AWARD DS-99T41701-0.PDF

DS - 99T41701 - 0 Page 1
GRANT NUMBER (FAIN): 99T41701
U.S. ENVIRONMENTAL MODIFICATION NUMBER: 0 DATE OF AWARD
PROGRAM CODE: DS 09/23/2016
PROTECTION AGENCY TYPE OF ACTION MAILING DATE
New 09/30/2016
Cooperative Agreement PAYMENT METHOD: ACH#
ASAP 90179
RECIPIENT TYPE: Send Payment Request to:
County Las Vegas Finance Center email:
lvfc-grants@epa.gov
RECIPIENT: PAYEE:
Maricopa County Air Quality Department Maricopa County Air Quality Department
1001 North Central Avenue 1001 North Central Avenue
Phoenix, AZ 85004 Phoenix, AZ 85004
EIN: 86-6000472
PROJECT MANAGER EPA PROJECT OFFICER EPA GRANT SPECIALIST
Philip McNeely Lauren Maghran Elizabeth Armour
1001 North Central Avenue 75 Hawthorne Street, AIR-8 Grants Management Section, EMD-6-1
Phoenix, AZ 85004 San Francisco, CA 94105 E-Mail: armour.elizabeth@epa.gov
E-Mail: philmcneely@mail.maricopa.gov E-Mail: Maghran.Lauren@epa.gov Phone: 415-947-4264
Phone: 602-506-6701 Phone: 415-947-4107
PROJECT TITLE AND DESCRIPTION
STATE CLEAN DIESEL GRANT PROGRAM
Maricopa County's Air Quality Department plans to use this FY 2017 State Clean Diesel Grant to create a Grant Sub Award Program to retrofit approximately
37 medium/heavy duty diesel vehicles operating in the metropolitan Phoenix area with Diesel Oxidation Cayalyst (DOC) technology.
This assistance agreement provides federal funding in the amount of $217,069. See Terms and Conditions.
BUDGET PERIOD PROJECT PERIOD TOTAL BUDGET PERIOD COST TOTAL PROJECT PERIOD COST
10/01/2016 - 09/30/2017 10/01/2016 - 09/30/2017 $217,069.00 $217,069.00
NOTICE OF AWARD
Based on your Application dated 04/27/2016 including all modifications and amendments, the United States acting by and through the US Environmental
Protection Agency (EPA) hereby awards $217,069. EPA agrees to cost-share 100.00% of all approved budget period costs incurred, up to and not exceeding
total federal funding of $217,069. Recipient's signature is not required on this agreement. The recipient demonstrates its commitment to carry out this award
by either: 1) drawing down funds within 21 days after the EPA award or amendment mailing date; or 2) not filing a notice of disagreement with the award terms
and conditions within 21 days after the EPA award or amendment mailing date. If the recipient disagrees with the terms and conditions specified in this award,
the authorized representative of the recipient must furnish a notice of disagreement to the EPA Award Official within 21 days after the EPA award or
amendment mailing date. In case of disagreement, and until the disagreement is resolved, the recipient should not draw down on the funds provided by this
award/amendment, and any costs incurred by the recipient are at its own risk. This agreement is subject to applicable EPA regulatory and statutory provisions,
all terms and conditions of this agreement and any attachments.
ISSUING OFFICE (GRANTS MANAGEMENT OFFICE) AWARD APPROVAL OFFICE
ORGANIZATION / ADDRESS ORGANIZATION / ADDRESS
U.S. EPA, Region 9 U.S. EPA, Region 9
Grants Management Section, EMD 6-1 Air Division, AIR-1
75 Hawthorne Street 75 Hawthorne Street
San Francisco, CA 94105 San Francisco, CA 94105
THE UNITED STATES OF AMERICA BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY
Digital signature applied by EPA Award Official Craig A. Wills - Grants Management Officer DATE
09/23/2016

EPA Funding Information DS - 99T41701 - 0 Page 2
FUNDS FORMER AWARD THIS ACTION AMENDED TOTAL
EPA Amount This Action $ $ 217,069 $ 217,069
EPA In-Kind Amount $ $ $ 0
Unexpended Prior Year Balance $ $ $ 0
Other Federal Funds $ $ $ 0
Recipient Contribution $ $ $ 0
State Contribution $ $ $ 0
Local Contribution $ $ $ 0
Other Contribution $ $ $ 0
Allowable Project Cost $ 0 $ 217,069 $ 217,069
Assistance Program (CFDA) Statutory Authority Regulatory Authority
66.040 - State Clean Diesel Grant Program (B) Diesel Emissions Reduction Act of 2010 2 CFR 200
codified at 42 U.S.C. 16131 et seq 2 CFR 1500 and 40 CFR 33
Fiscal
Site Name Req No FY Approp. Budget PRC Object Site/Project Cost Obligation /
Code Organization Class Organization Deobligation
- 1609M6S107 16 E4 09M1 102AH4 4123 - - 217,069
217,069

