rfp-epa-oar-otaq-15-05.pdf

AGENCY: ENVIRONMENTAL PROTECTION AGENCY (EPA)

TITLE: Tribal Clean Diesel Funding Assistance Program FY 2015

ACTION: Request for Proposals (RFP)

RFP NUMBER: EPA-OAR-OTAQ-15-05

CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NO: 66.039

DATES:

Wednesday, May 13, 2015 RFP OPENS

Wednesday, July 15, 2015 RFP CLOSES – PROPOSALS DUE

September 2015 ANTICIPATED NOTIFICATION OF SELECTION

Fall-Winter 2015 ANTICIPATED AWARD

The closing date and time for receipt of proposal submissions is Wednesday, July, 15, 2015 by

4:00 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

Wednesday, July 15, 2015, 4:00 p.m. ET in order to be considered for funding.

SUMMARY: This notice announces that EPA’s Office of Transportation and Air Quality is soliciting proposals nationwide for Tribal 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 in areas designated by the Administrator as poor air quality areas.

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 repowers, and/or certified vehicle or equipment replacement. Please refer to Page 2 for a summary of important funding limits regarding these emission reduction solutions.

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 Tribal agencies (or intertribal consortia) with jurisdiction over transportation or air quality.

http://www.grants.gov/

FUNDING/AWARDS:

The total estimated funding for this competitive opportunity is approximately $1 million. EPA regional offices will award the assistance agreements for projects resulting from this announcement. EPA anticipates awarding one to five assistance agreements nationwide from this announcement, subject to availability of funds, the quality of proposals received, and other applicable considerations. Funding will be in the form of cooperative agreements.

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/Certified Engine Upgrades: EPA will fund up to 75% of the cost (labor and equipment) of eligible engine upgrades.

Verified/Certified Cleaner Fuel Use: EPA will not fund stand-alone cleaner fuels use. EPA will fund the cost differential between the eligible cleaner fuels and conventional diesel fuels if the cleaner fuels are used in combination, and on the same vehicles, with new eligible verified exhaust controls or eligible clean alternative fuel conversions or eligible engine upgrades or eligible certified engine repowers or eligible certified vehicle/equipment replacements funded under this RFP, as described in Section I.B.2.

Verified Idle Reduction Technologies: EPA will not fund stand-alone idle reduction technologies, except for idle reduction technologies on locomotives, shore connection systems and truck stop electrification technologies, as discussed below. EPA will fund up to 100% of the cost (labor and equipment) of an eligible, verified idle reduction technology if that technology is combined on the same vehicle with a new eligible verified exhaust control funded under this

RFP, as described in Section I.B.2.

Verified Idle Reduction Technologies on School Buses: Funding can cover up to

100% of the cost (labor and equipment) of verified idle reduction technologies on school buses with model year 2006 or older engines that have been previously retrofitted with a verified emission control device.

Verified Locomotive Idle Reduction Technologies: EPA will fund up to 40% of the cost (labor and equipment) of eligible idle reduction technologies on locomotives.

Verified Shore Connection Systems and Truck Stop Electrification Technologies:

EPA will fund up to 25% of the cost (labor and equipment) of eligible shore connection systems and truck stop electrification technologies.

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, as described in Section I.B.2.a.

Certified Engine Repower: EPA will fund up to 75% of the cost (labor and equipment) of an eligible engine repower.

Certified Vehicle/Equipment Replacement:

Nonroad Diesel Vehicles and Equipment: EPA will fund the incremental cost of a newer, cleaner vehicle or piece of equipment powered by a 2014 or newer model year certified nonroad diesel engine, up to 50% of the cost of an eligible replacement vehicle or piece of equipment.

Highway Diesel Vehicles: EPA will fund the incremental cost of a newer, cleaner vehicle powered by a 2014 model year or newer certified highway heavy-duty diesel engine, up to 50% of the cost of an eligible replacement vehicle or piece of equipment (except for drayage vehicles; see below).

