Questions & Answers. Vermont Clean Diesel Grant Program. Release Date: July 14, 2017 Proposals Due: August 14, 2017 at 4:00 pm

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1 Questions & Answers Vermont Clean Diesel Grant Program Release Date: July 14, 2017 Proposals Due: August 14, 2017 at 4:00 pm Q & A/ In Person Meeting: July 25, :00 am - 12:00 pm National Life Building 1. Whisper Watt, (MQ) Diesel Generator- 25KW Commercial used to power to concert stage, lights on stage. Does it quality? Diesel Generator is rented from New York Firm. They would like to be able to acquire their own. $25K range. A. The 25-kW diesel generator may be eligible; however, based on the description given, this proposed project does not appear to meet the grant requirements. Funding under this Program cannot be used for the purchase of vehicles, engines, or equipment to expand a fleet. In other words, replacement of a generator is an eligible project, but purchasing a generator without scrapping an old generator is not an eligible project. 2. Is this grant available for the turnover of international to 2018 s? A. Unfortunately, replacement of a vehicle, model year 2012, is not eligible. Under this grant program, vehicles eligible for replacement must be engine model year for replacement with a 2017 or newer diesel or alternative fueled vehicle, or engine model year for replacement with an all-electric vehicle. 3. How much is the grant per unit? A. Under this grant program, up to 25% of the cost of a model year 2017 or newer diesel or alternative fueled vehicle can be funded, up to 35% of the cost of a model year 2017 or newer vehicle that is certified to CARB s Optional Low-NOx (nitrogen oxides) Standards can be funded, and up to 45% of the cost of a new, all-electric vehicle (including charging infrastructure) can be funded. 4. Our town is looking to replace a 1995 International diesel plow truck with 2018 international diesel plow truck and a 2006 Ford T350 diesel utility truck with a Ford F350 (or similar) diesel pick up. Will these replacements qualify for the Grant Program? If so will the grant be 25% or 35%? A. Please keep in mind the Early Attrition requirement. This grant program is providing funding as an incentive to replace older, more heavily polluting vehicles and equipment earlier than would have normally occurred, thus accelerating the turnover of dirtier diesel vehicles and equipment, which tend to have a long useful life. This is the main reason that replacements that would have occurred through normal attrition are considered to be the result of normal fleet turnover and are not eligible for funding. Normal attrition is generally defined as a replacement that is scheduled to take place within 3 years of the project start date. Essentially, any replacement planned to occur before September 30, 2020 would not

2 be eligible. This is a federal requirement and since the Vermont Clean Diesel Grant Program is funded with a federal grant, we have to comply with the Early Attrition requirement. Under this grant program, up to 25% of the cost of a model year 2017 or newer diesel or alternative fueled vehicle can be funded, up to 35% of the cost of a model year 2017 or newer vehicle that is certified to CARB s Optional Low-NOx (nitrogen oxides) Standards can be funded, and up to 45% of the cost of a new, all-electric vehicle (including charging infrastructure) can be funded. At this time, very few vehicles are certified to CARB s Optional Low-NOx (nitrogen oxides) Standards. Currently, Cummins has certified two natural gas engines to the optional low-nox standards and both engines are commercially available. Please be sure to ask the dealer if you are unsure of the replacement vehicle s emissions certification. 5. Our town has a 1989 Caterpillar E120B excavator, is this piece of equipment eligible under this grant opportunity? A. Eligibility depends on the horsepower as well as the age of the excavator. Please refer to Table 2 on page 6 of the RFP, which shows nonroad funding restrictions. For example, based on this table, a 301 (or higher) horsepower excavator with an engine model year 1985 or newer would be eligible for replacement with an excavator powered with a Tier 4 engine. Also, nonroad equipment must operate 500 hours or more annually in order to be eligible. 6. Our town has a 20-year-old Cat loader. I was wondering if this vehicle would qualify for you grant program? The Town is interested in making this vehicle compliment. A. Eligibility depends on the horsepower as well as the age of the excavator. Please refer to Table 2 on page 6 of the RFP, which shows nonroad funding restrictions. For example, based on this table, a 301 (or higher) horsepower excavator with an engine model year 1985 or newer would be eligible for replacement with an excavator powered with a Tier 4 engine. Also, nonroad equipment must operate 500 hours or more annually in order to be eligible. 7. I have a maple/beef farm and would like to replace one of my tractors. If I trade with a dealer can they resell my trade? I did see #14 on scrapping but not sure how this applies to tractors. The tractor I would trade I believe is a 2010 or horse power. A. Under this Program, replacement of a nonroad tractor would require scrapping (permanently disabling) the old tractor. Equipment and components from the permanently disabled tractor may be salvaged. If the permanently disabled tractor is to be sold as scrap, then any income generated will be deducted from the total allowable costs to determine the net allowable costs on which the award is based. Any income generated must be spent on project activities before spending/requesting reimbursement for project activities. The goal of this Program is to reduce diesel emissions. In this scenario that you have proposed, emissions reduction is accomplished by scrapping and replacing your older tractor with a new tractor, which allows for an older, more heavily polluting piece of diesel equipment to be removed from the fleet and replaced with newer and cleaner technology.

