Minnesota Clean Diesel Program Diesel Emissions Reduction Act (DERA) Grant 2018 Request for Grant Application (RFGA)

Transcription

1 Minnesota Clean Diesel Program Diesel Emissions Reduction Act (DERA) Grant 2018 Request for Grant Application (RFGA) The RFGA assists applicants in applying for and managing state grants. This document describes the Diesel Emissions Reduction Act (DERA) Grant Program, including information on who may apply for funding, the funding priorities for the 2018 grant round, match requirements, activities eligible for funding, and other information that will help applicants plan their project and submit a competitive application. Applications are due no later than 2:30 p.m. Central Time on Friday, January 5, The applicant should check the MPCA Clean Diesel webpage for the most recent updates on a competitive grant, including questions and answers, and addendums. Contents 1. Clean Diesel Program overview Funding Eligible and ineligible applicants Eligible and ineligible projects Eligible and ineligible costs Application review process Grantee responsibilities Application instructions Application submission instructions Application request...6 Appendix 1: Description of eligible projects...7 Category Four (4): Idle Reduction Technology Appendix 2: EPA non-road remaining useful life Appendix 3: Application evaluation scoresheet Attachment A: Sample grant agreement Required forms: 2018 DERA application form Fleet information spreadsheet Fleet permission form (If applicable - for leased vehicles only) Minnesota Pollution Control Agency or use your preferred relay service Info.pca@state.mn.us Available in alternative formats

2 1. Clean Diesel Program overview The Minnesota Pollution Control Agency (MPCA) seeks diesel fleet owners from private, public, and nonprofit sectors to apply to its Diesel Emissions Reduction Act (DERA) grant opportunity to fund clean diesel activities in the State of Minnesota. The DERA program reduces diesel emissions from older diesel engines to improve air quality and public health by implementing clean diesel projects. State goals and priorities The MPCA s goal in awarding grants includes: 1) reducing diesel emission in Minnesota; 2) funding a mixture of on-highway and non-road projects across sectors; and 3) funding a mixture of clean diesel technologies. Legislative authority Grants under this RFGA are funded by the United States Environmental Protection Agency (EPA) National Clean Diesel Campaign for clean diesel activities in the State of Minnesota. The grants are administered under Minn. Stat , subd Funding The MPCA anticipates awarding approximately $200,000. The minimum grant award amount is $2,000, and the maximum is $200,000 (or maximum amount available). Partial grants may be awarded. Match requirements Grantees will be required to provide a cash match. Required cash match percentages vary based on project category, and are listed in Appendix 1. Eligible sources of a cash match are non-state or non-federal funds (funds that were not obtained through the budgeting process of the Minnesota Legislature, granted by a state agency, or federal funds) in the form of cash, loans, other grants or liquid capital assets dedicated to the project. Payment schedule All grant payments are disbursed as reimbursements after work on projects is completed and paid for on approved projects. Invoicing is then submitted for eligible expenses incurred during the grant period. 3. Eligible and ineligible applicants Eligible applicants For profit, nonprofit, and public entities - including state and local governments - that own or operate diesel fleets and equipment in Minnesota are eligible applicants. While multi-organizational collaboration is allowed, no single entity may submit or be a part of multiple applications and only one organization may apply on behalf of collaborators. Ineligible applicants Federal government agencies, individuals, State of Minnesota and Federal government employees. Entities or individuals that are currently suspended or debarred by the State of Minnesota and/or the federal government are ineligible applicants. 4. Eligible and ineligible projects Eligible projects Applicants may apply for one or more of the following four categories: 1. Certified Engine Rebuild or Replacement 2. Vehicle or Equipment Replacement 3. Retrofits - Emission Control Technology Page 2 of 14

