Energy Policy Act of 2005 Diesel Emissions Reduction Program; State Clean Diesel Grant Program Funding Fiscal Year 2008, 12728-12732 [E8-4702]

Download as PDF 12728 Federal Register / Vol. 73, No. 47 / Monday, March 10, 2008 / Notices pursuant to 5 CFR 1320.5(a)(1)(iv) to announce the submission of the ICR to OMB and the opportunity to submit additional comments to OMB. If you have any questions about this ICR or the approval process, please contact the technical person listed under FOR FURTHER INFORMATION CONTACT. Dated: February 28, 2008. Drusilla Hufford, Director, Stratospheric Protection Division. [FR Doc. E8–4697 Filed 3–7–08; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY [FRL–8536–7] Energy Policy Act of 2005 Diesel Emissions Reduction Program; State Clean Diesel Grant Program Funding Fiscal Year 2008 Environmental Protection Agency (EPA). ACTION: Notice of Availability of Funding for the Fiscal Year 2008 State Clean Diesel Grant Program Under the 2005 Energy Policy Act. pwalker on PROD1PC71 with NOTICES AGENCY: SUMMARY: The Energy Policy Act of 2005 (H.R. 6) signed into law on August 8, 2005 (Pub. L. 109–58) incorporates provisions to achieve significant reductions in diesel emissions. Section 793 of the Energy Policy Act of 2005 authorizes the U.S. Environmental Protection Agency (EPA) to support grant and loan programs administered by States that are designed to achieve significant reductions in diesel emissions. This program authorized in Section 793 is referred to as the State Clean Diesel Grant Program for this Notice. EPA expects to have approximately $14.8 million available in fiscal year 2008 in the form of assistance agreements to issue under the State Clean Diesel Grant Program. DATES: In order to participate, States must notify EPA of their intent to apply to the State Clean Diesel Grant Program through a Notice of Intent to Apply as described in Section 6 of this Notice on or before April 24, 2008 at 11:59 p.m. Pacific Time. States must submit applications to EPA as described in Section 6 of this Notice on or before June 23, 2008 at 11:59 p.m. Pacific Time. Failure to meet these deadlines could result in ineligibility for fiscal year 2008 funding. Contact Information: States must e-mail the Notice of Intent to Apply to EPA’s Office of Transportation and Air Quality (OTAQ) at cleandiesel@epa.gov and include in the subject line ‘‘Intent VerDate Aug<31>2005 16:39 Mar 07, 2008 Jkt 214001 to Apply: State Clean Diesel Grant Program—[NAME OF STATE].’’ States must then submit applications to the appropriate Regional Clean Diesel contact listed in this notice under Section 11. FOR FURTHER INFORMATION CONTACT: Jennifer Keller, U.S. EPA, 1200 Pennsylvania Ave., NW., Washington, DC 20460, Mail-Stop: 6405–J. Phone (202) 343–9541, Fax (202) 343–2803, keller.jennifer@epa.gov. You may access this Federal Register document electronically through the EPA Internet under the ‘‘Federal Register’’ listings at https://www.epa.gov/fedrgstr/. This document will also be available at the EPA National Clean Diesel Campaign Web site, https://www.epa.gov/ cleandiesel. Please note that due to differences between the software used to develop the documents and the software into which the documents may be downloaded, changes in format, page length, etc., may occur. SUPPLEMENTARY INFORMATION: standards taking effect over the next decade, millions of diesel engines already in use will continue to emit large amounts of nitrogen oxides, particulate matter and air toxics, which contribute to serious public health problems. These emissions are linked to premature deaths, asthma attacks, lost work days, and other health impacts every year. EPA created the National Clean Diesel Campaign (NCDC) to build on the success of its regulatory and voluntary efforts to reduce emissions from diesel engines. Through this effort, EPA is working to reduce the pollution emitted from the existing fleet by promoting a variety of cost-effective and innovative emission reduction strategies. To date more than $50 million has been awarded to over 200 organizations to establish new clean diesel programs. Through NCDC, EPA will continue to award grants and loans to assist its eligible partners in building diesel emission reduction programs across the country to achieve public health goals. (1) General Information The programs outlined in EPAct of 2005 are part of NCDC’s Clean Diesel a. What Is the Statutory Authority for Programs. Information regarding the the State Clean Diesel Grant Program? Clean Diesel Programs can be found at The 2005 Energy Policy Act (EPAct of https://www.epa.gov/cleandiesel. 2005), Public Law 109–58, signed into There are several programs outlined law August 8, 2005, authorized an in EPAct of 2005 as part of the National annual appropriation of up to Clean Diesel Campaign. There are two $200,000,000 under the Diesel main components of the program: A Emissions Reduction portion of the National component and a State legislation (Subtitle G—Diesel component. A brief description is Emissions Reduction or ‘‘DERA’’) for provided below. each of fiscal years 2007 through 2011 Within the National component, 70 to remain available until expended. In percent of the funds ($34.4 million December 2007, Congress appropriated FY08) are made available on a $49.2 million under EPAct of 2005 to competitive basis to provide grants and help reduce harmful emissions from low-cost revolving loans to eligible heavy-duty diesel engines. Section 793 of EPAct of 2005 outlines provisions for entities for the deployment of verified and certified technologies to reduce the State Clean Diesel Grant Program which includes that, ‘‘the Administrator diesel emissions. This program has three separate competitions: (1) National shall provide to States guidance for use Clean Diesel Funding Assistance in applying for grant or loan funds Program: A competitive grant program under this section.’’ Per statutory requirements, thirty percent of the $49.2 for the deployment of EPA and/or California Air Resources Board (CARB) million ($14.8M for FY08), is available certified and/or verified clean diesel through the State Clean Diesel Grant technologies and verified idle reduction Program. technologies, (2) National Clean Diesel b. What Is the Catalog of Federal Finance Program: A competitive grant Domestic Assistance (CDFA) Number for program for innovative finance the Diesel Emission Reduction Grants? mechanisms such as national low-cost revolving loans, and (3) Clean Diesel The number assigned to the State Emerging Technologies Program: A Clean Diesel Grant Program is Program competitive grant program to deploy Code 66.040. emerging technologies not yet verified (2) Background Information but for which an approvable application for verification and test plan are Reducing emissions from diesel engines is one of the most important air received by EPA. States, as eligible entities, may apply to all three of the quality challenges facing the country. competitions above, in addition to the Even with EPA’s more stringent heavyState Clean Diesel Grant Program. duty highway and non-road engine PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 E:\FR\FM\10MRN1.SGM 10MRN1 Federal Register / Vol. 73, No. 47 / Monday, March 10, 2008 / Notices The second component is the State Clean Diesel Grant Program. With this component, 30% of the funds ($14.8 million FY08) are made available through an allocation to States. Except where indicated, the remainder of this notice refers specifically to this component: The State Clean Diesel Grant Program. Additional information regarding the State Clean Diesel Grant Program is available at https:// www.epa.gov/cleandiesel under the State Program section. (3) Eligible Entities Throughout this document, the term ‘‘applicant,’’ ‘‘recipient,’’ or ‘‘State’’ includes the 50 States. EPA presumes that the State Agency with jurisdiction over air quality will be the lead agency to receive these funds. If a State’s circumstances dictate that another State agency administer the funds, then a letter from the State Governor or designee to the Administrator of EPA is required in order to certify one State Agency as the recipient of funds who has the legal and administrative authority to enter into a grant or cooperative agreement with EPA. Upon receipt, EPA will consider that State Agency the lead agency from that point forward. However, if there is a change, a new Governor’s letter to the Administrator must be submitted during the renewal process and the new agency would be considered the lead agency for future grants. For fiscal year 2008, the letter to identify an alternate lead agency and provide specific contact information should be sent to the EPA Administrator at the contact information listed in Section 11 of this Notice and be received on or before April 24, 2008 at 11:59 p.m. Pacific Time. (4) Allocation of Funds a. How Much Funding Is Available? In fiscal year 2008, Congress allocated $49.2 million for Subtitle G, Diesel Emissions Reduction Program under EPAct of 2005. For fiscal year 2008, 30 percent of these funds (approximately $14.8M) under this subtitle are for the State Clean Diesel Grant Program. The President’s fiscal year 2009 budget request outlines similar levels. State Agencies that are eligible entities under the National Clean Diesel Grant and Loan Program may also apply for competitive national grants. b. How Will Funding Be Allocated in Fiscal Year 2008? For fiscal year 2008, EPA expects to award grants to all States for which applications are approved based on an allocation formula that is outlined in EPAct of 2005. Accordingly, for fiscal year 2008, EPA will allocate 20 percent 12729 of the funds for base level funding and reserve 10 percent of the funds for the State matching incentive. Pursuant to EPAct of 2005, funding levels for the State Clean Diesel Grant Program may change in future years, but the base allocation of funding will not be more than 20 percent of the funds available in a fiscal year. The specific allocation methodology for the State program for fiscal year 2008 as prescribed in EPAct of 2005 Section 793(c) of Subtitle G is outlined below: (1) Base funding (20 percent or $9.84M) (a) If all 50 States elect to participate, then 2 percent is available for each State ($196,000). (b) If fewer than 50 States elect to participate, then a base allocation of 2 percent plus a proportional population formula will be used. The total population of the State will be divided by the total population of all qualifying States for a fiscal year/grant cycle. The total population of qualifying States would not be determined until all qualifying States are selected. EPA will use the latest available population estimate data of the U.S. Census Bureau. This fraction of State population over total population of qualifying States is multiplied by the remaining funds from the 20 percent allocated to the qualifying States. (2) Matching Incentive (10 percent or $4.96M) (a) If States choose to match their entire allocation dollar for dollar, they will receive an additional 50 percent of their State base funding. (3) Unclaimed funds from the State Clean Diesel Grant Program will revert to the National Clean Diesel Funding Assistance Program. Unclaimed funds may consist of funds from the matching incentive pool which were not matched by States and/or any funds from the base allocation portion if EPA were to provide less than 20 percent base allocation. Any funds reverting to the National Clean Diesel Funding Assistance Program will be subject to the statutory distribution requirements. Award amounts could range from approximately $196,000 to $2,000,000 based on the number of States who apply. For examples of potential funding scenarios, see https:// www.epa.gov/cleandiesel under the State Program section. VerDate Aug<31>2005 16:39 Mar 07, 2008 Jkt 214001 c. What Are the Match Requirements? Under the State Clean Diesel Grant Program, a match is not required. However, as an incentive, States are encouraged to match the entire Federal allocation dollar for dollar. If the entire base allocation is matched dollar for dollar, States qualify for an additional 50 percent of their original allocation. Pursuant to 40 CFR 31.24, States that choose to match the Federal allocation can use a combination of non-Federal grants or financial contributions over which the State has control from nonFederal third parties and/or through inkind contributions that are applicable to the period to which the matching requirements apply. A matching requirement may not be met by costs borne by another Federal grant. Eligible categories for matching funds include State funds or private funds which can either be cash donations or in-kind contributions. A State may not use any Federal funds received under Subtitle G, Diesel Emissions Reduction Program PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 under EPAct of 2005 as match for the State Clean Diesel Grant Program. A recipient is legally obligated to expend any voluntary matching share included in the approved project budget. This match must be met by eligible and allowable costs as outlined in 40 CFR part 31 and is subject to the match provisions in the assistance agreement regulations. A recipient who fails to provide any matching share that is included in the approved budget would be in breach of the assistance agreement, and EPA can take enforcement actions authorized by the assistance regulations. Costs and third party in-kind contributions used to satisfy a match must be verifiable from records of grantees and subgrantee or cost-type contractors. These records must show how the value placed on third party in-kind contributions was derived. States are encouraged to submit letters