2023-2024 Diesel Emissions Reduction Act
(DERA) State Grants Program Guide
£% United States
Environmental Protect
Agency
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2023-2024 Diesel Emissions Reduction Act
(DERA) State Grants Program Guide
Transportation and Climate Division
Office of Transportation and Air Quality
U.S. Environmental Protection Agency
United States
Environmental Protection
^1 Agency
EPA-420-B-24-041
August 2024
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2023-2024 DERA State Grants Program Guide
August 2024
SUMMARY
EPA's Office of Transportation and Air Quality is soliciting applications from eligible states and
territories for participation in the 2023-2024 Diesel Emissions Reduction Act (DERA) State
Grants. EPA anticipates offering approximately $30 million for fiscal year 2023 and $26 million
for fiscal year 2024 to states and territories under the DERA State Grants, subject to the
availability of appropriations. Funding can support grant and rebate programs administered by
eligible states or territories that are designed to achieve significant reductions in diesel emissions.
The DERA State Grants program is not a competition; it is an allocation process in which the
eligible states and territories submit their interest to participate. EPA awards a specific allocation
to participating states and territories that is determined by formula, based on the number of
participants. States and territories who receive FY23 funding and choose to also receive FY24
funding, will receive the FY24 funding through an incremental amendment to the 2023-2024
DERA State Grants. States and territories that do not participate in the 2023 DERA State Grants
that choose to participate in the 2024 DERA State Grants will receive funding as a new grant
award.
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 such
as those used in construction, handling of cargo, agriculture, mining, or energy production.
Eligible diesel emissions reduction solutions include verified retrofit technologies such as
exhaust after-treatment technologies, engine upgrades, cleaner fuels and additives, verified idle
reduction technologies, verified aerodynamic technologies, verified low rolling resistance tires,
certified engine replacements and conversions, and certified vehicle or equipment replacement.
All public materials for the DERA State Grants are available at the State DERA website.
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2023-2024 DERA State Grants Program Guide
Table of Contents
I. OVERVIEW 4
II. STATUTORY AUTHORITY 4
III. ELIGIBLE RECIPIENTS 4
IV. 2023-2024 FUNDING SCHEDULE AND PROCEDURES 5
V. NOTICE OF INTENT 6
VI. ALLOCATION OF FUNDS 7
VII. APPLICATION PACKAGE AND SUBMISSION INFORMATION 7
VIII. SCOPE OF WORK 9
IX. COST-SHARK REQUIREMENTS 22
X. WAIVER OF PROGRAMMATIC REQUIREMENTS 30
XI. AWARD ADMINISTRATION INFORMATION 32
APPENDIX A: HOW TO FUND PROJECTS AND PARTNERSHIPS 32
APPENDIX B: QUANTIFYING ENVIRONMENTAL OUTCOMES 36
APPENDIX C: MANDATED MEASURES JUSTIFICATION 39
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2023-2024 DERA State Grants Program Guide
August 2024
I. OVERVIEW
This document, the 2023-2024 Diesel Emissions Reduction Act (DERA) State Grants Program
Guide, consolidates and streamlines the programmatic requirements applicable to all DERA State
Grant awardees receiving FY23 and FY24 funding.
This document provides information to EPA Regions and to participating states and territories
detailing how the Agency intends to exercise its discretion in awarding and managing DERA State
Grant funds for 2023-2024. This guidance is designed to provide national policy on these issues.
Some of the statutory provisions described in this document contain legally binding
requirements. However, this document does not substitute for those provisions or regulations,
nor is it a regulation itself. Thus, it cannot impose legally binding requirements on EPA, states,
territories, or the regulated community, and may not apply to a particular situation based upon
the circumstances. Any decisions regarding a particular situation will be made based on the
statutes and regulations, and EPA decision-makers retain the discretion to adopt approaches on a
case-by-case basis that differ from this guidance where appropriate. EPA will consider, on a
case-by-case basis, waiver requests from programmatic terms and conditions of the assistance
agreement. Waivers will only be considered for specific non-threshold and non-statutory
requirements. States or territories must obtain EPA approval for any waiver request before
conducting any work on a project involving a waiver request.
II. STATUTORY AUTHORITY
The Diesel Emissions Reduction Act Program is authorized by Title VII, Subtitle G of the
Energy Policy Act of 2005, 42 USC 16131, et seq., as amended. DERA authorizes the award of
grants to reduce diesel emissions and diesel emissions exposure, administered by eligible states
or territories, particularly from fleets operating in areas designated by the Administrator as poor
air quality areas. This program is referred to as both the State Clean Diesel Grant Program (the
Program) and the DERA State Grants. While EPA has authority under DERA to support grant
programs, EPA's authority to obligate grant funds is subject to the availability of appropriated
funds.
III. ELIGIBLE RECIPIENTS
Eligibility to apply for and receive funds under the Program is limited to the 50 states, the District
of Columbia, Puerto Rico, and the territories: U.S. Virgin Islands, Guam, American Samoa, and
the Northern Mariana Islands. For the purposes of this document, the term "state" will be used to
describe these 56 entities.
EPA presumes that the state agency with jurisdiction over air quality will be the lead agency to
receive these funds. If a state's circumstances dictate that another state agency administer the
funds, then a letter from the state governor or designee to the Administrator of EPA is required to
certify one state agency as the recipient of funds who has the legal and administrative authority to
enter into a grant or cooperative agreement with EPA. Upon receipt, EPA will consider that
agency the lead agency from that point forward. However, if there is a change, a new governor's
letter to the Administrator must be submitted during the renewal process and the new agency
would be considered the lead agency for future grants. A letter to identify an alternate lead
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agency and provide specific contact information should be sent to the following
contacts and be received before the state submits its application package through Grants.gov.
A scan of the signed letter must also be emailed to DERA@epa. gov.
Michael S. Regan
Administrator
U.S. Environmental Protection Agency
1200 Pennsylvania Ave., N.W., Mail Code: 1101A
Washington, DC 20460
Cc: Stephanie Watson, Supervisor
Diesel Emissions Reductions Section
U.S. Environmental Protection Agency
1200 Pennsylvania Ave., N.W., Mail Code: 6406A
Washington, DC 20460
Phone: (202) 564-1409, Fax: (202) 343-2803, Email: watson.stephanie@epa.gov
IV. 2023- 2024 FUNDING SCHEDULE AND PROCEDURES
Table 1: Funding Schedule
Activity
I V 2023
I V 2024
EPA sends all eligible states the 2023-2024
program materials
July 6, 2023
August 27, 2024
Deadline for all participating states to submit a
2023-2024 Notice of Intent to Participate (NOIP) to
EPA via email (DERAfa),epa.gov)
July 21, 2023
September 10, 2024
EPA will inform the states of their final allocation
via email
July 26, 2023
September 17, 2024
Deadline for states and territories to submit
Workplan and Budget Narrative and Fleet
Description to their EPA Regional Office for
review
August 8, 2023
October 8, 2024
Deadline for participating states to submit their
application package to Grants.gov
August 22, 2023
November 8, 2024
Period of performance for 2023-2024 awards
begins October 1, 2023.
October 1, 2023
December 1, 2024
FY24 Incremental amendments completed
September 30, 2024
December 10, 2024
2023-2024 Period of performance end date
September 30, 2026
September 30, 2026
Note: This schedule is subject to change, updated guidance will be provided directly to states and
territories, as needed.
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2023-2024 DERA State Grants Program Guide
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V. NOTICE OF INTENT
A. Notice of Intent to Participate: States that want to receive 2024 DERA State Grants funding
must submit a Notice of Intent to Participate (NOIP).
1. Submission of the NOIP: The Notice of Intent to Participate can be submitted in one of
two ways: 1) a state can fill out the form electronically or by hand, print and sign the
document, scan the document, and return the document via email to DERA@epa. gov: or
2) a state can fill out the form electronically, digitally sign the document, save the
document and return via email to DERA@epa. gov. The Notice must be signed by the
Environmental Commissioner or other authorized official but does not need to be emailed
from this person directly; the Notice can be emailed from the programmatic contact at the
state.
2. Review of the NOIP: EPA's Office of Transportation and Air Quality (OTAQ) will
forward the Notices to the appropriate EPA Regional Office for review. Regional offices
will work with the states as necessary to resolve any identified issues.
B. Open 2022 and Earlier State Grants: Any state participating in the 2023-2024 DERA State
Grants which has an open DERA State Grant from 2021-2022 or earlier must ensure that
prior awards are closed out in a timely manner. Ideally, this means that vehicles/equipment
should be delivered, technologies installed, and all other project work completed by
September 30, 2023. If the state is unable to obligate and expend all 2022 and earlier funds
by September 30, 2023, the state has two options. First, the state may request a no-cost time
extension of the period of performance. Requests to extend previous awards and receive a
new 2023-2024 award will be evaluated and approved by the EPA Regional program office
on a case-by-case basis. Approval is dependent on the status of the project and unexpended
funds, the ability to complete the project in less than 6 months, and the impact of the
extension on the state's ability to implement its 2023-2024 workplan. Due to supply chain
issues EPA anticipates offering leniency on no-cost time extensions in the event that
equipment has been ordered but is facing manufacturing/delivery delays. Alternatively, if the
state is unable to complete the grant in a timely manner (e.g., project partners backed out and
new eligible vehicles have not yet been secured) the state may elect to close the grant and
return any remaining funds to EPA.
C. Voluntary Match Incentive: The NOIP must indicate if the state intends to voluntarily
contribute funding to the 2024 Program project budgets. The NOIP must also indicate the
intended amount and sources of non-federal voluntary matching funds.
If a state provides a voluntary match equal to the base allocation offered by EPA, EPA will
provide a matching incentive equal to 50 percent of the base allocation. For example: If EPA
offers a base allocation of $200,000 to the state, the state could contribute $200,000 of state
funding as a voluntary match and the state would receive an additional $100,000 in EPA
funding as a matching incentive. The total project budget would then be $500,000, not
including any mandatory cost-share funds.
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The voluntary match may be satisfied by allowable costs incurred by the state
(including in-kind contributions), or by cash donations of state funds or private funds. State
voluntary matching funds included in the approved project budget are subject to the same
terms and conditions and funding limits as the awarded DERA funds. A recipient is legally
obligated to expend any voluntary match included in the approved project budget within the
period of performance of that award.
Mandatory cost-share funds provided by the state and/or eligible third parties cannot count
towards the state's voluntary matching funds to qualify for the matching incentive. See
Section XI for additional information on mandatory cost-share requirements.
VI. ALLOCATION OF FUNDS
A. Allocation Formula: EPA was appropriated $100 million for the FY2023 DERA Programs.
EPA was appropriated $90 million for the FY2024 DERA Programs. In accordance with 42
U.S.C. 16133, subject to the availability of appropriations, EPA makes 30 percent
(approximately $30 million for fiscal year 2023 and $26 million for fiscal year 2024) of the
DERA Program's annual allocation available to states and territories in the form of assistance
agreements under the DERA State Grants. This 30 percent is divided: two-thirds is provided
as a base allocation and one-third is provided as an incentive to match.
Each year, if all 50 states, the District of Columbia, and the five qualifying territories
participate in the program, then the 50 states, the District of Columbia, and Puerto Rico will
each receive 1.887 percent of the two-thirds of the annual funds set aside for the DERA State
Grants as a potential base allocation. The remaining territories each qualify for 0.472 percent
of the two-thirds of the annual funds set aside for the State Grants as a potential base
allocation. If fewer than all 50 states, the District of Columbia, and the five qualifying
territories submit a NOIP, then the population formula outlined in 42 U.S.C. 16133(c)(2)(B)
will be applied to any unclaimed base funds, and these funds will be added to all the
participating states and territories' base allocations. In that case, EPA will perform the
allocation calculation using the most recent U.S. Census Bureau Data. Any unclaimed funds
from the State Grants will revert to the DERA National Program.
Participating states and territories may choose to voluntarily match the EPA award amount. If
a state or territory provides a state match equal to the base allocation awarded by EPA, EPA
will provide a matching bonus equal to 50 percent of the base allocation. See Section V.C for
additional information on the voluntary match incentive.
B. Allocation Notification: After receiving all NOIPs, EPA will calculate the final allocations
and notify state contacts via e-mail. States must then complete (1) a Workplan and Budget
Narrative and (2) a Fleet Description spreadsheet with best estimates on the number and type
of equipment that will be impacted by the grant and send these documents to their EPA
Region contacts for review. EPA will review the documents and provide comments so that
the state or territory can correct any issues prior to submitting the documents in their
application on Grants.gov.