3 4. Idle Reduction Technology Complete descriptions of eligible projects are available in Appendix 1. For all projects, the vehicle or equipment must: Currently use a minimum of 1,200 gallons of diesel annually in Minnesota. Have at least three years estimated remaining years of service. Be operational. Perform the same function and operation as the vehicle, engine, or equipment that is being replaced. Be of the same type and similar gross vehicle weight rating or horsepower (HP) as the vehicle, engine, or equipment that is being replaced. Horsepower (HP) increases of more than 10% may be allowed if grantee receives written approval from EPA to purchase. All projects must be EPA or California Air Resources Board (CARB) verified for the specific application at the time of submission. All replacement vehicles/equipment or engines installed as part of a rebuild must use EPA-certified engine configurations. Ineligible projects Mandated changes: Vehicle and equipment replacements or rebuilds that are mandated under federal law. Normal attrition: Vehicle and equipment replacements or rebuilds that would have occurred through normal attrition/fleet turnover within three years of the project start date. Fleet expansion: Purchase of vehicles, engines or equipment to expand a fleet. Emissions testing: Emissions testing and/or air monitoring activities, or research and development. Formerly Verified Technologies: (see bottom of webpage). 5. Eligible and ineligible costs Eligible costs Eligible expenses are costs directly incurred through the purchase of eligible technologies, equipment, vehicles, and installation activities. Only eligible costs will be reimbursed. Ineligible costs Ineligible costs include costs that are not directly related to the project. In addition, the following costs, even if they are directly related to the project, are ineligible. Any expenses incurred before the grant agreement is fully executed including applicant s expense for preparing the eligibility and cost applications. Any expenses incurred during workplan application and final workplan development. Costs incurred from equipment disabling. Bad debts, late payment fees, finance charges or contingency funds, interest, and investment management fees. Attorney fees. Engineering/consultant fees. Administrative expenses not directly related to or necessary to complete the work. Lobbying, lobbyists, and political contributions. Mark-up on purchases and/or subcontracts. Taxes, except sales tax on eligible equipment and expenses. Activities addressing permit fees. Page 3 of 14

4 Activities addressing enforcement actions that involve a financial penalty. Memberships (including subscriptions and dues). Food. Alcoholic refreshments. Entertainment, gifts, prizes and decorations. Merit awards and bonuses. Donations and fundraising. Computer(s), tablets, and software, unless unique to the project and specifically approved by the MPCA as a direct expense. Purchase or rental of mobile communication devices such as cell phones, unless unique to the project and specifically approved by the MPCA as a direct expense. 6. Application review process Applications received by the grant deadline will be reviewed by MPCA staff, using a two-phase process. Late applications will not be considered for review. Phase 1: Eligibility review The MPCA will determine if eligibility requirements are met. Any application found to be ineligible will be eliminated from further evaluation. Minimum requirements: Applicant is eligible. Project is eligible. Complete application (see section 8 Application Checklist). Phase 2: Application scoring Only applications meeting the eligibility criteria under Phase 1 will be considered for scoring in Phase 2. Reviewers will evaluate applications per project using the weighted criteria listed in Appendix 3. No activity or comments from applicants regarding this RFGA shall be discussed with any of the reviewers during the evaluation of the applications. However, the MPCA may request clarification of submitted information from one or more applicants. The clarifications must be made in writing. The MPCA will only accept written responses for evaluation purposes. The response to the request for clarification may be considered along with the original application for application scoring. Note: The MPCA Commissioner or designee may accept, modify, or reject the recommendation of the reviewers. In addition to the ability to partially award projects, the MPCA reserves the right to refrain from awarding any grants. At its discretion, the MPCA may perform an appropriate cost and pricing check of an application. If the applicant is currently managing or has managed MPCA-grant projects, how successfully the project was managed in accordance with the terms and conditions specified in the MPCA-grant agreement may be considered. Financial review Before awarding any grant over $25,000 to any nonprofit organization, the MPCA will assess the most recent financial statement from the applicant and resolve any items of significant concern prior to making a funding decision. Notification All applicants will be notified by MPCA staff within 45 days of application due date. Applicants selected for funding will be contacted concerning the next steps in the award process, including execution of the appropriate agreements and workplan submissions. Page 4 of 14

