifetime total project cost effectiveness for NOx and PM2.5

• Lifetime capital cost effectiveness for NOx and PM2.5

• Net reduction in gallons of diesel fuel used

• 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

• Improved ambient air quality

• Health benefits achieved

• Changes in driver behavior regarding idling practices

• 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

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

• Emissions reductions along freight transportation corridors

4. Performance Measures and Plan: The applicant should also develop performance measures they expect to achieve through the proposed activities and describe them in their application.

These performance measures will help gather insights and will be the mechanism to track progress concerning successful processes and output and outcome strategies and will provide the basis for developing lessons to inform future recipients. Additional details on reporting requirements are included in Section VI.C.

The description of the performance measures should directly relate to the project’s outcomes and outputs, including but not limited to:

• Overseeing subrecipients, and/or contractors and vendors

• Tracking and reporting project progress on expenditures and purchases

• Tracking, measuring, and reporting accomplishments and proposed timelines/milestones

• Tracking and reporting project progress on installations/replacements by maintaining an accurate project fleet description

• Measuring and reporting on outcomes by maintaining an accurate project fleet description and using EPA’s diesel emissions quantifier

• Efforts should be made to track, measure and report the actual vehicle miles traveled, hours of use/operation, and fuel use for all vehicles and equipment involved in the project

The following are questions to consider when developing output and outcome measures of quantitative and qualitative results:

• What are the measurable short term and longer term results the project will achieve?

• How does the plan measure progress in achieving the expected results (including outputs and outcomes) and how will the approach use resources effectively and efficiently?

D. Statutory Authority

The Diesel Emissions Reduction Program is authorized by Title VII, Subtitle G of the Energy

Policy Act of 2005, 42 USC 16131, et seq., as amended. DERA authorizes the award of grants to reduce diesel emissions and diesel emissions exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas. While EPA has authority under DERA 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 of this solicitation 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 should 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 this solicitation (usually in

Section VII) to obtain the provisions.

II. AWARD INFORMATION

A. What is the amount of funding available?

EPA anticipates awarding approximately $8 million in DERA funding under this RFA, subject to the availability of funds, the quantity and quality of applications received, and other applicable considerations. A total of approximately $7 million will be made available to tribal governments

(or intertribal consortia) or Alaska Native Villages and approximately $1 million will be made available to insular area government entities.

The amount of federal funding requested per application by the tribal governments (or intertribal consortia) or Alaska Native Villages must not exceed $800,000, and the amount requested per application by the insular area government entities must not exceed $300,000. Applications requesting in excess of these amounts will be rejected.

Applicants can submit a total of two (2) applications overall under this solicitation. However, each application must be for a different project and must be submitted separately. A single application may target multiple fleets, fleet types, and/or diesel emission reduction solutions.

In appropriate circumstances, EPA may incrementally fund applications by funding phases of proposed projects. 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…