FY17 DERA RFP FINAL 4.18.17.pdf

AGENCY: ENVIRONMENTAL PROTECTION AGENCY (EPA)

TITLE: Clean Diesel Funding Assistance Program FY 2017

ACTION: Request for Proposals (RFP)

RFP NUMBER: EPA-OAR-OTAQ-17-04

CATALOG OF FINANCIAL DOMESTIC ASSISTANCE NUMBER: 66.039

IMPORTANT DATES

Tuesday, April 18 2017 RFP OPENS

Tuesday, June 20, 2017 RFP CLOSES – PROPOSALS DUE

August-September 2017 ANTICIPATED NOTIFICATION OF SELECTION

October-December 2017 ANTICIPATED AWARD

The closing date and time for receipt of proposals is Tuesday, June 20, 2017, at 11:59 p.m.

Eastern Time (ET) in order to be considered for funding. Proposal packages must be submitted electronically to EPA through Grants.gov (www.grants.gov) no later than Tuesday, June 20, 2017, at 11:59 p.m. (ET) in order to be considered for funding.

SUMMARY

EPA’s Office of Transportation and Air Quality is soliciting proposals nationwide for projects that achieve significant reductions in diesel emissions in terms of tons of pollution produced by diesel engines and diesel emissions exposure, particularly from fleets operating at or servicing goods movement facilities located in areas designated as having poor air quality. Further, priority for funding may be given to projects which result in outcomes that benefit affected communities, those that engage affected communities with respect to the design and performance of the project, and those which can demonstrate the ability to promote and continue efforts to reduce emissions after the project has ended.

Eligible diesel emission reduction solutions include verified emission control technologies such as exhaust controls, cleaner fuels, and engine upgrades, verified idle reduction technologies, verified aerodynamic technologies and low rolling resistance tires, certified engine replacements, and/or certified vehicle or equipment replacement.

Eligible diesel vehicles, engines and equipment may include buses, Class 5 – Class 8 heavy-duty highway vehicles, marine engines, locomotives and nonroad engines, equipment or vehicles used in construction, handling of cargo (including at a port or airport), agriculture, mining or energy production (including stationary generators and pumps).

Eligible entities include regional, state, or local agencies, tribal governments (or intertribal consortia) and native villages, or port authorities, which have jurisdiction over transportation or air quality, and nonprofit organizations or institutions that: a) represent or provide pollution reduction or educational services to persons or organizations that own or operate diesel fleets or b) have, as their principal purpose, the promotion of transportation or air quality.

http://www.grants.gov/

Summary of What EPA Will Fund

Verified Exhaust Control Technologies: EPA will fund up to 100% of the cost (labor and equipment) of eligible verified exhaust control technologies.

Verified Engine Upgrades and Certified Remanufacture Systems: EPA will fund up to 40% of the cost (labor and equipment) of eligible verified engine upgrades and certified remanufacture systems.

Verified/Certified Cleaner Fuel Use: EPA will not fund stand-alone cleaner fuel use. EPA will fund the cost differential between the eligible cleaner fuel and conventional diesel fuel if the cleaner fuel is used in combination, and on the same vehicles, with new eligible verified exhaust controls or eligible engine upgrades, engine replacements, or vehicle/equipment replacements funded under this RFP.

Verified Idle Reduction Technologies:

Verified On-Highway Idle Reduction Technologies: EPA will fund up to 25% of the cost

(labor and equipment) of verified idle reduction technologies on long-haul trucks and school buses.

Verified Locomotive Idle Reduction Technologies: EPA will fund up to 40% of the cost

(labor and equipment) of eligible idle reduction technologies for locomotives.

Marine Shore Connection Systems: EPA will fund up to 25% of the cost (labor and equipment) of eligible marine shore connection systems.

Electrified Parking Spaces: EPA will fund up to 30% of the cost (labor and equipment) of eligible shore connection systems.

Verified Aerodynamic Technologies and Low Rolling Resistance Tires: EPA will not fund stand-alone aerodynamic technologies or low rolling resistance tires. EPA will fund up to 100% of the cost (labor and equipment) of verified aerodynamic technologies or verified low rolling resistance tires if the technology is combined on the same vehicle with a new eligible verified exhaust control technology funded under this RFP.

Certified Engine Replacement: EPA will fund up to 40% of the cost (labor and equipment) of replacing a diesel engine with a diesel or alternative fueled engine (including hybrids) certified to

EPA emission standards. EPA will fund up to 50% of the cost of replacing diesel engine with an engine certified to meet CARB’s Optional Low-NOx Standards. EPA will fund up to 60% of the cost (labor and equipment) of replacing a diesel engine with an electric motor or electric power source.