5 7. Grantee responsibilities Grant Agreement Each awardee must formally enter into a grant agreement. The agreement will address the conditions of the award, including implementation of the project. Once the agreement is signed, the recipient is expected to read and comply with all conditions of the agreement. A sample State of Minnesota Grant Agreement is attached (Attachment A) for your reference. Much of the language reflected in the agreement is required by statute. Reporting requirements The MPCA reserves the right to request performance reports from grantees at 6 and 12 months following the award. Report information may request, but is not limited to, equipment performance data such as hours of use, miles driven, miles per gallon average, etc. The MPCA reserves the right to modify reporting requirements during the project. It is the policy of the State of Minnesota to conduct at least one monitoring visit per grant period on all state grants over $50,000. Public data Applications are private or nonpublic until opened. Once the applications are opened, the name and address of the applicant and the amount requested is public. All other data in an application is private or nonpublic data until completion of the evaluation process. After MPCA has completed the evaluation process, all remaining data in the applications is public with the exception of trade secret data as defined and classified in Minn. Stat A statement by a grantee that the application is copyrighted or otherwise protected does not prevent public access to the application (Minn. Stat , subd. 3). Conflict of interest Minnesota state agencies must work to deliberately avoid actual, potential and perceived conflicts of interest at the individual and organizational levels. Please refer to the State of Minnesota, Office of Grants Management for information on any potential, actual, or perceived conflicts of interest: Equipment disabling Engine replacement projects: Replaced engines must be scrapped or rendered permanently disabled within 90 days of the replacement, or remanufactured to a certified cleaner emission standard. On-highway engines must meet engine model year 2017 standards or newer. Non-road engines must be certified to meet higher tier standard level, determined by sector. A signed certificate of destruction form along with photos of the disabled engine and or vehicle/equipment must be sent to the MPCA DERA project manager. The grantee may permanently disable the engine and retain possession of the engine. Disabling the engine may be completed by drilling holes in the engine block (the part of the engine containing the cylinders) and manifold. Other acceptable scrappage methods may be considered, but require prior written approval from the EPA. If scrapped or remanufactured engines are to be sold, program income requirements apply. Any income made from the scrapping of equipment must be reported to MPCA, but does affect grant award amount. Vehicle/equipment replacement projects: The replaced vehicle/equipment must be scrapped or rendered permanently disabled within90 days of the replacement, or remanufactured to a certified cleaner emission standard. Permanently disabling the chassis and disabling or remanufacturing the engine (see Appendix 1, Category 2) while retaining possession of the vehicle/equipment is an acceptable scrapping method. 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. Note: Other acceptable scrappage methods may be considered, but require prior written approval from the EPA. Vehicle/equipment components that are not part of the engine or chassis may be salvaged from the unit being replaced (e.g. plow blades, shovels, seats, etc.). If scrapped or remanufactured vehicles/equipment or salvaged Page 5 of 14

6 vehicle/equipment chassis or components are to be sold and income made from the scrapping of equipment reported to MPCA. This income does not affect the grant award amount.. A certificate of destruction form and photos of disabled engine and or chassis must be sent to the MPCA DERA project manager. 8. Application instructions Responses to application questions must be typed, following the format specified in the grant application form. If an applicant requests multiple projects, all projects must be included in one application. For all categories, awards will be based on the lower of two competitively solicited price quotes for the project. Application checklist A complete application will consist of the following documents: Application Form including two project bids, per project Fleet Information Spreadsheet Fleet Permission Form (for leased vehicles/equipment only) 9. Application submission instructions Applications must be received electronically by the MPCA no later than 2:30 p.m. Central Time on Friday, January 5, The properties header will reflect the date and time submissions are received. Application submissions received after the deadline will not be considered eligible. applications and required forms to grants.pca@state.mn.us with the subject line: DERA Grant The MPCA is not responsible for any errors or delays caused by technology-related issues, even if they are caused by the MPCA. Applications submitted via any other method, including but not limited to fax, mail, in-person deliveries, will not be accepted. 10. Application request We are obligated to be transparent in all aspects of our grant work. To meet our obligation, all questions must be submitted in the same manner, and answers are only provided via the MPCA website. It is the applicant s responsibility to check the MPCA website for the most recent updates on a competitive grant, including questions and answers and addendums. Applicants who have any questions regarding this RFGA must questions to grants.pca@state.mn.us, subject line: DERA Grant 2018, no later than 2:30 p.m. Central Time on Tuesday January 2, Answers to questions will be posted as they come in at Final questions and answers will be posted by 4:30 p.m. Central Time on Wednesday, January 3, MPCA personnel are not authorized to discuss this RFGA with applicants outside of the question and answer forum. Contact regarding this RFGA with any MPCA personnel may result in disqualification. Page 6 of 14

