National Clean Diesel Campaign
American Recovery and Reinvestment Act of 2009
State Clean Diesel Grant Program Information
Feb 27, 2009
The following is information pertaining to the State Clean Diesel Grant Program portion of the
American Recovery and Reinvestment Act of 2009. All activities should focus on stimulating the
American economy, retaining and/or creating jobs, and reducing diesel emissions.
Overview
The American Recovery and Reinvestment Act (Recovery Act), signed into law on February 17,
2009, provides $300 million to support Clean Diesel activities. These funds are in support of
Sections 791-797 of the Diesel Emissions Reduction Program (DERA) in the Energy Policy Act
of 2005. Section 793 authorizes the U.S. Environmental Protection Agency (EPA) to support
grant and loan programs administered by States and the District of Columbia that are designed
to achieve significant reductions in diesel emissions. This program is referred to as the
Recovery Act Funding for State Clean Diesel Grant Program. All 50 states and the District of
Columbia are eligible to participate.
This program is not a competition, but an allocation process in which the States and the District
of Columbia submit their interest to participate to EPA. States and the District of Columbia
wishing to participate will receive funding with an approvable work plan and grant application.
All public materials for the Recovery Act Funding for State Clean Diesel Grant Program are
available at: http://www.epa.gov/otaq/eparecovery/progstate.htm
Funding Levels
As described in the Recovery Act, $300M is provided for DERA. EPA is allocated 2% for
administration of the program. Per DERA, the remaining funds are divided into 30% for the
State Clean Diesel Grant Program and 70% for national competitive grants. The total funding
available for the Recovery Act Funding for State Clean Diesel Grant Program is $88.2M. If all
50 states and the District of Columbia intend to apply for the program, then each State would
receive an equal percentage of the funds (approximately $1.7M). If any of the 50 States or the
District of Columbia do not intend to participate, then additional funds may be available through
the population formula outlined in Section 793 (c)2(B) of DERA. Any unclaimed funds will revert
to the National Clean Diesel Program.
Match Incentive:
There is no match requirement for this program. Additionally, under the Recovery Act there is
no matching incentive provision associated with this program so States providing a voluntary
match will not receive additional funding.
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Timeline
Action
Notice of Intent to Apply emailed out to States and
the District of Columbia based on $1.7M per
organization estimate.
Work Plan Template and guidance sent out to
States by EPA Regions (materials provided by
EPA OTAQ).
Notice of Intent due back to EPA OTAQ
States notified of final allocation amount
Work Plan, SF424, SF424A and other grant
forms sent to EPA Regions
EPA Regions Award New State Grants
Lead Organization
EPA OTAQ
EPA Regions
States and DC
EPA OTAQ
States and DC
EPA Regions
Completion Date
Feb 26, 2009
March 2, 2009
March 6, 2009
March 11,2009
March 20, 2009
By April 17,2009
Procedures
The steps below outline the process and roles for participation in the State program.
Step 1: A State must submit a Notice of Intent to Apply to OTAQ. This notice outlines the
State's interest in participating in the State Clean Diesel Grant Program and is due on or before
Friday, March 6, 2009 to EPA. The Notice of Intent to Apply should be submitted via email to
cleandiesel(S)epa.gov. It must be signed by the Environmental Commissioner or authorized
official but does not need to be emailed from this person directly. The notice can be emailed
from the programmatic contact.
Step 2: Once all notices are received, OTAQ performs the funding allocation calculation
outlined in Section 793 (c) of DERA and provides the EPA Region with each State's target
allocation. EPA Regions inform the States of their target allocation in writing by March 11,
2009.
Step 3: Participating organizations complete EPA's funding assistance application package and
submit it to the appropriate EPA Regional office by March 20, 2009. The application package
consists of the standard grant forms including the SF-424 and 424A and the work plan template
with budget narrative. States do not have to use grants.gov to complete the application forms.
Application instructions and a work plan and budget template are available via the web at
http://www.epa.gov/otaq/eparecovery/progstate.htm.
Step 4: Grants will be awarded by EPA Regions by April 17, 2009.
