NORTH TEXAS AIRPORT EMISSIONS REDUCTION 2016 CALL FOR PROJECTS GUIDELINES. June 20, 2016
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1 NORTH TEXAS AIRPORT EMISSIONS REDUCTION 2016 CALL FOR PROJECTS GUIDELINES June 20, 2016 North Central Texas Council of Governments 616 Six Flags Drive Arlington, TX
2 TABLE OF CONTENTS INTRODUCTION... 1 PURPOSE... 1 CONTACT INFORMATION... 2 SCHEDULE... 2 ELIGIBLE ENTITIES... 2 REQUIREMENTS... 3 APPLICATION PROCESS... 9 CONSULTANTS SELECTION CRITERIA GRANT ADMINISTRATION AND REIMBURSEMENT OF EXPENSES REFERENCES NTAER2016CFP
3 INTRODUCTION The North Central Texas Council of Governments (NCTCOG), under the Environmental Protection Agency s (EPA) Clean Diesel Funding Assistance Program Fiscal Year (FY) 2015, is offering $600,000 in grant funding through the North Texas Airport Emissions Reduction 2016 Call for Projects (CFP). This CFP will fund replacement or repower of existing diesel-powered ground support equipment (GSE) operating at airports in the Dallas-Fort Worth (DFW) Ten-county ozone nonattainment area. PURPOSE Ten counties in the North Central Texas region are classified as moderate nonattainment under the 2008 Eight-hour ozone standard. This means ground-level ozone pollution levels in these counties exceed the Environmental Protection Agency s National Ambient Air Quality Standard for ozone. Ozone is formed when Nitrogen Oxides (NO X) and volatile organic compounds mix in the presence of sunlight and heat. Programs to reduce NO x emissions from mobile sources, which comprise approximately 76 percent of ozone forming pollutants, are an important element of working toward ozone attainment. Breathing ground-level ozone can result in a number of health effects that are observed in broad segments of the population. Evidence from observational studies indicates that higher daily ozone concentrations are associated with increased hospital admissions and other markers of morbidity. 1 In addition to threatening human health, high ozone concentrations pose a risk to the environment, wildlife, agriculture and manufactured structures in the region. Ozone nonattainment can also cost the region economically, as businesses may be subject to more strict regulations. It can also put funding to build new roadways at risk. GSE is a portion of the non-road emissions sector, as shown in Exhibit 1. Exhibit 1: 2017 Estimated NO x Emission Inventory 1 NTAER2016CFP
4 On October 26, 2015, the EPA published a final rule in the Federal Register to further lower the federal ozone standard. Under this newest standard, the nonattainment area is anticipated to expand to 11 counties. This highlights that efforts to reduce ozone-forming emissions will remain critically important to the region. CONTACT INFORMATION Please submit any questions or comments to: AQgrants@nctcog.org Website: NCTCOG Project Staff: Rachel Linnewiel Air Quality Planner rlinnewiel@nctcog.org Lori Pampell Clark Principal Air Quality Planner lclark@nctcog.org SCHEDULE Milestone Call for Projects Opens June 20, 2016 Workshop/Webinar Call for Projects Application Deadline & Clean Fleet Policy Adoption Deadline Estimated Timeframe June-July 2016, Various Times and Locations November 18, :00 pm Central Time Proposals Evaluated & Selected November 2016 January 2017 Awarded Projects Announced February 2017 Awardees to Receive Agreements and Begin Purchasing March 2017 All Approved Projects Must Be Implemented October 31, 2018 ELIGIBLE ENTITIES This CFP is open to all entities who own diesel-powered GSE operating at airports located in the ten counties currently classified as nonattainment for the pollutant ozone; this includes Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, and Wise counties. This eligible region is outlined in Exhibit 2. 2 NTAER2016CFP
5 Exhibit 2: North Texas Airport Emissions Reduction 2016 Call for Projects Eligible Counties and Airports June 2016 REQUIREMENTS All projects must reduce NO X emissions by reducing emissions from existing diesel-powered GSE. The following requirements will apply to all grant recipients under this program. NCTCOG reserves the right to withhold grant payment or request return of funds if these requirements are not met and/or not sufficiently documented. Potential applicants should consider these conditions carefully when evaluating whether to submit a grant application. Eligible Project Types: Equipment Replacement replacement of Tier 1, 2, and/or 3 diesel-powered GSE with Tier 4 or all-electric GSE. Engine Repower replacement of Tier 1, 2, and 3 diesel-powered GSE engines with a certified new, rebuilt, or remanufactured Tier 4 or all-electric GSE engine. See Table 1 on page 4 for Equipment Eligibility Details, including a Tier eligibility summary. 3 NTAER2016CFP