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DS - 99T41701 - 0 Page 3
Budget Summary Page
Table A - Object Class Category Total Approved Allowable
(Non-construction) Budget Period Cost
1. Personnel $14,477
2. Fringe Benefits $5,820
3. Travel $70
4. Equipment $0
5. Supplies $1,380
6. Contractual $10,813
7. Construction $0
8. Other $177,150
9. Total Direct Charges $209,710
10. Indirect Costs: % Base See Term and Condition $7,359
11. Total (Share: Recipient 0.00 % Federal 100.00 %.) $217,069
12. Total Approved Assistance Amount $217,069
13. Program Income $0
14. Total EPA Amount Awarded This Action $217,069
15. Total EPA Amount Awarded To Date $217,069

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Administrative Conditions
The recipient agrees to comply with the current EPA general terms and conditions available at:
https://www.epa.gov/grants/epa-general-terms-and-conditions-effective-march-29-2016-or-later. These
terms and conditions are in addition to the assurances and certifications made as a part of the award and
the terms, conditions or restrictions cited throughout the award. The EPA repository for the general
terms and conditions by year can be found at http://www.epa.gov/grants/grant-terms-and-conditions.
A. Annual Federal Financial Report (FFR) - SF 425
For awards with cumulative project and budget periods greater than 12 months, the recipient will submit
an annual FFR (SF 425) covering the period from "project/budget period start date" to September 30 of
each calendar year to the U.S. EPA Las Vegas Finance Center (LVFC). The FFR will be submitted
electronically to lvfc-grants@epa.gov no later than December 30 of the same calendar year. The form
with instructions can be found on LVFC’s website at http://www2.epa.gov/financial/forms.
B. Procurement
The recipient will ensure all procurement transactions will be conducted in a manner providing full and
open competition consistent with 2 CFR Part 200.319. In accordance 2 CFR Part 200.323 the grantee
and subgrantee(s) must perform a cost or price analysis in connection with applicable procurement
actions, including contract modifications.
C. Six Good Faith Efforts 40 CFR Part 33, Subpart C
Pursuant to 40 CFR Section 33.301, the recipient agrees to make the following good faith efforts
whenever procuring construction, equipment, services and supplies under an EPA financial assistance
agreement, and to require that sub-recipients, loan recipients, and prime contractors also comply. Records
documenting compliance with the six good faith efforts shall be retained:
(a) Ensure DBEs are made aware of contracting opportunities to the fullest extent practicable through
outreach and recruitment activities. For Indian Tribal, State and Local and Government recipients, this
will include placing DBEs on solicitation lists and soliciting them whenever they are potential sources.
(b) Make information on forthcoming opportunities available to DBEs and arrange time frames for
contracts and establish delivery schedules, where the requirements permit, in a way that encourages and
facilitates participation by DBEs 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 in the contracting process whether firms competing for large contracts could subcontract
with DBEs. For Indian Tribal, State and local Government recipients, this will include dividing total
requirements when economically feasible into smaller tasks or quantities to permit maximum
participation by DBEs in the competitive process.
(d) Encourage contracting with a consortium of DBEs 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.
(f) If the prime contractor awards subcontracts, require the prime contractor to take the steps in
paragraphs (a) through (e) of this section.

D. Utilization of Disadvantaged Business Enterprises
General Compliance, 40 CFR Part 33
The recipient agrees to comply with the requirements of EPA’s Disadvantaged Business Enterprise
(DBE) Program for procurement activities under assistance agreements, contained in 40 CFR Part 33.
Fair Share Objectives, 40 CFR Part 33, Subpart D
A recipient must negotiate with the appropriate EPA award official, or his/her designee, fair share
objectives for MBE and WBE participation in procurement under the financial assistance agreements.
In accordance with 40 CFR Section 33.411 some recipients may be exempt from the fair share objective
requirements as described in 40 CFR Part 33, Subpart D. Recipients should work with their DBE
coordinator if they think their organization may qualify for an exemption.
The dollar amount of this assistance agreement, or the total dollar amount of all of the recipient’s
financial assistance agreements in the current federal fiscal year from EPA is $250,000 or more. The
recipient accepts the applicable MBE/WBE fair share objectives/goals negotiated with EPA by the
Arizona Department of Environmental Quality as follows:
MBE WBE
Construction 12% 5%
Equipment 4% 4%
Services 3% 2%
Supplies 1% 1%
The recipient accepts the fair share objectives/goals stated above and attests to the fact that it is
purchasing the same or similar construction, supplies, services and equipment, in the same or similar
relevant geographic buying market as ADEQ.
Negotiating Fair Share Objectives/Goals, Section 33.404
The recipient has the option to negotiate its own MBE/WBE fair share objectives/goals. If the recipient
wishes to negotiate its own MBE/WBE fair share objectives/goals, the recipient agrees to submit
proposed MBE/WBE objectives/goals based on an availability analysis, or disparity study, of qualified
MBEs and WBEs in their relevant geographic buying market for construction, services, supplies and
equipment.
The submission of proposed fair share goals with the supporting analysis or disparity study means that
the recipient is not accepting the fair share objectives/goals of another recipient. The recipient agrees to
submit proposed fair share objectives/goals, together with the supporting availability analysis or disparity
study, to the Regional MBE/WBE Coordinator, Joe Ochab at Ochab.Joe@epa.gov, within 120 days of its
acceptance of the financial assistance award. EPA will respond to the proposed fair share objective/goals
within 30 days of receiving the submission. If proposed fair share objective/goals are not received within
the 120 day time frame, the recipient may not expend its EPA funds for procurements until the proposed
fair share objective/goals are submitted.
Contract Administration Provisions, 40 CFR Section 33.302
The recipient agrees to comply with the contract administration provisions of 40 CFR Section 33.302.
Bidders List, 40 CFR Section 33.501(b) and (c)
Recipients of a Continuing Environmental Program Grant or other annual reporting grant, agree to create
and maintain a bidders list. Recipients of an EPA financial assistance agreement to capitalize a revolving
loan fund also agree to require entities receiving identified loans to create and maintain a bidders list if
the recipient of the loan is subject to, or chooses to follow, competitive bidding requirements. Please see
40 CFR Section 33.501 (b) and (c) for specific requirements and exemptions.