Certified Vehicle/Equipment Replacement: EPA will fund up to 25% of the cost of a replacement vehicle or piece of equipment powered by a diesel or alternative fueled engine

(including hybrids) certified to EPA emission standards. EPA will fund up to 35% of the cost of a replacement vehicle or piece of equipment powered by an engine certified to meet CARB’s

Optional Low-NOx Standards. EPA will fund up to 45% of the cost of a replacement vehicle or piece of equipment powered by an electric motor or electric power source.

Replacement of Drayage Trucks: EPA will fund up to 50% of the cost of a replacement drayage truck.

FUNDING / AWARDS

EPA anticipates awarding at least $11 million in DERA grant funding under this announcement.

The total available funding and the size and number of grants awarded are subject to the availability of funds, the quality of proposals received, and other applicable considerations. Awards will be issued and managed through EPA’s Regional Offices.

!! IMPORTANT – READ THIS FIRST !!

All applicants must submit their proposals electronically through www.grants.gov as explained in

Appendix A.

If your organization is not currently registered with Grants.gov, please encourage your office to designate an Authorized Organization Representative (AOR) and ask that individual to begin the registration process as soon as possible. Please note that the registration process also requires that your organization have a DUNS number and a current registration with the System for Award

Management (www.SAM.gov) and the process of obtaining both could take a month or more.

Applicants must ensure that all registration requirements are met in order to apply for this opportunity through grants.gov and should ensure that all such requirements have been met well in advance of the submission deadline. Registration on Grants.gov, SAM.gov, and DUNS number assignment is FREE.

We recommend that you try to submit your application to www.grants.gov at least three days prior to the deadline. Minor problems are not uncommon with transfers to Grants.gov. It is essential to allow sufficient time to resolve any submission issues BEFORE the due date identified in Section IV of the solicitation.

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

TABLE OF CONTENTS PAGE

I. Funding Opportunity Description

A. Background……………………………………………………………

B. Scope of Work…………………………………………………...……………. 5

C. EPA Strategic Plan Linkage, Anticipated Outputs/Outcomes and Performance Measures………………………………………………. 16

D. Supplementary Information…………………………………………………... 18

II. AWARD INFORMATION

A. Available Funding……………………………………………………………. 18

B. Partial Funding…………………….……………….…………………………. 19

C. Number of Awards …………………………………………………………… 19

D. Project Period……………………….………………..……………………….. 20

E. Funding Type……………………….………………..……………………….. 20

III. ELIGIBILITY INFORMATION

A. Eligible Entities……………………..…………………………………

B. Cost-Share Requirement and Voluntary Cost-Share..…………………... …… 21

C. Threshold Eligibility Criteria………………………..………………..…..…

D. Funding Restrictions…………………………………..……………………… 24

IV. PROPOSAL AND SUBMISSION INFORMATION

A. Proposal Submission to EPA Regional Offices………………………………. 30

B. Requirement to Submit to Grants.gov and Limited Exception Procedures…… 31

C. Grants.gov Application Submission Instructions……………………………… 32

D. Content of Proposal Submission………………………..….………………..… 33

E. Submission Date and Time……………………………………………

F. Information Sessions……………………………………………………….….. 35

G. Additional Provisions for Applicants Incorporated Into the Solicitation……... 35

V. PROPOSAL REVIEW INFORMATION

A. Evaluation Criteria……………………………………………………………. 36

B. Review and Selection Process…………………………………………

C. Other Factors……………………………………………………………

D. Additional Provisions for Applicants Incorporated Into the Solicitation……... 40

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices……………………………………………………………

B. Administrative and National Policy Requirements…….…………

C. Reporting Requirement……………………………………………………….. 41

D. Disputes…………………………………………….……………………

E. Additional Provisions for Applicants Incorporated Into the Solicitation……... 41

VII. AGENCY CONTACTS………………………………………………………

Appendix A: Grants.gov Proposal Submission Instructions……..…………………

Appendix B: Project Narrative Instructions, Format, and Content…………………

Appendix C: Quantifying Environmental Outcomes ………….……………………

Appendix D: Mandated Measures Justification...……………………………………

Appendix E: Proposal 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. In 2014, nationwide diesel emissions from mobile sources alone accounted for approximately 218,000 tons of directly emitted fine Particulate Matter (PM2.5) and 4.6 million tons of oxides of nitrogen (NOx), which contribute to the formation of ozone and additional fine particles. Despite EPA’s diesel engine and fuel standards for new engines, the eleven million diesel engines already in use continue to emit large amounts of NOx and PM2.5, which contribute to serious public health problems, including asthma, lung cancer and various other cardiac and respiratory diseases. These problems result in thousands of premature deaths, millions of lost work days, and numerous other negative health impacts every year.

To protect public health and air quality by addressing these diesel emissions, the U.S.

Environmental Protection Agency (EPA) established the National Clean Diesel Campaign (NCDC).