6 Equipment Requirements: Current Equipment to be Replaced/Repowered No funds awarded under this CFP shall be used to retrofit, repower, upgrade or replace a nonroad engine or equipment that has less than seven years of useful life remaining. The nonroad engine model years EPA has determined to have at least seven years of useful life remaining, based on typical engine load and usage, is presented in Table 1 below. At NCTCOG s discretion, certification by a mechanic may be required to ensure at least seven years of useful life remain. Current equipment/engine to be replaced or repowered must operate a minimum of 500 hours per year. New Equipment for Replacement/Repower New equipment/engine must perform the same function, be of the same type, and have a similar horsepower as the equipment being replaced. Horsepower increases of more than 25 percent will require specific approval by NCTCOG prior to purchase, and the applicant may be required to pay the additional costs associated with the higher horsepower equipment. New equipment/engine must remain operational for at least six years. Engines must be EPA or CARB certified for model year 2014 or later. Lists of certified engines can be found at: o EPA o CARB Under Browse Executive Orders choose Off-road Compression-Ignition Engines (Diesel). All-electric (i.e., zero emission) engine repowers or equipment replacements do not require EPA or CARB certification. Funding will not be awarded to replacement or repower projects that would have occurred within three years of the project start date based on normal attrition as defined in the equipment or fleet owner s budget plan, operating plan, standard procedures, or retirement schedule. Normal attrition does not include replacements or repowers that must occur due to a State or Local mandate. Replacement and repower projects must include a detailed discussion of the fleet owner s normal attrition engine/equipment repower/replacement schedule and must explain how the proposed emission reductions are not a result of equipment/engine repowers/replacements that would have occurred through normal attrition/engine repower within three years of the project start date. If the Applicant has a fleet turnover policy, the fleet turnover policy should be provided as part of the application. Table 2 on page 5 provides three examples of eligibility status based on scheduled attrition of 20 years. Table 1: Equipment Eligibility Details Equipment Eligibility Details 1. Current Engine Model Year (MY) 2. Eligible Grant Activities Eligibility Horsepower (HP) Eligible MY If the Current Engine Is: You May: and Newer Replace/Repower with Tier 4 (any fuel type) or All-Electric Tiers 0/1/2/ and Newer Equipment/Engine (Engine must be MY 2014 or newer) and Newer Tier 4 Replace/Repower with an All-Electric Equipment/Engine (Engine must be MY 2014 or newer) 4 NTAER2016CFP
7 Table 2: Example Equipment Eligibility Based on 20-Year Attrition Schedule MY HP Scheduled Attrition (20 year schedule) Project Start Year Equipment No Equipment Yes Equipment Yes Eligible? Cost Eligibility: Eligible Costs Up to 25 percent of the cost of an eligible replacement equipment (grant recipients will be responsible for cost-sharing at least 75 percent of the cost of an eligible replacement piece of equipment). Up to 40 percent of the cost (labor and equipment) of an eligible engine repower (grant recipients will be responsible for cost-sharing at least 60 percent of the cost of an eligible engine repower). The costs for professional services, including engineering and technical work, required for completion of the activity, subject to the restrictions pertaining to that type of project. The cost of the automatic vehicle locator service (AVLS) device, described on page 8. Ineligible Costs Fees associated with Buy Boards and financing. Administrative costs and other internal costs of the grant recipient including, but not limited to, personnel expenses, internal salaries, indirect costs, and travel. Fees for third-party consultant or dealer hired to coordinate the application or manage and administer grant-funded activities, including coordination of the work and submission of reports and paperwork. This restriction is not intended to limit the ability of the equipment supplier or installer to include reasonable and necessary costs for managing the work to be performed in the price of the engine, equipment, or installation services. Per the Uniform Grant Management Standards, the cost-plus-percentage-of-cost method of contracting for professional services shall not be use. Cost Estimate As part of the application, Applicants must submit a cost estimate for each project type, which will be the basis for determining the maximum grant award amount based on applicable funding thresholds. Applicants are advised to consult multiple vendors to ensure that estimated costs are as accurate and realistic as possible. Awarded applicants will be required to abide by procurement procedures which are consistent with federal funding requirements as described in the next section. 5 NTAER2016CFP
8 Procurement Requirements: Project Dates Projects must be implemented and final reimbursement request submitted by October 31, NCTCOG expects notifying grant recipients of award in Fall 2016, with a Notice to Proceed provided soon thereafter. Grant recipients are not permitted to incur approved costs until a Notice to Proceed is received. Competitive Procurement Grant recipients are required to comply with federal procurement requirements regarding fair and open competition when making purchases. These requirements also impact the process through which a purchase can be made. Applicants should review NCTCOG s Third Party Procurement Procedures document, which is available at to ensure understanding of these requirements. o In summary, these procedures require that awardees: Maintain a written code of conduct related to