Drayage Truck Replacement: EPA will fund up to 50% of the cost of eligible drayage trucks with a 2011 model year or newer heavy-duty engine.

Stationary Generator or Agricultural Pump Replacement: EPA will fund up to 75% of the cost of eligible stationary generator or agricultural pump with an engine beyond the any federal mandated measures rule.

Pursuant to 42 USC 16132(d)(2), no funds awarded under this RFP shall be used to fund the costs of emission reductions that are mandated under federal law. Specifically, projects involving locomotives and marine engines will not be considered for funding under this

RFP if the emissions reductions proposed for funding are required by EPA’s locomotive and marine rule, “Control of Emissions of Air Pollution from Locomotives and Marine

Compression-Ignition Engines Less than 30 liters per Cylinder.” Also, projects involving stationary engines will not be considered for funding under this RFP if the emission reductions proposed for funding are required by EPA’s RICE rule, “National Emission

Standards for Hazardous Air Pollutants (NESHAP) for Stationary Reciprocating Internal

Combustion Engines (40 CFR Part 63 Subpart ZZZZ).

Proposals for emissions reductions from locomotives and/or marine engines and/or stationary engines that do not include a “Mandated Measures Justification” in Section 1 of the Project Narrative, as described in Section III.D.1 and Appendix E of this RFP, are not eligible for funding and will not be reviewed.

!! IMPORTANT – READ THIS FIRST !!

All applicants must submit their proposals electronically through www.grants.gov as explained in Appendix A. Proposals will NOT be accepted via e-mail, fax, standard 1st class mail delivery by U.S. Postal Service, express delivery service, or hand delivery.

The electronic submission of your application must be made by an official representative of your institution who is registered with Grants.gov and is authorized to sign applications for Federal assistance. For more information on the registration requirements that must be completed in order to submit an application through Grants.gov, go to www.Grants.gov and click on

“Applicants” on the top of the page and then go to the “Get Registered” link on the page. 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 http://www.grants.gov/ http://www.grants.gov/ http://www.grants.gov/ the System for Award Management (SAM) 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.

http://www.sam.gov/

TABLE OF CONTENTS PAGE

I. FUNDING OPPORTUNITY DESCRIPTION .…………………....……………

A. Background……………………………………………………………

B. Scope of Work…………………………………………………...……………. 6

C. EPA Strategic Plan Linkage, Anticipated Outputs/

Outcomes and Performance Measures……………………….………… 19

D. Supplementary Information…………………………………………………... 21

II. AWARD INFORMATION………………………………….…………………..…… 21

A. Available Funding……………………………………………………………. 21

B. Partial Funding…………………….……………….…………………………. 21

C. Project Period……………………….………………..……………………….. 21

D. Funding Type……………………….………………..……………………….. 22

E. Technology Compatibility…………………………………………………….. 22

III. ELIGIBILITY INFORMATION ………..…………………………………………

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

B. Cost-Share Requirement and Voluntary Cost-Share..…………………... …… 23

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

D. Funding Restrictions…………………………………..……………………… 26

IV. PROPOSAL AND SUBMISSION INFORMATION ……………..………......……. 30

A. Requirement to Submit Through Grants.gov and Limited Exception Procedures30

B. Grants.gov Application Submission Instructions ………………………………. 31

C. Content of Proposal Package………………………………..….………..…… 31

D. Submission Date and Time……………………………………………

E. Pre-Proposal Assistance and Communications……………………………….. 34

F. Contracts and Subawards……………………………………………………… 35

G. Additional Provisions for Applicants Incorporated Into the Solicitation……... 36

V. PROPOSAL REVIEW INFORMATION……………………………………………. 36

A. Evaluation Criteria……………………………………………………………. 37

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

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

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: DERA Tribal Program Priority Locations…………………………

Appendix E: Mandated Measures Justification………………………………………….. 62

Appendix F: 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 2009, nationwide diesel emissions from mobile sources alone accounted for approximately 300,000 tons of directly emitted fine Particulate Matter (PM 2.5) and 6.4 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 PM 2.5, 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 and 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 600 projects to reduce diesel emissions nationwide, including 14 Tribal projects.

