NC Solar Center

Clean Fuel Advanced Technology Project

2013 REQUEST FOR Proposals (RFP)

The North Carolina Solar Center at North Carolina State University has been awarded $6,228,000 in federal Congestion Mitigation Air Quality funds from the NC Department of Transportation for the Clean Fuel Advanced Technology (CFAT) 2013-2015 Program. A primary purpose of CFAT is to provide funding assistance for transportation related emission reduction projects in eligible North Carolina counties. This RFP is the first of two or three anticipated for the three year project. Note that while vehicle purchases are currently not being solicited, a RFP that will include alternative fuel vehicles is anticipated for fall 2013.

Available funds: $700,000-$1,000,000

Maximum per project award: $200,000

Application deadline: September 10, 2013

Section One: Eligibility

1.1 Project Location

The CFAT Program will reimburse applicants for projects that reduce mobile related emissions in eligible North Carolina counties. The North Carolina Solar Center is seeking proposals from both public and private entities for transportation related projects that reduce emissions in North Carolina’s non-attainment and maintenance counties for National Ambient Air Quality Standards. Projects located in the following counties are eligible for CFAT funding: Cabarrus, Catawba, *Chatham, Davidson, Davie, Durham, Edgecombe, Forsyth, Franklin, Gaston, Granville, Guilford, *Haywood, *Iredell, Johnston, Lincoln, Mecklenburg, Nash, Orange, Person, Rowan, *Swain, Union, Wake, (*Represents partial counties). The non-attainment portion of Swain and Haywood Counties is the Great Smoky Mountains National Park boundary. The non-attainment portion of both Chatham and Iredell are defined by townships from the Census. In Chatham the eligible townships are Baldwin, Williams, New Hope and Center. In Iredell County the non-attainment portions are Davidson and Coddle Creek. Projects that are located adjacent to eligible areas that result in reduced emissions in the eligible area may apply for funds in proportion to the percent of emission reduction that takes place in the eligible area. Applicants need not be located in the eligible area but the air quality benefits must accrue in the eligible county.

1.2. Eligible Technologies

The CFAT program is designed to be as flexible and accommodating as possible to reach public and private sector applicants that have an interest in and commitment to mobile-related emission reduction technologies. The basic criteria for eligibility are that the project:

§ is transportation related including on-road projects, and rail and off-road construction equipment used in transportation projects,

§ reduces criteria pollutant emissions including NOx, CO, VOCs and/or PM, AND

§ is located within OR benefits a non-attainment or maintenance area.

The specific transportation related technologies eligible for CFAT program reimbursement include:

1.2.1 Alternative Fuel Vehicle (AFV) Conversions

Up to 80% of the cost of an AFV conversion (new and existing vehicles) is eligible for funding. For the purposes of this RFP, AFV conversions are defined as the equipment and labor costs required to convert existing or up fit new vehicles to operate solely on compressed natural gas (CNG) or propane (LPG /Autogas). Bi-fuel vehicle conversions and up fits - those that allow operation on CNG or LPG in addition to gasoline or diesel - are eligible, but only for the percent estimated use on the alternative fuel. For example, if an entity requests funding for a bi-fuel Ford Transit Connect and estimates that the vehicle will utilize CNG for 75% of fuel use, the entity would be eligible for 60% of the purchase price of the conversion. In the case of a new vehicle up fit with a factory, dealer, or third party-installed CNG/LPG system, the costs of the system must be separately invoiced from the cost of the vehicle. In other words, the cost of the vehicle itself will not be considered part of the project cost, nor should it be included as part of project invoicing. A firm price quote with system costs invoiced separately from any vehicle costs will be required as part of the project application.

For bi-fuel vehicles, an explanation of the estimated alternative fuel use must be provided in the application, including information on proximity to the appropriate refueling infrastructure. Drivers will be required to keep a log of gasoline/diesel versus alternative fuel use.

Only EPA certified conversions are eligible.

For more information on AFV conversions visit:

http://www.afdc.energy.gov/vehicles/conversions.html

http://www.epa.gov/oms/consumer/fuels/altfuels/altfuels.htm

Again, please note that a minimum 20% cost share of total project cost is required for all AFV conversion applicants.