of commitment from private funding secured for match as part of the State’s application. E:\FR\FM\10MRN1.SGM 10MRN1 EN10MR08.000</MATH> pwalker on PROD1PC71 with NOTICES    population of State State allocation = 2% +    ∗ remaining funds 20%    total population of all qualifying States   12730 Federal Register / Vol. 73, No. 47 / Monday, March 10, 2008 / Notices (5) Permissible Use of Funds pwalker on PROD1PC71 with NOTICES a. What Projects and Activities Are Allowable Under This Program? States shall use any funds provided under the State Clean Diesel Grant Program to develop and implement Clean Diesel grant and low-cost revolving loan programs in the State as are appropriate to meet State needs and goals relating to the reduction of diesel emissions. Per EPAct of 2005 Section 793(d)(3) Use of Funds, a State, through a grant or loan, may fund a project that utilizes verified or certified technologies through EPA’s verification or certification programs or through the California Air Resources Board’s (CARB) verification or certification programs. A list of EPA verified technologies is available at https://www.epa.gov/ cleandiesel. CARB-verified technologies may be found at www.arb.ca.gov/diesel/ verdev/verdev.htm. In general, States may implement grant or loan programs to fund the costs of the following: (1) A retrofit technology (including any incremental costs of a repowered or new diesel engine) that significantly reduces emissions through development and implementation of a certified engine configuration, verified technology, or emerging technology for (a) A bus; (b) A medium-duty truck or a heavyduty truck; (c) A marine engine; (d) A locomotive; or (e) A non-road engine or vehicle used in —Construction; —Handling of cargo (including at a marine port or airport); —Agriculture; —Mining; or —Energy production (e.g., generator sets); or (2) Programs or projects to reduce long-duration idling using verified technology involving a vehicle or equipment described above. A list of EPA-verified idling technologies is available at https://www.epa.gov/ cleandiesel. All recipients of grants made through the State’s grant or loan program must comply with applicable requirements for subawards or subgrants including those contained in 40 CFR Part 31. States cannot use subgrants or subawards to avoid requirements in EPA grant regulations for competitive procurement by using these instruments to acquire commercial services or products from for-profit organizations to carry out its assistance agreement. The nature of the transaction between the State and the subawardee or subgrantee VerDate Aug<31>2005 16:39 Mar 07, 2008 Jkt 214001 must be consistent with the standards for distinguishing between vendor transactions and subrecipient assistance under Subpart B Section .210 of OMB Circular A–133, and the definitions of ‘‘subaward’’ at 40 CFR 30.2 or ‘‘subgrant’’ at 40 CFR 31.3, as applicable. b. What Are Program Priorities? Pursuant to EPAct of 2005 Section 793(d)(1), States should, to the extent practicable, provide funding to projects that, as determined by the State (a) Maximize public health benefits; (b) Are the most cost-effective; (c) Serve areas —With highest population density; —That are poor air quality areas, including areas i. In nonattainment or maintenance of national ambient air quality standards for a criteria pollutant; ii. Federal or State Class I areas; or iii. Areas with toxic air pollutant concerns; —That receive disproportionate quantity of air pollution from diesel fleets, including truck stops, marine ports, rail yards, terminals, and distribution centers; or —That use community-based multistakeholder processes to reduce toxic emissions; (d) Include a certified engine configuration, verified technology, or emerging technology that has a long expected useful life; (e) Will maximize the useful life of any certified engine configuration, verified technology, or emerging technology used or funding by the State; (f) Conserve diesel fuel; and (g) Use ultra low sulfur diesel fuel (15 parts per million or less of sulfur content) ahead of EPA’s mandates (for non-road or marine projects). c. Are There Any Funding Restrictions? States and/or subgrantees must use a competitive process for obtaining contracts for services and products and conduct cost and price analyses to the extent required by Federal, State or local procurement requirements. All contracts and the purchase of supplies and equipment must be conducted in a manner providing free and open competition, to the maximum extent practicable. As such, applicants should refrain from mentioning specific technology manufacturers in their proposals unless they are sole source providers. States must ensure that the costs of proposed activities are allowable according to Office of Management and Budget (OMB) Circular A–87 PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 ‘‘Allowable Costs.’’ This should be reviewed in conjunction with 40 CFR Part 31. OMB defines allowable costs as those costs that are ‘‘eligible, reasonable, necessary, and allocable.’’ For a cost to be eligible, the cost must not be prohibited by the statute, and it must be incurred during the budget period. Additionally, costs should be judged in context to determine that they are reasonable and necessary, and detailed budgets must include appropriate budget categories and funds must be allocated appropriately. For the purposes of implementing this program, the amount of funding used to cover these allowable costs, as identified in OMB Circular A–87 Attachment B, may be up to 15 percent of your State’s allocation. Recipients need to ensure that proper documentation is in the file to meet the procurement regulation requirement in 40 CFR part 31 and/or State procurement rules. All grant expenditures are subject to audit for the final determination of allowability of costs. (6) Application Procedures a. What Is the Application Process for States? The process begins with a required Notice of Intent to Apply from the designated lead State Agency. Once the notices are received by EPA, the allocation formula described in Section 4 of this Notice will be used to determine a target budget for each State. EPA plans to inform States of this target budget on or before May 9, 2008 at 11:59 p.m. Eastern Time via e-mail to the contact identified in the Notice of Intent to Apply. Following notification of a target budget, States must prepare the application package in consultation with the EPA Regional Office. The Application Package will contain a program work plan, budget, and required administrative documents as directed in Section 6(c) of this Notice. The full application package must be submitted to the Regional Clean Diesel contact indicated in Section 11 of this Notice on or before June 23, 2008, at 11:59 p.m. Pacific Time. EPA Regional Offices and the Office of Transportation and Air