Specific information on these funded projects can be found at:

www.epa.gov/cleandiesel/projects/ and www.epa.gov/cleandiesel/projects-tribal.htm.

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/projects/ http://epa.gov/cleandiesel/projects-tribal.htm

a. Buses1,2;

b. Class 5 – Class 8 Heavy-duty Highway Vehicles3;

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).

See Section III.D of this RFP for specific eligibility criteria related to model year and hours of operation of existing vehicles and equipment.

Please note: Projects involving locomotives and marine engines will not be considered for funding under this RFP if the upgrade/remanufacture proposed for funding is required by EPA’s locomotive and marine rule, “Control of Emissions of Air Pollution from Locomotives and

Marine Compression-Ignition Engines Less than 30 liters per Cylinder.” Projects involving stationary engines will not be considered for funding under this RFP if the emission reductions proposed for funding are required by EPA’s RICE rule, “National Emission Standards for

Hazardous Air Pollutants (NESHAP) for Stationary Reciprocating Internal Combustion Engines

(40 CFR Part 63 Subpart ZZZZ). Proposals for emission reductions from locomotives and/or marine engines and/or stationary engines that do not include a “Mandated Measures

Justification” in Section 1 of the Project Narrative, as described in Section III.D.1 and Appendix

E of this RFP, are not eligible and will not be reviewed.

Please also Note: Funds under this RFP should be used to retrofit, repower, upgrade, or replace nonroad equipment that has at least seven years of useful life remaining. A table distinguishing which nonroad engine model years EPA has determined to have at least seven years of useful life remaining based on the type of nonroad equipment and the age of the engine, can be found at www.epa.gov/cleandiesel/documents/fy15-tribal-nonroad-remaining-useful-life.pdf. However, if a Tribal applicant would like to propose an eligible diesel emissions reduction project for nonroad equipment/engines that have less than seven years of useful life remaining (as defined

1 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.

2 For the purposes of this RFP, buses include and Class 5 – Class 8 transit buses (see footnote #3, below).

3 For the purposes of this RFP, eligible heavy-duty highway vehicles are limited to 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).

http://www.epa.gov/cleandiesel/documents/fy15-tribal-nonroad-remaining-useful-life.pdf by EPA’s table), then the proposal must include a justification for targeting emission reductions from nonroad equipment/engines that have less than seven years of useful life remaining (as defined by EPA’s table). The justification should address the age, operation and maintenance history, and current use of the equipment/engines. The justification should also include the projected lifetime/future use of the equipment/engines if funds are not received under this RFP.

This justification must be incorporated into “Section 1: Project Summary and Overall Approach” of the Project Narrative portion of the submitted proposal (see Appendix B).

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.

See Section III.D of this RFP for specific eligibility criteria related to model year and hours of operation of existing vehicles and equipment.

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 www.epa.gov/cleandiesel/documents/420p11001.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 datalog 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/cleandiesel/verification/verif-list.htm; 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 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, in order to be eligible for funding.

http://www.epa.gov/cleandiesel/documents/420p11001.pdf http://epa.gov/cleandiesel/verification/verif-list.htm http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm

b. Engine Upgrades: 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 are able to 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 are able to 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 in order to demonstrate that the upgrade will result in an emissions benefit.

Funding can cover up to 75% 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 an 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 requirements below in Section f. (Repower

Criteria) will apply.