1.2.2 Refueling & Recharging Infrastructure

Infrastructure to dispense and store alternative fuels, and to dispense electricity into electric vehicles, is eligible for CFAT funding. This infrastructure includes tanks, dispensers, signage, hoses and related equipment for refueling and recharging on-road vehicles. Eligible fuels include:

· Biodiesel (B20 and greater)

· Ethanol (E85)

· Natural Gas - compressed (CNG) and liquefied (LNG)

· Liquefied Petroleum Gas (LPG / propane /Autogas)

· Electricity - Level 2 and Level 3 (CHAdeMO, SAE J1772 “combo connector,” and other DC “fast charging”) electric vehicle service equipment (EVSE)

Up to 80% of the cost of alternative fuel refueling or EVSE infrastructure may be reimbursed through the CFAT program. The value of land and existing related equipment may be considered as part of the required 20% match. Fair market land value must be stated when used as cost share. Old, outdated refueling infrastructure may not be used as cost share. Only equipment that will be directly used in the proposed project is eligible to be used as cost share. An example of this would be claiming cost share for the value of an existing underground storage tank to store E85 that will be dispensed through a new CFAT funded dispenser.

Infrastructure funding recipients will agree that only alternative fuel will be dispensed or sold from the equipment in a North Carolina non-attainment or maintenance area for a minimum of three (3) years after installation.

All applicable local, state and federal permits/assessments/zoning requirements must be obtained and are the responsibility of CFAT funding recipients.

Refueling and EVSE stations that are convenient and open to the motoring public are favored over infrastructure that is limited to private or government fleets.

Ineligible costs include but may not be limited to:

§ Fuel production

§ Acquisition of property

§ Construction of canopies

§ Retail operating expenses and fuel costs, including the incremental cost of fuels

1.2.3 Idle Reduction Technologies

Up to 80% of the technology cost to reduce vehicle idling is eligible for CFAT funding. Idle reduction technologies fall into two general categories: mobile and stationary. Mobile idle reduction technologies (MIRTs) include: advanced batteries to reduce idling by powering on-board equipment while an on-road vehicle is stopped, direct-fired heaters, auxiliary power units (APUs), and automatic engine idle reduction systems. On-road vehicles that may idle when stopped for extended periods, such as delivery trucks, school buses, police and other emergency vehicles are targeted project applications. MIRTs must be used in an eligible area, and reimbursement for MIRTs will be based on the percentage of time the vehicle spends in the eligible area. For example, if a truck is based in or adjacent to an eligible area and operates in the eligible region 50% of the time, the project is eligible to be reimbursed for up to 40% of the project cost (80% of the eligible 50%). A log of MIRT use to document fuel savings will be required.

Fleets applying for funding through this category are strongly encouraged to implement and enforce an idle reduction policy and will be awarded extra points for adopted idle reduction policies through the proposal evaluation process.

Stationary technologies include truck stop electrification (TSE). TSE projects must be located in CFAT eligible areas. TSE refers to a system that operates independently of the truck’s engine and allows the truck engine to be turned off as the TSE system supplies heating, cooling, and electrical power. The TSE system provides off-board electrical power to operate an independent heating, cooling, and electrical power system or a vehicle-integrated heating and cooling system.

For a list of idle reduction technologies visit:

http://www.epa.gov/smartway/technology/idling.htm#veritech

Again, please note that a minimum 20% cost share of total project cost is required for all idle reduction technology applicants.

1.2.4 Diesel Retrofits

Diesel retrofit technologies that have been verified or certified by the U.S. Environmental Protection Agency, the California Air Resources Board or other such boards / agencies are eligible for funding through the CFAT program. Up to 80% of the costs of retrofit technologies are eligible. Diesel retrofits include: engine re-powering (preferably with alternative fuel use such as CNG) and after-burn technologies to reduce emissions of existing diesel engines, but does not include fuel additives. Examples include, but are not limited to: diesel oxidation catalysts (DOCs), catalytic exhaust mufflers, catalytic converters, closed crankcase ventilation/filtration systems, active- or passive-regeneration diesel particulate filters (DPFs), and selective catalyst reduction technology (SCRT); see the below links to the EPA and CARB websites for complete listings. Level 2 and Level 3 retrofit technology applications (i.e., those that reduce PM emissions by 50% or more) are encouraged. Applicants are expected to have pre-identified appropriate vehicles for the technologies they have selected. Both on-road and off-road retrofit projects are eligible for funding. On-road applications include buses, trucks, service and utility vehicles. Off-road applications are limited to transportation related construction equipment.