VII. APPLICATION PACKAGE AND SUBMISSION INFORMATION
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A. Content of Application Package: The application package must include all the following
materials:
1. Standard Form (SF) 424. Application for Federal Assistance
2. Standard Form (SF) 424A. Budget Information
3. Key Contacts Form
4. EPA Form 4700-4, Preaward Compliance Review
5. Work Plan and Budget Narrative. States must use the template provided on the State
DERA Website and should only submit this document on Grants.gov after it has been
reviewed by their regional EPA DERA contacts.
6. Fleet Description Spreadsheet. States must use the template provided on the State
DERA Website and should only submit this document on Grants.gov after it has been
reviewed by their regional EPA DERA contacts.
B. Grants.gov Application Instructions
1. The electronic submission of your application to this funding opportunity must be made
by an official representative of your organization who is registered with Grants.gov and is
authorized to sign applications for Federal financial assistance. If the submit button is
grayed out, it may be because you do not have the appropriate role to submit applications
for your organization. Contact your organization's EBiz point of contact or contact
Grants.gov for assistance at 1 -800-518-4726 or support@grants.gov.
Recipients need to ensure that the Authorized Organization Representative (AOR) who
submits the application through Grants.gov and whose Unique Entity Identifier (UEI) is
listed on the application is an AOR for the recipient listed on the application.
Additionally, the UEI listed on the application must be registered to the recipient
organization's SAM.gov account. If not, the application may be deemed ineligible.
2. Follow the steps below to download, complete, and submit an application package
through Grants.gov. The application package requires forms 1-6 listed above.
a. Go to Grants.gov and then hover your cursor over the "Applicants" tab in the
horizontal row of blue tabs. A drop-down list will appear.
b. Click on "How to Apply for Grants."
c. Click on the red button titled, "Search for Opportunity Package," on the right-hand
side of the page.
d. Search by Funding Opportunity Number: EPA-CEP-01
e. From the list of Opportunity Package(s) currently available, click on the "Apply" link
corresponding with CFDA #: 66.040
f. Click on the red "Apply" button. You should be prompted to log-in. Follow the on-
screen instructions to complete the application submission.
g. After downloading an application and saving it, you do not need to be online to
complete the application.
h. When saving application files, please ensure that the following characters are not
included in the file names: ~"#%&*:<>?/\{|}. Including these characters can
cause problems with application files.
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i. Complete the required forms listed above, including uploading your final
Work Plan, Budget Narrative and Fleet Description. Note: States and territories
should have already received approval of their Work Plan, Budget Narrative and Fleet
Description from their EPA Region prior to uploading this documentation in their
application. While filling out the application package, be sure to save frequently by
clicking the Save button on the cover page of the application package,
j. Click the Check Package for Errors button to ensure all the required portions of the
application package are complete. Address any errors that are identified before
submitting.
k. Click the Save & Submit button after completing the application package. The Save
& Submit button will not be functional until the application is properly completed
with no errors and saved.
VIII. SCOPE OF WORK
Title VII, Subtitle G, Section 793 of the Diesel Emissions Reduction Program (DERA) allows
states to use funds provided under the DERA State Grants to develop and implement grant and
rebate programs in the state as appropriate to meet state needs and goals relating to the reduction
of diesel emissions, subject to the following eligibility limitations and funding priorities.
A. Period of Performance and Budget Period: The period of performance and budget period
for 2023-2024 DERA State Grants is October 1, 2023, to September 30, 2026. FY2023 funds
will be dispersed as new awards. FY2024 funds will be dispersed as an incremental
amendment to existing 2023-2024 DERA State Grants or, if a state does not have a 2023
grant, a new award.
B. Eligible Diesel Vehicles, Engines, and Equipment: Projects may include the diesel
emissions source type defined in Table 2, below:
Table 2: Eligible Diesel Vehicles, Engines, and Equipment
School Buses
Includes diesel powered school buses of Type A, B, C and D. A "school bus" is
defined as a passenger motor vehicle designed to carry a driver and more than
10 passengers, that the Secretary of Transportation decides is likely to be used
significantly to transport preprimary, primary, and secondary school students to
or from school or an event related to school.
Transit Buses
Includes diesel powered medium-duty and heavy-duty transit buses (see
definition of eligible Class 5-8 vehicles below).
Medium-duty
or heavy-duty
trucks
Includes diesel powered medium-duty and heavy-duty highway vehicles with
gross vehicle weight rating (GVWR) as defined below:
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 8 (33,001 lbs GVWR and over)
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Marine
Engines
Includes diesel powered Category 1, 2, and 3 marine engines and vessels.
Locomotives
Includes diesel powered line-haul, passenger, and switch engines and
locomotives.
Nonroad
engines,
equipment, or
vehicles
Diesel powered nonroad engines, equipment and vehicles including, but not
limited to, those used in construction, handling of cargo1 (including at ports and
airports), agriculture, mining, or energy production (including stationary
generators and pumps).
1. Drayage Trucks: Eligible heavy-duty trucks include drayage trucks. A "drayage truck"
means any Class 8 highway vehicle 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. If a state is funding drayage trucks, the
state will be required to establish guidelines to ensure that any existing truck replaced
with grant funds has a history of operating on a frequent basis over the prior year as a
drayage truck, and to ensure any new truck purchased with grant funds is operated in a
manner consistent with the definition of a drayage truck, as defined above. Sample
drayage truck guidelines can be found at the State DERA website.
2. Transport Refrigeration Units: Eligible nonroad equipment includes transport
refrigeration units (TRUs). Please see the TRU Factsheet found at the State DERA
website for information on TRUs and eligible TRU projects.
C. Diesel Emissions Reduction Solutions: Projects may upgrade existing diesel vehicles and
equipment using the diesel emissions reduction solutions defined in Table 3, below.
Table 3. Diesel Emission Reduction Solutions
Nonroad and highway diesel vehicles and equipment, locomotives, and
marine vessels can be replaced with newer, cleaner vehicles and
equipment.
Eligible replacement highway vehicles include those certified by EPA
and/or CARB to run on diesel or clean alternative fuel engines (including
gasoline), electric generators (gensets), hybrid engines, and zero tailpipe
emissions power sources (grid, battery, or fuel cell).
Eligible replacement nonroad equipment, locomotives, and marine
vessels include those powered by EPA and/or CARB certified diesel or
clean alternative fuel engines (including gasoline), electric generators
(gensets), hybrid engines; nonroad equipment, locomotives, and marine
vessels powered by zero tailpipe emissions power sources (grid, battery,
1 Eligible nonroad equipment includes transport refrigeration units (TRUs). Please see the TRU Factsheet found at
on the State DERA website website for information on TRUs and eligible TRU projects.
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Certified Vehicle
and Equipment
Replacements
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2023-2024 DERA State Grants Program Guide August 2024
or fuel cell) do not require EPA or CARB certification.
Certified Engine
Replacement
Nonroad and highway diesel vehicles and equipment, locomotives, and
marine vessels can have their engines replaced with newer, cleaner
engines.
Eligible replacement highway engines include those certified by EPA
and/or CARB for use with diesel or clean alternative fuel (including
gasoline), electric generators (gensets), and hybrid engines, and zero
tailpipe emissions power sources (grid, battery, or fuel cell).
Eligible replacement nonroad, locomotive, and marine engines include
those powered by EPA and/or CARB certified diesel or clean alternative
fuel engines (including gasoline), electric generators (gensets), and hybrid
engines; Nonroad equipment, locomotives, and marine vessel engine
replacement with zero tailpipe emissions power sources (grid, battery, or
fuel cell) do not require EPA or CARB certification.
Certified
Remanufacture
Systems
Generally, a certified remanufacture system is applied during an engine
rebuild and involves the removal of parts on an engine and replacement
with parts that cause the engine to represent an engine configuration
which is cleaner than the original engine. Some locomotives and marine
engines can be upgraded through the application of a certified
remanufacture system (i.e., kit).
Engine remanufacture systems may not be available for all engines, and
not all remanufacture systems may achieve an emissions benefit.
Applications for EPA certified remanufacture systems should include a
discussion of the availability of engine remanufacture systems and
indicate the pre- and post-project emission standard levels of the engines
to demonstrate that the upgrade will result in a PM and/or NOx emissions
benefit.
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 engines
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. EPA SmartWay verified
technologies currently include options to reduce idling for long haul Class
8 trucks equipped with sleeper cabs, school buses, transport refrigeration
units, locomotives, and marine vessels.
Verified Retrofit
Technologies
Diesel engine retrofits are one of the most cost-effective solutions for
reducing diesel engine emissions.
Retrofits include engine exhaust after-treatment technologies, such as
diesel oxidation catalysts (DOCs), diesel particulate filters (DPFs), closed
crankcase ventilation (CCV) filtration systems, and selective catalytic
reduction systems (SCRs).
Manufacturer engine upgrades which achieve specific levels of emissions
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reductions by applying a package of components have been verified as
retrofits for some nonroad and marine engines.
Several systems which convert a conventional diesel engine configuration
to a hybrid-electric system have been verified as retrofits for some
nonroad and marine engines. Some cleaner fuels and additives have been
verified as retrofits by EPA and/or CARB to achieve emissions reductions
when applied to an existing diesel engine.
Older, heavy-duty diesel vehicles that will not be retired for several years
are good candidates for verified retrofit technologies. EPA suggests that
applicants proposing to install verified retrofit technologies consult with
suppliers to confirm that the proposed vehicles/engines and their duty-
cycles are good candidates for the technology.
Clean Alternative
Fuel Conversions
Existing highway diesel engines can be altered to operate on alternative
fuels such as propane and natural gas by applying a certified alternative
fuel conversion kit.
Verified
Aerodynamic
Technologies and
Low Rolling
Resistance Tires
To improve fuel efficiency, long haul Class 8 trucks can be equipped with
EPA verified aerodynamic devices and/or low rolling resistance tires.
D. DERA Programmatic Priorities: The Diesel Emissions Reduction Act (DERA) allows EPA
to prioritize certain applicants in the DERA State Grants. The statute enables the program to
prioritize projects that maximize public health benefits, are the most cost-effective, that serve
areas with the highest population density or that are poor air quality areas (including
nonattainment or maintenance areas and areas with toxic air pollutant concerns), that serve
areas that receive a disproportionate quantity of air pollution from diesel fleets, and those that
use a community-based multistakeholder collaborative process to reduce toxic emissions.
The state's workplan should discuss if and how the state will ensure that projects selected for
funding support the programmatic priorities listed below.
Please note that these are funding priorities and are not eligibility factors. The term "project
location" 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. Goods Movement Facilities: Priority may be given to projects based on whether the
vehicles/engines/equipment targeted for diesel emissions reductions are located at, or
service, goods movement facilities as defined below. Applicants should include the name
of the specific port, airport, rail yard, terminal, or distribution center where the affected
vehicles operate. Points will be based upon the percentage of time targeted vehicles
operate at, and/or the percentage of the total targeted vehicles that operate at, goods
movement facilities.
1) Ports - places alongside navigable water with facilities for the loading and unloading
of passengers and/or cargo from ships, ferries, and other vessels
2) Airports - places where aircraft operate that have paved runways and terminals
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which include cargo, baggage and/or passenger-movement operations
3) Rail Yards - a system of tracks, other than main tracks and sidings, used for making
up trains, for storing cars, and for other purposes
4) Terminals - freight and 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/or passengers
5) Distribution Centers - 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. Environmental Justice and Disadvantaged Communities: Environmental justice (EJ)
is the just treatment and meaningful involvement of all people regardless of race, color,
national origin, income, Tribal Affiliation, or disability, in agency decision-making and
other Federal activities that affect human health and the environment. Fair treatment
means no group of people should bear a disproportionate share of the negative
environmental consequences resulting from industrial, governmental, and commercial
operations or policies. Meaningful involvement means people have an opportunity to
participate in decisions about activities that may affect their environment and/or health;
the public's contribution can influence the regulatory agency's decision; community
concerns will be considered in the decision-making process; and decision makers will
seek out and facilitate the involvement of those potentially affected.
The DERA statute enables the program to prioritize projects that serve poor air quality
areas (including nonattainment or maintenance areas and areas with air toxic air pollutant
concerns), and those that use a community-based multistakeholder collaborative process
to reduce toxic emissions. This allows the program to target communities with potential
environmental justice concerns, that is, communities adversely and disproportionately
affected by environmental, climate change, and human health harms or risks, and support
a broad geographic distribution of funds. Additionally, DERA has been identified as part
of the Justice40 Initiative, which creates a goal that 40 percent of applicable federal
benefits flow to disadvantaged communities.2
1. Disadvantaged Communities: For the purposes of the 2023-2024 DERA State Grants,
"disadvantaged communities" are defined as meeting one or both of the following
criteria.