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

www.epa.gov/cleandiesel/verification/verif-list.htm. Lists of certified remanufacture systems for locomotives and marine engines, and additional information on remanufacture systems, are available at: www.epa.gov/otaq/certdata.htm. 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, in order to be eligible for funding.

c. Cleaner Fuels Use: Cleaner fuels include, but are not limited to, biodiesel, diesel emulsions or additives verified by EPA or CARB, compressed natural gas, propane 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 the same vehicle, with a new eligible verified exhaust control or an eligible clean alternative fuel conversion or an eligible engine upgrade or an eligible certified engine repower or an eligible certified vehicle/equipment replacement funded under this RFP, as described in Section I.B.2.

http://www.epa.gov/cleandiesel/verification/verif-list.htm http://www.epa.gov/otaq/certdata.htm

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.

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

www.epa.gov/smartway/forpartners/technology.htm#tabs-4. 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. If selected for funding, the actual idle reduction technologies 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.

1) Verified Idle Reduction Technologies on Locomotives: Funding can cover up to

40% of the cost (labor and equipment) of the installation of eligible verified idle reduction technologies on locomotives.

2) Truck Stop Electrification: Funding can cover up to 25% of the cost (labor and equipment) of eligible truck stop electrification/electrified parking space technologies.es.

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 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. Funding may only be used to cover the cost of shore-side connection systems and cannot be used for shipside modifications to accept shore-based electrical power. This funding may not be used for modifications or enhancements made to the shore-side electrical infrastructure needed to bring power to the terminal, and funding may not be used to subsidize the electric rate from the public utility. 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.

http://www.epa.gov/smartway/forpartners/technology.htm#tabs-4

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) Verified Idle Reduction Technologies on School Buses: Funding can cover up to

100% of the cost (labor and equipment) of verified idle reduction technologies on school buses with model year 2006 or older engines that have been previously retrofitted with a verified emission control device.

5) All Other Verified Idle Reduction Technologies: EPA will not fund stand-alone idle reduction technologies, except for use on locomotives, shore connection systems, or truck stop electrification technologies, or previously retrofitted school buses, as discussed above. This funding can cover up to 100% of the cost (labor and equipment) for all other eligible, verified idle reduction technologies, only if the technology is combined on the same vehicle with a new eligible verified exhaust control funded under this RFP, as described in Section I.B.2.a.

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/smartway/forpartners/technology.htm, 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/smartway/forpartners/technology.htm, 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 types of aerodynamic technologies and low rolling resistance tires proposed for funding under this category must exist on EPA’s SmartWay Verified Technologies list for the vehicle/engine application specified in the proposal at the time of proposal submission to EPA. If selected for funding, 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.

This funding, however, 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 Section

I.B.2.a.

http://www.epa.gov/smartway/forpartners/technology.htm#tabs-2 http://www.epa.gov/smartway/forpartners/technology.htm#tabs-3

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 Repowers: “Repower” refers to replacing an existing engine with a newer, cleaner engine that is certified to a more stringent set of engine emission standards. Repower includes, but is not limited to, diesel engine replacement with an engine certified for use with a clean alternative fuel, diesel engine replacement with an electric power source (battery or fuel cell4), and/or the replacement of a nonroad engine with a highway engine. Proposals for repowers should include the pre- and post- project standard emission levels of the engines to be repowered, in order to ensure that the repower will result in a net emissions reduction. This funding can cover up to75% of the cost (labor and equipment) of an eligible engine repower. All-electric (i.e., zero emission) repowers do not require EPA or CARB certification.

1) Repower Criteria: Repower projects are eligible for funding on the condition that the following criteria are satisfied:

a) The repowered vehicle, engine or equipment must continue to perform the same function as before the repower.

b) The replacement engine must be of similar horsepower as the engine being replaced. Horsepower increases of more than 25 percent will require specific approval by EPA prior to purchase, and the applicant may be required to pay the additional costs associated with the higher horsepower equipment.

c) Repower Scrappage: The purchase of new engines to expand a fleet is not covered by this program. The engine being replaced must be scrapped or rendered permanently disabled within 90 days of being replaced.