contract award and administration; Maintain a contract administration system to ensure vendors and contractors perform according to the terms; Conduct procurement transactions in an open, fair and competitive manner; and Maintain written procurement procedures. The Third Party Procurement Procedures provide guidance on the requirements for each type of procurement by dollar threshold. Projects under this proposal will fall under one of the following procurement methods: Purchases under $150,000: must obtain at least two competitive written quotes Purchases over $150,000: must follow requirements for one of the following: o Publicly Advertised Sealed Bid Process o Publicly Advertised Competitive Proposal Process Public sector entities may make purchases through governmental cooperative purchasing programs For purchases over $150,000 total cost, NCTCOG must approve the recipient s planned procurement process prior to the recipient moving forward with purchases. NCTCOG uses a Third Party Procurement Review Checklist to determine whether awardees have complied with the procurement requirements. NCTCOG staff is available to assist awarded applicants with any questions. Applicants are encouraged to review these procedures carefully prior to applying. Disposition Requirements: For all replacement and repower projects, the equipment/engine and chassis (where applicable) being replaced must be rendered permanently disabled. Disabling the engine requires cutting or punching a three inch by three inch (3 x 3 ) hole in the engine block. Disabling the chassis consists of cutting completely through the frame/frame rails on each side of the vehicle/equipment at a point located between the front and rear axles. 6 NTAER2016CFP
9 Alternative disabling methods must be approved by NCTCOG in advance on a case by case basis. If other, pre-approved scrappage methods are used, details and documentation must be submitted to NCTCOG. Complete documentation of disposition must be submitted to NCTCOG at the end of the project, including a completed Certificate of Destruction as well as before and after photos of all destroyed components within 90 days of project implementation. NCTCOG staff will be available, upon request, to witness equipment and/or engine destruction if so desired. Any funds received for scrapped equipment/engines will be treated as program income, which will be recorded as part of the applicant s required cost share. Applicants will be required to report scrap value when requesting reimbursement for implemented activities, or to retain scrapped equipment for internal use. Financial Requirements: Financial Disclosure Applicants must notify NCTCOG of the value of any existing financial incentives that directly reduce the cost of the proposed activity, including tax credits or deductions, other grants, anticipated scrap value, or any other public financial assistance, to allow for accurate calculation of incremental cost. In addition, applicants must provide information regarding the anticipated source of matching funds. If match funds are anticipated to be sourced from a loan, NCTCOG may contact the applicant for further information. Local Match Applicants must identify local match sources, which must fund at least 75 percent of total replacement project cost and/or at least 60 percent of total repower project cost. Matching funds must not already be tied to emission reduction commitments (i.e. funding from the Texas Emissions Reduction Plan may not be used as matching funds). Security Interest Grant recipients may be required to grant NCTCOG a security interest in any grant-funded equipment/engine and will be required to document fulfillment of this requirement prior to reimbursement being issued. Documentation may be shown through items such as a title, lien, performance bond, etc. NCTCOG shall relinquish such security interest upon the end of the Activity Life or upon agreed-upon disposition, whichever occurs first. Usage Requirements: Geographic Area All grant-funded equipment/engines must be utilized exclusively in the ten-county DFW ozone nonattainment area, as outlined on page two, throughout the Activity Life. Reporting Grant recipients must commit to submitting reports regarding project status on a quarterly basis (January 15, April 15, July 15, and October 15 for the preceding three months' activity) for the duration of the Activity Life. Failure to submit these reports may be grounds for termination of Agreement and/or return of funds. Required reporting will include the following information for each activity: Hours/Fuel Used for the Three-Month Reporting Period Cumulative Hours/Fuel Used Since Project Began 7 NTAER2016CFP