1) Nonattainment or Maintenance Area: These counties are identified as priority
project locations for the DERA program because they are designated as
nonattainment areas or maintenance areas for the following National Ambient Air
Quality Standards. Data is sourced from EPA's Green Book of Nonattainment
Areas for Criteria Pollutants.
a) PM2.5 1997 Standard (Annual: 15 (J,g/m3, 24-hour: 65 (J,g/m3)
b) PM2.5 2006 Standard (Annual: 15 (J,g/m3, 24-hour: 35 (J,g/m3)
c) PM2.5 2012 Standard (Annual: 12 (J,g/m3, 24-hour: 35 (J,g/m3)
d) Ozone (03) 2008 Standard (8-hour: 0.075ppm)
e) Ozone (03) 2015 Standard (8-hour: 0.070ppm)
2 Tackling the Climate Crisis at Home and Abroad, 86 Fed. Reg., 7619 (Feb. 1, 2021).
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The term "project location" refers to the area(s) where the affected
vehicles, engines or equipment operate. A list of counties that have been
designated as priority project locations can be found on the State DERA website.
2) Area of Air Toxics Concern: These counties are identified as priority project
locations for the DERA program because they contain at least one census tract
where the modeled ambient diesel PM concentration from the 2019 Air Toxics
Screening Assessment is above the 80th percentile (0.38 |ig/m3 for 2019) for
census tracts nationwide. The 80th percentile is a programmatic cutoff designed to
help us evaluate those areas that are most likely to have higher concentrations of
diesel PM in the year of analysis (i.e., the year for which data are available); this
level was not chosen based on risk or other health-based criteria or thresholds.
AirToxScreen is a screening tool and there are limitations and uncertainties
associated with it; see: AirToxScreen Limitations.
These program criteria for "disadvantaged communities" are drawn from the
prioritization authorization described in the DERA statute.3 The methodology for
calculating covered program benefits to disadvantaged communities may be updated in
the future as additional funding opportunities are offered under the program.
2. Community Engagement: Priority may be given to projects which demonstrate
engagement with the affected communities and/or populations, especially local residents,
to ensure their meaningful participation with respect to the design, planning, and
performance of the project. Meaningful involvement means people have an opportunity
to participate in decisions about activities that may affect their environment and/or health;
the public's contribution can influence the regulatory agency's decision; community
concerns will be considered in the decision-making process; and decision makers will
seek out and facilitate the involvement of those potentially affected.
3. Project Sustainability: Priority for funding may be given to projects which can
demonstrate the ability of the recipient and project partners to promote and continue
efforts to reduce emissions after EPA funding for this project has ended. Specifically,
whether the state and/or its project partners:
a. have existing policies or new commitments to, by the end of the period of
performance, adopt idle-reduction policies, adopt contract specifications requiring the
use of cleaner, more efficient vehicles and equipment, complete an up-to-date mobile
source equipment inventory, or adopt other strategies to promote and continue efforts
to reduce diesel emissions.
b. have a publicly available baseline mobile source emission inventory for PM2.5 and/or
NOx that was completed after 2019 or commit to completing one before the end of
the period of performance.
c. have a publicly available plan finalized or updated after 2019 to reduce mobile source
emissions that includes specific PM2.5 and/or NOx emission targets or commit to
completing one before the end of the period of performance.
d. have established or commit to establishing before the end of the period of
performance, a clear point of contact in a public platform (e.g., newsletter, website)
3 https://uscode.house.gov/view.xhtml?path=/prelim@title42/chapterl49/subchapter7/partF&edition=prelim
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2023-2024 DERA State Grants Program Guide August 2024
for community issues and complaints (specific to air quality or broader) and
a publicly documented policy or process to engage communities and get their input
on operations and projects that impact air quality. The process could be recent (within
a year) or upcoming (before the end of the period of performance/or a policy or
process to otherwise get input (e.g., a standing, citizens advisory committee.)
c. Project Resilience to Climate Impacts: Priority may be given to projects which
demonstrate the ability to protect grant funded investments from severe weather events.
EPA will evaluate projects based on the quality and extent to which the project assesses
and implements adaptation considerations described below to help ensure that the project
achieves its expected outcomes even as the climate changes.
Adapting to climate change involves actions by individuals, businesses, governments,
and others to build resilience and reduce vulnerability of human and natural systems to
unavoidable climate impacts. Adaptation also reduces the long-term costs of responding
to these impacts. Projects can demonstrate consideration of climate change adaptation
through measures taken to anticipate, prepare for, and avoid adverse impacts of climate
change. For example, assessing project vulnerability to climate impacts can be
incorporated into project planning, such as siting decisions and operational plans.
Measures taken to avoid damages could include ensuring fleets and equipment are
protected from impacts such as flooding and sea level rise and protecting infrastructure
from storm damage.
d. Workforce Development: Priority may be given to projects which demonstrate a plan to
prepare the workforce for the project, such as conducting robust workforce planning to
ensure current drivers, mechanics, electricians, and other essential personnel receive
training to safely operate and maintain the new buses and infrastructure, as well as
clarifying protections to ensure existing workers are not replaced or displaced because of
new technologies.
IX. Environmental Results and Strategic Plan Information
Pursuant to Section 6.a. of EPA Order 5700.7A1, "Environmental Results under EPA Assistance
Agreements," EPA must link proposed assistance agreements with the Agency's Strategic Plan.
EPA also requires that grant applicants and recipients adequately describe environmental outputs
and outcomes to be achieved under assistance agreements (see EPA Order 5700.7A1,
Environmental Results under Assistance Agreements). Recipients must include specific
statements describing the environmental results of the proposed project in terms of well-defined
outputs and, to the maximum extent practicable, well-defined outcomes that will demonstrate
how the project will contribute to the Strategic Plan goals listed below.
1. Linkage to EPA Strategic Plan: The activities to be funded under this announcement
support EPA's Fiscal Year (FY) 2022-2026 Strategic Plan. Awards made under this
announcement will support Goal 1, "Tackle the Climate Crisis" Objective 1.1, "Reduce
Emissions that Cause Climate Change," of EPA's Strategic Plan. All projects must support
the goals and objectives above. For more information see EPA's FY 2022 - FY 2026 EPA
Strategic Plan.
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2023-2024 DERA State Grants Program Guide August 2024
2. Outputs: The term "output" means an environmental activity, effort, and/or
associated work product related to an environmental goal or objective that will be produced
or provided over a period of time or by a specified date. Outputs may be quantitative or
qualitative but must be measurable during an assistance agreement funding period.
Expected outputs from the projects to be funded under this announcement include, but are
not limited to:
• Number of replaced or retrofitted engines/vehicles/equipment; and/or
• Hours of idling reduced, if applicable.
Progress reports and a final report will also be required outputs., as specified in Section
XII.I.
Other potential outputs may include, but are not limited to:
• Engaging with local residents to ensure their meaningful participation with respect to
the design, planning, and performance of the project
• The project's inclusion in a broader-based environmental or air quality plan
• The implementation of contract specifications requiring the use of cleaner vehicles
and equipment
• A documented commitment to continue to identify and address air quality issues in
the affected community
• Establishing a clear point of contact in a public platform for community issues and
complaints
• A publicly documented policy or process for getting community input on operations
and projects that impact air quality
• Adoption of an idle reduction policy
• The completion of a baseline mobile source emission inventory for PM2.5 and or NOx;
• Providing support to clean diesel coalitions by sharing information, working with
interested fleets, and addressing specific geographic needs
• Number of subawards; and/or
• Dissemination of project/technology information via listservs, websites, journals, and
outreach events
3. Outcomes: The term "outcome" means the result, effect or consequence that will occur from
carrying out an environmental program or activity that is related to an environmental or
programmatic goal or objective. Outcomes may be environmental, behavioral, health-related,
or programmatic in nature, but should also be quantitative. They may not necessarily be
achievable within an assistance agreement funding period.
Expected outcomes from the projects to be funded under this announcement include, but are
not limited to:
• Tons of pollution reduced over the lifetime of the vehicles/engines/equipment,
specifically:
o fine particulate matter (PM2.5)
o nitrogen oxides (NOx)
o carbon monoxide (CO) and carbon dioxide (CO2), and/or
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2023-2024 DERA State Grants Program Guide August 2024
o volatile organic compounds (VOCs)
• Tons of pollution reduced annually
• Lifetime total project cost effectiveness for NOx and PM2.5
• Lifetime capital cost effectiveness for NOx and PM2.5
• Net reduction in gallons of diesel fuel used
• Benefits to disadvantaged communities, including improvements to human health and
the environment, the local economy, social conditions, and the welfare of residents in
such communities.
States should follow the instructions in Appendix B of this announcement for calculating
emissions reductions and cost effectiveness.
Other potential outcomes may include, but are not limited to:
• Community engagement and partnership
• Improved ambient air quality
• Health benefits achieved
• Changes in driver behavior regarding idling practices
• An increased understanding of the environmental or economic effectiveness of the
implemented technology
• Increased public awareness of the project and results
• Widespread adoption of the implemented technology
• Demonstration and deployment of zero and near-zero emission vehicles and engines
• Emissions reductions along freight transportation corridors
4. Performance Measures: The state should also develop performance measures they
expect to achieve through the proposed activities and describe them in their application.
These performance measures will help gather insights and will be the mechanism to track
progress concerning successful processes and output and outcome strategies and will
provide the basis for developing lessons to inform future recipients. Additional details on
reporting requirements are included in Section XII.I. It is expected that the description of
performance measures will directly relate to the project outcomes and outputs.
The description of the performance measures should directly relate to the project's
outcomes and outputs, including but not limited to:
• Overseeing subrecipients, and/or contractors and vendors
• Tracking and reporting project progress on expenditures and purchases
• Tracking, measuring, and reporting accomplishments and proposed
timelines/milestones
• Tracking and reporting project progress on installations/replacements by maintaining
an accurate project fleet description
• Measuring and reporting on outcomes by maintaining an accurate project fleet
description and using EPA's diesel emissions quantifier
• Efforts should be made to track, measure, and report the actual vehicle miles traveled,
hours of use/operation, and fuel use for all vehicles and equipment involved in the
project
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The following are questions to consider when developing output and outcome
measures of quantitative and qualitative results:
• What are the measurable short term and longer term results the project will achieve?
• How does the plan measure progress in achieving the expected results (including
outputs and outcomes) and how will the approach use resources effectively and
efficiently?
X. Eligible and Ineligible Activities
Activities must meet the following requirements to be eligible for funding:
A. Project Eligibility Criteria: Projects must meet the eligibility criteria defined in the tables
below.
Table 4: Medium and Heavy-Duty Truck, Transit Bus, and School Bus Project Eligibility
Current
Engine
Model Year
(EMY)
DOC
+/-
ccv
DPF
SCR
Verified
Idle
Reduction,
Tires, or
Aero-
dynamics
Vehicle or
Engine
Replacement:
EMY 2021+
(2017+ for
Drayage)
Vehicle or
Engine
Replacement:
EMY 2021+
Zero Emission2
or Low-NOx3
Clean
Alternative
Fuel
Conversion
older - 2006
Yes
Yes
Yes
Yes
Yes
Yes
Yes
2007 - 2009
No
No
Yes
Yes1
Yes
Yes
Yes
2010 - newer
No
No
No
Yes1
No
Yes
Yes
Auxiliary power units and generators are not eligible on vehicles with EMY 2007 or newer.
^Eligible fuel cell projects are limited to hydrogen fuel cell engine replacements for eligible urban transit buses,
shuttle buses and drayage trucks, and hydrogen fuel cell vehicle replacements for eligible urban transit buses, shuttle
buses, and drayage trucks.
3 Please see the Low-NOx Engine Factsheet found on the DERA website for guidance on identifying engines
certified to meet CARET s Optional Low NOx Standards.
Table 5. Nonroad Engine Project Eligibility
Current Engine
Tier
Vehicle/Equipmenl
Replacement
Verified
Retrofit
Compression Ignition
Spark
Ignition
Zero
Emission3
Tier 0-2
Tier 3-4i
Tier 4
Tier 2
Unregulated - Tier 2
No
Yes1
Yes
Yes
Yes
Yes
Tier 3
No
No
Yes
Yes
Yes
Yes
Tier 4
No
No
No
No
Yes
No
Current Engine
Tier
Engine Replacement
Verified
Engine
Upgrade
Compression Ignition
Spark
Ignition
Zero
Emission4
Tier 0-2
Tier 3-4i
Tier 4
Tier 2
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Unregulated - Tier 2
No
Yes2
Yes
Yes
Yes
Yes
Tier 3
No
No
Yes
Yes
Yes
Yes
Tier 4
No
No
No
No
Yes
No
'Tier 3 and Tier 4 interim (4i) allowed for vehicle/equipment replacement only when Tier 4 final is not yet available
from OEM for 2021 model year equipment under the Transition Program for Equipment Manufacturers (TPEM).
2Tier 3 and Tier 4i engines may be used for engine replacement only if Tier 4 is demonstrated to not be available or
feasible through a best achievable technology analysis as defined in Section X.B., below.