i. Cutting a three inch by three inch hole in the engine block is the preferred scrapping method. Other methods may be considered and will require prior EPA approval.

ii. Evidence of appropriate disposal is required in a final assistance agreement report submitted to EPA and includes a certificate of destruction and digital photos of the engine tag (showing serial number, engine family number, and engine model year) and the destroyed engine block.

iii. If scrapped or salvaged engines are to be sold, program income requirements may apply.

d) Early Attrition: Repowers that would have occurred through normal attrition are considered to be the result of normal fleet turnover and are not eligible for funding under this program. Normal attrition is generally defined as a repower that is scheduled to take place within 3 years of the project start date. Normal attrition is typically defined by the vehicle or fleet owner’s budget plan, operating plan, standard procedures, or retirement schedule. For example, if a nonroad fleet typically repowers its equipment after 20 years, a piece of equipment that is currently in its 18th or 19th year of service is not eligible for repower. A piece of

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

equipment that is currently in its 17th year of service and has three years of useful life remaining (as defined by the fleet’s repower schedule) is eligible for repower.

Normal attrition does not include repowers that must occur due to a State or Local mandate. Proposals which include repowers must include a detailed discussion of the fleet owner’s normal attrition/engine repower schedule and must explain how the proposed emission reductions are not a result of vehicle/equipment repowers that would have occurred through normal attrition/engine repower within three years of the project start date.

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 projects can include the replacement of diesel vehicles/equipment with newer, cleaner diesel, electric (battery or fuel cell5), hybrid or alternative fuel vehicles/equipment. All-electric (i.e. zero emission) vehicles and equipment do not require EPA or CARB certification. Marine vessels and locomotives are not eligible for full replacement.

1) Nonroad Diesel Vehicles and Equipment: This funding can cover the incremental cost of a newer, cleaner vehicle or piece of equipment powered by a 2014 model year or newer certified nonroad engine, up to 50% of the cost of an eligible replacement vehicle/equipment. Nonroad engine emission standards are on EPA’s website at:

www.epa.gov/otaq/standards/nonroad/index.htm. Please see Section III.B for additional information on cost-share requirements.

2) Electric Generator Replacement:

a) For Stationary Electric Generators and engines, a replacement includes involves the replacement of an existing diesel propulsion engine with a stationary or auxiliary diesel powered electric generator (genset), the electric generator and the newer, cleaner engine and on board components including, control system, cooling system and emissions reduction devices and enclosures, comprising the genset are eligible costs of the replacement, subject to the cost-share requirement of no less than 25% by the grantee.

b) Please note that stationary engine projects involving stationary engines will not be considered for funding under this RFP if the emission reductions proposed for funding are required by EPA’s RICE rule, “National Emission Standards for

Hazardous Air Pollutants (NESHAP) for Stationary Reciprocating Internal

Combustion Engines (40 CFR Part 63 Subpart ZZZZ). Proposals for emission reductions from locomotives and/or marine engines and/or stationary engines that do not include a “Mandated Measures Justification” in Section 1 of the Project

5 Hydrogen fuel cell vehicles and equipment are only eligible as replacements for medium and heavy-duty urban transit buses as defined in the RFP, drayage trucks as defined in this RFP, and forklifts.

http://www.epa.gov/otaq/standards/nonroad/index.htm

Narrative, as described in Section III.D.1 and Appendix E of this RFP, are not eligible and will not be reviewed.

3) Highway Diesel Vehicles (other than Drayage): This funding can cover the incremental cost of a newer, cleaner medium or heavy-duty vehicle, powered by an engine certified to the 2014 model year or newer standards for highway heavy-duty engines, up to 50% of the cost of an eligible replacement vehicle/equipment.