Quality will evaluate applications for compliance with the requirements listed in EPAct of 2005 and this Notice. Important Dates: (1) April 24, 2008—Required Notice of Intent to Apply from applicants to EPA. (2) May 9, 2008—EPA informs applicants of target budget. E:\FR\FM\10MRN1.SGM 10MRN1 Federal Register / Vol. 73, No. 47 / Monday, March 10, 2008 / Notices (3) June 23, 2008—State application packages due to EPA Regions. (4) August 2008—Regional Grant Offices award grants. (5) September—October 2008—Project period begins. (6) Quarterly—Post-award monitoring, evaluation and reporting of results of grant. (7) Annually—Renewal of application. pwalker on PROD1PC71 with NOTICES b. How Do State Agencies Submit the Notice of Intent To Apply? A template (sample letter) for the Notice of Intent to Apply is available on the National Clean Diesel Campaign Web site at https://www.epa.gov/ cleandiesel under the State Program section. Components of the Notice should include (1) the intent to apply for the State Clean Diesel Grant Program, (2) signature of appropriate State official(s) with authority to commit the State (electronic signature via e-mail will be considered officially signed), (3) State’s potential ability to match allocation and potential source categories of match, and (4) relevant programmatic and financial contact information (name, address, e-mail and phone). This Notice must be submitted electronically from the State’s Commissioner or delegated official to EPA’s Office of Transportation and Air Quality at cleandiesel@epa.gov on or before April 24, 2008 at 11:59 p.m. Pacific Time. The subject line of the email should read ‘‘Intent to Apply: State Clean Diesel Grant Program—[STATE NAME].’’ c. What Should the Application Package Contain? The application package must contain a work plan narrative and budget narrative in addition to the standard EPA grant application forms. The National Clean Diesel Campaign Web site, https://www.epa.gov/cleandiesel, will include all application materials and/or instructions necessary to complete the forms under the State Program section. Work plans must contain sufficient detail so that EPA can determine that the proposed work meets the goal of significant reductions in diesel emissions and meets the statutory eligibility requirements and grant conditions. The work plan should include details on fleets or industry sectors the grants or loan program will target initially in year one of the program and a plan or framework to sustain the program for future years. Plans should designate resources (e.g., personnel, contracts, supplies, equipment) for the current budget VerDate Aug<31>2005 16:39 Mar 07, 2008 Jkt 214001 period and corresponding outputs in quantifiable and measurable results. Work plans should also indicate how the State plans to meet the priority areas outlined in Section 5 of this Notice. A work plan and budget narrative template is available at https:// www.epa.gov/cleandiesel under the State Program section. State Agencies must submit application packages to the appropriate EPA Regional Office on or before June 23, 2008, at 11:59 p.m. Pacific Time. EPA Regional Offices will make awards after review of the application package for the applicable requirements. See Section 11 of this Notice for a list of EPA Regional contacts. 12731 also substantially comply with the guidelines and requirements as outlined in Section 5 of this Notice, Use of Funds. EPA will follow EPAct of 2005, Subtitle G Section 793 criteria and this Notice to approve or disapprove applications. e. Can State Clean Diesel Grant Funds Be Used With National Clean Diesel Grant Funds? For fiscal year 2008, States can apply for both the National and State components of National Clean Diesel Programs. State agencies with jurisdiction over transportation or air quality are eligible for funding under the National Clean Diesel Program; the 50 States are eligible for funding under the State Clean Diesel Program. States will need to submit separate applications and distinct work plans for each program. Applications through the National component are awarded through a competitive process and decisions are made separately. In fiscal year 2008, decisions on the National component are likely to follow the award of the State Clean Diesel grants. See https://www.epa.gov/cleandiesel for links to regional competitions under the National Clean Diesel Funding Assistance Program. (8) Reporting Requirements Recipients must submit progress reports and financial reports as required in 40 CFR 31.40 and 31.41 throughout the award period and a final performance report following the expiration of funding and/or prior to renewal of funding. 40 CFR part 31 requires all grantees to submit timely and comprehensive progress reports on the activities funded by the grant. These reports provide EPA with the information it needs to ensure that each grantee is meeting the schedule and commitments contained in the assistance agreement. More importantly, they provide a mechanism for evaluating the environmental progress brought about by the State’s Clean Diesel Program, and for reporting to Congress on this progress pursuant to Section 794 of Subtitle G, Diesel Emissions Reduction Program under EPAct of 2005. Regions may request that States submit quarterly reports and a final performance report following the end of the reporting period. Reporting requirements may include actual and estimated air quality and diesel fuel conservation benefits, cost-effectiveness, and cost-benefits. Reporting schedules and submittal dates are to be specified in the individual assistance agreements, and each State will be expected to adhere to its agreed-upon schedule. States should pay particular attention to the grant and program conditions attached to their award documents. Some are standard conditions required by regulation or policy, others are ‘‘special conditions’’ added by the program which may be specific to the particular region. Compliance with these conditions will be considered as part of the program evaluation process. (7) Selection Process For the State Clean Diesel Program, EPA expects to award grants to all eligible States that meet the applicable requirements described in this Notice. As pursuant to Section 793(b)(2)(B) of EPAct of 2005, the process by which the Administrator or delegated authority shall approve or disapprove each application will be as follows. States must substantially comply with the application process outlined in Section 6 of this Notice including the submittal of the Notice of Intent to Apply and the application package. Work plans must (9) Renewal Process Each year that adequate appropriations are available for State Grant and Loan Programs under Section 793 EPAct of 2005 Subtitle G, States with current programs under this authority will need to follow EPA guidelines on renewing funds. Renewal decisions