3Eligible fuel cell projects are limited to hydrogen fuel cell equipment replacements for eligible terminal
tractors/yard hostlers, stationary generators, and forklifts.
4Fuel cell engine replacement is not eligible.
Table 6: Marine Engine Project Eligibility
Engine
Cate-
gory
Engine
Horse-
power
Current
Engine
Tier
Engine & Vessel Replacement
Certifie
dRe-
nianu-
facture
System3
Verified
Engine
Upgrad
e
Co
mpression
gnition
Spark
Ignition
Zero
Emission2
Tier
1-2
Tier
3
Tier
4
CI, C2
<803
Un-
regulated
- Tier 2
No
Yes
No
Yes
Yes
Yes
Yes
CI, C2
>804
Un-
regulated
- Tier 2
No
Yes1
Yes
Yes
Yes
Yes
Yes
CI, C2
<803
Tier 3
No
No
No
Yes
Yes
No
No
CI, C2
>804
Tier 3
No
No
Yes
Yes
Yes
No
No
CI, C2
>804
Tier 4
No
No
No
No
No
No
No
C3
All
Un-
regulated
- Tier 2
No
Yes
No
No
No
No
No
C3
All
Tier 3
No
No
No
No
No
No
No
'Tier 3 engines may be used for engine replacement only if Tier 4 is demonstrated to not be available or feasible
through a best achievable technology analysis as defined in Section X.B., below. Over 800 HP, Tier 3 engines are
not eligible for full vessel replacement.
2Fuel cell engine and vessel replacements are not eligible.
3Some marine engine projects may be subject to the restriction on mandated measures.
Table 7: Locomotive Engine Project Eligibility
Current
Locomotive
Tier
Engine & Locomotive
Replacement
Verified
Retrofit
Idle-
Reduction2
Technology
Certified
Remanufacture
System4
Tier
0-2+
Tier
3
Tier
4
Zero
Emission1
Unregulated
- Tier 2+
No
Yes3
Yes
Yes
Yes
Yes
Yes
Tier 3
No
No
Yes
Yes
Yes
Yes
Yes
Tier 4
No
No
No
No
No
Yes
No
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1 Fuel cell engine and locomotive replacements are not eligible.
2Automatic engine start-stop technologies are only eligible to be installed on locomotives currently certified to Tier
0 or unregulated, subject to the restriction on mandated measures.
3Tier 3 engines may be used for engine replacement only if Tier 4 is demonstrated to not be available or feasible
through a best achievable technology analysis as defined in Section X.B., below. Tier 3 is not eligible for
locomotive replacement.
4Some locomotive engine projects may be subject to the restriction on mandated measures.
Note: Tier 0+, Tier 1+, Tier 2+, Tier 3, and Tier 4 represent locomotives manufactured or
remanufactured under the more stringent Tier standards promulgated under the 2008 (current)
locomotive and marine rule. Tier 0, Tier 1, and Tier 2 represent locomotives originally
manufactured or remanufactured under the less stringent Tier standards promulgated in 1997.
B. Best Achievable Technology (BAT): All new nonroad and locomotive engines are now
manufactured to meet the EPA Tier 4 standards. All new Category 1 and 2, 804 horsepower
and above marine engines are now manufactured to meet the EPA Tier 4 standards.
Recipients replacing these nonroad, marine, and locomotive engines must demonstrate that
their projects commit to using Tier 4 engines if Tier 4 engines with the appropriate physical
and performance characteristics are available. Recipients anticipating the use of Tier 3
engines should discuss their rationale for proposing lower tiered engine replacements.
If selected for funding, recipients must submit a best achievable technology analysis to EPA
for approval before Tier 3 or Tier 4i vehicles, equipment, or engines can be purchased, as
defined below. The following analysis is not required at the time of project development.
1. BAT Analysis Requirements:
a. The analysis must be prepared by the engine manufacturer or installer.
b. Using good engineering judgment, the engine manufacturer or installer must
determine that no internal combustion engine certified to Tier 4 is produced by
any manufacturer with the appropriate physical or performance characteristics to
replace the existing engine in the equipment.
c. If the engine manufacturer or installer determines that no internal combustion
engine certified to Tier 4 is available with the appropriate performance
characteristics, explain why certified Tier 4 engines produced by them and other
manufacturers cannot be used as a replacement because they are not similar to the
engine being replaced in terms of power or speed.
d. If there are available internal combustion engines with the appropriate
performance characteristics but the engine manufacturer or installer determines
that no engine certified to Tier 4 is available with the appropriate physical
characteristics, explain why certified internal combustion engines produced by
them and other manufacturers cannot be used as a replacement because their
weight or dimensions are substantially different than those of the engine being
replaced, or because they will not fit within the equipment's engine compartment.
e. In evaluating appropriate physical or performance characteristics, the engine
manufacturer or installer may account for compatibility with equipment
components that would not otherwise be replaced when installing a new engine,
including but not limited to transmissions or reduction gears, drive shafts, cooling
systems, operator controls, or electrical systems. If the engine manufacturer or
installer makes their determination on this basis, they should identify the
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2023-2024 DERA State Grants Program Guide August 2024
equipment components that are incompatible with internal combustion
engines certified to Tier 4 and explain how they are incompatible and why it
would be unreasonable to replace them.
f. Identify the proposed Tier 3 or Tier 4i engines to be used and discuss the physical
and performance characteristics of the engines that will ensure compatibility with
the existing equipment. Quantify proposed emission reductions, PM cost
effectiveness and NOx cost effectiveness for the proposed options.
g. DERA project eligibility or approval does not supersede any regulatory
requirements for equipment owners, operators, manufactures, installers and
others, including but not limited to 40 CFR §1068.240, §1042.615, and
§1033.601.
h. Costs for design and engineering analysis may be included in the project budget.
C. Ownership, Usage and Remaining Life Requirements: To be eligible for funding, vehicles
and equipment targeted for upgrades must meet certain ownership, usage, and remaining life
requirements. States should demonstrate that all funded vehicles and equipment in their
projects will meet the criteria defined in 1. - 5., below.
If selected for funding, participating fleet owners must attest to each criterion in 1. - 5.,
below in a signed eligibility statement which includes each vehicle make, model, year,
vehicle identification number, odometer/usage meter reading, engine make, model, year,
horsepower, engine ID or serial number, and vehicle/equipment registration/licensing
number and state. This documentation must be submitted as part of the recipient's
programmatic reporting to EPA to verify the eligible use of grant funds. A sample eligibility
statement may be found on the State DERA Website. The signed eligibility statement is not
required at the time of project development.
1. Operational: The existing vehicle, engine, or equipment must be fully operational.
Operational equipment must be able to start, move, and have all necessary parts to be
operational.
2. Ownership: The participating fleet owner must currently own and operate the existing
vehicle or equipment and have owned and operated the vehicle during the two years prior
to upgrade.
3. Remaining Life: The existing vehicle, engine, or equipment must have at least three
years of remaining life at the time of upgrade. Remaining life is the fleet owner's
estimate of the number of years until the unit would have been retired from service if the
unit were not being upgraded or scrapped because of the grant funding. The remaining
life estimate is the number of years of operation remaining even if the unit were to be
rebuilt or sold to another fleet. The remaining life estimate depends on the current age
and condition of the vehicle at the time of upgrade, as well as things like usage,
maintenance, and climate.
4. Highway Usage: The mileage of two or more units may be combined to reach the
thresholds below where two or more units will be scrapped and replaced with a single
unit.
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a. To be eligible for funding, the existing certified highway engine/vehicle
must have accumulated at least 7,000 miles/year during the two years prior to
upgrade.
b. Exception: If a recipient can demonstrate that a certified highway engine/vehicle is
being used in a predominately nonroad application (e.g. firetrucks or utility trucks
that idle for long periods to power auxiliary apparatus), engine operating hours as
defined below in "nonroad usage" may be used for application eligibility purposes. If
selected for award, EPA will review and approve eligibility on a case-by-case basis.
5. Nonroad Usage: The engine operating hours of two or more units may be combined to
reach the thresholds below where two or more units will be scrapped (see Section
X.D.16., below) and replaced with a single unit.
a. Agricultural Pumps: To be eligible for funding, certified nonroad agricultural pumps
must operate at least 250 hours/year during the two years prior to upgrade.
b. All Other Nonroad Engines: To be eligible for funding, certified nonroad engines
should operate at least 500 hours/year during the two years prior to upgrade.
c. Exception: If a recipient can demonstrate that a certified nonroad engine/vehicle is
being used in a predominately highway application, vehicle mileage as defined above
in "highway usage" may be used for application eligibility purposes. If selected for
award, EPA will review and approve eligibility on a case-by-case basis.
6. Locomotive and Marine Usage: The engine operating hours of two or more units may
be combined to reach the thresholds below where two or more units will be scrapped (see
Section X.D. 16., below) and replaced with a single unit. To be eligible for funding the
existing certified locomotive and marine engines must operate at least 1,000 hours/year
during the two years prior to upgrade.
D. Vehicle and Equipment Costs
1. Vehicles, Engines, and Equipment: Eligible project costs include the purchase price of
eligible vehicles, engines and equipment as defined in Sections VIII and XI.
2. Vehicle and Equipment Replacement Projects:
a. To be eligible for funding, replacement highway vehicles must be certified by EPA
and/or CARB to meet applicable emission standards. To be eligible for funding,
replacement nonroad equipment, locomotives and marine vessels must be powered by
engines certified to EPA and/or CARB emission standards. However, zero tailpipe
emissions nonroad equipment, marine vessels, and locomotives do not require EPA or
CARB certification. EPA's annual certification data for vehicles, engines, and
equipment may be found at EPA's Annual Certification Data for Vehicles. Engines,
and Equipment website. EPA's engine emission standards may be found at EPA's All
EPA Emission Standards website. Engines certified by CARB may be found by
searching CARB's Executive Orders for Heavy-duty Engines and Vehicles, found on
CARB's New Vehicle and Engine Certification website. Please see the Low NOx
Certified Engines Factsheet found on EPA's DERA State website for guidance on
identifying engines certified to meet CARB's Optional Low NOx Standards.
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2023-2024 DERA State Grants Program Guide August 2024
b. To be eligible for funding the replacement vehicle or equipment must be of
similar type and gross vehicle weight rating or horsepower as the vehicle, engine, or
equipment being replaced.
1) Nonroad: Horsepower increases of more than 40 percent require specific approval
by EPA prior to purchase, and the recipient may be required to pay the additional
costs associated with the higher horsepower equipment.
2) Highway: The replacement vehicle must not be in a larger weight class than the
existing vehicle. Exceptions may be granted for vocational purposes and require
specific EPA approval prior to purchase.
c. The replacement vehicle, engine, or equipment must continue to perform similar
function and operation as the vehicle, engine, or equipment that is being replaced.
d. The replacement vehicle must resemble the replaced vehicle in form and function.
The cost of optional components or "add-ons" that significantly increase the cost of
the vehicle may not be eligible for funding under the grant.
3. Battery Electric Powered Replacement Projects:
a. Eligible costs include the purchase and installation of one charging unit per vehicle,
including the unit and charging cable, mount and/or pedestal.
b. Funding under this program cannot be used for power distribution to the pedestal,
electrical panels and their installation, upgrades to existing electrical panels or
electrical service, transformers and their installation, wiring/conduit and its
installation, electricity, operation and maintenance, stationary energy storage systems
that power the equipment (e.g. batteries) and their installation, and on-site power
generation systems that power the equipment (e.g., solar and wind power generation
equipment) and their installation. Please note that although DERA grant funds and
matching funds cannot be used for stationary energy storage systems that power the
equipment (e.g. batteries) and their installation, and DERA grant funds and matching
funds cannot be used for on-site power generation systems that power the equipment
(e.g., solar and wind power generation equipment) and their installation, recipients
and their partners may add these components at their own expense outside the scope
of the grant.
4. Grid Electric Powered Replacement Projects:
a. Eligible costs include the purchase and installation of certain equipment required for
power delivery directly related to the new equipment. Eligible costs include design
and engineering, electrical panels, upgrades to existing electrical panels or electrical
service, transformers, wiring/conduit, and installation.
b. Funding under this program cannot be used for power distribution to the property
line, electricity, operation and maintenance, stationary energy storage systems that
power the equipment (e.g., batteries) and their installation, and on-site power
generation systems that power the equipment (e.g., solar and wind power generation
equipment) and their installation. Please note that although DERA grant funds and
matching funds cannot be used for stationary energy storage systems that power the
equipment (e.g. batteries) and their installation, and DERA grant funds and matching
funds cannot be used for on-site power generation systems that power the equipment
(e.g., solar and wind power generation equipment) and their installation, recipients
and their partners may add these components at their own expense outside the scope
of the grant.