4) Drayage Vehicles: EPA will fund up to 50% of the cost of eligible drayage trucks.

a) Definition of Drayage Truck: A “Drayage Truck” means any Class 8b in-use on-road vehicle with a gross vehicle weight rating (GVWR) of greater than 33,000 pounds 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.

b) Vehicle Eligibility Requirements: EPA will fund up to 50% of the cost of eligible drayage trucks with a 2011 model year or newer heavy-duty engine equipped with a diesel particulate filter (or catalyst equipped in the case of a CNG engine).

c) Scrappage Requirements for Drayage Vehicles: The purchaser of the eligible drayage truck must scrap an existing drayage truck, following the Replacement

Criteria described in Section I.B.2.g., below. If the proposal is selected for funding, the grant recipient will be required to establish guidelines to ensure that the scrapped vehicle has a history of operating on a frequent basis over the prior year as a drayage truck. For an example of sample guidelines, see www.epa.gov/cleandiesel/documents/fy15-sample-drayage-operating-guidelines.pdf.

d) 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 all drayage trucks purchased with grant funds are 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/cleandiesel/documents/fy15-sample-drayage-operating-guidelines.pdf.

e) 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.

5) Replacement Criteria: Replacement projects are eligible for funding on the condition that the following criteria are satisfied:

a) The replacement vehicle/equipment must perform the same function as the vehicle/equipment being replaced. (e.g., an excavator used to dig pipelines would be replaced by an excavator that continues to dig pipelines.)

http://www.epa.gov/cleandiesel/documents/fy15-sample-drayage-operating-guidelines.pdf http://www.epa.gov/cleandiesel/documents/fy15-sample-drayage-operating-guidelines.pdf http://www.epa.gov/cleandiesel/documents/fy15-sample-drayage-operating-guidelines.pdf http://www.epa.gov/cleandiesel/documents/fy15-sample-drayage-operating-guidelines.pdf

b) The replacement vehicle/equipment must be of the same type and similar gross vehicle weight rating or horsepower as the vehicle/equipment being replaced.

i. Nonroad: Horsepower increases of more than 25 percent will require specific approval by EPA prior to purchase, and the applicant may be required to pay the additional costs associated with the higher horsepower equipment.

ii. Highway: The replacement vehicle must not be in a larger weight class than the existing vehicle (Class 5, 6, 7, or 8). The engine’s primary intended service class must match the replacement vehicle’s weight class (i.e. a LHD diesel engine is used in a vehicle with GVWR 16,001 – 19,500 pounds, a

MHD diesel engine is used in a vehicle with a GVWR of 19,501 – 33,000 pounds, and an HHD diesel engine is used in a vehicle with a GVWR greater than 33,000 pounds.) Exceptions may be granted for vocational purposes, however the GVWR must stay within 10 percent of the engine’s intended service class and any exceptions will require specific EPA approval prior to purchase.

c) Replacement Scrappage: The purchase of new vehicles or equipment to expand a fleet is not covered by this program. The vehicle or equipment being replaced must be scrapped or rendered permanently disabled within 90 days of being replaced.

i. Disabling the chassis by cutting the vehicles frame rails completely in half and cutting a three inch by three inch hole in the engine block is the preferred scrapping method. Other methods may be considered and will require prior

EPA approval.

ii. Evidence of appropriate disposal is required in a final assistance agreement report submitted to EPA and includes a certificate of destruction and digital photos of the engine tag (showing serial number, engine family number, and engine model year), the destroyed engine block, and cut frame rails or other cut structural components as applicable

iii. Equipment and vehicle components that are not part of the engine or chassis may be salvaged from the unit being replaced (e.g. plow blades, shovels, seats, tires, etc.). If scrapped or salvaged vehicles/parts are to be sold, program income requirements apply.

d) Early Attrition: Replacements that would have occurred through normal attrition are considered to be the result of normal fleet turnover and are not eligible for funding under this program. Normal attrition is generally defined as a replacement that is scheduled to take place within 3 years of the project start date. Normal attrition is typically defined by the vehicle or fleet owner’s budget plan, operating plan, standard procedures, or retirement schedule. For example, if a school bus fleet typically retires vehicles after 20 years, a bus that is currently in its 18th or