Learn more about diesel retrofit technologies and verified technologies at:

www.epa.gov/cleandiesel/verification/verif-list.htm www.arb.ca.gov/diesel/verdev/verdev.htm

www.arb.ca.gov/diesel/verdev/vt/cvt.htm

1.2.5 Vehicle and Fleet Telematics

Up to 80% of the technology cost of purchase and installation of vehicle telematics / data collection and analysis systems are eligible for CFAT funding. Telematics systems can monitor miles driven; fuel economy; idle time; driver behavior that can affect fuel usage, such as hard starts and stops; and status of onboard vehicle systems that can lead to improvements in fleet efficiency. Eligible telematics systems are those aimed primarily at a reduction of vehicle emissions, via an increase in fuel efficiency, reduction in vehicle miles travelled (VMT), reduction in idling, and/or other influences on operator behavior that result in fuel savings. Telematics systems designed primarily for communication (e.g. mobile broadband or cell phone, “infotainment”) or other systems are not eligible. Service charges (e.g., monthly subscription or service fees) are eligible for funding for the first year (12 months) of service. Applicants will be asked to provide a per vehicle baseline of fuel consumption before telematics installations and will be required to document fuel savings after installation. For vehicles that also operate outside of CFAT eligible areas, the percent of miles driven in eligible counties is the proportion of the 80% of total costs that are eligible for funding.

Learn more about telematics systems at:

http://analysis.telematicsupdate.com/fleet-and-asset-management

Section Two: Project Purpose, Priorities and Requirements

2.1 Purpose and Priorities

The primary purpose of CFAT funding is to reduce regulated transportation related emissions in North Carolina counties that are in non-attainment or maintenance status for National Ambient Air Quality Standards. Regulated emissions include carbon monoxide (CO), oxides of nitrogen (NOx), volatile organic compounds (VOCs) and particulate matter (PM). Unregulated emissions of concern include air toxics as well as greenhouse gases such as carbon dioxide (CO2). The reduction of air toxics helps protect human health by reducing exposure to carcinogenic material and prevents build up of this matter in our environment. For greenhouse gas emissions, a well-established consensus recognizes that climate change is of significant concern and that burning fossil fuels are primarily responsible for the rise in these emissions and resulting atmospheric concentrations. The use of alternative fuels and advanced transportation technologies can help provide cleaner, healthier air and reduced emissions of greenhouse gases. Alternative fuels also help diversify fuel supplies to reduce U.S. reliance on imported oil. In addition, natural gas, propane and electricity used for transportation allow for significant potential operational savings due to lower fuel costs. Biofuels such as ethanol and biodiesel, by being agriculturally based and renewable, help support our agricultural heritage. Achieving these ancillary benefits, while reducing regulated transportation related emissions, is a priority of the CFAT program.

Helping to grow the infrastructure for refueling and recharging of alternative fuel and advanced technology vehicles is also a CFAT priority, particularly for infrastructure projects that will be open to the public. Funding of E85, biodiesel, LPG, CNG, and EVSE refueling/recharging projects serves to increase the availability and feasibility of these fuels for private citizens and other businesses, encouraging private investment in alternative fuel and advanced technology vehicle purchases and conversions.

Children are especially vulnerable to the health effects of poor air quality. Projects that reduce emissions, especially those affecting North Carolina school children, are encouraged. Due to increased federal emission standards for heavy-duty diesel vehicles, new vehicles are far cleaner than older vehicles that are on the road today so replacing, retrofitting and repowering offer significant air quality benefits.

Other CFAT focus areas for reducing emissions include alternative fuel up fits and conversions, mobile idle reduction technologies (MIRTs), truck stop electrification (TSE), and telematics systems for reduced fuel consumption and VMT.

In addition to reducing transportation related emissions and demonstrating the potential for more widespread use of alternative fuels and advanced technologies, priorities of the CFAT program include:

§ funding a diversity of project technologies

§ having projects in wide range of eligible counties

§ serving a variety of applicant types

2.2 Project Requirements

There are several requirements that must be met by applicants:

1) COST SHARE- Applicants must provide a minimum of 20% cost share on proposed projects. Cost share funds must be non-federal dollars and directly related to the project.

For example, if the total cost of an AFV conversion to an existing vehicle is $10,000, an applicant must demonstrate a minimum contribution of $2,000 and can request up to $8,000 in grant funds. In other words, the 20% cost share contribution is based on the total project cost, not the amount being requested.

As another example, if the cost of a new Ford Super Duty F-250 is $32,000, and the cost of the LPG bi-fuel up fit is an additional $11,000, an applicant must demonstrate a minimum contribution of $2,200 and request up to $8,800 in grant funds. In other words, the 20% cost share contribution is based on the total project cost of the up fit. Costs of the vehicle itself are not eligible for funding and cannot count toward the 20% cost share contribution.