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5. Engine Replacement Projects:
a. To be eligible for funding, replacement highway, nonroad, marine and locomotive
engines must be certified to EPA and/or CARB emission standards. However,
nonroad engine, locomotive engine, and marine engine zero tailpipe emissions engine
replacements do not require EPA or CARB certification. Please reference EPA's
Annual Certification Data for Vehicles. Engines, and Equipment EPA's engine
Emission Standards, and CARB's Executive Orders for Heavy-duty Engines and
Vehicles. Please see DERA's Low-NOx Engine Factsheet for guidance on identifying
engines certified to meet CARB's Optional Low NOx Standards.
b. Eligible costs include equipment and parts included in the certified engine
configuration and/or are required to ensure the effective installation and functioning
of the new technology such as design and engineering, parts and materials, and
installation.
c. For engine replacement with battery, fuel cell, and grid electric, eligible costs include
electric motors, electric inverters, battery assembly, direct drive
transmission/gearbox, regenerative braking system, vehicle control/central processing
unit, vehicle instrument cluster, hydrogen storage tank, hydrogen management system
and fuel cell stack assemblies.
d. Funding under this program cannot be used to replace cabs, axles, paint, brakes, or
mufflers.
e. To be eligible for funding the replacement engine must be of similar horsepower as
the engine being replaced.
1) Nonroad: Horsepower increases of more than 40 percent require specific approval
by EPA prior to purchase, and the recipient may be required to pay the additional
costs associated with the higher horsepower equipment.
2) Highway: The replacement vehicle must not be in a larger weight class than the
existing vehicle. Exceptions may be granted for vocational purposes and require
specific EPA approval prior to purchase.
6. Engine Remanufacture System Projects:
a. To be eligible for funding, remanufacture systems for locomotives and marine
engines must be certified by EPA at the time of acquisition. The list of certified
remanufacture systems are available at Annual Certification Data for Vehicles.
Engines, and Equipment and additional information on remanufacture systems is
available at EPA's Marine Remanufacturing Program: Maintaining Compliance when
Rebuilding Category 1 and 2 Marine Diesel Engines.
b. Eligible costs include the associated labor costs for installation of the system.
c. Funding under this program cannot be used for the entire cost of an engine rebuild if a
certified remanufacture system is applied at the time of rebuild; the funds may only
be used for the cost of the certified remanufacture system and associated labor costs
for installation of the kit.
7. Idle Reduction Projects:
a. Eligible costs for idle reduction technologies that are installed on the vehicle can
include the associated labor costs for installation of the system.
b. To be eligible for funding technologies must be on EPA's SmartWav Verified
Technologies list at the time of acquisition.
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8. Electrified Parking Space Projects:
a. Eligible costs include the purchase and installation of certain equipment required for
power delivery directly related to the new equipment such as electrical panels,
upgrades to existing electrical panels or electrical service, transformers,
wiring/conduit, and installation.
b. Funding under this program cannot be used for power distribution to the property
line, electricity, operation and maintenance, stationary energy storage systems that
power the equipment (e.g., batteries) and their installation, and on-site power
generation systems that power the equipment (e.g., solar and wind power generation
equipment) and their installation.
9. Locomotive Shore Power Connection Projects:
a. Eligible costs include the purchase and installation of certain equipment required for
power delivery directly related to the new equipment such as design and engineering,
electrical panels, upgrades to existing electrical panels or electrical service,
transformers, wiring/conduit, and installation.
b. Funding under this program cannot be used for power distribution to the property
line, electricity, operation and maintenance, stationary energy storage systems that
power the equipment (e.g., batteries) and their installation, and on-site power
generation systems that power the equipment (e.g., solar and wind power generation
equipment) and their installation.
10. Marine Shore Power Connection Projects:
a. Funding may support new installations, or expansions of existing shore power
systems
b. To be eligible for funding, marine shore power projects must meet the following
criteria:
1) Recipients must attest to compliance with international shore power design
standards (1EC71 SO/IEEE 80005-1:2019/ AMD 1:2022 High Voltage Shore
Connection Systems or the IIEC71 SO/IEEE 80005-1:2019/AMD 1:2022 Low
Voltage Shore Connection Systems).
2) Shore power connection systems must be supplied with electricity from the local
utility grid.
3) Demonstration that the proposed system has the capacity, demand, and
commitment to be used for more than 1,000 megawatt-hours per year. Smaller
projects will be considered if the recipient can demonstrate cost effectiveness.
4) Due to the unique nature and custom design of marine shore power connection
systems, EPA must review and approve marine shore power connection systems
on a case-by-case basis. If the project application is selected for funding, the final
design of the marine shore power connection system requires specific EPA
approval prior to purchase and installation.
5) Recipients must commit to reporting usage information to EPA for five years after
the system is operational.
6) Shore power capable vessels docked at a berth where shore power is available
must be required to turn off the vessel's engines and use the shore power system,
with limited exceptions for extreme circumstances.
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7) Eligible costs include the purchase and installation of the shore side
equipment and certain equipment required for power delivery directly related to
the new equipment such as design and engineering, cables, cable management
systems, shore power coupler systems, distribution control systems, grounding
switches, service breakers, capacitor banks, electrical panels, upgrades to existing
electrical panels or electrical service, transformers, wiring/conduit, and
installation.
8) Funding under this program cannot be used for shipside modifications to accept
shore-based electrical power, power distribution to the property line, electricity,
operation and maintenance, stationary energy storage systems that power the
equipment (e.g. batteries) and their installation, and on-site power generation
systems that power the equipment (e.g., solar and wind power generation
equipment) and their installation.
11. Retrofit Projects:
a. Eligible costs include the associated labor costs for installation of the system, design
and engineering, DPF cleaning machines, extra DPFs for maintenance rotation,
replacement CCV filters, and filter cleaning contracts during grant open period.
b. To be eligible for funding, verified retrofit technologies must be on EPA's or
CARB's Verified Technologies lists at the time of acquisition, must be used only for
the vehicle/engine application specified on the lists, and must meet any applicable
verification criteria.
c. EPA will not fund stand-alone cleaner fuel/additive use. To be eligible for funding,
verified fuels and additives must be for new or expanded use, and must be used in
combination, and on the same vehicle, with a new eligible verified engine retrofit or
an eligible engine upgrade or an eligible certified engine, vehicle, or equipment
replacement funded under this program.
12. Alternative Fuel Vehicle Conversion Projects:
a. Eligible costs include the associated labor costs for installation of the system.
b. To be eligible for funding, alternative fuel conversion systems must be certified by
EPA and/or CARB or must be approved by EPA for Intermediate-Age engines. See
EPA's lists of "Certified Conversion Systems for New Vehicles and Engines" and
"Conversion Systems for Intermediate-Age Vehicles and Engines" and CARB's list
of "Approved Alternate Fuel Retrofit Systems."
c. To be eligible for funding, conversion systems for engine model years 2006 and
earlier must achieve at least a 30% NOx reduction and a 10% PM reduction from the
applicable certified emission standards of the original engine.
d. To be eligible for funding, conversion systems for engine model years 2007 and
newer must achieve at least a 20% NOx reduction with no increase in PM from the
applicable certified emission standards of the original engine. Applications for clean
alternative fuel conversions should include a discussion of the availability of
conversion systems and indicate the pre- and post-project emission standard levels of
the engines to demonstrate that the conversions result in the required emissions
benefit.
13. Aerodynamics and Low Rolling Resistance Tire Projects:
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a. Eligible costs include the associated labor costs for installation. Eligible
costs can include single-wide wheels only when a fleet is retrofitting from standard
dual tires to SmartWay-verified single-wide low rolling resistance tires.
b. Funding under this program cannot be used to replace steel wheels with aluminum
wheels of the same configuration (singles or duals).
c. To be eligible for funding, technologies must be on EPA's verified aerodynamic
technologies list and verified list for low rolling resistance new and retread tire
technologies list at the time of acquisition, must be used only for the application
specified on the lists, and must meet any applicable verification criteria.
d. EPA will not fund stand-alone aerodynamic technologies or low rolling resistance
tires. To be eligible for funding, these technologies must be combined on the same
vehicle with the new installation of an exhaust after-treatment retrofit funded under
this program.
14. Stationary Energy Storage and Power Generation Projects: Funding under this
program, including matching funds, cannot be used for stationary energy storage systems
that power the equipment (e.g., batteries) and their installation or on-site power
generation systems that power the equipment (e.g., solar and wind power generation
equipment) and their installation. Recipients and their partners may add these
components at their own expense outside the scope of the grant.
15. Replacement Technologies: Funding under this program cannot be used for the purchase
of engine retrofits, idle reduction technologies, low rolling resistance tires or advanced
aerodynamic technologies if similar technologies have previously been installed on the
truck or trailer.
16. Scrappage: The vehicle, equipment, and/or engine being replaced must be scrapped or
rendered permanently disabled within ninety (90) days of being replaced.
a. Cutting a three-inch-by-three-inch hole in the engine block (the part of the engine
containing the cylinders) is the preferred scrapping method. Other scrappage methods
may be considered and require prior EPA approval.
b. Disabling the chassis may be completed by cutting through the frame/frame rails on
each side at a point located between the front and rear axles. Other scrappage
methods may be considered and require prior written approval from the EPA project
officer.
c. 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
disabled engines, disabled vehicles, disabled equipment, or parts are to be sold,
program income requirements apply.
d. Alternative Scrappage Options:
1) If a 2010 engine model year (EMY) or newer highway vehicle is replaced, the
2010 EMY or newer vehicle may be retained or sold if the 2010 EMY or newer
vehicle will replace a pre-2009 EMY vehicle, and the pre-2009 EMY vehicle will
be scrapped. It is preferred that the scrapped unit currently operates within the
same project location(s) as the 2010 EMY or newer vehicle currently operates,
however alternative scenarios will be considered. All existing and replacement
vehicles are subject to the funding restrictions in this guidance. All equipment
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must operate within the United States. Under this scenario, a detailed
scrappage plan must be submitted and requires prior EPA approval.
2) If a Tier 2, Tier 3, or Tier 4 locomotive, marine, or nonroad vehicle, equipment
and/or engine is replaced, the units may be retained or sold if they will replace a
similar, lower Tiered unit, and the lower Tiered unit will be scrapped. It is
preferred that the scrapped unit currently operates within the same project
location(s) as the original Tier 2, 3, or 4 unit currently operates, however
alternative scenarios will be considered. All existing and replacement equipment
are subject to the funding restrictions in this guidance. All equipment must
operate within the United States. Under this scenario, a detailed scrappage plan
must be submitted and requires prior EPA approval.
e. For tire replacement projects, the original tires must be scrapped according to local or
state requirements.
f. Evidence of appropriate disposal is required in a final assistance agreement report
submitted to EPA. Participating fleet owners must attest to the appropriate disposal in
a signed scrappage statement. A sample scrappage statement may be found on EPA's
DERA website. The scrappage statement must include:
1) Vehicle owner's name and address.
2) Vehicle make, vehicle model, vehicle model year, VIN, odometer reading or
usage meter reading, engine make, engine model, engine model year, engine
horsepower, engine ID or serial number, as applicable.
3) Name, address, and signature of dismantler.
4) Date engine and/or vehicle/equipment was scrapped.
5) Statement attesting to scrappage of vehicle/engine as defined above.
6) Signature of participating fleet owner.
7) Digital photos as follows:
• Side profile of the vehicle, prior to disabling.
• VIN tag or equipment serial number.
• Engine label (showing serial number, engine family number, and engine
model year);
• Engine block, prior to hole.
• Engine block, after hole.
• Cut frame rails or other cut structural components, as applicable.
• Others, as needed
17. Project Implementation Costs: Eligible project costs include those costs directly related
to the implementation, management, and oversight of the project, including recipient and
subrecipient personnel and benefits, equipment, contractual, travel, supplies, subgrants
and rebates, and indirect costs.
18. Mechanic and Driver Training: Eligible project costs can include mechanic/driver
training related to the maintenance and operation of new technologies.
19. Truck DPF Maintenance: Eligible costs for truck replacement projects include 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
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trucks. Funding for required maintenance is available for the duration of the
period of performance.
20. Federal Matching Funds: Funding under this program cannot be included as a cost or
used to meet cost sharing or matching requirements of any other federally financed grant,
as required under 2 CFR 200.306(b)(5) and 2 CFR 200.403(f). This includes funds
received under EPA's DERA State Grants Program and federal Supplemental
Environmental Project funds.
21. Expenses Incurred Prior to the Period of Performance: Funding under this program
cannot be used to cover expenses incurred prior to the project period of performance set
forth in ny assistance agreement funded under this program, except for eligible pre-award
costs as defined in 2 CFR 200.458 and as authorized by 2 CFR 200.309 and 2 CFR
1500.8.
