National Clean Diesel Emissions Reduction Program

 

The Diesel Emissions Reduction Act, 42 U.S.C. 16131 et seq., as amended, authorization includes the authority for EPA to award grants, rebates and low-cost revolving loans to eligible entities to fund the costs of a retrofit technology that significantly reduces emissions through implementation of a certified engine configuration, verified technology, or emerging technology for buses (including school buses), medium heavy-duty or heavy heavy-duty diesel trucks, marine engines, locomotives, or nonroad engines or diesel vehicles or equipment 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.

Projects should also focus on promoting environmental justice (EJ). EJ is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.

Funding Priority - Fiscal Year 2014: The National Clean Diesel Funding Assistance 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, construction sites, schools and distribution centers or that use a community-based multi-stakeholder collaborative process to reduce toxic emissions; Include a certified engine configuration or verified technology that has a long expected useful life; Will maximize the useful life of any certified engine configuration or verified technology used or funded by the eligible entity; and Conserve diesel fuel. Clean Diesel Emerging Technologies Program grants and SmartWay Clean Diesel Finance Program grants were not funded in FY2014.

Funding Priority - Fiscal Year 2015: The National Clean Diesel Funding Assistance Program aims to work aggressively to reduce the pollution emitted from diesel engines across the country through the implementation of varied control strategies and involvement of national, state, and local partners. Priority shall be given to projects which 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 local 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. Poor air quality areas include areas in nonattainment or maintenance of national ambient air quality standards for PM2.5 and Ozone, and areas with toxic air pollutant concerns. Clean Diesel Emerging Technologies Program grants and Smart-Way Clean Diesel Finance Program grants were not funded in FY2015.

Funding Priority - Fiscal Year 2016: The National Clean Diesel Funding Assistance Program aims to work aggressively to reduce the pollution emitted from diesel engines across the country through the implementation of varied control strategies and involvement of national, state, and local partners. Priority shall be given to projects which 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 local 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. Poor air quality areas include areas in nonattainment or maintenance of national ambient air quality standards for PM2.5 and Ozone, and areas with toxic air pollutant concerns. Clean Diesel Emerging Technologies Program grants and Smart Way Clean Diesel Finance Program grants will likely not be funded in FY2016.

General information about this opportunity
Last Known Status
Active
Program Number
66.039
Federal Agency/Office
Agency: Environmental Protection Agency
Office: Office of Air and Radiation
Type(s) of Assistance Offered
PROJECT GRANTS
Program Accomplishments
Fiscal Year 2014: In FY 2014, the DERA National Clean Diesel Funding Assistance Program awarded 28 grants nationwide, for a total of approximately $15,000,000. For a list of awarded grants, visit http://www.epa.gov/cleandiesel/projects-national.htm and http://www2.epa.gov/ports-initiative/funding-projects-improve-air-quality-ports and http://www.epa.gov/cleandiesel/projects-tribal.htm. Fiscal Year 2015: For a list of awarded grants, visit http://www.epa.gov/cleandiesel/projects-national.htm and http://www.epa.gov/cleandiesel/projects-tribal.htm. Fiscal Year 2016: No Current Data Available
Authorization
Energy Policy Act of 2005, Title VII, Part G, 42 U.S.C 16131.
Who is eligible to apply/benefit from this assistance?
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 found at 2 CFR 225, for State and local governments and Indian Tribes, found at 2 CFR 220, for educational institutions, 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. 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
Pre-Application Procedure
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
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 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.
Deadlines
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision 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 2 CFR 1500 Subpart E, as applicable.
Renewals
Generally, EPA fully funds assistance agreements under this program.
How are proposals selected?
The evaluation and selection criteria for competitive awards under this CFDA description will be described in the competitive announcement.
How may assistance be used?
Assistance 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. No grant, rebate or loan provided under this section shall be used to fund the costs of emissions reductions that are mandated under Federal law. 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 95 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 and 2) not more than 5 percent of funds available for a fiscal year under the DERA National Program shall be provided to eligible entities for the development and commercialization and implementation of emerging technologies.