7 Appendix 1: Description of eligible projects Category 1: Certified engine rebuild or replacement Overview The certified engine must continue to perform the same function as before the replacement. Replaced engines must be scrapped or rendered permanently disabled within 90 days of the replacement. See RFGA, Section 7 under Grantee Responsibilities, for equipment disabling instructions. Replacement refers to replacing an existing engine with a newer, cleaner engine that is certified to a more stringent set of engine emissions standards*. Replacement includes, but is not limited to, diesel engines or engines certified for use with a clean alternative fuel. Replacement also includes diesel engine replacement with a certified diesel-electric hybrid, an all-electric power source (grid, battery, or fuel cell), and/or the replacement of a non-road engine with an on-highway engine. All-electric (e.g. zero emission) motor replacements do not require EPA or CARB certification. Rebuilding must be performed by the original engine manufacturer, or by a dealership/distributor that has a service program sponsored/backed by original engine manufacturer warranties (i.e., the new, remanufactured and upgraded engine is warranted by the Original Equipment Manufacturer). *Certification of conformity must be submitted to MPCA Eligible projects 1A. On-highway Certified rebuild or replacement of an eligible engine to a model year 2017 or newer standard. For drayage trucks only, replace eligible engine to a model year 2013 or newer standard. Eligible vehicles or equipment for an engine rebuild or replacement must be fully operational and not be scheduled for replacement for three years. On-highway vehicles are defined as Classes 5 through 8 diesel trucks and buses, and must meet the following Gross Vehicle Weight Rating (GVWR): Class 5 GVWR 16,001 to 19,500 pounds Class 6 - GVWR 19,501 to 26,000 pounds Class 7 - GVWR 26,001 to 33,000 pounds Class 8 - GVWR 33,001 pounds or greater The certified rebuilt or replaced engine must be model years 1995 through Model years 1994 or older and 2007 or newer are ineligible for engine rebuild or replacement. See table below. Current Engine Model Year Certified Engine Replacement or electric hybrid Eng. Model YR Diesel, Propane, Compressed Natural Gas (CNG)/Liquefied Natural Gas (LNG) Replacement with All-Electric Drayage Engine Replacement 2013 or newer standard 1994 and older No No No 1995 to 2006 Yes Yes Yes 2007 to 2009 No Yes No 2010 and newer No No No *DERA does allow engine replacements with an all-electric motor Cash match: The grantee is responsible for at least 60% of the total project cost (labor and equipment) as a cash match. Up to 40% of the total project, cost may be covered by the grant. Page 7 of 14