NCDC promotes clean air strategies by working with manufacturers, fleet operators, air quality professionals, environmental and community organizations and state and local officials to reduce diesel emissions. NCDC supports EPA’s goal of furthering environmental justice by prioritizing emission 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.

The Diesel Emissions Reduction Act (DERA), codified at 42 U.S.C. 16131 et seq., authorizes EPA to offer funding assistance to eligible entities on a competitive basis. Fiscal Year (FY) 2008 was the inaugural year of funding for the DERA program, and since then EPA has awarded funds to over

690 projects to reduce diesel emissions nationwide. Specific information on these funded projects can be found at: www.epa.gov/cleandiesel/clean-diesel-national-grants.

Through this Request for Proposals (RFP), EPA is announcing a competitive funding opportunity for projects that achieve significant reductions in diesel emissions from mobile sources. The agency anticipates awarding at least $11 million in DERA grant funding under this announcement to eligible entities. The total available funding and the size and number of grants awarded are subject to the availability of funds, the number and quality of proposals received, and other applicable considerations. Awards will be issued and managed through EPA’s Regional Offices.

B. Scope of Work

A single proposal may target multiple fleets, fleet types and/or diesel emission reduction solutions.

1. Eligible Diesel Vehicles, Engines and Equipment: Projects may include, but are not limited to, diesel emission reduction solutions from the following heavy-duty diesel emission source types:

http://www.epa.gov/cleandiesel/clean-diesel-national-grants

a. Busesa,b;

b. Medium-duty or heavy-duty trucksc;

c. Marine Engines;

d. Locomotives; and

e. Nonroad engines, equipment or vehicles used in:

1) Construction;

2) Handling of cargo (including at a port or airport);

3) Agriculture;

4) Mining; or

5) Energy production (including stationary generators and pumps).

2. Eligible Diesel Emission Reduction Solutions: Projects must include one or more of the following diesel emission reduction solutions that utilize a certified engine configuration and/or a verified technology.

A “retrofit” project is defined broadly to include any technology, device, fuel or system that, when applied to an existing diesel engine, achieves emission reductions beyond what is currently required by EPA regulations at the time of the engine’s certification.

Additional information about the diesel emission reduction solutions listed below, as well as technical tips and important points to consider, is available at:

https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P100CVIS.pdf. Technology changes may not be allowed after a proposal has been selected. If technology compatibility issues arise, EPA may elect to terminate the assistance agreement, at which time assistance funds must be returned to EPA.

a. Exhaust Controls: Exhaust Controls include pollution control devices installed in the exhaust system (such as oxidation catalysts and particulate matter filters), or systems that include crankcase emission control (like a closed crankcase filtration system). This funding can cover up to 100% of the cost (labor and equipment) for an eligible verified emission control. EPA suggests that each applicant requesting diesel particulate filters data log the exhaust temperature of all vehicles to be considered before the application is submitted, so that there is evidence that the fleets can accommodate the technology.

A list of eligible, EPA verified exhaust control technologies is available at:

www.epa.gov/verified-diesel-tech/verified-technologies-list-clean-diesel; a list of eligible, California Air Resources Board (CARB) verified exhaust control technologies is available at: www.arb.ca.gov/diesel/verdev/vt/cvt.htm. The types (e.g., DOC, DPF, etc.) of exhaust control technologies proposed for funding under this category must exist on one of these a For the purposes of this RFP, buses include 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.

b For the purposes of this RFP, buses include and medium and heavy-duty transit buses (see footnote c, below).

c For the purposes of this RFP, medium heavy-duty and heavy heavy-duty highway vehicles are defined as Class 5 through Class 8: 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 8a (33,001 - 60,000 lbs GVWR); Class 8b (60,001 lbs GVWR and over).

https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P100CVIS.pdf http://www.epa.gov/verified-diesel-tech/verified-technologies-list-clean-diesel http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm lists for the specific vehicle/engine application specified in the proposal at the time of proposal submission to EPA. If selected for funding, the actual exhaust control technologies used by the grant recipient must be specifically named on EPA or CARB’s Verified Exhaust

Control Technologies lists at the time of acquisition, and used only for the vehicle/engine applications specified on the list, to be eligible for funding.

b. Engine Upgrades and Remanufacture Systems: Generally, an engine upgrade involves the removal of parts on an engine during a rebuild and replacement with parts that cause the engine to represent an engine configuration which is cleaner than the original engine. Some nonroad and marine engines can be upgraded to reduce their emissions by applying manufacturer upgrades that are retrofits currently verified by EPA or CARB as a package of components demonstrated to achieve specific levels of emission reductions. Some locomotives and marine engines can be upgraded through the application of a certified remanufacture system that is used to rebuild the engine to represent a cleaner engine configuration. Engine upgrades may not be available for all engines, and not all upgrades may achieve an emissions benefit. Proposals for upgrades should include a discussion of the availability of engine upgrade kits/systems and indicate the pre- and post-project emission standard levels of the engines to demonstrate that the upgrade will result in a significant emissions benefit.