E. MBE/WBE Reporting
General Compliance, 40 CFR Part 33, Subpart E – Reporting Condition
MBE/WBE reporting is required annually. Reporting is required for assistance agreements where there
are funds budgeted for procuring construction, equipment, services and supplies, including funds
budgeted for direct procurement by the recipient or procurement under subawards or loans in the “Other”
category, that exceed the threshold amount of $150,000, including amendments and/or modifications.
Based on EPA’s review of the planned budget, this award meets the conditions above and is subject to
Disadvantaged Business Enterprise (DBE) Program reporting requirements. Conversely, the recipient
must submit to the GrantsRegion9@epa.gov a justification and budget detail within 21 days of the award
date demonstrating that this award is not subject to the DBE reporting requirements.
The recipient agrees to complete and submit a “MBE/WBE Utilization under Federal Grants,
Cooperative agreements” report (EPA Form 5700-52A) on an annual basis. All procurement actions that
are reportable, not just that portion which exceeds $150,000.
When completing the annual report, recipients are instructed to check the box titled “annual:” in section
1B of the form. For the final report, recipients must check the box indicated for the “last report” of the
project in section 1B of the form. Annual reports are due by October 30 th of each year. Final reports are
due by October 30 th or 90 days after the end of the project period, whichever comes first.
The reporting requirement is based on total procurements. Recipients with expended and/or budgeted
funds for procurement are required to report annually whether the planned procurements take place
during the reporting period or not. If no budgeted procurements take place during the reporting period,
the recipient should check the box in section 5B when completing the form.
MBE/WBE reports should be sent to GrantsRegion9@epa.gov . The current EPA Form 5700-52A can be
found at the EPA Office of Small Business Program’s Home Page at
http://www.epa.gov/osbp/dbe_reporting.htm .
This provision represents an approved deviation from the MBE/WBE reporting requirements as
described in 40 CFR Part 33, Section 33.502; however, the other requirements outlined in 40 CFR Part
33 remain in effect, including the Good Faith Effort requirements as described in 40 CFR Part 33,
Subpart C, and Fair Share Objectives negotiation as described in 40 CFR Part 33, Subpart D.
F. Indirect Costs
If the recipient does not have a previously established indirect cost rate, it agrees that it will prepare its
indirect cost rate proposal and/or cost allocation plan in accordance with the Cost Principles under 2 CFR
Part 200, Subpart E. For proposal preparation, the recipient may use the appropriate completeness
checklist located at: http://www.aqd.nbc.gov/services/ICS.aspx
The local government recipient whose cognizant federal agency has been designated by the Office of
Management and Budget (OMB) must develop and submit its indirect cost rate proposal to its cognizant
agency within six (6) months after the close of the governmental unit’s fiscal year. If the cognizant
federal agency has not been identified by the OMB, the local government recipient must still develop
(and when required, submit) its proposal within that period.
The interstate agency recipient must send its proposal to its cognizant federal agency within six (6)
months after the end of its fiscal year. If EPA is the cognizant federal agency of the interstate agency,
local government, or special district, the recipient must send its indirect cost rate proposal within six (6)
months after the end of its fiscal year to:
Regular Mail