8 1B. Non-road Rebuild or replace an eligible engine rated at a higher tier level according to the table below or to a model year 2016 or newer standard (Tier 4). Non-road engines must be 51 HP or greater. Engines and equipment must operate 500 hours or more per year. Engines and equipment must have at least three years of operation left at the current company, and seven years of useful life remaining based on the type and age of equipment as defined by Appendix 2: EPA non-road remaining useful life. Current Engine Tier Certified Engine Replacement or rebuild Tier 0 to 2 Certified Engine Replacement or rebuild Tier 3 Certified Engine Replacement or Certified Rebuild Tier 4 All-Electric Verified Exhaust Control Tier 0 or 1 No No Yes Yes Yes Tier 2 or 3 No No Yes Yes Yes Cash match: The grantee is responsible for at least 60% of the total project cost (labor and equipment) as a cash match. Up to 40% of the total project, cost may be covered by the grant. 1C. Verified engine upgrades Some non-road, marine, and locomotive engines are able to be upgraded to reduce their emissions by applying manufacturer upgrades that are retrofits currently verified by EPA or CARB as a package of components demonstrated to achieve specific levels of emission reductions. Some marine and locomotive engines can be upgraded through the installation of a certified remanufacture system to rebuild for a cleaner engine configuration. Engines must be 51 HP or greater. Engine upgrades may not be available for all engines, and not all upgrades may achieve an emissions benefit. Applications for upgrades should include a discussion of the availability of engine upgrade kits/systems and indicate the pre- and post-project emission standard levels of the engines in order to demonstrate that the upgrade will result in an emissions benefit. Verified engine upgrades must be listed on one of EPA s websites below for the intended use of the vehicle/engine: A list of eligible, EPA verified engine upgrade technologies: Lists of certified remanufacture systems for locomotives and marine engines, and additional information on remanufacture systems: Cash match: The grantee is responsible for at least 60% of the total project cost (labor and equipment) as a cash match. Up to 40% of the total project, cost may be covered by the grant. 1D. Marine Rebuild or replace a Tier 0 to Tier 2 marine engine with an engine that is at least Tier 3. Engines must operate 1,000 hours or more per year. Project must be eligible according to the table below. Page 8 of 14

9 Current Engine Tier Certified Engine Replacement or Rebuild Tier 1-2 Certified Engine Replacement: engine model year Tier 3-4 All Electric Certified Engine Rebuild / Remanufacture System Tier 0 to Tier 2 No Yes Yes Yes Tier 3 or 4 No No No No Cash match: The grantee is responsible for at least 60% of the total project cost (labor and equipment) as a cash match. Up to 40% of the total project, cost may be covered by the grant. Category 2: Vehicle or equipment replacement Overview The replacement vehicle or equipment must perform the same function as the vehicle or equipment that is being replaced. Replaced vehicles or equipment must be scrapped or rendered permanently disabled within 90 days of the replacement. See RFGA, Section 7, under Grantee Responsibilities, for disabling instructions. Eligible projects 2A. On-highway Replace an eligible vehicle with a vehicle powered by a model year 2017 model year or newer certified diesel, natural gas, propane, electric-diesel hybrid, or all-electric engine. Eligible vehicles for replacement must be fully operational and not be scheduled for replacement for three years. On-highway vehicles are defined as classes 5 through 8 diesel trucks and buses, and must meet the following Gross Vehicle Weight Rating (GVWR): Class 5 GVWR 16,001 to 19,500 pounds Class 6 - GVWR 19,501 to 26,000 pounds Class 7 - GVWR 26,001 to 33,000 pounds The replaced vehicle must be model years 1995 through Model years 1994 or older, and 2007 or newer, are ineligible for replacement except 2007 to 2009 all electric. See table below. Current Vehicle Model Year Vehicle Replacement Engine Model Year Vehicle Replacement All-Electric 1994 and older No No 1995 to 2006 Yes Yes 2007 to 2009 No Yes MPCA reserves the right to limit grant dollars based on available funding for on-highway or non-road vehicle and equipment replacements to $40,000 per project. Cash match: The grantee is responsible for at least 75% of the cost of replacing an eligible vehicle as a cash match. Up to 25% of the cost to replace an eligible vehicle may be covered by the grant. 2B. Non-road Replace eligible equipment with a replacement that is powered by a new model year 2017 or newer certified diesel engine. Engines and equipment must be fully operational and have at least three years of operation left at the current company, and seven years of useful life remaining based on the type and age of equipment as defined by Appendix 2: EPA non-road remaining useful life. Engines must be 51 HP or greater. Page 9 of 14