Funding can cover up to 40% of the cost (labor and equipment) of an eligible nonroad, locomotive or marine engine upgrade. To be eligible for funding, the upgrade must either be a verified retrofit as described above, or a certified remanufacture system that will result in a significant emissions benefit by rebuilding the engine to a cleaner engine configuration. For an engine to be eligible for an upgrade, the engine must be currently operating and performing its intended function. If a certified remanufacture system for a locomotive includes a full engine replacement, the funding restrictions in Section III.D.9 (Fleet

Expansion) will apply. 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, but only for the cost of the certified remanufacture system and associated labor costs for installation.

A list of eligible, EPA verified engine upgrade technologies is available at:

www.epa.gov/verified-diesel-tech/verified-technologies-list-clean-diesel. Lists of certified remanufacture systems for locomotives and marine engines are available at:

www.epa.gov/compliance-and-fuel-economy-data/engine-certification-data, and additional information on remanufacture systems, are available at: www.epa.gov/vehicle-and-engine-certification/remanufacture-systems-category-1-and-2-marine-diesel-engines. Engine upgrades proposed for funding under this category must exist on one of these lists for the specific vehicle/engine application specified in the proposal at the time of proposal submission to EPA. If selected for funding, the actual engine upgrades used by the grant recipient must be specifically named on EPA’s list of certified remanufacture systems or

EPA or CARB’s Verified Exhaust Control Technologies lists at the time of acquisition, and used only for the vehicle/engine applications specified on the lists, to be eligible for funding.

c. Cleaner Fuels Use: Cleaner fuels include, but are not limited to, biodiesel and other certified alternative fuels. EPA will not fund stand-alone cleaner fuel use. For new or expanded use of a cleaner fuel, this funding can cover the cost differential between the cleaner fuel and conventional diesel fuel if that cleaner fuel is used in combination, and on https://www.epa.gov/verified-diesel-tech/verified-technologies-list-clean-diesel 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 the same vehicle, with a new eligible verified exhaust control or an eligible engine upgrade or an eligible certified engine replacement or an eligible certified vehicle/equipment replacement funded under this RFP, as described in this Section.

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 vehicles or equipment 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 reduction in idling will conserve diesel fuel and must also lower emissions.

Lists of eligible, EPA verified idle reduction technologies are available at:

www.epa.gov/verified-diesel-tech/smartway-technology. The types of idle reduction technologies proposed for funding under this category must exist on this list for the vehicle/engine application specified in the proposal at the time of proposal submission to

EPA. The technology categories include: Auxiliary power units and generator sets, battery air conditioning systems, thermal storage systems, electrified parking spaces (truck stop electrification), fuel operated heaters, shore connection systems and alternative maritime power, shore connection systems for locomotives, and automatic shutdown/start-up systems for locomotives. The actual idle reduction technologies used must be specifically named on

EPA’s SmartWay Verified Technologies list at the time of acquisition, and used only for the vehicle/engine applications specified on the list, to be eligible for funding.

1) Locomotive Idle Reduction Technologies: Funding can cover up to 40% of the cost

(labor and equipment) of eligible verified idle reduction technologies for locomotives.

2) Electrified Parking Spaces: Electrified Parking Spaces (EPS), also known as Truck

Stop Electrification (TSE), operates independent of the truck’s engine and allows the truck engine to be turned off as the EPS system supplies heating, cooling, and/or electrical power. The EPS system provides off-board electrical power to operate either:

an independent heating, cooling, and electrical power system, or a truck-integrated heating and cooling system, or a plug-in refrigeration system that would otherwise be powered by an engine.

Funding can cover up to 30% of the cost (labor and equipment) of eligible electrified parking space technologies, including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the equipment functional.

Examples of eligible EPS costs include, but are not limited to, the purchase and installation of electrical infrastructure or equipment to enable heating, cooling, and the use of cab power for parked trucks, or to enable the use of power for transport refrigeration units (TRUs) and auxiliary power systems at distribution centers, intermodal facilities, and other places where trucks congregate. Examples of ineligible costs for EPS include, but are not limited to: on-board auxiliary power units and other equipment installed on trucks; equipment and services unrelated to heating and cooling

(e.g., telephone, internet, television, etc.); TRUs; electricity costs; and operation and maintenance costs.

http://www.epa.gov/verified-diesel-tech/smartway-technology

3) Marine Shore Power Connection Systems: Shore power systems allow maritime vessels to “plug into” an electrical power source instead of using diesel main or auxiliary engines while at port. This funding can cover up to 25% of the cost (labor and equipment) of eligible marine shore power connection systems, including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the equipment functional. Examples of eligible marine shore power connection costs include, but are not limited to various components such as cables, cable management systems, shore power coupler systems, distribution control systems, transformers, grounding switches, service breakers, capacitor banks, and power distribution. Funding may support new installations, or expansions of existing shore power systems. Examples of ineligible costs for marine shore power connection systems include, but are not limited to, shipside modifications to accept shore-based electrical power, electricity costs, and operation and maintenance costs. Due to the unique nature and custom design of marine shore power connection systems, EPA will review and approve the marine shore power connection system proposed by the applicant on a case-by-case basis.

a) Marine Shore Power Criteria: Projects are eligible for funding on the condition that the following criteria are satisfied:

i. 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).

