66.039 National Clean Diesel Funding Assistance Program

FEDERAL AGENCY: OFFICE OF AIR AND RADIATION, ENVIRONMENTAL PROTECTION AGENCY

AUTHORIZATION: FY 2008 Interior, Environment and Related Agencies Appropriations Act, H.R. 2764, The Energy Policy Act of 2005, Public Law 109-58.

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. Funding Priority-Fiscal Year 2008: 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 (Cooperative Agreements).

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. No grant or loan provided under this program shall be used to fund the costs of emissions reductions that are mandated under Federal, State or local 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 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.

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 oganizations 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. 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.

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.

Application Procedure: 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: For competitive awards, deadlines will be specified in the Request for Applications or Request for Proposals.

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 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.

Formula and Matching Requirements: None.

Length and Time Phasing of Assistance: The grants and cooperative agreements funded under the National grant and loan program will have up to a five-year project period. The Request for Proposals or Request for Applications will specify the project period. Applicants will be notified of an award in accordance with the information specified in any resulting solicitation.

Reports: 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 Grant Regulations 40 CFR Part 30 and 40 CFR Part 31.

Audits: 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 Nonprofit Organizations," nonfederal 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. 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 OMB Circular No. A-133.

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.

Account Identification: 68-0103-0-1-304.

Obligations: FY 06 $0; FY 07 $0; and FY 08 est $35,000,000.

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.

PROGRAM ACCOMPLISHMENTS: None.

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).

Regional or Local Office: EPA encourages potential applicants to communicate with the appropriate EPA Regional Office listed in Appendix IV of the Catalog or Jennifer Keller.

Headquarters Office: For program information, contact: Jennifer Keller, US Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W., Mail Code: 6405J, Washington, DC 20460; Telephone: (202) 343-9541; Fax: (202)-343-2803; E-mail: keller.jennifer@epa.gov.

Web Site Address: http://www.epa.gov/cleandiesel.

RELATED PROGRAMS: 66.034, Surveys, Studies, Investigations, Demonstrations and Special Purpose Activities Relating to the Clean Air Act; 66.306, Environmental Justice Collaborative Problem-Solving Cooperative Agreement Program.

EXAMPLES OF FUNDED PROJECTS: None.

CRITERIA FOR SELECTING PROPOSALS: The evaluation and selection criteria for competitive awards under this CFDA description will be described in the competitive announcement.