10 Engines and equipment must operate 500 hours or more per year. Project must be eligible according to the table below. Current Engine Tier Non-road Equipment Replacement Tier 4 Non-road Equipment Replacement All-Electric Tier 0 or 1 Yes Yes Tier 2 or 3 Yes Yes MPCA reserves the right to limit grant dollars based on available funding for non-road vehicle and equipment replacements to $40, per project. Cash match: The grantee is responsible for at least 75% of the cost of replacing eligible equipment as a cash match. Up to 25% of the cost to replace eligible equipment may be covered by the grant. 2C. Drayage truck Early replacement of eligible drayage trucks with a 2013 model year or newer certified heavy-duty engine equipped with a diesel particulate filter (or diesel oxidation catalyst in the case of a Compressed Natural Gas (CNG) engine). Drayage Truck is defined as any Class 8 or larger in-use on-road vehicle with a GVWR of greater than 33,000 pounds. Drayage truck must operate within Minnesota ports, warehouses, or intermodal rail yard property for the purpose of loading, unloading, or transporting cargo, such as containerized, bulk or break-bulk goods. Page 10 of 14 Current Engine Model Year Drayage Truck Replacement 1992 and older No 1993 to 2006 Yes 2007 or newer No Cash match: The grantee is responsible for at least 50% of the cost of replacing an eligible drayage truck as the cash match. Up to 50% of the cost to replace a drayage truck may be covered by the grant. Category 3: Retrofits Emission Control Technology Overview An engine upgrade with a certified remanufacture system applied at the time of rebuild (not manufacturer upgrades that are retrofits verified by EPA or CARB) may only use funds for the incremental cost of the certified remanufacture system and associated labor costs for installation. The award may not be used for the entire cost of the engine rebuild. Remanufacturing must be performed by the original engine manufacturer, or by a dealership/distributor with a service program sponsored/backed by original engine manufacturer warranties (i.e., the new, remanufactured and upgraded engine is warranted by the Original Equipment Manufacturer). Eligible projects 3A. On-highway Install emission reduction technologies. Technologies must be found on one of these two lists: EPA verified technologies list: www3.epa.gov/otaq/diesel/verification/verif-list.htm. CARB list: Eligible vehicles and equipment for retrofitting must be fully operational and not be scheduled for replacement for three years.

11 On-highway vehicles are defined as Class 5 through 8 and must meet the following Gross Vehicle Weight Rating (GVWR): Class 5 GVWR 16,001 to 19,500 pounds Class 6 - GVWR 19,501 to 26,000 pounds Class 7 - GVWR 26,001 to 33,000 pounds Class 8 - GVWR 33,001 pounds or greater Preferred emission reduction technologies include EPA/CARB verified: diesel particulate filters (DPFs) and Selective Catalytic Reduction (SCR). Highway engines shall be retrofitted to model year (MY) 2007 or newer certified emission standards. Diesel oxidation catalytic exhausts (DOCs) or DPFs are eligible for vehicle model years 1995 through SCRs are eligible for vehicle model years 1995 through An auxiliary power unit (APU) may only be purchased for: Long-haul Class 8 vehicles that are model years 1995 through 2006 When the APU purchase is combined with a verified exhaust control system, as defined above. Current Engine Model Year DOC +/- CCV (closed crankcase ventilation) 1994 and older No No No 1995 to 2006 Yes Yes Yes 2007 to 2009 No No Yes 2010 or newer No No No Cash match: The grantee is responsible for at least 50% of the total project cost (labor and equipment) as a cash match. Up to 50% of the total project, cost may be covered by the grant. 3B. Non-road diesel equipment DPF SCR Retrofit an eligible engine with emission reduction technologies. Technologies must be on one of these two lists: EPA verified technologies list: CARB list: Common emission reduction technologies are diesel oxidation catalytic exhausts (DOCs) and diesel particulate filters (DPFs). Non-road engines shall be remanufactured to the cleanest certified emission standard possible. Non-road engines must be 51 HP or greater. Engines and equipment must operate 500 hours or more per year. Eligible equipment for retrofitting must be fully operational and have three years of operation left at the current company, and at least seven years of useful life remaining based on the type and age of equipment as defined by Appendix 2: EPA non-road remaining useful life. Cash match: The grantee is responsible for at least 50% of the total project cost (labor and equipment) as a cash match. Up to 50% of the total project, cost may be covered by the grant. Page 11 of 14