Office of Grants and Debarment
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, NW, MC 3903R
Washington, DC 20460
Attn: OGD Indirect Cost Rate Proposal Control Desk
Mail Courier (e.g. FedEx, UPS, etc.)
Office of Grants and Debarment
U.S. Environmental Protection Agency
1300 Pennsylvania Avenue, NW, 5th floor
Washington, DC 20004
Attn: OGD Indirect Cost Rate Proposal Control Desk
Electronic submissions of proposals may be sent via email to OGD_IndirectCost@epa.gov.
Recipients are entitled to reimbursement of indirect costs, subject to any statutory or regulatory
administrative cost limitations, if they have a current rate agreement or have submitted an indirect cost
rate proposal to their cognizant federal agency for review and approval. Recipients are responsible for
maintaining an approved indirect cost rate throughout the life of the award. Recipients may draw down
grant funds once a rate has been approved, but only for indirect costs incurred during the period specified
in the rate agreement. Recipients are not entitled to indirect costs for any period in which the rate has
expired.
Recipients with differences between provisional and final rates are not entitled to more than the award
amount. Recipients may request EPA approval to rebudget funds from direct cost categories to the
indirect cost category (to grants which have not expired or been closed out) to cover increased indirect
costs.
The recipient agrees to comply with the audit requirements prescribed in 2 CFR Part 200, Subpart F,
Audits of States, Local Governments, and Non-Profit Organizations.
Programmatic Conditions
DERA FY16 State Program
A. Substantial Federal Involvement for Cooperative Agreements
EPA will provide substantial involvement in the form of technical assistance, development of outputs,
and oversight. Specifically, substantial federal involvement will take the form of monitoring the
recipient’s project, participation and collaboration between EPA and the recipient in program content,
review of project progress, and quantification and reporting of results.
B. Emissions Control Technologies
Emissions Reduction Projects funded by the recipient pursuant to this assistance agreement must use
verified technologies and/or must use engines and engine configurations certified by EPA and, if
applicable, CARB. Technologies are verified under EPA or California’s Retrofit Technology
Verification Programs. A list of eligible, EPA verified exhaust control technologies and engine upgrade
technologies is available at: www.epa.gov/verified-diesel-tech/verified-technologies-list-clean-diesel and
a list of eligible, California Air Resources Board (CARB) verified exhaust control technologies is
available at: www.arb.ca.gov/diesel/verdev/vt/cvt.htm. A list of eligible, EPA verified idle reduction
technologies is available at: www.epa.gov/smartway/forpartners/technology.htm#tabs-4.
A list of eligible, EPA verified aerodynamic technologies is available at:
www.epa.gov/smartway/forpartners/technology.htm#tabs-2. A list of EPA verified low rolling resistance
tires is available at: www.epa.gov/smartway/forpartners/technology.htm#tabs-3. Lists of EPA certified
engines and certified remanufacture systems for locomotives and marine engines are available at:
www.epa.gov/otaq/certdata.htm. Lists of certified and compliant clean alternative fuel conversion

systems, and additional guidance, can be found at www.epa.gov/otaq/consumer/fuels/altfuels/altfuels.htm
. Vehicles operating in California must follow conversion rules issued by CARB.
Any question as to the eligibility or preference of a retrofit technology, including vehicle/equipment
replacement and repowers, should be directed to the EPA Project Officer. Technology changes may not
be allowed after a final workplan has been approved. If technology compatibility issues arise, EPA may
elect to terminate the cooperative agreement, at which time unobligated assistance funds must be
returned to EPA.
C. Quarterly Reporting and Environmental Results
Quarterly progress reports will be required. Quarterly reports are considered project status reports and
will address the progress made achieving the work plan goals. In general, quarterly reports will include
summary information on technical progress and expenditures, and planned activities for next quarter. A
template for the quarterly report is available at
www.epa.gov/cleandiesel/clean-diesel-state-allocations#report. Quarterly reports are due according to the
following schedule. If a due date falls on a weekend or holiday, the report will be due on the next
business day.
April 1 – June 30 Reporting Period: report due date July 30
July 1 – September 30 Reporting Period: report due date October 30

October 1 – December 31 Reporting Period: report due date January 30
January 1 – March 31 Reporting Period: report due date April 30
If a project start date falls within a defined Reporting Period the recipient must report for that period by
the given due date. This quarterly reporting schedule shall be repeated for the duration of the award
agreement.
D. Final Report:
The final project report will include all categories of information required for quarterly reporting,
including a final, detailed fleet description. The final project report will also include a narrative summary
of the project or activity, project results (outputs and outcomes) including final emissions benefit
calculations, and the successes and lessons learned for the entire project. To the extent possible, final
emission benefit calculations should be based on the actual number and type of technologies, vehicles,
equipment and engines implemented under the award and actual vehicle miles traveled, idling and/or
operating hours, and fuel use. If actual vehicle miles traveled, idling and/or operating hours, and fuel use
are not available, the final report will include a detailed explanation of how these values are derived, as
well as any assumptions or default values used, for the purposes of emissions benefit calculations. The
final report will also detail the methodologies used for the emission benefit calculation.
For projects involving vehicle/equipment replacement and repowers the recipient must provide in the
final report: 1) Evidence that the replacement activity is an “early replacement,” and would not have
occurred through normal attrition/fleet turnover (i.e. without the financial assistance provided by EPA)
within three years of the project period start date. Supporting evidence can include verification that the
vehicles or equipment being replaced have useful life left and fleet characterization showing fleet age
ranges and average turnover rates per the vehicle or fleet owner’s budget plan, operating plan, standard
procedures, or retirement schedule; 2) Evidence of appropriate scrappage (see E.3.5 and E.3.6 below);
and 3) Specification of the model years and the emission standard levels for PM and NOx, for both the
engine being replaced and the new engine.
For projects that take place in an area affected by, or includes vehicles, engines or equipment affected by
federal law mandating emissions reductions, the recipient must provide in the final report evidence that
emission reductions funded with EPA funds were implemented prior to the effective date of the mandate
and/or are in excess of (above and beyond) those required by the applicable mandate.
The final report shall be submitted to the EPA Project Officer within 90 days after the project period end
date or termination of the assistance agreement. A template for the final report is available at
www.epa.gov/cleandiesel/clean-diesel-state-allocations#report.
E. Use of Funds Restriction:
E.1. Mandated Measures: Recipient agrees that funds under this award cannot be used for emissions
reductions that are mandated under federal law. This refers to specific compliance dates within the
mandate, not when the mandate is passed. Voluntary or