will be based, in part, on satisfactory performance the previous year on the work plan’s stated activities. EPA has established a streamlined process for renewal of existing grants that will include at a minimum, evaluation of submitted quarterly d. Are Quality Assurance and Quality Control (QA/QC) Required for Application? Pursuant to 40 CFR 31.45, QA/QC plans and procedures may be required if a grantee’s project involves environmentally related measurements or data generation. PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 E:\FR\FM\10MRN1.SGM 10MRN1 12732 Federal Register / Vol. 73, No. 47 / Monday, March 10, 2008 / Notices reports, whether awardees are making adequate progress in meeting their Stated goals, and a revised work plan to identify next year’s activities. EPA will provide specific dates and guidelines for the renewal process through a Federal Register Notice as funding is appropriated by Congress. Eligible entities who did not apply in fiscal year 2008 will have an opportunity to participate in the program for following years and may be required to submit a Notice of Intent to Apply. Specific processes and deadlines will be available through subsequent Federal Register Notices. (10) Resources and Tools EPA has developed resources and tools for States including technical guidance on the cost-effectiveness of retrofit technologies for on-highway and non-road heavy-duty diesel engines. These resources are available at https:// www.epa.gov/cleandiesel. pwalker on PROD1PC71 with NOTICES (11) EPA OTAQ and Regional Clean Diesel Contacts a. Office of Transportation and Air Quality (Headquarters)—Washington, DC, Jennifer Keller, U.S. EPA, 1200 Pennsylvania Ave., NW., Washington, DC 20460, Mail-Stop: 6405–J. Phone (202) 343–9541, Fax (202) 343–2803, keller.jennifer@epa.gov. b. Administrator Address: U.S. Environmental Protection Agency, Administrator Stephen L. Johnson, 1200 Pennsylvania Ave, NW., Washington, DC 20460. c. Regional Clean Diesel Contacts (1) Region I—Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont: Lucy Edmondson, USEPA Region I, EPA New England, One Congress Street, Boston, MA, T: (617) 918–1004; F: (617) 918–0004; edmondson.lucy@epa.gov. (2) Region II—New Jersey, New York: Melanie Zeman, USEPA Region II, 290 Broadway, 25th floor—Air Programs Branch, New York, NY 10007–1866, T: (212) 637–4022; F: (212) 637–3901; zeman.melanie@epa.gov. (3) Region III—Delaware, Maryland, Pennsylvania, Virginia, West Virginia: Bill Jones, USEPA Region III, 1650 Arch Street, Philadelphia, PA 19103, T: (215) 814–2023; F: (215) 814–2101; jones.bill@epa.gov. (4) Region IV—Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee: Scott Davis, USEPA Region IV, Sam Nunn Atlanta Federal Center, 61 Forsyth Street, SW., Atlanta, GA 30303– 8960, T: (404) 562–9127; F: (404) 562– 9019; davis.scottr@epa.gov. VerDate Aug<31>2005 16:39 Mar 07, 2008 Jkt 214001 (5) Region V—Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin: Steve Marquardt, USEPA Region V, 77 West Jackson Blvd., Mail Code A–18J, Chicago, IL 60604, T: (312) 353–3214; F: (312) 886–0617; marquardt.steve@epa.gov. (6) Region VI—Arkansas, Louisiana, New Mexico, Oklahoma, Texas: Ruben Casso, USEPA Region VI, 1445 Ross Avenue, Dallax, TX 75202, Mail Code: 6PD–Q, T: (214) 665–6763; F: (212) 665– 6762; casso.ruben@epa.gov. (7) Region VII—Iowa, Kansas, Nebraska, Missouri: Alan Banwart, USEPA Region VII, 901 N. 5th Street, Kansas City, KS 66101, T: (913) 551– 7819; F: (913) 551–7844; banwart.alan@epa.gov. (8) Region VIII—Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming: Rebecca Russo, USEPA Region VIII, 1595 Wynkoop Street, Denver, CO 80202, T: (303) 312–6757; F: (303) 312–6064; russo.rebecca@epa.gov. (9) Region IX—Arizona, California, Hawaii, Nevada: Michael Mann, USEPA Region IX (Air–1), 75 Hawthorne Street, San Francisco, CA 94105, T: (415) 972– 3505; F: (415) 947–3581; mann.michael@epa.gov. (10) Region X—Alaska, Idaho, Oregon, Washington: Wayne Elson, USEPA Region X, 1200 Sixth Avenue, Suite 900, M/S AWT–107, Seattle, WA 98101, T: (206) 553–1463; F: (206) 553–0110; elson.wayne@epa.gov. Dated: February 27, 2008. Margo Tsirigotis Oge, Director, Office of Transportation and Air Quality. [FR Doc. E8–4702 Filed 3–7–08; 8:45 am] BILLING CODE 6560–50–P FARM CREDIT ADMINISTRATION Farm Credit Administration Board; Regular Meeting AGENCY: Farm Credit Administration. SUMMARY: Notice is hereby given, pursuant to the Government in the Sunshine Act (5 U.S.C. 552b(e)(3)), of the regular meeting of the Farm Credit Administration Board (Board). Date and Time: The regular meeting of the Board will be held at the offices of the Farm Credit Administration in McLean, Virginia, on March 13, 2008, from 9 a.m. until such time as the Board concludes its business. FOR FURTHER INFORMATION CONTACT: Roland E. Smith, Secretary to the Farm Credit Administration Board, (703) 883– 4009, TTY (703) 883–4056. ADDRESSES: Farm Credit Administration, 1501 Farm Credit Drive, McLean, Virginia 22102–5090. PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 Parts of this meeting of the Board will be open to the public (limited space available), and parts will be closed to the public. In order to increase the accessibility to Board meetings, persons requiring assistance should make arrangements in advance. The matters to be considered at the meeting are: SUPPLEMENTARY INFORMATION: Open Session A. Approval of Minutes • February 14, 2008. B. New Business • Notice and Request for CommentProposed Revisions to the Interagency Questions and Answers Regarding Flood Insurance. C. Reports • Spring 2008 Abstract of the Unified Agenda and Regulatory Performance Plan. • FCSBA Quarterly Report. Closed Session * • Commodity and Capital Trends. Dated: March 5, 2008. Roland E. Smith, Secretary, Farm Credit Administration Board. [FR Doc. 08–998 Filed 3–6–08; 12:11 pm] BILLING CODE 6705–01–P FARM CREDIT SYSTEM INSURANCE CORPORATION Farm Credit System Insurance Corporation Board; Regular Meeting Farm Credit System Insurance Corporation Board; Regular Meeting. SUMMARY: Notice is hereby given of the regular meeting of the Farm Credit System Insurance Corporation Board (Board). Date and Time: The meeting of the Board will be held at the offices of the Farm Credit Administration in McLean, Virginia, on March 13, 2008, from 10 a.m. until such time as the Board concludes its business. FOR FURTHER INFORMATION CONTACT: Roland E. Smith, Secretary to the Farm Credit System Insurance Corporation Board, (703) 883–4009, TTY (703) 883– 4056. ADDRESSES: Farm Credit System Insurance Corporation, 1501 Farm Credit Drive, McLean, Virginia 22102. SUPPLEMENTARY INFORMATION: Parts of this meeting of the Board will be open to the public (limited space available) and parts will be closed to the public. AGENCY: * Session Closed-Exempt pursuant to 5 U.S.C. 552b(c)(8) and (9). E:\FR\FM\10MRN1.SGM 10MRN1