10 Percent of Time Operating in DFW Ozone Nonattainment Area for the Three-Month Reporting Period Operational Issues or Changes (if any, such as significant maintenance concerns, repair needs, etc.) Usage reporting will be completed online through the NCTCOG website ( A username and password will be provided by NCTCOG. Automatic Vehicle Locator Service Grant recipients will be required to install an automatic vehicle locator service (AVLS) device, from a vendor selected by NCTCOG, on all grant-funded equipment to facilitate required usage reporting. The AVLS device will track operating characteristics of the equipment, including but not limited to hours used, equipment speed (where relevant), and percentage of use within each of the ten ozone nonattainment counties. Use of AVLS may reduce reporting requirements, described on page 7. Notification Recipients must agree to notify NCTCOG of changes in the following during the Activity Life: termination of use, change in use or location, sale, transfer, or accidental or intentional destruction of grant-funded equipment/engines. Recipients must agree to notify NCTCOG within forty-eight hours if the AVLS device has malfunctioned or been damaged so that repair can be scheduled. Commitment Grant recipients submitted usage reporting will be evaluated against the use committed in the grant application. Failure to achieve the projected usage may result in additional monitoring and/or a financial penalty up to the award amount for emissions reductions not achieved. Property Management Requirements: Grant recipients must maintain grant-funded equipment/technology in accordance with federal property management requirements. At the end of the Activity life, or upon transfer of ownership, a written certification of disposition must be submitted documenting the continued use and condition of the equipment/engine, fair market value, remaining useful life, and any actual or anticipated improvements that may increase the value of the equipment. DUNS Number: Applicants are required to provide a Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) number. Applicants can receive a DUNS number at no cost by calling the toll-free DUNS Number request line at , or visiting the D&B Website at If a DUNS number has not yet been assigned, please include the date the applicant requested a number. Emissions Credit: Applicant must surrender all emissions reductions to NCTCOG to meet air quality requirements and goals. The recipient may not utilize emissions reductions to satisfy other air quality commitments unless otherwise agreed to by NCTCOG. 8 NTAER2016CFP
11 Voluntary Reductions: Projects must be voluntary in nature and not required by any local, state, or federal law, rule, regulation, memorandum of agreement, or other legally binding document. Minority/Women s Business Enterprise Participation: Applicants must use good faith efforts to contract with Minority Business Enterprises (MBE) and Women Business Enterprises (WBE) as part of this program. As part of the EPA Clean Diesel Funding Assistance Program, NCTCOG has the following DBE/MBE/WBE Fair Share Objectives and Goals: MBE: 7.34% Construction; 19.37% Supplies; 12.98% Services; and 19.57% Equipment WBE: 10.60% Construction; 14.15% Supplies; 23.70% Services; and 19.64% Services If an applicant is unable to identify contracting opportunities consistent with the goals outlined above, applicants must document their good faith efforts. Documentation of good faith efforts consist of: (a) Ensuring MBE/WBEs are aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. (b) Making information on forthcoming opportunities available to MBE/WBEs and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by MBE/WBEs in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of 30 calendar days before the bid or proposal closing date. (c) Consider whether large contracts could divided into subcontracts with MBE/WBEs. (d) Encourage contracting with a consortium of MBE/WBEs when a contract is too large for one of these firms to handle individually. (e) Use the services and assistance of the SBA and the Minority Business Development Agency of the Department of Commerce. Grant Recipients must report to NCTCOG expenditures related to MBE/WBE contract opportunities. APPLICATION PROCESS Application forms are available through click on the box called North Texas Airport Emissions Reduction 2016 Call for Projects. Applications must include original signatures form the applicant s Authorized Official on the certification statements in Part 4 of the application. Applications for the North Texas Airport Emissions Reduction 2016 Call for Projects must be received in-hand by 5 pm Central Time on July 29, Mailed applications which are postmarked by this time but have not yet been received are not considered in-hand and will be classified as a late submittal. Late submittals will not be accepted under any circumstances. Mail will be returned, unopened. Applications must be in a sealed envelope with a return address on the outside. Faxed applications will not be accepted. 9 NTAER2016CFP
12 Applications should be mailed or delivered to the following address: North Central Texas Council of Governments Transportation Department North Texas Airport Emissions Reduction 2016 Call for Projects Attention: Rachel Linnewiel 616 Six Flags Drive Arlington, TX Applicants are strongly encouraged to also the application file in Excel format, with attachments, to Applicants are encouraged to submit in advance of the submission deadline to allow staff time to review for completeness. A checklist of required materials is included in the Application in the AppInstructions tab. Applicants should carefully review this checklist to ensure that all required materials are included with the application at the time of submittal. Application Checklist: All of the items listed below must be in hand by the application deadline for a project to be deemed complete. Completed Application Form (including