elective emissions reductions measures shall not be considered “mandated”, regardless of whether the
reductions are included in the State Implementation Plan of a State.
E.2. Normal Attrition: Recipient agrees that funds under this award cannot be used for emission
reductions that result from vehicle/equipment replacements or repowers that would have occurred
through normal attrition/fleet turnover within three years of the project start date (e.g. FY14 award funds,
including recipient cost-share, shall not be used for replacements/repowers that would have occurred
through normal fleet turnover prior to September 30, 2017; FY15 award funds, including recipient
cost-share, shall not be used for replacements/repowers that would have occurred through normal fleet
turnover prior to September 30, 2018; FY16 award funds, including recipient cost-share, shall not be
used for replacements/repowers that would have occurred through normal fleet turnover prior to
September 30, 2019). Any question as to eligibility of a vehicle/equipment replacement or repower
should be directed to the EPA Project Officer.
E.3. Fleet Expansion: Recipient agrees that funds under this award, including subawards/subgrants,
cannot be used for the purchase of vehicles, engines, or equipment to expand a fleet. The recipient agrees
that:
E.3.1. The repowered or replacement vehicle, engine, or equipment must be of similar size and/or
horsepower, and will perform the same function and operation as the vehicle, engine, or equipment that is
being repowered or replaced (e.g., an excavator used to dig pipelines would be replaced by an excavator
that continues to dig pipelines).
E.3.2. For Engine Repowers : Horsepower increases of more than 25 percent will require specific
approval by the EPA Project Officer prior to purchase, and the applicant may be required to pay the
additional costs associated with the higher horsepower engine
E.3.3. For Nonroad Replacements : Horsepower increases of more than 25 percent will require written
approval by the EPA Project Officer prior to purchase, and the applicant may be required to pay the
additional costs associated with the higher horsepower equipment.
E.3.4. For Highway Replacements : 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
replacement vehicle’s weight class (i.e. a LHD diesel engine is used in a vehicle with GVWR 16,001 –
19,500 pounds, a MHD diesel engine is used in a vehicle with a GVWR of 19,501 – 33,000 pounds, and
an HHD 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 and any exceptions will require written approval by the EPA Project Officer prior
to purchase.
E.3.5. For Engine Repowers : The engine being replaced will be scrapped or rendered permanently
disabled within ninety (90) days of the replacement. Cutting a three inch by three inch hole in the engine
block is the preferred scrapping method. Other methods may be considered and will require prior written
approval by the EPA Project Officer. Evidence of appropriate disposal is required in a final assistance
agreement report submitted to EPA and includes a

signed certificate of destruction (to be provided by the EPA Project Officer) and digital photos of the
engine tag (showing serial number, engine family number, and engine model year) and the destroyed
engine block. If scrapped or salvaged engines are to be sold, program income requirements apply.
E.3.6. For Nonroad and Highway Replacements : The vehicle/equipment being replaced will be scrapped
or rendered permanently disabled within ninety (90) days of the replacement. Disabling the engine may
be completed as described in E.3.5 above. Disabling the chassis may be completed by cutting completely
through the frame/frame rails on each side of the vehicle/equipment at a point located between the front
and rear axles. Other acceptable scrappage methods may be considered and will require prior written
approval by the EPA Project Officer. Evidence of appropriate disposal is required in a final assistance
agreement report submitted to EPA and includes a signed certificate of destruction (to be provided by the
EPA Project Officer) and digital photos of the engine tag (showing serial number, engine family number,
and engine model year), the destroyed engine block, and cut frame rails or other cut structural
components as applicable. 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 salvaged
vehicle/equipment chassis or components are to be sold, program income requirements apply.
E.3.7 For Tire Replacements : The original tires should be scrapped according to local or state
requirements, or the tires can be salvaged for reuse or retreading. If salvaged tires are sold, program
income requirements apply.
E.4. Federal Matching Funds: Recipient agrees that funds under this award cannot be used for matching
funds for other federal grants unless expressly authorized by statute. Likewise, recipient may not use
federal funds as cost-share funds for the State Clean Diesel Grant Program, including funds received
under EPA’s National Diesel Emissions Reduction Programs and federal Supplemental Environmental
Project (SEP) funds.
E.5. Expenses Incurred Prior to the Project Period: Recipient agrees that, 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, funds
under this award cannot be used to cover expenses incurred prior to the project period and that expenses
incurred prior to the project period cannot be used as a cost-share for projects funded under this award.
E.6. Administrative Cost Expense Cap: No more than 15 percent of the recipient’s total project costs may
be used to cover administrative type costs (e.g. personnel, benefits, travel, and office supplies). Total
project costs include the federal share as well as any cost-share provided by the recipient. The recipient’s
indirect costs are not considered as administrative type costs and do not count towards the 15 percent
maximum.
E.7. Formerly Verified Technologies: No funds awarded under the Program shall be used for retrofit
technologies on EPA’s or CARB’s, “Formerly Verified Technologies” lists. EPA’s formerly verified list
can be found at: www.epa.gov/verified-diesel-tech/list-formerly-verified-technologies-clean-diesel, and
CARB’s formerly verified lists can be found at: www.arb.ca.gov/diesel/verdev/vt/fv1.htm,
www.arb.ca.gov/diesel/verdev/vt/fv2.htm, and www.arb.ca.gov/diesel/verdev/vt/fv3.htm.