Agencies

[Federal Register Volume 73, Number 47 (Monday, March 10, 2008)]
[Notices]
[Pages 12728-12732]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-4702]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-8536-7]


Energy Policy Act of 2005 Diesel Emissions Reduction Program; 
State Clean Diesel Grant Program Funding Fiscal Year 2008

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of Availability of Funding for the Fiscal Year 2008 
State Clean Diesel Grant Program Under the 2005 Energy Policy Act.

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SUMMARY: The Energy Policy Act of 2005 (H.R. 6) signed into law on 
August 8, 2005 (Pub. L. 109-58) incorporates provisions to achieve 
significant reductions in diesel emissions. Section 793 of the Energy 
Policy Act of 2005 authorizes the U.S. Environmental Protection Agency 
(EPA) to support grant and loan programs administered by States that 
are designed to achieve significant reductions in diesel emissions. 
This program authorized in Section 793 is referred to as the State 
Clean Diesel Grant Program for this Notice. EPA expects to have 
approximately $14.8 million available in fiscal year 2008 in the form 
of assistance agreements to issue under the State Clean Diesel Grant 
Program.

DATES: In order to participate, States must notify EPA of their intent 
to apply to the State Clean Diesel Grant Program through a Notice of 
Intent to Apply as described in Section 6 of this Notice on or before 
April 24, 2008 at 11:59 p.m. Pacific Time. States must submit 
applications to EPA as described in Section 6 of this Notice on or 
before June 23, 2008 at 11:59 p.m. Pacific Time. Failure to meet these 
deadlines could result in ineligibility for fiscal year 2008 funding.
    Contact Information: States must e-mail the Notice of Intent to 
Apply to EPA's Office of Transportation and Air Quality (OTAQ) at 
cleandiesel@epa.gov and include in the subject line ``Intent to Apply: 
State Clean Diesel Grant Program--[NAME OF STATE].'' States must then 
submit applications to the appropriate Regional Clean Diesel contact 
listed in this notice under Section 11.

FOR FURTHER INFORMATION CONTACT: Jennifer Keller, U.S. EPA, 1200 
Pennsylvania Ave., NW., Washington, DC 20460, Mail-Stop: 6405-J. Phone 
(202) 343-9541, Fax (202) 343-2803, keller.jennifer@epa.gov. You may 
access this Federal Register document electronically through the EPA 
Internet under the ``Federal Register'' listings at https://www.epa.gov/
fedrgstr/. This document will also be available at the EPA National 
Clean Diesel Campaign Web site, https://www.epa.gov/cleandiesel. Please 
note that due to differences between the software used to develop the 
documents and the software into which the documents may be downloaded, 
changes in format, page length, etc., may occur.

SUPPLEMENTARY INFORMATION:

(1) General Information

a. What Is the Statutory Authority for the State Clean Diesel Grant 
Program?

    The 2005 Energy Policy Act (EPAct of 2005), Public Law 109-58, 
signed into law August 8, 2005, authorized an annual appropriation of 
up to $200,000,000 under the Diesel Emissions Reduction portion of the 
legislation (Subtitle G--Diesel Emissions Reduction or ``DERA'') for 
each of fiscal years 2007 through 2011 to remain available until 
expended. In December 2007, Congress appropriated $49.2 million under 
EPAct of 2005 to help reduce harmful emissions from heavy-duty diesel 
engines. Section 793 of EPAct of 2005 outlines provisions for the State 
Clean Diesel Grant Program which includes that, ``the Administrator 
shall provide to States guidance for use in applying for grant or loan 
funds under this section.'' Per statutory requirements, thirty percent 
of the $49.2 million ($14.8M for FY08), is available through the State 
Clean Diesel Grant Program.

b. What Is the Catalog of Federal Domestic Assistance (CDFA) Number for 
the Diesel Emission Reduction Grants?

    The number assigned to the State Clean Diesel Grant Program is 
Program Code 66.040.

(2) Background Information

    Reducing emissions from diesel engines is one of the most important 
air quality challenges facing the country. Even with EPA's more 
stringent heavy-duty highway and non-road engine standards taking 
effect over the next decade, millions of diesel engines already in use 
will continue to emit large amounts of nitrogen oxides, particulate 
matter and air toxics, which contribute to serious public health 
problems. These emissions are linked to premature deaths, asthma 
attacks, lost work days, and other health impacts every year.
    EPA created the National Clean Diesel Campaign (NCDC) to build on 
the success of its regulatory and voluntary efforts to reduce emissions 
from diesel engines. Through this effort, EPA is working to reduce the 
pollution emitted from the existing fleet by promoting a variety of 
cost-effective and innovative emission reduction strategies.
    To date more than $50 million has been awarded to over 200 
organizations to establish new clean diesel programs. Through NCDC, EPA 
will continue to award grants and loans to assist its eligible partners 
in building diesel emission reduction programs across the country to 
achieve public health goals. The programs outlined in EPAct of 2005 are 
part of NCDC's Clean Diesel Programs. Information regarding the Clean 
Diesel Programs can be found at https://www.epa.gov/cleandiesel.
    There are several programs outlined in EPAct of 2005 as part of the 
National Clean Diesel Campaign. There are two main components of the 
program: A National component and a State component. A brief 
description is provided below.
    Within the National component, 70 percent of the funds ($34.4 
million FY08) are made available on a competitive basis to provide 
grants and low-cost revolving loans to eligible entities for the 
deployment of verified and certified technologies to reduce diesel 
emissions. This program has three separate competitions: (1) National 
Clean Diesel Funding Assistance Program: A competitive grant program 
for the deployment of EPA and/or California Air Resources Board (CARB) 
certified and/or verified clean diesel technologies and verified idle 
reduction technologies, (2) National Clean Diesel Finance Program: A 
competitive grant program for innovative finance mechanisms such as 
national low-cost revolving loans, and (3) Clean Diesel Emerging 
Technologies Program: A competitive grant program to deploy emerging 
technologies not yet verified but for which an approvable application 
for verification and test plan are received by EPA. States, as eligible 
entities, may apply to all three of the competitions above, in addition 
to the State Clean Diesel Grant Program.