Part 1, Part 2, Part 3, and Part 4) Fleet Turnover Policy Adopted Clean Fleet Policy Supplemental information which is material to the application will not be accepted after the application deadline. Non-material omissions will not constitute an incomplete application. CONSULTANTS Private consultants may be available to assist in completing and submitting an application. These consultants do not represent NCTCOG, and NCTCOG neither encourages nor discourages the use of a consultant to assist with the application process. NCTCOG has no agreement with any consultant and applications submitted by a particular consultant will not receive any more favorable treatment than other applications. Fees charged by a consultant are the responsibility of the applicant and may not be charged to the grant, either directly or as an addition to the cost basis of the grant-funded equipment. SELECTION CRITERIA NCTCOG will evaluate submitted applications based upon a competitive process focusing on costeffectiveness, diesel reduction effectiveness, and/or implementation feasibility/risk. NCTCOG may give priority consideration to: Projects located at Dallas-Fort Worth International Airport, Dallas Love Field, and Fort Worth Alliance Airport. Projects resulting in repower or replacement with electric motors or equipment (battery). NCTCOG will evaluate and rank eligible applications based on the following criteria: Quantitative Analysis (primary project ranking criteria): Cost per ton of NO X reduced in the ten-county ozone nonattainment area. 10 NTAER2016CFP
13 Qualitative Assessment: o o Multipollutant Emission Benefits Cost per ton of VOC reduced Cost per ton of Particulate Matter reduced Cost per ton of carbon dioxide emissions reduced Cost per gallon petroleum reduced Feasibility/risk Readiness for implementation Clearly identified funding needs, implementation procedures, and sources of local match Degree to which previously funded projects were successfully completed on time, without significant changes to work scope, and in an overall satisfactory manner. In accordance with new provisions under the Office of Management and Budget s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200) 2, which became effective in December 2014, NCTCOG will conduct a risk assessment of all anticipated subrecipients prior to final selection. This risk assessment will include an evaluation of financial stability, quality of management systems, and history of performance. NCTCOG is not obligated to fund a proposal from an applicant that has demonstrated marginal or unsatisfactory performance on previous grants or contracts with NCTCOG and/or other state or federal agencies. NCTCOG is not obligated to fund a proposal from an applicant based on a determination of the risks, including the financial condition of the applicant and other risk factors as may be determined by NCTCOG. NCTCOG may base funding decisions on factors associated with best achieving the purpose of the CFP, and is not obligated to select a project for funding. Additionally, NCTCOG may select parts of an application for funding or offer to fund less than the amount requested in an application. GRANT ADMINISTRATION AND REIMBURSEMENT OF EXPENSES Successful applicants will be notified of their selection and grant fund amounts awarded. Entities selected to receive grant funding will be required to execute an agreement with NCTCOG in order to receive grant funding. Services or work carried out under an agreement awarded as a result of this CFP must be completed within the scope of work, timeframe, and funding limitations specified by the agreement. A Notice to Proceed will be provided to awarded applicants; at that time, project implementation can commence, and costs may begin to be incurred. Under no circumstances will reimbursement be made for costs incurred prior to the date of the Notice to Proceed. Upon signature and execution of the agreement by NCTCOG, a copy of the executed agreement will be returned to the applicant. Grants will be made on a reimbursement basis for eligible expenses incurred and paid by the grant recipient. A cost may not be considered incurred until the grant-funded equipment/engine has been paid for by the grant recipient. Requests for reimbursement shall include documentation to show that the equipment/engine has been received, expenses paid by the grant recipient, and proper equipment/engine disposition has occurred (if applicable). Reimbursement request forms are available at 11 NTAER2016CFP
14 To further enhance the partnership and market emission reduction efforts, the grant recipient must agree to place a label on grant-funded equipment/engines if requested by NCTCOG. Awarded applicants are obligated to fulfill agreement requirements including, but not limited to, achievement of semi-annual usage requirements, surrender of eligible emissions credits, and completion of reporting requirements to NCTCOG for the Activity Life of the project. Failure to comply with these requirements may result in return of all or a pro-rata share of the grant funds to NCTCOG. REFERENCES 1 Environmental Protection Agency, Health Effects of Ozone in the General Population, 12/31/ Electronic Code of Federal Regulations (e-cfr), current as of 6/14/16 (2 CFR 200) NTAER2016CFP
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