Grant recipients and sub-recipients are encouraged to adopt and enforce policies that ban text messaging while driving company-owned or -rented vehicles or government-owned vehicles, or while driving privately-owned vehicles when on official government business or when performing any work for or on behalf of the government. Grant recipients and sub-recipients are encouraged to conduct initiatives of the type described in section 3(a) of the Federal Leadership on Reducing Text Messaging While Driving Executive Order that was signed on October 1, 2009.
What are the requirements after being awarded this opportunity?
Reporting
EPA includes reporting requirements for grants and cooperative agreements in the terms and conditions of the agreements. Agreements may require quarterly, interim and final progress reports, and financial, equipment, and invention reports. Specific reporting requirements are also identified in the Uniform Grants Guidance 2 CFR 200.

Grantees are required to submit program reports in accordance with Agency policy and the Monitoring and Reporting Program Performance requirements stated in the Uniform Grants Guidance 2 CFR 200. Grantees are required to submit financial reports in accordance with Agency policy and the Financial Reporting and Financial Management Systems requirements stated in the Uniform Grants Guidance 2 CFR 200. Grantees are required to submit progress reports in accordance with Agency policy and the Monitoring and Reporting Program Performance requirements stated in the Uniform Grants Guidance 2 CFR 200. No expenditure reports are required. Grantees are required to perform performance monitoring in accordance with Agency policy and requirements stated in the Uniform Grants Guidance 2 CFR 200.
Auditing
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. 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.
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.
Other 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 upgrades,, idle reduction technologies, aerodynamic technologies and low rolling resistance tires, engine repowers, vehicle/equipment replacements, and drayage vehicle replacements). Proposed projects involving engine upgrades, idle reduction technologies, aerodynamic technologies and low rolling resistance tires, engine repowers, vehicle/equipment replacements, and drayage vehicle replacements are subject to funding limitations, which are:

Engine Upgrade - EPA will fund up to 40% of the cost of an eligible engine upgrade.

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

Shore Connection Systems and Truck Stop Electrification Technologies - EPA will fund up to 25% of the cost of eligible shore connection systems and truck stop electrification technologies.

Locomotive Idle Reduction Technologies - EPA will fund up to 40% of the cost of an eligible idle reduction technology installed on a locomotive.

Aerodynamic Technologies and Low Rolling Resistance Tires - EPA will not fund stand-alone aerodynamic technologies or low rolling resistance tires. If aerodynamic technologies or low rolling resistance tires are combined on the same vehicle with an eligible verified exhaust control, up to 100% funding will be provided for the entire package.

Engine Repower - EPA will fund up to 40% of the cost of an eligible engine repower.

Vehicle/Equipment Replacement - EPA will fund up to 25% of the cost of a newer, cleaner vehicle or piece of equipment powered by a 2014 or newer model year certified diesel engine (except for drayage vehicles; see below).

Drayage Vehicle Replacement - EPA will fund up to 50% of the cost of eligible drayage trucks with a 2011 model year or newer heavy duty engine (or equipped with a catalyst in the case of a CNG engine).
This program does not have MOE requirements.
Length and Time Phasing of Assistance
The assistance agreements funded under the National Clean Diesel Emissions Reduction Program typically have a two-year project period with the possibility for extension up to a five-year project period. FY 2015 is the eighth year of funding for this Program, in addition to the FY 2009 supplemental funding received under the American Recovery and Reinvestment Act (ARRA or Recovery Act). See the following for information on how assistance is awarded/released: Assistance agreements may be fully (lump sum) funded.
Who do I contact about this opportunity?
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.
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.
Website Address
http://www.epa.gov/cleandiesel
Financial Information
Account Identification
68-0103-0-1-304.
Obligations
(Project Grants) FY 14 $15,000,000; FY 15 est $18,000,000; and FY 16 est $35,000,000 - FY 2014 $15 million; FY2015 $18 million; FY2016 $35 million (projected).
Range and Average of Financial 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 Emissions Reduction Program totaled $205,800,000.
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Regulations, Guidelines and Literature
Diesel Emissions Reduction program assistance agreements are subject to the Uniform Grants Guidance 2 CFR 200, as applicable.

Examples of Funded Projects
Fiscal Year 2014: Projects 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 conversions; and/or vehicle or equipment replacement. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5  Class 8 heavy-duty diesel 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 2015: Projects 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 conversions; and/or vehicle or equipment replacement. Eligible vehicles, engines and equipment may include: buses (including school buses); Class 5  Class 8 heavy-duty diesel 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 2016: No Current Data Available

 


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