[[Page 12729]]

    The second component is the State Clean Diesel Grant Program. With 
this component, 30% of the funds ($14.8 million FY08) are made 
available through an allocation to States. Except where indicated, the 
remainder of this notice refers specifically to this component: The 
State Clean Diesel Grant Program. Additional information regarding the 
State Clean Diesel Grant Program is available at https://www.epa.gov/
cleandiesel under the State Program section.

(3) Eligible Entities

    Throughout this document, the term ``applicant,'' ``recipient,'' or 
``State'' includes the 50 States. EPA presumes that the State Agency 
with jurisdiction over air quality will be the lead agency to receive 
these funds. If a State's circumstances dictate that another State 
agency administer the funds, then a letter from the State Governor or 
designee to the Administrator of EPA is required in order to certify 
one State Agency as the recipient of funds who has the legal and 
administrative authority to enter into a grant or cooperative agreement 
with EPA. Upon receipt, EPA will consider that State Agency the lead 
agency from that point forward. However, if there is a change, a new 
Governor's letter to the Administrator must be submitted during the 
renewal process and the new agency would be considered the lead agency 
for future grants. For fiscal year 2008, the letter to identify an 
alternate lead agency and provide specific contact information should 
be sent to the EPA Administrator at the contact information listed in 
Section 11 of this Notice and be received on or before April 24, 2008 
at 11:59 p.m. Pacific Time.

(4) Allocation of Funds

 a. How Much Funding Is Available?

    In fiscal year 2008, Congress allocated $49.2 million for Subtitle 
G, Diesel Emissions Reduction Program under EPAct of 2005. For fiscal 
year 2008, 30 percent of these funds (approximately $14.8M) under this 
subtitle are for the State Clean Diesel Grant Program. The President's 
fiscal year 2009 budget request outlines similar levels. State Agencies 
that are eligible entities under the National Clean Diesel Grant and 
Loan Program may also apply for competitive national grants.

 b. How Will Funding Be Allocated in Fiscal Year 2008?

    For fiscal year 2008, EPA expects to award grants to all States for 
which applications are approved based on an allocation formula that is 
outlined in EPAct of 2005. Accordingly, for fiscal year 2008, EPA will 
allocate 20 percent of the funds for base level funding and reserve 10 
percent of the funds for the State matching incentive. Pursuant to 
EPAct of 2005, funding levels for the State Clean Diesel Grant Program 
may change in future years, but the base allocation of funding will not 
be more than 20 percent of the funds available in a fiscal year.
    The specific allocation methodology for the State program for 
fiscal year 2008 as prescribed in EPAct of 2005 Section 793(c) of 
Subtitle G is outlined below:
    (1) Base funding (20 percent or $9.84M)
    (a) If all 50 States elect to participate, then 2 percent is 
available for each State ($196,000).
    (b) If fewer than 50 States elect to participate, then a base 
allocation of 2 percent plus a proportional population formula will be 
used. The total population of the State will be divided by the total 
population of all qualifying States for a fiscal year/grant cycle. The 
total population of qualifying States would not be determined until all 
qualifying States are selected. EPA will use the latest available 
population estimate data of the U.S. Census Bureau. This fraction of 
State population over total population of qualifying States is 
multiplied by the remaining funds from the 20 percent allocated to the 
qualifying States.
[GRAPHIC] [TIFF OMITTED] TN10MR08.000

    (2) Matching Incentive (10 percent or $4.96M)
    (a) If States choose to match their entire allocation dollar for 
dollar, they will receive an additional 50 percent of their State base 
funding.
    (3) Unclaimed funds from the State Clean Diesel Grant Program will 
revert to the National Clean Diesel Funding Assistance Program. 
Unclaimed funds may consist of funds from the matching incentive pool 
which were not matched by States and/or any funds from the base 
allocation portion if EPA were to provide less than 20 percent base 
allocation. Any funds reverting to the National Clean Diesel Funding 
Assistance Program will be subject to the statutory distribution 
requirements.
    Award amounts could range from approximately $196,000 to $2,000,000 
based on the number of States who apply. For examples of potential 
funding scenarios, see https://www.epa.gov/cleandiesel under the State 
Program section.

 c. What Are the Match Requirements?

    Under the State Clean Diesel Grant Program, a match is not 
required. However, as an incentive, States are encouraged to match the 
entire Federal allocation dollar for dollar. If the entire base 
allocation is matched dollar for dollar, States qualify for an 
additional 50 percent of their original allocation.
    Pursuant to 40 CFR 31.24, States that choose to match the Federal 
allocation can use a combination of non-Federal grants or financial 
contributions over which the State has control from non-Federal third 
parties and/or through in-kind contributions that are applicable to the 
period to which the matching requirements apply. A matching requirement 
may not be met by costs borne by another Federal grant. Eligible 
categories for matching funds include State funds or private funds 
which can either be cash donations or in-kind contributions. A State 
may not use any Federal funds received under Subtitle G, Diesel 
Emissions Reduction Program under EPAct of 2005 as match for the State 
Clean Diesel Grant Program.
    A recipient is legally obligated to expend any voluntary matching 
share included in the approved project budget. This match must be met 
by eligible and allowable costs as outlined in 40 CFR part 31 and is 
subject to the match provisions in the assistance agreement 
regulations. A recipient who fails to provide any matching share that 
is included in the approved budget would be in breach of the assistance 
agreement, and EPA can take enforcement actions authorized by the 
assistance regulations. Costs and third party in-kind contributions 
used to satisfy a match must be verifiable from records of grantees and 
subgrantee or cost-type contractors. These records must show how the 
value placed on third party in-kind contributions was derived. States 
are encouraged to submit letters of commitment from private funding 
secured for match as part of the State's application.

