National Clean Diesel Funding Assistance Program (66.039)
Program
66.039 National Clean Diesel Funding Assistance Program
Federal Agency
Agency: Environmental Protection Agency
Office: Office of Air and Radiation
Authorization
The Energy Policy Act of 2005, Public Law 109-58; Consolidated Security, Disaster Assistance, and Continuing Appropriations Act; FY 2008 Interior, Environment and Related Agencies Appropriations Act; American Recovery and Reinvestment Act of 2009 (Recovery Act), Title 7.
Program Number
66.039
Last Known Status
Active
Objectives
Sections 792 of the Energy Policy Act of 2005 authorize EPA to award grants and low-cost revolving loans to eligible entities to fund the costs of a retrofit technology that significantly reduces emissions through development and implementation of a certified engine configuration, verified technology, or emerging technology for buses (including school buses), medium-duty or heavy-duty trucks, marine engines, locomotives, or nonroad engines or vehicles used in construction, handling of cargo (including at port or airport), agriculture, mining, or energy production. In addition, eligible entities may also use funds awarded for programs or projects to reduce long-duration idling using verified technology involving a vehicle or equipment described above, or the creation of low-cost revolving loan programs to finance diesel emissions reduction projects. The objective of the assistance under this program is to achieve significant reductions in diesel emissions in terms of tons of pollution produced and reductions in diesel emissions exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas.
In addition, Recovery Act grants and cooperative agreements must support American Recovery and Reinvestment Act of 2009's goals to preserve and/or create jobs and promote economic recovery; maximize job creation and economic benefit; assist those most impacted by the present economic conditions; provide investments needed to increase economic efficiency by spurring technological advances in science and health; invest in transportation, environmental protection and other activities that will provide long-term economic benefits; commence expenditures and activities as quickly as possible consistent with prudent management; track and measure an applicant's progress towards achieving the Recovery Act funding priorities. Funding Priority-Fiscal Year 2009: This program aims to work aggressively to reduce the pollution emitted from diesel engines across the country through the implementation of varied control strategies and aggressive involvement of national, state, and local partners. Priority shall be given to projects which: Maximize public health benefits; Are the most cost-effective; Serve areas with the highest population density, that are poor air quality areas (including nonattainment or maintenance of national ambient air quality standards for a criteria pollutant; Federal Class I areas; or areas with toxic air pollutant concerns); Serve areas that receive a disproportionate quantity of air pollution from diesel fleets, including truck stops, ports, rail yards, terminals, and distribution centers or that use a community-based multi-stakeholder collaborative process to reduce toxic emissions; Include a certified engine configuration, verified technology, or emerging technology that has a long expected useful life; Will maximize the useful life of any certified engine configuration, verified technology, or emerging technology used or funded by the eligible entity; Conserve diesel fuel; and Utilize ultra low sulfur diesel fuel (15 parts per million of sulfur content) ahead of EPA's mandate (for nonroad projects).
Types of Assistance
PROJECT GRANTS
Uses and Use Restrictions
Grants and Cooperative agreements are available to support recipient's allowable costs incident to supporting projects to reduce emissions from diesel engines, plus allowable indirect costs, in accordance with established EPA policies and regulations. Grant or cooperative agreement or loan funds cannot be used to fund the costs of emissions reductions that are mandated under Federal, State or local law; fund any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool. Voluntary or elective emission reduction measures shall not be considered "mandated", regardless of whether the reductions are included in the State implementation plan of a State. Distribution of Funds: 1) not less than 50 percent of funds available for a fiscal year under the DERA National Program shall be provided to eligible entities for the benefit of public fleets; 2) not less than 90 percent of funds available for a fiscal year under the DERA National Program shall be provided to eligible entities for projects using-a certified engine configuration; or a verified technology;3) not more than 10 percent of funds available for a fiscal year under the DERA National Program shall be provided to eligible entities for the development and commercialization of emerging technologies.