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

iii. Demonstration that the proposed system has the capacity, demand, and commitment to be utilized for more than 1,000 MW-hours per year. Smaller projects will be considered if the applicant can demonstrate cost/benefits.

iv. If the project proposal is selected for funding, the final design of the marine shore power connection system will require specific EPA approval prior to purchase and installation.

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

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

b) Marine Shore Power Project Description: Applicants proposing marine shore power connection systems should provide a project description that includes, but is not limited to:

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 utilize 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 (MW-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 emission reductions based on the methodology in Appendix C.

4) Highway Idle Reduction Technologies: Funding can cover up to 25% of the cost (labor and equipment) of eligible, verified idle reduction technologies on long-haul trucks and school buses.

e. Verified Aerodynamic Technologies and Verified Low Rolling Resistance Tires: To improve fuel efficiency, long haul Class 8 trucks can be retrofitted with aerodynamic trailer fairings or the fairings can be provided as new equipment options. Certain tire models can provide a reduction in NOx emissions and fuel savings, relative to the “standard” new tires for long haul Class 8 trucks, when used on all axles.

A list of eligible, EPA verified aerodynamic technologies is available at:

www.epa.gov/verified-diesel-tech/smartway-verified-list-aerodynamic-devices, and includes:

1) gap fairings that reduce the gap between the tractor and the trailer to reduce turbulence;

2) trailer side skirts that minimize wind under the trailer; and

3) trailer rear fairings that reduce turbulence and pressure drop at the rear of the trailer.

A list of EPA verified low rolling resistance tires is available at: www.epa.gov/verified-diesel-tech/smartway-verified-list-low-rolling-resistance-lrr-new-and-retread-tire, and includes both dual tires and single wide tires (single wide tires replace the double tire on each end of a drive or trailer axle, in effect turning an "18" wheeler into a "10" wheeler).

Low rolling resistance tires can be used with lower-weight aluminum wheels to further improve fuel savings, however aluminum wheels are not eligible for funding under this RFP.

The actual technologies/tires used by the grant recipient must be specifically named on

EPA’s SmartWay Verified Technologies list at the time of acquisition, and used only for the vehicle/engine applications specified on the list, in order to be eligible for funding.

EPA will not fund stand-alone aerodynamic technologies or low rolling resistance tires.

Funding can cover up to 100% of the cost (labor and equipment) for verified aerodynamic technologies or verified low rolling resistance tires installed on long haul Class 8 trucks, if combined on the same vehicle with the new installation of one or more of the Verified

Exhaust Controls funded under this RFP, as described in this Section.

Note: Low rolling resistance tires are not eligible for funding where these types of tires have already been installed on the truck.

f. Certified Engine Replacement: Engine Replacement includes, but is not limited to, diesel engine replacement with an engine certified for use with diesel or a clean alternative fuel, 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 diesel engine replacement with an electric power source (grid, battery or fuel celld), and/or diesel engine replacement with an electric generator(s) (genset). All-electric (i.e., zero emission) engine replacements do not require EPA or CARB certification.

The eligible cost of engine replacement includes the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the equipment functional, including related labor expenses. Charges for equipment and parts on engine replacement projects are only eligible for funding if they are included in the certified engine configuration and/or are required to ensure the effective installation and functioning of the new technology, but are not part of typical vehicle or equipment maintenance or repair. Examples of ineligible engine replacement costs include, but are not limited to: tires, cabs, axles, paint, brakes, and mufflers. For engine replacement with battery, fuel cell, and grid electric, examples of eligible engine replacement costs include, but are not limited to: electric motors, electric inverters, battery assembly, direct drive transmission/gearbox, regenerative braking system, vehicle control/central processing unit, vehicle instrument cluster, hydrogen storage tank, hydrogen management system, fuel cell stack assembly, and the purchase and installation of electrical infrastructure or equipment to enable the use of power. Examples of ineligible costs include, but are not limited to, electricity, and operation and maintenance costs.

1) Locomotive, Marine, and Nonroad Diesel Vehicles and Equipment:

a) Funding can cover up to 40% of the cost (labor and equipment) of replacing a diesel engine with a 2017 model year or newer engine certified to EPA emission standards.