E.8. Emissions Testing: Recipient agrees that funds under this award cannot be used for emissions testing
and/or air monitoring activities (including the acquisition cost of emissions testing equipment), or
research and development.
E.9. Fueling Infrastructure: Recipient agrees that funds under this award 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.
E.10. Single-Wide Wheels: Recipient agrees that funds under this award cannot be used for the purchase
of single-wide wheels except where a fleet is retrofitting from standard dual tires to SmartWay-verified
single-wide low rolling resistance tires. In this case, the cost of single-wide wheels would be acceptable
as additional equipment necessary to use the SmartWay verified technology.
E.11.Tires and Aerodynamics: Recipient agrees that funds under this award cannot be used to purchase
aerodynamic technologies or low rolling resistance tires, unless they are combined on the same vehicle
with a new installation of a verified exhaust control funded under this award. In addition, recipient agrees
that funds under this award cannot be used for the purchase of low rolling resistance tires or advanced
aerodynamic technologies if similar technologies have previously been installed on the truck or trailer.
E.12.Auxiliary Power Units: Recipient agrees that funds under this award cannot be used for the
purchase of APUs or generators for vehicles with MY 2007 or newer certified engine configurations on
long haul Class 8 vehicles.
E.13. Idle Reduction Technologies: Recipient agrees that funds under this award cannot be used for the
purchase of idle reduction technologies unless they are combined on the same vehicle with a new
installation of a verified exhaust control funded under this award, except for use on locomotives and
previously retrofitted school buses, and for shore connection systems or truck stop electrification
technologies.
E.14.Highway Model Year: Recipient agrees that funds under this award cannot be used to retrofit,
repower, convert or replace a bus, medium-duty, or heavy-duty highway vehicle with engine model year
1990 or older, or to retrofit engine model year 2007 or newer with DOCs or DPFs, or retrofit engine
model year 2010 or newer with SCR, or repower or replace or convert engine model year 2004-2006 with
other than all-electric, or replace, repower or convert engine model year 2007 or newer.
E.15. School Bus Model Year: Recipient agrees that funds under this award cannot be used to retrofit,
repower, convert or replace a school bus with engine model year 1990 or older, or repower or replace or
convert school buses with engine model year 2004-2006 with other than all-electric, or retrofit, replace,
repower or convert school buses with engine model year 2007 or newer.
E.16.Nonroad Useful Life and Operating Hours: Recipient agrees that funds under this award cannot be
used to retrofit, repower, upgrade or replace a nonroad engine or equipment that has less than seven years
of useful life remaining. A table distinguishing which nonroad engine model years EPA has determined
to have at least seven years of useful life remaining, based on the type and age of vehicle, can be found at
www.epa.gov/sites/production/files/2015-10/documents/fy14-nonroad-remaining-useful-life.pdf . In
addition, recipient agrees that funds under this award cannot be used to retrofit, repower, upgrade or
replace nonroad engines and equipment that operate less than 500 hours per year.

E.17 Nonroad Repower/Replacement: Recipient agrees that funds under this award cannot be used to
repower or replace nonroad Tier 0 (unregulated) engines to a nonroad Tier 1 or lower nonroad engine
standard or from a Tier 2 nonroad engine standard to a Tier 3 or lower nonroad engine standard.
E.18.Marine Repower/Replacement/Upgrade: Recipient agrees that funds under this award cannot be
used to repower, replace or upgrade Tier 3 or Tier 4 marine engines, or to repower or replace marine
engines from Tier 1 marine engine standard to Tier 1 marine engine standard, or from a Tier 2 marine
engine standard to a Tier 2 or lower marine engine standard.
E.19 Locomotive Retrofit/Repower/Replacement/Upgrade: Recipient agrees that funds under this award
cannot be used to retrofit unregulated or Tier 0 locomotives with SCR, or to upgrade, repower or replace
locomotives from: Tier 0+/1 to Tier 0+ or lower; Tier 1+/2 to Tier 1+ or lower; Tier 2 to Tier 1+ or
lower; or, from Tier 2+ to Tier 2+ or lower. In addition, recipient agrees that funds under this award
cannot be used upgrade, repower or replace line-haul locomotives from Tier 2 to Tier 4, or to upgrade,
repower or replace line-haul locomotives from Tier 2+ to Tiers 3 and 4 , or to install Automatic Engine
Start-Stop technologies on locomotives currently certified to Tier 0+ or higher.
E.20.Marine Shore Connection: Recipient agrees that funds under this award cannot be used for marine
shore connection system projects that are expected to be utilized less than 2,000 MW-hr/year.
E.21.Locomotive Shore Connection: Recipient agrees that funds under this award cannot be used for
locomotive shore connection system projects that are expected to be utilized less than 1,000 hours/year.
E.22.Locomotive and Marine Operating Hours: Recipient agrees that funds awarded under this award
cannot be used to retrofit, repower, replace, upgrade or install idle reduction technologies on eligible
locomotives or marine engines that operate less than 1000 hours per year.
F. Drayage Vehicle Replacement Project Requirements:
F.1. In addition to the applicable requirements for highway vehicles described in E above, recipients
replacing drayage vehicles are required to establish and document guidelines to ensure that the scrapped
vehicle has a history of operating on a frequent basis over the prior year as a drayage truck.
F.2. The recipient must establish and document guidelines to ensure that all drayage trucks receiving
grant funds are operated in a manner consistent with the definition of a drayage truck, defined as any
Class 8a and 8b in-use on-road vehicle with a gross weight rating (GVWR) of greater than 33,000 pounds
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.
G. Delays or Favorable Developments:
The recipient agrees that it will promptly notify the EPA Project Officer of any problems, delays, or
adverse conditions which may materially impair its ability to deliver on the outputs/outcomes specified in
the work plan. This disclosure must include a statement of the action taken, or contemplated, and any
assistance needed to resolve the situation. The recipient agrees that it will also notify the EPA Project
Officer of any favorable