In addition, Recovery Act grants and cooperative agreements must support American Recovery and Reinvestment Act of 2009's goals to preserve and/or create jobs and promote economic recovery; maximize job creation and economic benefit; assist those most impacted by the present economic conditions; provide investments needed to increase economic efficiency by spurring technological advances in science and health; invest in transportation, environmental protection and other activities that will provide long-term economic benefits; commence expenditures and activities as quickly as possible consistent with prudent management; track and measure an applicant's progress towards achieving the Recovery Act funding priorities.
Eligibility Requirements
Applicant Eligibility
A regional, State, local or tribal agency or port authority with jurisdiction over transportation or air quality; and a nonprofit organization or institution that represents or provides pollution reduction or educational services to persons or organizations that own or operate diesel fleets; or has, as its principal purpose, the promotion of transportation or air quality are eligible for assistance under this program. City, county, or municipal agencies, school districts, and metropolitan planning organizations (MPOs) that have jurisdiction over transportation or air quality are all eligible entities under this program to the extent that they fall within the definition above. For certain competitive funding opportunities under this CFDA description, the Agency may limit eligibility to compete to a number or subset of eligible applicants consistent with the Agency's Assistance Agreement Competition Policy.
Beneficiary Eligibility
State, Local, Public Nonprofit Institution/Organization, Anyone/General Public.
Credentials/Documentation
Costs will be determined in accordance with Office of Management and Budget (OMB) Circular A-87, found at 2 CFR 225, for State and local governments and Indian Tribes, OMB Circular No. A-21, found at 2 CFR 220, for educational institutions, and OMB Circular No. A-122, found at 2 CFR 230, for nonprofit institutions. Applicants may be requested to demonstrate they have appropriate background, academic training, experience in the field, and necessary equipment to carry out projects. OMB Circular No. A-87 applies to this program.
Application and Award Process
Preapplication Coordination
Regarding pre-application/pre-proposal assistance with respect to competitive funding opportunities under this program description, EPA will generally specify the nature of the pre-application/pre-proposal assistance, if any, that will be available to applicants in the competitive announcement. For additional information, contact the individual(s) listed as "Information Contacts" or see Appendix IV of the Catalog. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedure
OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program. By law Section 792 includes application requirements. In addition, EPA requires final applications to be made on Standard Form 424, Application for Federal Assistance. Requests for application kits must be submitted to the Environmental Protection Agency, Grants and Interagency Agreements Management Division, 3903R, Washington, DC 20460. Standard Form 424 is also available for download at EPA's Office of Grants and Debarment (OGD) web site, http://www.epa.gov/ogd/AppKit/application.htm, from www.grants.gov, or from EPA Regional Collaborative assistance agreement websites. Applicants may be able to use http://www.grants.gov to electronically apply for certain grant opportunities under this CFDA.
Award Procedure
For competitive awards, EPA's Office of Air and Radiation and/or the 10 EPA Regions will review and evaluate applications, proposals, and/or submissions in accordance with the terms, conditions, and criteria stated in the competitive announcement. Competitions will be conducted in accordance with EPA policies/regulations for competing assistance agreements. In addition, Recovery Act competitions for the National Clean Diesel Funding Assistance Program will be conducted in accordance with OMB's Agency guidance for implementing American Recovery and Reinvestment Act of 2009.
Deadlines
Contact the headquarters or regional office, as appropriate, for application deadlines.
Range of Approval/Disapproval Time
Approximately 180 days after the request for applications.
Appeals
Assistance agreement competition-related disputes will be resolved in accordance with the dispute resolution procedures published in 70 FR (Federal Register) 3629, 3630 (January 26, 2005). Copies of these procedures may also be requested by contacting the individual(s) listed as "Information Contacts." Disputes relating to matters other than the competitive selection of recipients will be resolved under 40 CFR 30.63 or 40 CFR 31.70, as applicable.
Renewals
Permitted. Generally, EPA incrementally funds cooperative agreements. Approval of subsequent funding increments is dependent on satisfactory project progress, continued relevance of the projects to EPA's priorities, availability of funds, and Agency policy on the cooperative agreement process.
Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
Matching Requirements: There is no requirement for a matching contribution from applicants other than for certain projects (engine repowers, vehicle/equipment replacements and school bus replacements). Proposed projects involving engine repowers, vehicle/equipment replacements or school bus replacements are subject to funding limitations, which are:
Engine Repower – EPA will fund up to 75% of the cost of an engine repower.
Vehicle/Equipment Replacement – EPA will fund up to 25% of the cost of a new vehicle or piece of equipment (except for school buses; see below).
School Bus Replacement - For buses that meet EPA's 2010 emissions standards for heavy-duty on-highway vehicles, EPA will fund 50% of the cost of a replacement school bus.
For buses that meet EPA's 2007 emissions standards for heavy-duty on-highway vehicles, EPA will fund 25% of the cost of a replacement school bus. Proposals that include engine repowers, vehicle or equipment replacements and/or school bus replacements must indicate the cost-share match in the application in order to be eligible.
Applicant's must address American Recovery and Reinvestment Act of 2009's goals to preserve and/or create jobs and promote economic recovery; maximize job creation and economic benefit; assist those most impacted by the present economic conditions; provide investments needed to increase economic efficiency by spurring technological advances in science and health; invest in transportation, environmental protection and other activities that will provide long-term economic benefits; commence expenditures and activities as quickly as possible consistent with prudent management; track and measure an applicant's progress towards achieving the Recovery Act funding priorities.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
The grants and cooperative agreements funded under the National Clean Diesel Funding Assistance Program will have up to a five-year project period. FY 2009 is the second year of funding for this Program. Recovery Act Funding assistance agreements will have a project period from approximately May 1, 2009 to September 30, 2010. See the following for information on how assistance is awarded/released: Assistance agreements may be incrementally (quarterly) or fully (lump sum) funded.
Post Assistance Requirements
Reports
Grantees are required to submit program reports in accordance with Agency policy and the Monitoring and Reporting Program Performance requirements stated in Federal Grant Regulations 40 CFR Part 31 or 40 CFR Part 30 and OMB Circular No.A-102 or OMB Circular No.A-110.
In addition, Grantees of Recovery Act assistance agreements are required to submit program reports in accordance with Recovery Act requirements, OMB and Agency guidance. Grantees are required to submit financial reports in accordance with Agency policy and the Financial Reporting and Financial Management Systems requirements stated in Federal Grant Regulations 40 CFR Part 31 or 40 CFR Part 30 and OMB Circular No.A-102 or OMB Circular No.A-110.
In addition, Grantees of Recovery Act assistance agreements are required to submit financial reports in accordance with Recovery Act requirements, OMB and Agency guidance. Grantees are required to submit progress reports in accordance with Agency policy and the Monitoring and Reporting Program Performance requirements stated in Federal Grant Regulations 40 CFR Part 31 or 40 CFR Part 30 and OMB Circular No.A-102 or OMB Circular No.A-110.
In addition, Grantees of Recovery Act assistance agreements are required to submit progress reports to recovery.gov and EPA in accordance with Recovery Act requirements, OMB and Agency guidance. No expenditure reports are required. Grantees are required to perform performance monitoring in accordance with Agency policy and requirements stated in Federal Grant Regulations 40 CFR Part 31 or 40 CFR Part 30 and OMB Circular No.A-102 or OMB Circular No.A-110.
In addition, Grantees of Recovery Act assistance agreements are required to comply with Recovery Act requirements, OMB and Agency guidance.
Audits
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Grants and cooperative agreements are subject to inspections and audits by the Comptroller General of the United States, the EPA Office of Inspector General, other EPA staff, or any authorized representative of the Federal government. Reviews by the EPA Project Officer and the Grants Specialist may occur each year. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," non-federal entities that expend $500,000 or more in a year in Federal awards shall have a single or a program-specific audit conducted for that year. Non-federal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in OMB Circular No. A-133.