Previous engine model year engines may be used if the engine is certified to the same emission standards applicable to the engine in EMY 2017 Nonroad, locomotive, and marine engine emission standards are on EPA’s website at:

www.epa.gov/emission-standards-reference-guide/epa-emission-standards-nonroad-engines-and-vehicles.

b) Funding can cover up to 60% of the cost (labor and equipment) of replacing a diesel engine with an electric motor or electric power source.

2) Highway Diesel Vehicles:

a) Funding can cover up to 40% of the cost (labor and equipment) of replacing a diesel engine with a 2017 model year or newer engine certified to EPA emission standards.

Highway engine emission standards are on EPA’s website at:

www.epa.gov/emission-standards-reference-guide/epa-emission-standards-heavy-duty-highway-engines-and-vehicles.

b) Funding can cover up to 50% of the cost (labor and equipment) of replacing a diesel engine with a 2017 model year or newer engine that is certified to CARB’s Optional

Low-NOx Standards of 0.1 g/bhp-hr, 0.05 g/bhp-hr, or 0.02 g/bhp-hr NOx. Engines certified to CARB’s Optional Low NOx Standards 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.

c) Funding can cover up to 60% of the cost (labor and equipment) of replacing a diesel engine with an electric motor or an electric power source.

d Hydrogen fuel cells are only eligible for engine replacements for eligible urban transit buses as defined in the RFP and eligible drayage trucks as defined in this RFP.

http://www.epa.gov/emission-standards-reference-guide/epa-emission-standards-nonroad-engines-and-vehicles http://www.epa.gov/emission-standards-reference-guide/epa-emission-standards-nonroad-engines-and-vehicles http://www.epa.gov/emission-standards-reference-guide/epa-emission-standards-heavy-duty-highway-engines-and-vehicles http://www.epa.gov/emission-standards-reference-guide/epa-emission-standards-heavy-duty-highway-engines-and-vehicles http://www.arb.ca.gov/msprog/onroad/cert/cert.php

g. Vehicle and Equipment Replacements: Nonroad and highway diesel vehicles and equipment can be replaced under this program with newer, cleaner vehicles and equipment that operate on diesel or alternative fuels and use engines certified by EPA and, if applicable, CARB to meet a more stringent set of engine emission standards. Replacement includes, but is not limited to, diesel vehicle/equipment replacement with newer, cleaner diesel, electric (grid, battery or fuel celle), hybrid or alternative fuel vehicles/equipment. All-electric (i.e. zero emission) vehicles and equipment do not require EPA or CARB certification. Marine vessels are not eligible for full vessel replacement.

The eligible cost of a vehicle/equipment replacement includes the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the equipment functional.

The cost of additional “optional” components or “add-ons” that significantly increase the cost of the vehicle may not be eligible for funding under the grant; the replacement vehicle should resemble the replaced vehicle in form and function. For grid electric powered equipment replacements, examples of eligible replacement costs include, but are not limited to, the purchase and installation of electrical infrastructure or equipment to enable the use of power. Examples of ineligible costs include, but are not limited to, electricity, and operation and maintenance costs.

1) Locomotives and Nonroad Diesel Vehicles and Equipment:

a) Funding can cover up to 25% of the cost of a replacement vehicle or piece of equipment powered by a 2017 model year or newer engine certified to EPA emission standards. Previous engine model year engines may be used if the engine is certified to the same emission standards applicable to EMY 2017. Nonroad and locomotive engine emission standards are on EPA’s website at: www.epa.gov/emission-standards-reference-guide/epa-emission-standards-nonroad-engines-and-vehicles.

b) Funding can cover up to 45% of the cost of a new, all-electric nonroad vehicle or piece of equipment.

2) Highway Diesel Vehicles and Buses (other than Drayage):

a) Funding can cover up to 25% of the cost of a replacement vehicle powered by a 2017 model year or newer engine certified to EPA emission standards. Highway engine emission standards are on EPA’s website at: www.epa.gov/emission-standards-reference-guide/epa-emission-standards-heavy-duty-highway-engines-and-vehicles.

b) Funding can cover up to 35% of the cost of a replacement vehicle powered by a 2017 model year or newer engine certified to meet CARB’s Optional Low-NOx Standards of 0.1 g/bhp-hr, 0.05 g/bhp-hr, or 0.02 g/bhp-hr NOx. Engines certified to CARB’s

Optional Low NOx Standards 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.

c) Funding can cover up to 45% of the cost of an all-electric replacement vehicle.