19th year of service is not eligible for replacement. A bus that is currently in its

17th year of service and has three years of useful life remaining (as defined by the fleet’s retirement schedule) is eligible for replacement. Normal attrition does not include replacements that must occur due to a State or Local mandate. Proposals which include replacements must include a detailed discussion of the fleet owner’s normal attrition schedule and must explain how the proposed emission reductions are not a result of vehicle/equipment replacements that would have occurred through normal attrition/fleet turnover within three years of the project start date.

e) Additional funding restrictions for replacement projects are described in Section

III.D.

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 in areas designated as poor air quality areas. All proposals will be evaluated to determine the extent and quality to which they meet the DERA national priorities through the specific evaluation criteria described below and in Section V.

a. Location: Under Section V, Criterion #3, proposals will be evaluated based on the location of the project, with priority going to those projects operating in specified counties or areas. 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. A list of priority counties and areas can be found at: www.epa.gov/cleandiesel/documents/fy15-tribal-county-area-list.pdf. These counties and areas were identified as priority locations for the DERA program because they are in nonattainment or maintenance of national ambient air quality standards for certain criteria pollutants (see Appendix C for additional information).

In addition, priority may be given to projects located in areas that receive a disproportionate quantity of air pollution from diesel fleets, including:

truckstops (e.g. places especially for truckers that are usually by a highway or interstate and that include a parking area, fueling services, and other facilities) ports (e.g. a cities, towns, or other 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 passenger and cargo terminals which include baggage-movement and passenger-transit operations; places where foreign goods are inspected by customs officers and allowed to pass into and out of a country) rail yards (e.g. places at which trains originate or terminate, or at which they are distributed or combined) terminals (e.g. freight or passenger 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 and passengers) construction sites (e.g. sites of ongoing large scale commercial, industrial, or heavy civil construction) school bus depots/yards (e.g. parking areas and/or garages where school buses are stored and maintained, or where school buses queue) http://www.epa.gov/cleandiesel/documents/fy15-tribal-county-area-list.pdf 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)

b. Other Programmatic Priorities: Under Section V, Criterion #4, proposals will be evaluated on the extent and quality to which the project:

Maximizes public health benefits

Utilizes the most cost-effective strategies

Serves areas:

o with the highest population density;

o with toxic air pollutant concerns; or o in, or affecting Federal Class I areas.

Uses a community-based multi-stakeholder collaborative process to reduce toxic emissions

Conserves diesel fuel

The extent that a project will maximize public health benefits depends on both the population 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 that will be affected by the project and how they will directly benefit from emission reductions that will result from the project.

4. Partnerships for Renewable Energy and Energy Efficiency: An objective of the assistance to be awarded under this program is to leverage additional resources and expertise to further an applicant’s diesel emission reduction goals, and to gain additional diesel emission reductions from the vehicles and engines targeted under this program. All proposals will be evaluated on the extent and quality to which the proposed project supports this objective.

Under Section V, Criterion #6, proposals will be evaluated on the extent and quality to which the applicant has established a partnership with a non-EPA Federal Agency to advance tribal renewable energy and energy efficiency efforts that reduce diesel emissions. Partnerships may include, but are not limited to: technical assistance; strategic energy planning; and/or project feasibility, development and/or deployment. The partnership must result in strategic plans or projects that use renewable energy and energy efficiency strategies to achieve additional diesel emission reductions from the same engines/equipment that the applicant is targeting for diesel emission reductions under this RFP.

5. Number of Applications Permissible: Applicants can submit more than one proposal as long as they are for different projects and submitted separately. A single proposal may target multiple fleets, fleet types and/or diesel emission reduction solutions.

C. EPA Strategic Plan Linkage & Anticipated Outcomes, Outputs & Performance

Measures Pursuant to…