22. Emissions Testing: Funding under this program cannot be used for emissions testing
and/or air monitoring activities (including the acquisition cost of emissions testing
equipment), research and development, or technology demonstration, commercialization,
certification, or verification.
23. Fueling Infrastructure: Funding under this program cannot be used for fueling
infrastructure, such as that used for the production and/or distribution of biodiesel,
compressed natural gas, liquefied natural gas, and or other fuels.
24. Mandated Measures: Funding under this program cannot be used to fund the costs of
emissions reductions that are mandated under federal law pursuant to 42 U.S.C.
16132(d)(2).
25. Leasing: Funding under this program cannot be used for leasing vehicles, engines, or
equipment. If financing is necessary, the purchase should be financed with a conventional
purchase loan.
26. Buy America Requirements: Certain projects under this program are subject to the Buy
America Sourcing requirements under the Build America, Buy America (BABA)
provisions of the Infrastructure Investment and Jobs Act (IIJA) (P.L. 117-58, §§70911-
70917) when using Federal funds for the purchase of goods, products, and materials on
any form of construction, alteration, maintenance, or repair of infrastructure in the United
States. The Buy America preference applies to all of the iron and steel, manufactured
products, and construction materials used for the infrastructure project under an award for
identified EPA financial assistance funding programs. Please consider this information
when preparing project and budget information.
The recipient must implement these requirements in its procurements, and this article
must flow down to all subawards and contracts at any tier. For legal definitions and
sourcing requirements, the recipient must consult EPA's Build America. Buy America
website.
Under BAB A, a Buy America preference only applies to articles, materials, and supplies
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that are consumed in, incorporated into, or affixed to an infrastructure project.^
On- highway vehicles/engines and non-road engines/equipment funded by this program
are not considered "infrastructure." The following potentially eligible projects under
this competition meet the definition of "infrastructure" and are subject to Buy America
preference requirements under BABA:
• Structures, facilities, and equipment that generate, transport, and distribute energy
- including electric vehicle (EV) charging equipment
• Any other permanent public structure that meets the infrastructure definition in
M-24-02. Questions regarding BABA applicability to specific projects should be
submitted to DERA@epa.gov.
When supported by rationale provided in IIJA §70914, the recipient may submit a request
for a BABA waiver to EPA. If selected for funding, the recipient should request guidance
on submitting a BABA waiver request to EPA from the EPA Project Officer. A list of
approved EPA waivers is available on the Build America. Buy America website. Please
continue to monitor this website for further BABA guidance or any future EPA-wide
waivers that may impact the DERA State Grants program.
In additional to BABA requirements, all procurements under grants may be subject to the
domestic preference provisions of 2 CFR 200.322. See "Build America, Buy America"
clause in EPA Solicitation Clauses.
IX. COST-SHARE REQUIREMENTS
Any form of cost share, mandatory or voluntary, must be included in the budget detail portion of
the project narrative, and the project must describe how and when the recipient will obtain the
cost share and how the cost share funding will be used. Recipients may use their own funds or
other sources for cost share if the standards of 2 CFR Part 200, as applicable, are met. If the
proposed cost share is to be provided by a named project partner, a letter of commitment is
required. Only eligible and allowable costs may be used for cost share.
The "DERA Funding Limits" (percentages) shown below represent the maximum portion of the
equipment costs (parts and labor including sales tax) that can be covered with a combination of
EPA DERA funds and any non-federal voluntary matching funds provided by the state. The
portion of the costs that exceed the DERA Funding Limit is referred to as the "mandatory cost-
share." Meeting the mandatory cost-share is ultimately the responsibility of the grantee, however
the mandatory cost-share is typically provided by project partners (e.g., fleet owners). As
discussed in Section V.C, states may contribute voluntary matching funds to the project to
qualify for the matching incentive. In addition to a voluntary match provided by a state to
receive the EPA matching incentive, a state may contribute a larger voluntary match to achieve
additional diesel emission reductions under their DERA State Grant. Mandatory cost-share funds
provided by the state and/or third parties cannot count towards the state's voluntary matching
funds to qualify for the matching incentive.
Please note: DERA funds may not be used to meet mandatory cost sharing requirements for
projects funded with environmental mitigation funds resulting from federal settlements (e.g.,
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Volkswagen Environmental Mitigation Trust). Further, federal environmental
mitigation funds may not be used to meet non-federal mandatory cost share requirements of any
DERA grant.
Cost sharing and matching requirements under $200,000 for territory recipients (the
U.S. Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana
Islands) are waived as a matter of law as authorized by the Omnibus Territories Act, 48 U.S.C.
Section 1469a. Territory recipients with applications that will require a cost share of $200,000 or
more are advised to contact their EPA regional office to determine if cost share requirements will
be waived in whole or in part.
A. Mandatory Cost Share Requirement: Projects are subject to the funding limitations and
mandatory cost share requirements shown in Table 8, below.
Table 8: Cost Share Requirements
l\liuiMc Technologies
i:i\\
I'linding
1 .imil
Mandatory
Cost Share
Drayage Truck Replacement
50%
50%
Vehicle or Equipment Replacement with EPA Certified Engine
25%
75%
Vehicle or Equipment Replacement with CARB Certified Low
NOx Engine
35%
65%
Vehicle or Equipment Replacement with Zero-tailpipe Emission
Power Source
45%
55%
Engine Replacement with EPA Certified Engine
40%
60%
Engine Replacement with CARB Certified Low NOx Engine
50%
50%
Engine Replacement with Zero-tailpipe Emission Power Source
60%
40%
EPA Certified Remanufacture Systems
100%
0%
EPA Verified Highway Idle Reduction Technologies when
combined with new or previously installed exhaust after-
100%
0%
treatment retrofit
EPA Verified Highway Idle Reduction Technologies without
new exhaust after-treatment retrofit
25%
75%
EPA Verified Locomotive Idle Reduction Technologies
40%
60%
EPA Verified Marine Shore Connection Systems
25%
75%
EPA Verified Electrified Parking Space Technologies
30%
70%
EPA Verified Exhaust After-treatment Retrofits
100%
0%
EPA Verified Engine Upgrade Retrofits
100%
0%
EPA Verified Hybrid Retrofit Systems
60%
40%
Cost
EPA Verified Fuel and Additive Retrofits when combined with
new retrofit, upgrade, or replacement
differential
between
conventional
diesel fuel
Cost of
conventional
diesel fuel
EPA Verified Aerodynamics and Low Rolling Resistance Tires
when combined with new exhaust after-treatment retrofit
100%
0%
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Alternative Fuel Conversion 40% 60%
Projects with mandatory cost share requirements must demonstrate on the SF-424
Application for Federal Assistance, on the SF-424A Budget Information for Non-
Construction Programs, that the recipient will be able to meet the minimum mandatory cost
share requirements. Specifically, the mandatory cost share funds must be indicated in at least
one of the following blocks in Section 18, Estimated Funding, on the SF-424: b. Applicant; c.
State; d. Local; or e. Other. The mandatory cost shared funds must also be indicated on the
SF 424A in Section A Column (f), Section B columns (2), (3) and/or (4), and Section C.
Cost sharing and matching requirements under $200,000 for territory recipients (the U.S.
Virgin Islands, American Samoa, Guam and the Commonwealth of the Northern Mariana
Islands) are waived as a matter of law as authorized by the Omnibus Territories Act, 48
U.S.C. Section 1469a. Territory recipients with applications that will require a cost share of
$200,000 or more are advised to contact EPA to determine if cost share requirements will be
waived in whole or in part.
B. Voluntary Cost Sharing: Voluntary cost sharing is when a recipient voluntarily proposes to
legally commit to provide costs or contributions to support the project when a cost share is
not required. Recipients who propose to use a voluntary cost share must include the costs or
contributions for the voluntary cost share in the project budget on the SF-424 and SF-424A.
If a recipient proposes a voluntary cost share, the following apply:
• A voluntary cost share is subject to the applicable provisions of 2 CFR § 200.306, Cost
sharing or matching.
• A voluntary cost share may only be met with eligible and allowable costs.
• The recipient may not use other sources of federal funds to meet a voluntary cost share
unless the statute authorizing the other federal funding provides that the federal funds
may be used to meet a cost share requirement on a federal grant or cooperative
agreement.
The recipient is legally obligated to meet any proposed voluntary cost share that is included
in the approved project budget. If the proposed voluntary cost share does not materialize
during the performance period of the grant or cooperative agreement, EPA may reconsider
the legitimacy of the award and/or take other appropriate action as authorized by 2 CFR Part
200.
X. WAIVER OF PROGRAMMATIC REQUIREMENTS
EPA will consider, on a case-by-case basis, waiver requests from programmatic requirements.
Waivers will only be approved for non-statutory and/or non-regulatory requirements. Sufficient
justification for the waiver must be provided by the state. States must obtain EPA approval for
any waiver request before conducting any work or expending any funds on a project involving a
waiver request. Any questions regarding waivers should be directed to the EPA Project Officer.
XI. AWARD ADMINISTRATION INFORMATION
A. Terms and Conditions: General administrative and programmatic terms and conditions
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applicable to EPA assistance agreements under this Program may be viewed at:
EPA Grant Terms and Conditions.
B. Funding to Other State Agencies: EPA's general policy, based on the definitions of the
terms "Non-federal entity" (2 CFR §200.69), "Pass-through entity (2 CFR §200.74)
"Recipient" (2 CFR §200.86) and "State" (2 CFR §200.90), is that the state itself is the legal
entity that receives EPA funds even if one particular component of the state is named in the
assistance agreement as the recipient. Transfers of EPA funds between state agencies to
perform a particular financial assistance agreement would, therefore, be governed by state
law. Additionally, 2 CFR §200.417 "Interagency Services" contemplates situations in which
one agency provides services to another agency within the same unit of government as a
direct cost of performing the EPA assistance agreement.
If utilizing interagency service agreements between state agencies under 2 CFR §200.417,
the expenditures the state agency makes to carry out the Interagency Service Agreement
should be shown in the corresponding direct cost categories (Personnel, Travel, Contractual
etc.). If state law characterizes agreements under which one state agency provides services to
another state agency as a procurement contract, then the costs would be placed in the
contractual category. In interagency service situations, 2 CFR §200.417 provides the state
may charge a pro-rated share of indirect costs for the service, or 10% of the ". . .direct salary
and wage cost of providing the service (excluding overtime, shift premiums, and fringe
benefits) may be used in lieu of determining the actual indirect costs of the service."
Centralized services included in central service cost allocation plans subject to Appendix V
of 2 CFR Part 200 are accounted for separately.
There may be situations in which state law provides that state agencies or instrumentalities
are legally separate for the purposes of financial transactions between them or when state
financial management policies for Federal assistance agreements require separate instruments
for accounting purposes (e.g., due to differences in indirect cost rates). In those situations, a
state may characterize appropriate funding transfers as subawards. Note, however, that if one
state agency provides a subaward to another state agency the state agency acting as the pass-
through entity must comply with applicable provisions of 2 CFR Part 200 (including 2 CFR
§200.331), the National Term and Condition for Subawards, and the EPA Subaward Policy
unless EPA provides an exception. The aggregate cost estimates for subawards to other state
agencies or instrumentalities should be included as line items in the "Other" budget category.
C. In-Kind Assistance: The state may purchase equipment through blanket purchase
agreements or some other mechanism that ensures a low price for the item. The state may
then provide the equipment in lieu of money as in-kind assistance through a subaward.
D. Contract: As defined at 2 CFR §200.22, means a legal instrument by which a non-Federal
entity purchases property or services needed to carry out the project or program under a
Federal award. The term as used in this part does not include a legal instrument, even if the
non-Federal entity considers it a contract, when the substance of the transaction meets the
definition of a Federal award or subaward (see §200.92 Subaward).
E. Procurements: When procuring property and services under a Federal award, a state must
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follow the same policies and procedures it uses for procurements from its non-
Federal funds. The state will comply with §200.323 Procurement of Recovered Materials and
ensure that every purchase order or other contract includes any clauses required by section
§200.327 Contract provisions. All other non-Federal entities, including subrecipients of a
state (other than another state agency), will follow §200.318 General Procurement Standards
through §200.327 Contract Provisions.
F. Performance Partnership Grants: Funds awarded under this program are not eligible for
inclusion with the state's Performance Partnership Grants.
G. State Notification: Executive Order 12372, Intergovernmental Review of Federal Programs,
may be applicable to awards resulting from this announcement. EPA implemented the
Executive Order in 40 CFR Part 29. EPA may require recipients selected for funding to
provide a copy of their application to their State Point of Contact (SPOC) for review as
provided at 40 CFR 29.7 and 40 CFR 29.8. on the Intergovernmental Review SPOC List.