3) Drayage Vehicles: Funding can cover up to 50% of the cost of a replacement drayage truck powered by a 2012 model year or newer certified engine.

e Hydrogen fuel cell vehicles and equipment are only eligible as replacements for eligible transit buses, drayage trucks, terminal tractors/yard hostlers and forklifts, as defined in this RFP.

http://www.epa.gov/emission-standards-reference-guide/epa-emission-standards-nonroad-engines-and-vehicles http://www.epa.gov/emission-standards-reference-guide/epa-emission-standards-nonroad-engines-and-vehicles http://www.epa.gov/emission-standards-reference-guide/epa-emission-standards-heavy-duty-highway-engines-and-vehicles http://www.epa.gov/emission-standards-reference-guide/epa-emission-standards-heavy-duty-highway-engines-and-vehicles http://www.arb.ca.gov/msprog/onroad/cert/cert.php

a) Definition of Drayage Truck: A “Drayage Truck” means any Class 8 (GVWR greater than 33,000) highway vehicle operating on or transgressing through port or intermodal rail yard property for the purpose of loading, unloading or transporting cargo, such as containerized, bulk or break-bulk goods. Drayage Operating

Guidelines: If a proposal for the replacement of drayage trucks is selected for funding, the grant recipient will be required to establish guidelines to ensure that any existing truck replaced with grant funds has a history of operating on a frequent basis over the prior year as a drayage truck, and to ensure any new truck purchased with grant funds is operated in a manner consistent with the definition of a drayage truck, as defined above. For an example of sample guidelines, see www.epa.gov/sites/production/files/2017-04/documents/fy17-drayage-truck-sample-guideline.pdf.

b) Required/Scheduled Maintenance: EPA will fund the required/scheduled vehicle maintenance, as specified in the owner’s manual, which is necessary to meet the warranty requirements for diesel particulate filters installed on drayage trucks.

Funding for required maintenance is available for the duration of the project period.

3. DERA Programmatic Priorities: The principal objective of the assistance to be awarded under this program is to achieve significant reductions in diesel emissions in terms of tons of pollution produced and reductions in diesel emissions exposure from vehicles, engines and equipment operating at or servicing goods movement facilities located in areas designated as having poor air quality. Further, priority for funding may be given to projects which address the needs and concerns of affected communities, those that engage affected communities with respect to the design and performance of the project, and those which can demonstrate the ability to promote and continue efforts to reduce emissions after the project has ended. All proposals will be evaluated to determine the extent and quality to which they meet the DERA programmatic priorities through the specific evaluation criteria described below and in Section V.

a. Priority Location – Areas of Poor Air Quality: Under Section V, Criterion #2, priority will be given to projects that are located in areas of poor air quality and that have the highest emissions from diesel engines.

The term “project location” as used in this RFP refers to the primary area where the affected vehicles/engines operate, or the primary area where the emissions benefits of the project will be realized. If a single proposal includes vehicles operating in more than one county the workplan should indicate where each vehicle operates and the amount (%) of time spent in each county.

A list of priority counties that will receive points under Section V, Criterion #2.B and C of this RFP can be found at: www.epa.gov/sites/production/files/2017-03/documents/fy17-county-area-list.pdf. Vehicles or equipment proposed for funding under this RFP must be operated a majority of the time in one of the priority counties listed in order to receive points under Section V, Criterion #2.B and C of this RFP. These counties were identified as priority locations for the DERA program because they are:

1) Designated, as of the release date of this RFP, as Nonattainment Areas or Maintenance

Areas for the following National Ambient Air Quality Standards. Data is sourced from http://www.epa.gov/sites/production/files/2017-04/documents/fy17-drayage-truck-sample-guideline.pdf http://www.epa.gov/sites/production/files/2017-04/documents/fy17-drayage-truck-sample-guideline.pdf http://www.epa.gov/sites/production/files/2017-03/documents/fy17-county-area-list.pdf.

http://www.epa.gov/sites/production/files/2017-03/documents/fy17-county-area-list.pdf.

EPA’s Green Book of Nonattainment Areas for Criteria Pollutants.

(https://www.epa.gov/green-book).

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

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

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

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

2) Where all or part of the population is exposed to more than 2.0 μg/m3 of diesel particulate matter emissions. Data is sourced from the 2011 National-Scale Air Toxics

Assessment (www.epa.gov/national-air-toxics-assessment/2011-national-air-toxics-assessment).

b. Priority Sector – Goods Movement: Under Section V, Criterion #3.B, priority will be given to projects based on whether the vehicles/engines/equipment targeted for diesel emission reductions are located at, or service, goods movement facilities such as:

1) ports and airports (e.g. places alongside navigable water with facilities for the loading and unloading of cargo from ships; places from which aircraft operate that have paved runways and cargo terminals which include baggage-movement operations; places where foreign goods are inspected by customs officers and allowed to pass into and out of a country)

2) rail yards (e.g. places at which trains originate or terminate, or at which they are distributed or combined)

3) terminals (e.g. freight stations at the end of carrier lines, or that serve as junctions at any point with other lines, that have facilities for the handling of freight)

4) distribution centers (e.g. facilities that perform consolidation, warehousing, packaging, decomposition and other functions linked with handling freight, often in proximity to major transport routes or terminals, and which generate large amounts of truck traffic)

c. Benefits to the Community: Under Section V, Criteria #4, priority will be given to projects which will address the needs and concerns of affected communities, including any communities or populations that have faced or are facing environmental justice concerns and/or other interested parties, groups, or populations that are, or have been, affected by the environmental and/or other issues that the project is intended to address. The term

“environmental justice concerns,” as used in this solicitation, generally relates to issues that have resulted in some communities and/or populations being more adversely, disproportionately and/or historically impacted by environmental issues and problems than other communities because of geography, poverty, income levels and similar types of factors.