3 Eligibility depends on the horsepower as well as the age of the tractor. Please refer to Table 2 on page 6 of the RFP, which shows nonroad funding restrictions. Based on this table, a 105- horsepower tractor with an engine model year 2010 would be eligible for replacement with tractor, engine model year 2017 or newer, powered with a Tier 4 engine. Also, nonroad equipment must operate 500 hours or more annually in order to be eligible. 8. Are state agencies eligible to apply for this grant opportunity? A. Yes. Please keep in mind that under this Program, the applicant s cost share cannot be met with other federal funds. 9. I was also wondering if this Grant opportunity applied to new trucks we purchased last year or only to new trucks that we are purchasing in the 2017 calendar year? Also, can you give me any indication of what level of grant support we could potentially expect to receive for the purchase of a new diesel delivery truck to replace a MUCH older truck? The average cost of the replacement truck approximately $104, A. Unfortunately, this grant opportunity cannot be applied toward vehicles already purchased. Program funds cannot be used to cover expenses incurred prior to the project period (beginning October 1, 2017) and expenses incurred prior to the project period cannot be used as a cost-share for projects funded under this Program. Regarding the trucks you are purchasing in the 2017 calendar year, please keep in mind the Early Attrition requirement. This grant program is providing funding as an incentive to replace older, more heavily polluting vehicles and equipment earlier than would have normally occurred, thus accelerating the turnover of dirtier diesel vehicles and equipment, which tend to have a long useful life. This is the main reason that replacements that would have occurred through normal attrition are considered to be the result of normal fleet turnover and are not eligible for funding. Normal attrition is generally defined as a replacement that is scheduled to take place within 3 years of the project start date. Essentially, any replacement planned to occur before September 30, 2020 would not be eligible. This is a federal requirement and since the Vermont Clean Diesel Grant Program is funded with a federal grant, we have to comply with the Early Attrition requirement. Under this grant program, up to 25% of the cost of a model year 2017 or newer diesel or alternative fueled vehicle can be funded, up to 35% of the cost of a model year 2017 or newer vehicle that is certified to CARB s Optional Low-NOx (nitrogen oxides) Standards can be funded, and up to 45% of the cost of a new, all-electric vehicle (including charging infrastructure) can be funded. For example, under this Program if the purchase price for the new replacement diesel vehicle is $104,000, then the award amount could be 25% of that cost, or $26, Are diesel fueled generators that may be used for participation in electric grid demand response or peak management eligible for grants under the program? A. These types of generators may be eligible. Eligibility generally depends on the horsepower as well as the age of the generator and annual hours of operation. Please refer to the Nonroad