H. Public Notification: Not later than 60 days after the date of the award of a subaward, rebate,
or loan by a state, the state shall publish the following on the Web site of the state:
1. For subawards, rebates, and loans provided to the owner of a diesel vehicle or fleet, the
total number and dollar amount of subawards, rebates, or loans provided, as well as a
breakdown of the technologies funded through the subgrants, rebates, or loans; and
2. For other subawards, rebates, and loans, a description of each application for which the
subaward, rebate, or loan is provided.
I. Reporting Requirements: Quarterly programmatic progress reports and a detailed final
programmatic report will be required. Additional administrative and financial reporting may
be required per the terms and conditions of the award.
1. Progress Reports: Progress reports summarizing technical progress, planned activities
and a summary of expenditures are required. The schedule for submission of progress
reports will be established by EPA, after the grants are awarded. A template for progress
reports is available at the State DERA website.
2. Final Reports: The final report must include summary of the project or activity,
emissions benefits and other outputs and outcomes achieved, and costs of the project or
activity addition, the final report shall discuss the problems, successes, and lessons
learned from the project or activity that could help overcome structural, organizational, or
technical obstacles to implementing a similar project elsewhere. Award recipients may be
provided with additional information and guidance on reporting performance measures
and project progress after award. A template for the final report is available at the State
DERA website. The final report shall be submitted to EPA within 120 calendar days of
the completion of the period of performance. However, in order to facilitate awarding
funds, the following fiscal year, it is recommended that the report be completed well
before 120 days.
J. Additional Provisions for Recipients: Additional provisions that apply to awards made
under this program can be found at EPA Solicitation Clauses. These provisions are important
for applying to this solicitation and recipients should review them when preparing
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applications for this solicitation.
K. Administrative and National Policy Requirements: A listing and description of general
EPA regulations applicable to the award of assistance agreements may be found at EPA
Policies and Guidance for Grants.
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APPENDIX A - Further information Regarding Contracts,
Subawards, and Participant Support Costs
I. Background
The Standard Form 424A (SF-424A) includes a separate row for "contractual" costs and "other"
costs. As noted in the workplan template., the "other" cost category on the SF-424A should be
used to cover both subawards and participant support costs. Depending on the project, these costs
may be applicable to a DERA application. This appendix helps clarify these differences.
Additional information about participant support costs is contained in RAIN-2018-G05. "EPA
Guidance on Participant Support Costs."
Where the target fleets are owned and operated by the DERA grant recipient, the recipient may
directly implement the project. The recipient is responsible for procuring all vehicles and
equipment in accordance with applicable competitive procurement requirements in 2 CFR Part
200. The recipient's budget should reflect only those expenses incurred directly by the recipient
organization for personnel, fringe, travel, supplies, equipment, contractual, other, and indirect.
If a recipient intends to fund the proposed project's technologies (i.e., vehicles, engines,
equipment) that they do not directly own, the recipient may have the option to: (1) issue a
contract; (2) make a subaward to an eligible entity; or (3) provide participant support costs to a
program beneficiary. For options (2) and (3), the recipient may be able to fund technology and
installation costs, but only subawards can be used to fund direct and indirect costs. If the grant
recipient only intends to fund equipment and installation costs, the recipient may choose to
provide participant support costs to a program beneficiary rather than a subaward. DERA
recipients often use participant support costs to offer rebates or vouchers for vehicle costs.
II. Contracts
As described in 2 CFR § 200.331, a contract is for the purpose of obtaining goods and services
for the recipient's own use and creates a procurement relationship with the contractor.
Characteristics indicative of a procurement relationship between the recipient and a contractor
are when the contractor:
• Provides the goods and services within normal business operations.
• Provides similar goods or services to many different purchasers.
• Normally operates in a competitive environment.
• Provides goods or services that are ancillary to the operation of the federal program;
and
• Is not subject to compliance requirements of the federal program as a result of the
agreement, though similar requirements may apply for other reasons.
Grant recipients that enter into procurement contracts, must comply with the applicable
procurement provisions in 2 CFR § 200.317 through 200.327.
III. Subawards
Under 2 CFR § 200.1, subrecipient means a non-federal entity that receives a subaward from a
grantee to carry out part of a federal program but does not include program beneficiaries
receiving participant support costs; see Section IV. of this appendix below. Grant recipients may
make subawards to subrecipients to carry out a portion of the grant project; in such case, the
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grant recipient is also known as a "pass-through entity." Subawards establish a
financial assistance relationship under which the subrecipient's employees and contractors
implement programs and projects to accomplish the goals and objectives of the grant. It is
important to bear in mind that subrecipients are subject to the same federal requirements as the
pass-through entity.
Under this competition, a non-federal entity is eligible to receive a subaward even if it is not
eligible to receive a grant from EPA directly. While there may be some situations in which a
subaward to an individual may be appropriate, those situations are rare.
Subrecipients only receive reimbursement for their actual direct or approved indirect costs and
do not "profit" from the transaction. For-profit entities participating in grant activities are
typically contractors rather than subrecipients.
EPA's Award Official must approve subawards to for-profit entities and individuals on the basis
of either a precise description of the subaward in the EPA approved budget and project narrative,
or on a transaction-by-transaction basis.
The recipient's project narrative and budget narrative should include detailed descriptions of any
proposed subawards and include cost estimates for subawards as line items under the "Other"
budget category in the SF-424A. Should a recipient decide to make a subaward that was not
described in the approved project narrative and budget, the recipient must obtain prior written
approval from EPA's Award Official for the subaward.
If a recipient chooses to pass funds from its grant to other entities through subawards, the
recipient must comply with applicable subaward provisions of 2 CFR Part 200, the EPA
Subaward Policy, and EPA's National Term and Condition for Subawards. Note that under 2
CFR § 200.331 through 200.333, there are extensive requirements for subrecipient monitoring
and management that apply to pass-through entities.
Many of the federal administrative grant regulations in 2 CFR Part 200 and 2 CFR Part 1500, as
well as the grant terms and conditions in the assistance agreement, "flow down" to subrecipients
receiving a subaward. Such requirements need to be identified in the written subaward agreement
between the recipient and the subrecipient. Additionally, if a subrecipient intends to procure
goods or services using targeted airshed grant funds, the subrecipient must comply with the
applicable federal procurement standards in 2 CFR Part 200, 2 CFR Part 1500, and 40 CFR Part
33 as these requirements also "flow down" to subrecipients.
There is no requirement for recipients to compete subawards under this program; however, pass-
through entities may choose to select subrecipients competitively provided this practice is
consistent with applicable statutes, regulations, and the terms and conditions of their targeted
airshed grant.
Recipients may use the subaward template contained in Appendix D of EPA's Subaward Policy
to assist them in complying with the "subaward content" requirements; however, EPA does not
mandate the use of this template.
IV. Participant Support Costs
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2023-2024 DERA State Grants Program Guide August 2024
Recipients may provide participant support costs (PSCs) to program beneficiaries to
enable beneficiaries to participate in the recipient's program or project. PSCs include rebates,
subsidies, stipends, or other payments to program beneficiaries by a recipient, subrecipient, or
contractor. For example, PSCs might be used for the purchase of eligible technologies. Program
beneficiaries, rather than the grant recipient, would own the new technology.
PSCs differ from subawards in that the beneficiary is participating in the grant recipient's project
or program instead of implementing their own project or program. Program beneficiaries may
include but are not limited to individual owner/operators, private or public fleet owners, or
residents in the applicable area; however, program beneficiaries are not employees, contractors
or subrecipients of the grant recipient.
Recipients may also use PSCs to make purchases on behalf of program beneficiaries. In some
situations, this approach allows grant recipients to achieve economies of scale and/or take
advantage of existing purchase contracts. Competitive procurement requirements apply to the
grant recipient when the recipient takes this approach.
The federal administrative grant regulations in 2 CFR Part 200 and 2 CFR Part 1500, as well as
the grant terms and conditions in the recipient's grant agreement, generally do not "flow down"
to program beneficiaries receiving PSCs except that costs must be reasonable and incurred
within the grant period of performance. Requirements for compliance with civil rights laws and
ensuring that program beneficiaries are eligible to receive federal financial assistance are
applicable as explained in EPA Guidance on Participant Support Costs. In addition, program
beneficiaries must abide by requirements to ensure that the funds are used only for authorized
purposes.
If a recipient, subrecipient, or contractor is issuing PSCs, it must have a written agreement in
place. The written agreement should not be structured as a subaward agreement and should not
refer to program beneficiaries as subrecipients consistent with 2 CFR § 200.1, "Subrecipient." In
addition, the written agreement should not include language requiring the program beneficiary to
comply with the federal grant regulations at 2 CFR § Part 200, 2 CFR § Part 1500, or the terms
and conditions found in the award between the EPA and the recipient, other than requiring that
the costs must be reasonable, necessary, and allocable. The written agreement should also
include the following:
• A description of the activities and amounts that will be supported by the PSCs;
• The program and/or statutory requirements that the program beneficiary must abide by in
order to ensure that the funds are used only for authorized purposes;
• Specify which party will have title to the technologies (e.g., vehicles, engines, equipment
and/or appliances), if any, purchased with PSCs;
• Source documentation requirements to ensure proper accounting of the PSCs; and
• Any reporting that must be submitted by the program beneficiary.
EPA's Award Official must approve PSCs on the basis of either a precise description of the
PSCs in the EPA approved budget and work plan, or on a transaction-by-transaction basis. The
recipient's project narrative and budget narrative should include detailed descriptions of any
proposed PSCs and include cost estimates for PSCs as line items under the "Other" budget
category. Should a recipient decide to issue PSCs that were not described in the approved work
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plan and budget, the recipient must obtain prior written approval from EPA's Award
Official. Moreover, after a grant is awarded, should a recipient decide to modify the amount
approved (upwards or downwards) for PSCs, prior written approval from EPA's Award Official
is also required.
When creating budgets, recipients must exclude PSCs from Modified Total Direct Costs for
calculation of indirect costs as required by 2 CFR § 200.1, "Modified Total Direct Costs."
Resources:
RAIN-2018-G05. "EPA Guidance on Participant Support Costs."
Best Practice Guide for Procuring Services. Supplies, and Equipment Under EPA Assistance
Agreements
Grants Policy Issuance 16-01: EPA Subaward Policy for EPA Assistance Agreement Recipients.
with attachments, includes:
• EPA Subaward Policy
• Appendix A: Distinctions Between Subrecipients and Contractors
• Appendix B: National Term and Condition for Subawards
• Appendix C: Model Programmatic Subaward Reporting Requirement
Appendix D: Subaward Agreement Template
APPENDIX B - Quantifying Environmental Outcomes
Diesel Emissions Reductions for Most Project Types
To estimate the anticipated emissions reductions from your project, use the Diesel Emissions
Quantifier (DEQ) found at https://cfpub.epa.gov/quantifier/index.cfm?action=main.home. After
running the DEQ, results may be downloaded as a spreadsheet showing DEQ results and inputs.
Recipients should include a printout of their DEQ results spreadsheet showing DEQ results and
inputs as an attachment to their application.
Use the same vehicle/engine data you provided for the applicant fleet description to run the
DEQ Please note you can group similar entries together to minimize the number of DEQ runs
required (model year, vehicle miles traveled, idling hours, usage rate, and horsepower). It is
recommended that you "Register a New Account" and log in to use the DEQ so that you will
have the ability to save scenario information and retrieve it in the future.
From the DEQ results page (example shown below), enter the annual amount reduced after
upgrades, and the lifetime amount reduced after upgrades for each of the listed pollutants (NOx,
PM2.5, HC, CO, CO2) in the "Outputs and Outcomes," of your workplan.
To calculate CO2 emissions reductions, you must input an amount for annual diesel gallons
reduced (per engine), annual idling hours reduced (per vehicle), or annual hoteling hours reduced
(per vehicle) when inputting technology information for the vehicle group.
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2023-2024 DERA State Grants Program Guide
Cost Effectiveness for Most Project Types
August 2024
To estimate total cost effectiveness for the project, enter estimated total costs in the total project
costs field on the create new project page in the DEQ. Total project costs reflect all costs related
to this project, including EPA's share and any voluntary and mandatory cost shares. Total project
costs entered into the DEQ should match the total project costs reflected in the budget detail and
the SF424.
To estimate capital cost effectiveness for the project, enter the estimated upgrade cost per unit
and labor cost per unit on the add an upgrade page in the DEQ. Be sure to enter costs for every
upgrade/vehicle in your project or else the results will be skewed.
From the DEQ results page (example shown below), enter the lifetime capital cost effectiveness
for NOx and PM2.5, and the total project cost effectiveness for NOx and PM2.5 in the "Outputs and
Outcomes," of your work plan.
For further instruction on using the DEQ, please refer to
https://cfpub.epa.gov/quantifier/index.cfm?action=main.home. Additional assistance is available
by emailing DEQhelp@epa.gov.
