Combustion Freight and Marine Projects Administered by the South Coast AQMD
Overview Volkswagen (VW) Environmental Mitigation Trust Overview Combustion Freight and Marine Projects Category Overview Eligibility Criteria Funding Information General Timeline and Overview Questions and Answers 2 Combustion Freight and Marine Projects - 1st Solicitation
VW Mitigation Funds for California Light-Duty Zero-emission Infrastructure $10M Combustion • VW Mitigation Trust Volkswagen Freight and Marine Settlement • Consent Decree Zero-Emission Projects Freight and $60M Marine Projects $70M • Lead Agency CARB • Beneficiary Mitigation Plan Zero-Emission • Five Funding Categories Class 8 Freight and Port Drayage Zero-Emission Trucks Transit, • Program Administrators Three Air $90M School, and • South Coast AQMD Districts Shuttle Bus • San Joaquin Valley APCD $130M • Bay Area AQMD 3 Combustion Freight and Marine Projects - 1st Solicitation
Combustion Freight and Marine Projects - 1 st Solicitation Solicitation Close: Open Now! March 4, 2020 at 1:00 P.M. Class 7 or 8 Freight Switcher Ferry/ Freight Trucks Locomotive Tugboat/Towboat (Including waste haulers, dump trucks, & concrete mixers) 4 Combustion Freight and Marine Projects - 1st Solicitation
Key Program Information Total Funds Allocated: $60 million First Installment: $30 million Statewide program for public and private entities Replace or repower to cleanest commercially available internal combustion or hybrid technologies Solicitation is competitive At least 50% of funds are expected to be used for projects that benefit disadvantaged or low-income communities 5 Combustion Freight and Marine Projects - 1st Solicitation
Additional Program Information Web-based Application Portal Legal Owner or Engine Manufacturer Third Party/Consultant Assistance No ‘work’ until contract executed Out-of-state IRP eligible 6 Combustion Freight and Marine Projects - 1st Solicitation
General Eligibility Requirements • The existing vehicle/equipment must have operated in California for at least 90% of the time during the past 2 years. Operation • The new vehicle/equipment/engine must operate in California for at least 90% of the time for the term of the contract. Inspections • Old and new vehicle/equipment/engine will need to be made available for inspections. Compliance • Fleet must be in compliance with applicable state and federal rules and regulations. Scrapping • Old vehicle/equipment/engine needs to be scrapped. 7 Combustion Freight and Marine Projects - 1st Solicitation
General Funding Information No more than Co-funding $1.5 million and Incentives per entity 8 Combustion Freight and Marine Projects - 1st Solicitation
Funding & Eligibility Table Maximum Maximum Funding Engine Year Replacement Project Applicant Percentage of Equipment Type Limit (per Engine/ (to be replaced) Technology Type Type Funding Vehicle) (of cost) Non-Drayage: 25% (or 50% for Class 8 Non- Government Class 7 & 8 Freight Engine Model Years port drayage) Replacement $85,000 Trucks (including 2005-2012 Low NOx Waste Haulers, (certified at Government 100% Dump Trucks, Drayage: 0.02 g/bhp-hr) Concrete Mixers) Engine Model Years Non- Government 40% $35,000 Repower 2007- 2012 Government 100% $50,000 Non- Government 25% Replacement Government 100% Freight Switcher Pre-Tier 1 Tier 4 $1,350,000 Locomotive Non-Government 40% Repower Government 100% Tier 4, or Non- Government 40% Ferry, Tugboat, Hybrid w/ Tier 4- Pre-Tier 3 Repower $1,000,000 Towboat equivalent NOx Government 100% emissions 9 Combustion Freight and Marine Projects - 1st Solicitation
Eligible Trucks & Technology Option Technology Replace or Repower Class 7 & 8 Option Freight Other Eligibility Criteria: Trucks GVWR • Class 7: 26,001- 33,000 lbs Low NOx • Class 8: 33,001+ lbs including Waste Haulers (0.02 g/bhp-hr Old Engine Model Year or lower) Dump Trucks • Non-Drayage Truck: 2005 to 2012 • Drayage Truck: 2007 to 2012 Concrete Mixers 10 Combustion Freight and Marine Projects - 1st Solicitation
Eligible Locomotives & Technology Option Technology Replace or Repower Locomotives Option Other Eligibility Criteria: Old Engine Tier • Pre – Tier 1 Freight Tier 4 Switchers Operation • 1,000 hours per year or more Horsepower • Old & New Engine: 1,006 to 2,300 11 Combustion Freight and Marine Projects - 1st Solicitation