The extent that a project will maximize public health benefits depends on both the population, community or group that will experience improvements in air quality due to the project, and the amount of emission reductions that will take place. Proposals should therefore describe both the population, community or group that will be affected by the project and how they will directly benefit from emission reductions that will result from the project.

Note: Factors potentially indicating disproportionate impacts include: differential proximity and exposure to environmental hazards; greater susceptibility to adverse effects from https://www.epa.gov/green-book http://www.epa.gov/national-air-toxics-assessment/2011-national-air-toxics-assessment http://www.epa.gov/national-air-toxics-assessment/2011-national-air-toxics-assessment environmental hazards (due to genetic predisposition, age, chronic medical conditions, lack of health care access, or poor nutrition); unique environmental exposures because of practices linked to cultural background or socioeconomic status (e.g., subsistence fishing or farming); cumulative effects from multiple stressors; reduced ability to effectively participate in decision-making processes (due to language barriers, inability to access traditional communication channels, or limited capacity to access technical and legal resources); and degraded physical infrastructure, such as poor housing, poorly maintained public buildings (e.g., schools), or lack of access to transportation.

d. Community Engagement and Partnerships: Under Section V, Criteria #5, priority will be given to projects which engage affected communities with respect to the design and performance of the project and which obtain support from project partners to more effectively perform the project. Applicants will be evaluated based on the extent and quality of the applicant’s efforts and plans for incorporating community input throughout the design and performance of the project, and/or whether their design of the proposed project involved and incorporated community input. Community engagement and partnership efforts should include various organizations representing a broad spectrum of the community; examples include grassroots, neighborhood, school, faith-based, city council, business, local government, and other organizations. Proposals that can demonstrate recent involvement of project partners and community members working together on projects may be evaluated more favorably than others. Proposals with letters of commitment that demonstrate strong, long-term involvement throughout the project from a variety of project partners may also be evaluated more favorably than others.

e. Project Sustainability: Under Section V, Criteria #6, priority will be 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.

Specifically, proposals will be evaluated based on the extent and quality to which the applicant can demonstrate that the applicant and/or its project partners:

1) will implement idle-reduction policies; will implement contract specifications requiring the use of cleaner, more efficient vehicles and equipment; will develop and maintain mobile source equipment inventories; have documented commitment to continue to identify and address air quality issues in the affected community; or will implement other strategies to promote and continue efforts to reduce emissions.

2) have developed in the past five years, or have a documented commitment to developing before the end of the project period, any of the following:

a publicly available baseline mobile source emission inventory for PM2.5 and/or

NOx, or refinement of an existing mobile source inventory that was completed before 2012;

a publicly available long term air quality plan with specific PM2.5 and/or NOx emission reduction goals, or refinement of an existing air quality plan that was completed before 2012; or a publicly available plan for meaningful engagement of the surrounding community to inform these inventories or air quality plans.

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

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

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

EPA also requires that grant applicants and recipients adequately describe environmental outputs and outcomes to be achieved under assistance agreements (see EPA Order 5700.7, Environmental

Results under Assistance Agreements, www.epa.gov/sites/production/files/2015-

03/documents/epa_order_5700_7a1.pdf).

1. Linkage to EPA Strategic Plan: All proposals must support progress towards EPA’s 2014-

2018 Strategic Plan Goal 1, “Addressing Climate Change and Improving Air Quality,”

Objective 1.2, “Improve Air Quality,” which states, “achieve and maintain health-and welfare-based air pollution standards and reduce risk from toxic air pollutants and indoor air contaminants.” Specifically, the proposed activities must reduce emissions from diesel fleets, thereby reducing local and regional air pollution of criteria pollutants, air toxics, and greenhouse gases.

Please read EPA’s FY 2014-2018 Strategic Plan for more information.

2. Outputs: The term “output” means an environmental activity, effort and/or associated work product related to an environmental goal and objective that will be produced or provided over a period of time or by a specified date. Outputs may be quantitative or qualitative but must be measurable during an assistance agreement funding period.

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

number of replaced or retrofitted engines/vehicles/equipment; and/or hours of idling reduced.

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;

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