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Emission Results and Health Benefits for
Project: Sample Project
August 2024
Emission Results
Health Benefits
Emission Results 0
Here are the combined results for all groups and upgrades entered for your project.1
Annual Results (short tonsP
NOx
PM2.5
HC
CO
CO,
Fuel3
Baseline for Upgraded Vehicles
7.978
0.636
1.053
3.335
1.300.5
115,600
^mount Reduced After Upgrades
2.841
0.469
0.808
2.667
76.5
6,30"S)
Percent Reduced After Upgrades
35.6%
73.7%
76.7%
68.6%
5.9%
5.9%
Lifetime Results (short tons}1
Baseline for Upgraded Vehicles
46.414
3.660
6.085
22.447
7,650.0
630,000
^mount^ReducedAfter^Upgrades^
15.795
2.660
4.637
15.223
612.0
54,401
Percent Reduced After Upgrades
Lifetime Cost Effectiveness (S/short ton reduced)
34.0%
72.7%
Capital Cost Effectiveness"
(unit & labor costs only)
Total Cost Effectiveness4
(includes all project costs)
yin
$272,237 $1,616,731
$200,572 $1,191,174
76.2%
$927,230
$633,142
67.3%
$232,468
$208,110
1 Emissions from the electrical grid are not included in the results.
2 1 s hort ton = 2000 lbs.
3 In gallons; fuels other than ULSD have been converted to ULSD-equivalent gallons.
* Cost effectiveness estimates include only the costs which you have entered.
Remaining I ffe
doc+ccv: School Bus | School Buses
dpfs: School Bus | School Buses
vehicles: School Bus | School Buses
SB subgranfc School Bus | School Buses
rebates: School Bus || School Buses
electric School Bus | School Buses
Downloading Spreadsheets
Results may be downloaded as a:
¦ Spreadsheet showing DEO results and your inputs (click on 'yes' if you get an error message).
8.0%
$7,026
$5,177
8.0%
6 years
6 years
6 years
6 years
4 years
8 years
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2023-2024 DERA State Grants Program Guide
Alternative Methods
August 2024
If you are unable to use the DEQ, you may use EPA's Motor Vehicle Emissions Simulator
(MOVES) for calculating emissions reductions.
Other methods may be used as appropriate. If an alternative method is used, you must thoroughly
describe and document your methods in an attachment to your project narrative.
Diesel Emissions Reductions Above and Beyond any Restriction for Mandated Measures
No funds awarded under this program shall be used to fund the costs of emissions reductions that
are mandated under federal law. See Appendix C for more information on the restriction for
mandated measures.
If the project takes place in an affected area, or includes affected vehicles, engines, or equipment,
as described in Appendix C, emissions reduction benefits shall only be calculated for emissions
reductions implemented prior to the effective date of the applicable mandate and/or emissions
reduction benefits shall only be calculated for emissions reductions that are in excess of (above
and beyond) those required by the applicable mandate.
Option 1: To calculate emissions reduction benefits for emissions reductions implemented prior
to the effective date of the applicable mandate the recipient must use the following formula to
calculate lifetime emissions benefits that may be claimed.
Follow the instructions above to run the DEQ. From the DEQ results page enter the annual
amount reduced in the spaces provided below.
NOx (tons/yr) PM2.s(tons/yr) HC (tons/yr) CO (tons/yr) C02 (tons/yr)
Note: These are the annual results, not the lifetime results.
Retrofit Year = Mandate Compliance Year =
Multiply the values for each pollutant by the difference of the mandate year and the retrofit year
and enter the calculated lifetime emissions for each of the listed pollutants (NOx, PM2.5, HC, CO,
CO2) in the "Outputs and Outcomes," of your work plan.
For example, if the mandate is slated to occur in 2025 and the retrofit will take place in 2021,
then multiply the values above by 4 (2025 - 2021=4) to calculate lifetime emissions that may be
claimed prior to the mandate.
Recipients must thoroughly describe and document their methods in an attachment to the project
narrative.
Option 2: To calculate emissions reduction benefits for emissions reductions that are in excess
of (above and beyond) those required by the applicable mandate the recipient must use the
following formula to calculate lifetime emissions benefits that may be claimed.
Follow the instructions above to run the DEQ using the target engines and the
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technologies/emissions reductions that are required by the mandate. From the DEQ
results page, enter the "mandated" lifetime amount reduced in the spaces provided below.
NOx (tons) PM2.5 (tons) HC (tons) CO (tons) C02 (tons)
Then, follow the instructions above to run the DEQ using the target engines and the
technologies/emissions reductions that are proposed for the project (i.e. based on the
vehicle/engine data you provided for the applicant fleet description). From the DEQ results page,
enter the "proposed project" lifetime amount reduced in the spaces provided below.
NOx (tons) PM2.5 (tons) HC (tons) CO (tons) C02 (tons)
Subtract the mandated values for each pollutant from the proposed project values and then enter
the calculated lifetime emissions for each of the listed pollutants (NOx, PM2.5, HC, CO, CO2) in
the "Outputs and Outcomes," of your workplan.
Recipients must thoroughly describe and document their methods in an attachment to the project
narrative.
Diesel Emissions Reductions for Marine Shore Power Connection Systems
EPA developed a shore power technology assessment to review the availability of shore power at
ports throughout the U.S., and to characterize the technical and operational aspects of shore
power systems at U.S. ports. The assessment included compiling technical information working
in partnership with ports that have installed shore power. The second part of the assessment
presents a new methodology for estimating emissions reductions from shore power systems for
vessels docked and connected to shore power. The calculator tool provided with this report can
be used to estimate how diesel emissions could be reduced through the use of shore power
systems.
The tool uses vessel and activity inputs, as well as the offsetting emissions of electrical power
use from shore-side power to calculate emissions reductions.
The report, titled "Shore Power Port Assessment at US Ports 2022 Update Report,." and the
calculator tool can be found here: www.epa.gov/ports-initiative/shore-power-technologv-
assessment-us-ports.
Step-by-step instructions to quantify emissions reductions using the recommended approach are
provided in Appendix B of the Shore Power Port Assessment Report.
Recipients must thoroughly describe and document their methods in an attachment to the project
narrative.
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APPENDIX C - Mandated Measures Justification
No funds awarded may be used to fund emission reductions mandated by federal statute. The
restriction applies when the mandate takes effect (the effective date) for any affected vehicles,
engines, or equipment. This restriction does not apply to a mandate in a State Implementation
Plan (SIP) approved by the EPA Administrator under the Clean Air Act. Voluntary or elective
emissions reduction measures shall not be considered "mandated," regardless of whether the
reductions are included in the SIP.
Specifically, projects involving locomotives and marine engines are not eligible for funding if
the emissions reductions 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 if the emissions 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).
All recipients whose projects include locomotives and/or marine engines and/or stationary
engines must demonstrate why/how the proposed project's emissions reductions are not subject
to the restriction for mandated measures under this program. The justification must clearly
demonstrate why/how:
• the engines are exempt from the requirements of EPA's rule; or
• emissions reductions funded with EPA funds will be implemented prior to the effective
date of any applicable requirements under the rule; and/or
• emissions reductions funded with EPA funds will not be used to satisfy any applicable
requirements under the rule but are in excess of (above and beyond) those required by the
applicable mandate.
Recipients must provide sufficient information to support the justification, including copies of
maintenance records, if applicable. Recipients are responsible for addressing all applicable parts
of the rule in their justification for why/how the emissions reductions proposed for funding are
not subject to the restriction for mandated measures under this program.
Control of Emissions of Air Pollution from Locomotives and Marine Compression-Ignition
Engines Less than 30 liters per Cylinder
What is sufficient justification?
For locomotives, the justification must include, but is not limited to:
• The original build date of each locomotive.
• The model year of the existing engines for each locomotive.
• Whether the existing locomotive engines are the original engines that were installed in the
locomotive by the locomotive manufacturer at the time of original manufacturer, or whether
the original engines were ever replaced or upgraded (prior to the activities that are being
proposed for funding). If so, when and what upgrades were made?
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• The date that the power assemblies of each existing engine have been replaced, if
ever.
As outlined above, certain locomotives and marine engines are exempt from the rule. This
exemption may be based on the age and/or size of the locomotive or marine engines, or on the
type or size and/or annual revenue of the owner/operator. In these cases, sufficient justification
would include a summary of the rule applicability and an explanation of why each locomotive or
marine engine is exempt from the rule. For example:
"EPA's Marine Remanufacture Program applies only to those commercial marine
propulsion and auxiliary diesel engines which meet all of the following criteria:
• CI and C2 engines (i.e. per cylinder displacement up to 30 liters);
• Greater than 600 kW (800 hp);
• Tier 2 and earlier engines; and
• Built in model year 1973 or later.
Engines A, B, and C, as described fully in the previously submitted Applicant Fleet
Description, are exempt from the requirements of EPA 's marine rule because all three
engines are of original model year 1972. Further, all three of these engines are 600
horsepower engines and are therefore exempt from the rule requirements.
As outlined above, certain locomotives and marine engines may be subject to the rule
requirements, but the recipient may be able to demonstrate that the emissions reduction funded
with EPA funds will be implemented prior to the effective date of any applicable requirements
under the rule and/or emissions reductions funded with EPA funds will not be used to satisfy any
applicable requirements under the rule, but are in excess of (above and beyond) those required by
the applicable mandate. In these cases, sufficient justification would include a summary of the
rule applicability and an explanation of how the proposed emissions reductions from each
locomotive or marine engine meet the criteria listed above. For example:
"Marine Engine D is a commercial CI marine diesel engine of900 hp, built in model
year 1980, and is unregulated (please see previously submitted Applicant Fleet
Description for full engine information including marine engine model and engine family
name), therefore this engine is covered by EPA 's Marine Remanufacture Program. We
have conducted a thorough search of EPA's list of remanufacture systems (i.e. "kits ",
certifiedfor use with Category 1 and 2 marine diesel engines according to the provisions
of 40 CFR Part 1042, Subpart I) listed here www.epa.gov/compliance-and-fuel-economy-
data/annual-certification-data-vehicles-ensines-and-equipment. and have determined
that at this time there are no certified kits available for this engine. Therefore, there are
no applicable requirements under the rule for this engine at this time and the emissions
reductions proposedfor EPA funding are not subject to the Restriction for Mandated
Measures under this program.
OR
"Marine Engine E is a commercial CI marine diesel engine of900 hp, built in model
year 1980, and is unregulated (please see previously submitted Applicant Fleet
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2023-2024 DERA State Grants Program Guide August 2024
Description for full engine information, including marine engine model and
engine family name), therefore this engine is covered by EPA 's Marine Remanufacture
Program. We have conducted a thorough search of EPA 's list of remanufacture systems
(i.e. "kits ", certifiedfor use with Category 1 and 2 marine diesel engines according to
the provisions of 40 CFR Part 1042, Subpart I) listed here www. epa. sov/compliance-
and-fuel-economy-data annual-certification-data-vehicles-enxines-and-eciuipment, and
have determined that at this time there is one certified remanufacture kit available for
this engine: [insert kit info].
However, emissions reductions funded with EPA funds will not be used to satisfy any
applicable requirements under the rule but are in excess of (above and beyond) those
required by the applicable mandate. [The recipient should include a thorough discussion
of the emissions reductions that could be achieved by the application of the certified kit to
the existing engine and the emissions reductions that will be achieved by the activities
proposed from funding under the grant. The recipient should calculate the difference
between the required emissions reductions and the proposed emissions reductions and
should be able to clearly demonstrate that emissions reductions funded with EPA funds
are in excess of (above and beyond) those required by the rule.]
Therefore, the emission reductions proposed for EPA funding are not subject to the
restriction for mandated measures under this program.
Additional Resources:
• Final Rule: www.gpo.gov/fdsys/pkg/FR-2008-06-3Q/pdf/R8-7999.pdf
• Fact Sheet: EPA Finalizes More Stringent Emissions Standards for Locomotive Engines
and Marine Compression-Ignition Engines:
https://nepis.epa. gov/Exe/ZyPDF.cgi/P100094D.PDF?Dockev=P 100094D.PDF
• Fact Sheet: Control of Emissions from Idling Locomotives EPA420-F-08-014, may be
found at the National Service Center for Environmental Publications
(www.epa.gov/nscep).
• Summary of locomotive emission standards:
https://nepis.epa.gov/Exe/ZvPDF.cgi?Dockev=P100QA09.pdf
• Frequently Asked Questions from Marine Engine Owners and Rebuilders about EPA's
Marine Remanufacture Program EPA420-F-09-003, may be found at the National
Service Center for Environmental Publications (www.epa.gov/nscep).
• Summary of marine emission standards:
https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockev=P100OA0B.pdf
• Marine and Locomotive Certified Remanufacture Systems: www.epa.gov/compliance-
and-fuel-economy-data/engine-certification-data
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