4 section (number 16) on page 6 of the RFP, which shows nonroad funding restrictions. For example, based on this table, a 301 (or higher) horsepower generator with an engine model year 1985 or newer may be eligible for replacement, if it operates 500 hours or more annually. Stationary generators are subject to additional requirements relating to mandated measures. Please refer to Restriction for Mandated Measures section (number 4) on page 4 of the RFP. Projects involving stationary engines will not be considered for funding if the emission 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). For additional information on the EPA s RICE Rule and the justification necessary, please refer to the RICE Rule Summary document as well as the Substantiation Statement form found on page 21 of the Request for Proposal (RFP). 11. Does a: 2012 Chevy Silverado 2500 Gross Vehicle weight 9,900 lbs. qualify for a diesel upgrade under this grant? A. Unfortunately, no. This grant opportunity is for heavy-duty diesel vehicles, weight Class 5-8 with a gross vehicle weight rating of 16,001 pounds or more and engine model year How much the total program funding available for the Vermont Clean Diesel Grant Program? What is the minimum project size (i.e., funding request)? What is the maximum project size (i.e., funding request)? A. The current grant funding available is approximately $190,000. There are NO project size minimums or maximums. 13. Our town is considering applying for the Clean Diesel Grant Program for the replacement of our sidewalk plow which originates from Will it qualify? A. This type of nonroad equipment may be eligible. Eligibility generally depends on the horsepower as well as the age of the plow and annual hours of operation. Please refer to the Nonroad section (number 16) on page 6 of the RFP, which shows nonroad funding restrictions. For example, based on this table, a 51 to 300 horsepower plow with an engine model year 1995 or newer may be eligible for replacement, if it operates 500 hours or more annually. 14. Do you want to view the actual scrappage of the vehicle or would you prefer photos? A. If your schedule and our schedules allow we would like the opportunity to view the scrappage. However, photo documentation of the scrappage is required.

5 15. Are we allowed to keep parts of the vehicle that is being scrapped as long as it is not the engine or chassis? A. Yes, 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.) and you can keep these, use them on other vehicles/equipment, or sell them. If scrapped, or salvaged vehicle/equipment chassis or components are to be sold, program income requirements apply. Program income requirements - any income generated will be deducted from the total allowable costs to determine the net allowable costs on which the award is based. Any income generated must be documented and spent on project activities before spending/requesting reimbursement for project activities. 16. How long do we have before we have to scrap the old vehicle? A. The requirement from the Environmental Protection Agency (EPA) is that it must be scrapped within ninety (90) days of receiving delivery of the new vehicle. 17. Does this grant become available every year? A. Generally, yes, this grant opportunity is available on an annual basis; however, this grant program relies on federal funds, which may be impacted by changes in the federal budget. The US Congress is in the process of reauthorizing the Diesel Emission Reduction Act (DERA), which is the federal source of funding for this grant program, for 2018 through What is the total amount that is available under this grant for this year? A. The total available this year is approximately $190, Does the State of Vermont have to be on the title of the new vehicle purchased? A. No, the State will not be on the title. The vehicle will be owned by the grant recipient. At the end of the project period the recipient will continue to use the vehicle purchased under this grant program in the project or program for which it was acquired as long as needed. 20. Does the new vehicle need to be the same as the one scrapped? A. Yes, it must be like for like to qualify. The replacement vehicle, engine, or equipment must perform the same function and operation as the vehicle, engine, or equipment that is being replaced. More specifically, the replacement vehicle, engine, or equipment must be of the same type and similar gross vehicle weight rating (GVWR) or horsepower as the vehicle, engine, or equipment being replaced.

6 a) Nonroad: Horsepower increases of more than 25 percent will require specific approval by the state prior to purchase, and the applicant may be required to pay the additional costs associated with the higher horsepower equipment. b) Highway: The replacement vehicle must not be in a larger weight class than the existing vehicle (Class 5, 6, 7, or 8). The engine s primary intended service class must match the vehicle s weight class (i.e. a light heavy-duty diesel engine is used in a vehicle with GVWR 16,001 19,500 pounds, a medium heavy-duty diesel engine is used in a vehicle with a GVWR of 19,501 33,000 pounds, and a heavy heavyduty diesel engine is used in a vehicle with a GVWR greater than 33,000 pounds.) Exceptions may be granted for vocational purposes, however the GVWR must stay within 10 percent of the engine s intended service class.

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