developments which may enable meeting time schedules and objectives sooner or at less cost than
anticipated or producing more beneficial results than originally planned.
H. Employee and/or Contractor Selection:
EPA will not help select employees or contractors hired by the recipient.
I. Program Income:
Program income as defined at 2 CFR §200.80 means gross income received by the grantee or
subrecipient that is directly generated by a grant supported activity or earned as a result of the Federal
award during the period of performance. Under DERA grants, program income is generally limited to the
sale of scrapped or remanufactured engines/chassis or salvaged engine/vehicle/equipment components
and does not include revenue generated by recipients or subrecipients through the commercial use of
vehicles and equipment purchased with grant funds. “Period of performance” is the time between the
start and end dates of the period of performance as included in the Federal award. Program income
earned during the project period shall be retained by the recipient and, in accordance with 2 CFR
§200.307 recipient is authorized to use program income as follows:
I.1. Program income may be added to the Federal award by EPA and recipient and used to further eligible
project or program objectives. The program income shall be used for the purposes and under the
conditions of the grant agreement.
I.2. Program income may be used to meet the cost-sharing or matching requirement of the Federal award,
including any mandatory or voluntary cost-share. The amount of the Federal award remains the same.
I.3. Deducted from the total allowable costs to determine the net allowable costs on which the federal
share of costs is based. This means that the recipient shall spend program income on project activities
before spending/requesting federal funds for project activities. This may result in unspent federal funds at
the end of the project period.
The recipient will maintain records adequate to document the extent to which transactions generate
program income and the disposition of program income.
J. Equipment Use, Management, and Disposition
These equipment use, management, and disposition instructions are applicable to assistance agreement
recipients and subrecipients acquiring equipment under this award. State agencies may use, manage and
dispose of equipment acquired a Federal award by the state in accordance with state laws and procedures.
Recipient agrees the equipment acquired under this assistance agreement will be subject to the use and
management and disposition regulations at 2 CFR §200.313.
Equipment is defined as tangible personal property having a useful life of more than one year and a
per-unit acquisition cost which equals or exceeds the lesser of $5,000, or the capitalization level
established by the non-Federal entity for financial statement purposes (see 2 CFR §200.12 Capital
assets). Certified or verified technologies, vehicles, engines and nonroad equipment are considered to be
equipment to the extent they fall within this definition.

Recipient agrees that at the end of the project period the recipient will continue to use the equipment
purchased under this assistance agreement in the project or program for which it was acquired as long as
needed, whether or not the project or program continues to be supported by the Federal award. When
acquiring replacement equipment, the non-Federal entity may use the equipment to be replaced as a
trade-in or sell the property and use the proceeds to offset the cost of the replacement property. Items of
equipment with a current per unit fair market value of $5,000 or less may be retained, sold or otherwise
disposed of with no further obligation to the Federal awarding agency.
K. Procurement Procedures:
The recipient must follow applicable procurement procedures. EPA will not be a party to these
transactions. When procuring property and services under a Federal award, a state must follow the same
policies and procedures it uses for procurements from its non-Federal funds. The state will comply with 2
CFR §200.322 Procurement of Recovered Materials, and ensure that every purchase order or other
contract includes any clauses required by 2 CFR §200.326 Contract provisions. All other non-Federal
entities, including subrecipients of a state, will follow 2 CFR §§200.318 General Procurement Standards
through 200.326 Contract Provisions.
L. For-Profit Sub-recipients
In addition to the EPA General Term and Condition #7 “Establishing and Managing Subawards”, the
recipient (i.e. “pass-through entity”) agrees to require that for-profit subrecipients comply with Subparts
A through F of the Uniform Grant Guidance (2 CFR Part 200) and the Federal cost principles applicable
to for-profit entities located at 48 CFR Part 31, with the exception of the method of payment to for-profit
subrecipients must be “reimbursement” rather than “advance”. Pass-through entities must obtain
documentation that the for-profit subrecipient has incurred eligible and allowable costs prior to releasing
EPA funds to the subrecipient.
M. 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 on the Web site of the State:
M.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 subawards, rebates, or loans; and
M.2. For other subawards, rebates, and loans, a description of each application for which the subaward,
rebate, or loan is provided.
N. Mandatory Cost-Share Requirement
Any voluntary matching funds provided by the state to qualify for the matching incentive are included in
the “EPA funds and state voluntary matching funds” described below. 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. However, if a state requires a third-party cost-share
contribution above and beyond the mandatory cost-share amount for the elected technology, then the
“excess” cost-share may be applied towards the state voluntary match funds for the purpose of qualifying
for the matching incentive.