Eligible Marine Vessels & Technology Option Technology Marine Repower Only Option Vessel Type Other Eligibility Criteria: Ferry Old Engine Tier Tier 4 • Pre – Tier 3 Tugboat Operation Hybrid w/ Tier 4 equivalent • Vessel must serve a dedicated purpose Towboat NOx emissions 12 Combustion Freight and Marine Projects - 1st Solicitation
Truck Funding Caps Replacement Repower Non- Government Government Non-Government Government Maximum Percentage of Vehicle Cost Maximum Percentage of Vehicle Cost 100% 40% 100% 25% 50% Class 8 Drayage only Maximum Funding per Vehicle Maximum Funding per Engine $85,000 $50,000 $35,000 13 Combustion Freight and Marine Projects - 1st Solicitation
Locomotive Funding: Replacement or Repower Replacement Repower Non- Non- Government Government Government Government Maximum Percentage of Project Cost Maximum Percentage of Project Cost 100% 25% 100% 40% Maximum Funding per Freight Switcher Maximum Funding per Freight Switcher $1,350,000 $1,350,000 14 Combustion Freight and Marine Projects - 1st Solicitation
Marine Funding: Repower Only Repower Government Non-Government Maximum Percentage of Project Cost 100% 40% Maximum Funding per Vessel $1,000,000 15 Combustion Freight and Marine Projects - 1st Solicitation
How Funding Works – Example 1 Scenario: 25% $85k ✓ Class 8 Freight Truck Percentage of Cost Funding Cap Max ✓ Replacement Max $200,000 x 25%= ✓ Non-Government $85,000 Cap $50,000 ✓ New Truck Cost $200,000 $50,000 < $85,000 Maximum Maximum Equipment Project Applicant Percentage Funding Limit Type Type Type of Funding (of cost) (per Vehicle) 25% $50,000 Class 7 & 8 Non- Government (or 50% for Replacement $85,000 Class 8 drayage) Freight Truck Award Government 100% 16 Combustion Freight and Marine Projects - 1st Solicitation
How Funding Works – Example 2 Scenario: 50% $85k ✓ Class 8 Freight Truck (Drayage) Percentage of Cost Funding Cap Max ✓ Replacement Max $200,000 x 50%= ✓ Non-Government $85,000 Cap $100,000 ✓ New Truck Cost $200,000 $100,000 > $85,000 Maximum Maximum Equipment Project Applicant Percentage Funding Limit Type Type Type of Funding (of cost) (per Vehicle) 25% $85,000 Class 7 & 8 Non- Government (or 50% for Replacement $85,000 Class 8 drayage) Freight Truck Award Government 100% 17 Combustion Freight and Marine Projects - 1st Solicitation
Anticipated Timeline Q4 2019 - 2021 - 2022 Q1 2020 Payment Solicitation Open 2019 2020 2021 2022+ Q2 2020 - 2021 - 2024 Q1 2021 Evaluation and Applicant Annual Contracting Reporting 18 Combustion Freight and Marine Projects - 1st Solicitation
Basic Application Requirements Application ✓ Copy of title (or proof of ownership) Evaluation & ✓ Usage Records (24 months) Contracting ✓ Insurance Documentation (24 months) WHAT ✓ Vehicle Registration (24 months) Payment YOU’LL ✓ Vendor Quote NEED Reporting ✓ Existing and new vehicle/equipment/engine information ✓ Supporting photos and documentation 19 Combustion Freight and Marine Projects - 1st Solicitation
Evaluation and Contracting Evaluation & Contracting • Eligibility • 3 year Contract Evaluation Contracting • Compliance Check o Milestones Payment • NOx Reductions o Usage Reporting • Ranking o Reporting • Project Award o Recordkeeping o Inspections/Audit 20 Combustion Freight and Marine Projects - 1st Solicitation
Award Payment for Selected Applicant Payment will be made after verification of: Complete and valid invoice Payment Eligibility and program requirements Reporting Vehicle/equipment placed into service Completion of inspections and proof of destruction of old vehicle/engine 21 Combustion Freight and Marine Projects - 1st Solicitation
Reporting and Recordkeeping Submit Annual Reports for 3 yrs. Keep All Records Contract for 6 yrs. Executed Reporting Operate 90% in CA for Contract Term 22 Combustion Freight and Marine Projects - 1st Solicitation
Questions and Answers
Questions and Answers #1 Do I get paid in advance? Payment is by reimbursement only. The VW Program is not rebate or voucher based. 24 Combustion Freight and Marine Projects - 1st Solicitation
Questions and Answers #2 What is considered ‘work’ performed before contracting? Work performed includes physical changes made to existing vehicles or equipment. 25 Combustion Freight and Marine Projects - 1st Solicitation
Questions and Answers #3 Can I order vehicles/equipment before I’m under contract? Having a purchase order prior to an executed contract will not deem your project ineligible, however certain criteria apply. 26 Combustion Freight and Marine Projects - 1st Solicitation
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