Work Plan and Budget Narrative
Use of Funds
A State can use Recovery Act Funding for State Clean Diesel Grant Program funds to develop
and implement a grant and/or loan program(s) as appropriate to meet State needs and goals
relating to stimulating the American economy, retaining and/or creating jobs, and reducing
diesel emissions. Permissible uses of these State Clean Diesel program funds and restrictions
on the use of these funds are as follows:
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• Administrative Costs: States may use up to 15% on administrative costs. Administrative
costs include those costs associated with personnel (salary/fringe) or other capacity
building activities, including travel. Administrative costs would also include any supplies
or contractual costs related to printing of brochures or educational materials. The 15
percent maximum does not include indirect cost rates or funds going directly to projects
through grants and/or loans.
• Mandated Emission Reductions: States can use funds to provide grants or loans for
projects to achieve emission reductions that are mandated under Federal, State or local
law.
• PPGs: Funds provided to the State through this program are not eligible for inclusion
with the State's Performance Partnership Grants (PPGs).
• Use of EPA and/or GARB Verified or Certified Technologies: States are encouraged to
provide grants or loans for projects using EPA and/or CARB verified or certified
technologies. There may be cases where emerging technologies or other non-
technology (e.g., operational strategies) may be appropriate.
• Innovative Financing: If a State submits a work plan that includes a loan or an
innovative financing mechanism, EPA suggests a close working relationship between
EPA and the State to discuss the proposed plan.
• State Fleets: States can use funds to provide grants or loans for the benefit of State
fleets. The State air agency (or lead State agency) can transfer funds to another agency
as a subgrantee as allowable under State law. The State Air Agency (or lead agency)
can also purchase equipment through blanket purchase agreements or some other
mechanism that ensures competitive pricing for the technology. The Agency can then
provide the equipment in lieu of money as financial assistance to subgrantees.
• DERA funds may be used for the benefit of private fleets. Under EPA's subaward policy,
a for-profit company may be awarded a subaward by a State where doing so is
"consistent with applicable EPA regulations, EPA policies, EPA guidance, and OMB
Circulars" and "only where consistent with Section 210(a)-(d) of OMB Circular A-133."
See Assistance Administration Manual 5700, Part 2, Section 01.
Project Period and Budget
The project period for all State Clean Diesel Grants will be from award through September 30,
2010. States should be aware that the entire amount of funding should be drawn down by
September 30, 2010. The Recovery Act imposes reporting requirements. Reporting will be at
least quarterly and additional reporting may be required for these special Recovery Act grants.
Items to be reported may include funds expended, requests for proposals posted, number of
contracts, vehicle and technology information and jobs preserved or created. As "jobs
preserved/created" is a new metric for State Clean Diesel grant programs, EPA may assist
States with this calculation. EPA will provide reporting templates.
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Assistance Agreement Funding Information
Catalog of Federal Domestic Assistance (CFDA)
Number*
Program Title
Statutory Authorities
Project/Budget Start and End Date
66.040
Recovery Act Funding for State
Clean Diesel Grant Program
American Recovery and
Reinvestment Act of 2009, Public
Law 111-5; Energy Policy Act of
2005, Public Law 109-58
~ April 20, 2009 - September 30,
2010
*The revised CFDA entry for the State Clean Diesel program in the Catalog of Federal Domestic
Assistance can be accessed at the CFDA web site at www.cfda.gov . However, the entry may
not be updated on-line to reflect the Recovery Act until later in the spring.
Additional Certifications from States
State Clean Diesel Grant programs should be aware that under ARRA of 2009, the State
(governor or legislature) must submit a certification in accordance with ARRA, Division A, Title
XVI, Section 1607 before USEPA may provide a State with funding. The governor of the State
must submit the certification no later than 45 days after the date of enactment of ARRA. The
governor must certify that (1) the State will request and use funds provided by ARRA and (2) the
funds will be used to create jobs and promote economic growth. If the governor does not
complete the required certification, the State legislature may adopt a concurrent resolution to
certify acceptance of ARRA funding. Additionally, States receiving infrastructure investment
funding must comply with the project-specific certification requirement of ARRA Section 1511.
More information on the definition of "infrastructure investment" will be forthcoming shortly.
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