This award and the resulting federal funding share (as shown under "Notice of Award" in the award
document, above) is based on estimated costs requested in the recipient’s final approved workplan. While
actual total costs may differ from those estimates, the recipient may not use EPA funds and state
voluntary matching funds to provide more than the cost-share percentages outlined below, as applicable,
of the final equipment costs. EPA's participation shall not exceed the total amount of federal funds
awarded or the maximum federal cost-share percentages of the final equipment costs as outlined below,
as applicable. Recipients must satisfy any applicable cost-share requirements with allowable costs as set
forth in 2 CFR §200.306. The cost-share requirements are as follows:
N.1. Engine Upgrades: EPA funds and state voluntary matching funds can cover up to 40% of the cost
(labor and equipment) of an eligible engine upgrade; states and/or eligible third parties are responsible
for the mandatory cost-share of at least 60% of the cost of an eligible engine upgrade.
N.2. Idle Reduction Technologies on Locomotives: EPA funds and state voluntary matching funds can
cover up to 40% of the cost (labor and equipment) of an eligible idle reduction technology on a
locomotive; states and/or eligible third parties are responsible for the mandatory cost-share of at least
60% of the cost of an eligible idle reduction technology on a locomotive.
N.3. Marine Shore Power Connection Systems and Truck Stop Electrification: EPA funds and state
voluntary matching funds can cover up to 25% of the cost (labor and equipment) of an eligible shore
connection system or truck stop electrification technology; states and/or eligible third parties are
responsible for the mandatory cost-share of at least 75% of the cost of an eligible shore connection
system or truck stop electrification technology.
N.4. Certified Engine Repower: EPA funds and state voluntary matching funds can cover up to 40% of
the cost (labor and equipment) of an eligible engine repower states and/or eligible third parties are
responsible for the mandatory cost-share of at least 60% of the cost of an eligible engine repower.
N.5. Certified Vehicle/Equipment Replacement:
N.5.1. Nonroad Diesel Vehicles and Equipment : EPA funds and state voluntary matching funds can cover
up to 25% of the cost of an eligible vehicle or piece of equipment powered by a 2013 model year or
newer certified engine; states and/or eligible third parties are responsible for the mandatory cost-share of
at least 75% of the cost of an eligible replacement vehicle or piece of equipment.
N.5.2. Highway Diesel Vehicles : EPA funds and state voluntary matching funds can cover up to 25% of
the cost of an eligible replacement vehicle powered by a 2013 model year or newer certified engine;
states and/or eligible third parties are responsible for the mandatory cost-share of at least 75% of the cost
of an eligible replacement vehicle or piece of equipment.
N.5.3. Drayage Vehicle Replacement : EPA funds and state voluntary matching funds can cover up to
50% of the cost of an eligible replacement drayage truck powered by a 2010 model year or newer engine
equipped with a diesel particulate filter (or diesel oxidation catalyst in the case of a CNG engine); states
and/or eligible third parties are responsible for the mandatory cost-share of at least 50% of the cost of an
eligible replacement drayage vehicle.

N.6. Clean Alternative Fuel Conversions: EPA funds and state voluntary matching funds can cover up to
40% of the cost (labor and equipment) of an eligible clean alternative fuel conversion; states and/or
eligible third parties are responsible for the mandatory cost-share of at least 60% of the cost of an eligible
clean alternative fuel conversion.
The eligible acquisition cost for equipment means the net invoice price of the equipment, including the
cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for
the purpose for which it is acquired. Ancillary charges, such as taxes, duty, protective in transit insurance
and freight may be included in or excluded from the acquisition cost in accordance with the non-Federal
entity's regular accounting practices.
O. Cybersecurity:
(a) The recipient agrees that when collecting and managing environmental data under this assistance
agreement, it will protect the data by following all State or Tribal law cybersecurity requirements as
applicable.
(b)(1) EPA must ensure that any connections between the recipient’s network or information system and
EPA networks used by the recipient to transfer data under this agreement, are secure. For purposes of this
Section, a connection is defined as a dedicated persistent interface between an Agency IT system and an
external IT system for the purpose of transferring information. Transitory, user-controlled connections
such as website browsing are excluded from this definition.
If the recipient’s connections as defined above do not go through the Environmental Information
Exchange Network or EPA’s Central Data Exchange, the recipient agrees to contact the EPA Project
Officer (PO) no later than 90 days after the date of this award and work with the designated
Regional/Headquarters Information Security Officer to ensure that the connections meet EPA security
requirements, including entering into Interconnection Service Agreements as appropriate. This condition
does not apply to manual entry of data by the recipient into systems operated and used by EPA’s
regulatory programs for the submission of reporting and/or compliance data.
(b)(2) The recipient agrees that any subawards it makes under this agreement will require the
subrecipient to comply with the requirements in (b)(1) if the subrecipient’s network or information
system is connected to EPA networks to transfer data to the Agency using systems other than the
Environmental Information Exchange Network or EPA’s Central Data Exchange. The recipient will be in
compliance with this condition: by including this requirement in subaward agreements; and during
subrecipient monitoring deemed necessary by the recipient under 2 CFR 200.331(d), by inquiring
whether the subrecipient has contacted the EPA Project Officer. Nothing in this condition requires the
recipient to contact the EPA Project Officer on behalf of a subrecipient or to be involved in the
negotiation of an Interconnection Service Agreement between the subrecipient and EPA.
END OF DOCUMENT