In accordance with the American Recovery and Reinvestment Act, OMB guidance and Agency policies; EPA Office of Inspector General, EPA's program and administrative staff are committed to increased auditing and oversight of all Recovery Act assistance agreements to ensure all funds are used appropriately and accounted for.
Records
Recipients must keep financial records, including all documents supporting entries in accounting records and to substantiate changes in grants available to personnel authorized to examine EPA recipient grants and cooperative agreement records. Recipients must maintain all records until 3 years from the date of submission of the final expenditure reports. If questions, such as those raised as a result of an audit remain following the 3-year period, recipients must retain records until the matter is completely resolved.
Program Accomplishments
Fiscal Year 2008: For FY 2008, $34,400,000 was dispersed through approximately seventy grants nationwide. For a list of awarded grants, visit www.epa.gov/cleandiesel and click on "Grants and Funding.". Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available
Financial Information
Account Identification
68-0103-0-1-304.
Obligations
(Salaries) FY 08 $34,400,000; FY 09 est $42,000,000; FY 10 est $42,000,000 - FY 08 - $34.4 million; FY 09 - $42 million; FY 2010 - $42 million (projected); Recovery Act - $205.8 million.
Range and Average of Financial Assistance
There is no minimum amount of assistance. Smaller grants typically range from $100,000 - $300,000 with an average award of $125,000. Larger grants typically range from $500,000 - $2 million with an average award of $650,000.
Recovery Act Funding under the National Clean Diesel Funding Assistance Program $205,800,000 will be divided into 3 competitive categories:
National Clean Diesel Funding Assistance Program: The National Clean Diesel Funding Assistance Program under the Recovery Act has minimum and maximum award amounts. It is anticipated that 150-200 awards ranging in value from $100,000 to $10 million, depending on the EPA Region's minimum and maximum award amounts as announced in the Request for Applications.
Clean Diesel Emerging Technologies Program: Recovery Act Funding for the Clean Diesel Emerging Technologies Program anticipates 10-20 awards ranging in value from approximately $500,000 to $3 million.
SmartWay Clean Diesel Finance Program: Recovery Act Funding for the Clean Diesel Finance Program anticipates 1-6 awards ranging in value from approximately $3 million to $30 million.
SmartWay Clean Diesel Finance Program: Recovery Act Funding for the Clean Diesel Finance Program anticipates 1-6 awards ranging in value from approximately $3 million to $30 million.
Regulations, Guidelines and Literature
Diesel Emissions Reduction program grants and cooperative agreements are subject to EPA's general grant regulations (40 CFR Part 30 and Part 31, as applicable). In addition, Recovery Act grants and cooperative agreements must comply the terms of American Recovery and Reinvestment Act of 2009, as well as OMB's Agency guidance for implementing American Recovery and Reinvestment Act of 2009.
Related Programs
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act
Information Contacts
Regional or Local Office
See Regional Agency Offices. EPA encourages potential applicants to communicate with the appropriate EPA Regional Office listed in Appendix IV of the Catalog or Jennifer Keller.
Headquarters Office
Jennifer Keller Environmental Protection Agency
1200 Pennsylvania Avenue, N.W.
Mail Code: 6405J, Washington, District of Columbia 20460 Email: keller.jennifer@epa.gov Phone: (202) 343-9541
Web Site Address
http://www.epa.gov/cleandiesel
Examples of Funded Projects
Fiscal Year 2008: Projects that may be eligible include a variety of diesel emissions reductions solutions such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine repowers; engine upgrades; and/or vehicle or equipment replacement; and the creation of low-cost revolving loan programs to finance diesel emissions reduction projects. Eligible vehicles, engines and equipment may include: buses (including school buses); medium-duty or heavy-duty trucks; marine engines; locomotives; and nonroad engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining; or v) energy production (including stationary engines such as generators or pumps). Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available
Criteria for Selecting Proposals
The evaluation and selection criteria for competitive awards under this CFDA description will be described in the competitive announcement.