12 Category 4: Idle reduction technology Eligible projects 4A. Locomotiveidle reduction technologies Install eligible idle reduction technology on a yard or switcher locomotive. Line haul locomotives see: Locomotive must operate 1,000 hours or more per year in Minnesota. EPA technology types include: AESS (Automatic engine shut-down/start-upsystems) APU/GS (Auxiliary power units and generator sets) FOH aka DFH (Fuel operated heaters aka direct fired heaters) SCS (Shore connection systems) Automatic Engine Start-Stop (AESS) technologies are only eligible to be installed on locomotives currently certified to Tier 0 or unregulated. Current Locomotive Tier Certified Idle Reduction Technology Unregulated - Tier 2 Tier2+ switcher Tier2+ line haul Tier 3 Tier 4 Yes (AESS only Tier 0 and unregulated) Yes (Except AESS technology) Yes (Except AESS technology) No Cash match: The grantee is responsible for at least 60% of the total project cost (labor and equipment) as a cash match. Up to 40% of the total project, cost may be covered by the grant. 4B. Truck stop electrification Marine shore power connection Alternative maritime power Install an eligible marine shore connection system or on-road truck stop (or parking/loading dock area) electrification technology. The marine shore connection system project must be utilized at least 2,000 megawatt-hours (MW-hs.) or more per year and operate 1,000 hours or more per year. Cash match: The grantee is responsible for at least 70% of the total project cost (labor and equipment) as a cash match. Up to 30% of the total project, cost may be covered by the grant. On-highway truck auxiliary power unit (APU): See Category 3, Project 3A. Page 12 of 14

13 Appendix 2: EPA non-road remaining useful life Non-road vehicle/equipment replacement Current Engine Horsepower Current Engine Model Year (EMY) and Tier Vehicle/Equipment Replacement: Eng. Model YR and Newer; Tier 0 Tier and Newer; Tier 0 Tier and Newer; Tier 3 Tier 0-2 Tier 3-4i Tier 4 All-Electric No Yes* Yes Yes No Yes* Yes Yes No No Yes Yes *Tier 3 and Tier 4 interim (4i) allowed for vehicle/equipment replacement only when Tier 4 final is not yet available from OEM for 2017 model year equipment under the Transition Program for Equipment Manufacturers (TPEM). Non-road engine replacement Current Engine Horsepower Current Engine Model Year (EMY) and Tier Engine Replacement: Eng. Model YR 2017+* and Newer; Tier 0 Tier and Newer; Tier 0 Tier and Newer; Tier and Newer; Tier 0 Tier 2 Tier 0-3 Tier 4 All-Electric No Yes Yes No Yes Yes No Yes Yes No Yes Yes *Tier 3 and Tier 4 interim (4i) allowed for vehicle/equipment replacement only when Tier 4 final is not yet available from OEM for 2017 model year equipment under the Transition Program for Equipment Manufacturers (TPEM). Page 13 of 14

14 Appendix 3: Application evaluation scoresheet A 100-point scale will be used to evaluate eligible applications. Scores will be used to develop final recommendations. Applicants are encouraged to score their own application using the evaluation scoresheet before submitting their application. This step is not required, but may help ensure applications address the criteria evaluators will use to score applications. Category and Point Assignment Your score Maximum points Age of current equipment/vehicle 20 Annual equipment/vehicle fuel usage in Minnesota 25 Annual gallons of fuel used in Hennepin and Ramsey Counties 10 Annual gallons of fuel used in Twin Cities 7 county metro area 20 Calculation of cost per ton of pollution reduced 25 Total Score 100 Page 14 of 14