[[Page 12730]]

(5) Permissible Use of Funds

 a. What Projects and Activities Are Allowable Under This Program?

    States shall use any funds provided under the State Clean Diesel 
Grant Program to develop and implement Clean Diesel grant and low-cost 
revolving loan programs in the State as are appropriate to meet State 
needs and goals relating to the reduction of diesel emissions. Per 
EPAct of 2005 Section 793(d)(3) Use of Funds, a State, through a grant 
or loan, may fund a project that utilizes verified or certified 
technologies through EPA's verification or certification programs or 
through the California Air Resources Board's (CARB) verification or 
certification programs. A list of EPA verified technologies is 
available at https://www.epa.gov/cleandiesel. CARB-verified technologies 
may be found at www.arb.ca.gov/diesel/verdev/verdev.htm. In general, 
States may implement grant or loan programs to fund the costs of the 
following:
    (1) A retrofit technology (including any incremental costs of a 
repowered or new diesel engine) that significantly reduces emissions 
through development and implementation of a certified engine 
configuration, verified technology, or emerging technology for
    (a) A bus;
    (b) A medium-duty truck or a heavy-duty truck;
    (c) A marine engine;
    (d) A locomotive; or
    (e) A non-road engine or vehicle used in

--Construction;
--Handling of cargo (including at a marine port or airport);
--Agriculture;
--Mining; or
--Energy production (e.g., generator sets); or

    (2) Programs or projects to reduce long-duration idling using 
verified technology involving a vehicle or equipment described above. A 
list of EPA-verified idling technologies is available at https://
www.epa.gov/cleandiesel.
    All recipients of grants made through the State's grant or loan 
program must comply with applicable requirements for subawards or 
subgrants including those contained in 40 CFR Part 31.
    States cannot use subgrants or subawards to avoid requirements in 
EPA grant regulations for competitive procurement by using these 
instruments to acquire commercial services or products from for-profit 
organizations to carry out its assistance agreement. The nature of the 
transaction between the State and the subawardee or subgrantee must be 
consistent with the standards for distinguishing between vendor 
transactions and subrecipient assistance under Subpart B Section .210 
of OMB Circular A-133, and the definitions of ``subaward'' at 40 CFR 
30.2 or ``subgrant'' at 40 CFR 31.3, as applicable.

 b. What Are Program Priorities?

    Pursuant to EPAct of 2005 Section 793(d)(1), States should, to the 
extent practicable, provide funding to projects that, as determined by 
the State
    (a) Maximize public health benefits;
    (b) Are the most cost-effective;
    (c) Serve areas

--With highest population density;
--That are poor air quality areas, including areas
    i. In nonattainment or maintenance of national ambient air quality 
standards for a criteria pollutant;
    ii. Federal or State Class I areas; or
    iii. Areas with toxic air pollutant concerns;
--That receive disproportionate quantity of air pollution from diesel 
fleets, including truck stops, marine ports, rail yards, terminals, and 
distribution centers; or
--That use community-based multi-stakeholder processes to reduce toxic 
emissions;

    (d) Include a certified engine configuration, verified technology, 
or emerging technology that has a long expected useful life;
    (e) Will maximize the useful life of any certified engine 
configuration, verified technology, or emerging technology used or 
funding by the State;
    (f) Conserve diesel fuel; and
    (g) Use ultra low sulfur diesel fuel (15 parts per million or less 
of sulfur content) ahead of EPA's mandates (for non-road or marine 
projects).

 c. Are There Any Funding Restrictions?

    States and/or subgrantees must use a competitive process for 
obtaining contracts for services and products and conduct cost and 
price analyses to the extent required by Federal, State or local 
procurement requirements. All contracts and the purchase of supplies 
and equipment must be conducted in a manner providing free and open 
competition, to the maximum extent practicable. As such, applicants 
should refrain from mentioning specific technology manufacturers in 
their proposals unless they are sole source providers.
    States must ensure that the costs of proposed activities are 
allowable according to Office of Management and Budget (OMB) Circular 
A-87 ``Allowable Costs.'' This should be reviewed in conjunction with 
40 CFR Part 31. OMB defines allowable costs as those costs that are 
``eligible, reasonable, necessary, and allocable.'' For a cost to be 
eligible, the cost must not be prohibited by the statute, and it must 
be incurred during the budget period. Additionally, costs should be 
judged in context to determine that they are reasonable and necessary, 
and detailed budgets must include appropriate budget categories and 
funds must be allocated appropriately. For the purposes of implementing 
this program, the amount of funding used to cover these allowable 
costs, as identified in OMB Circular A-87 Attachment B, may be up to 15 
percent of your State's allocation.
    Recipients need to ensure that proper documentation is in the file 
to meet the procurement regulation requirement in 40 CFR part 31 and/or 
State procurement rules. All grant expenditures are subject to audit 
for the final determination of allowability of costs.

(6) Application Procedures

 a. What Is the Application Process for States?

    The process begins with a required Notice of Intent to Apply from 
the designated lead State Agency. Once the notices are received by EPA, 
the allocation formula described in Section 4 of this Notice will be 
used to determine a target budget for each State. EPA plans to inform 
States of this target budget on or before May 9, 2008 at 11:59 p.m. 
Eastern Time via e-mail to the contact identified in the Notice of 
Intent to Apply. Following notification of a target budget, States must 
prepare the application package in consultation with the EPA Regional 
Office. The Application Package will contain a program work plan, 
budget, and required administrative documents as directed in Section 
6(c) of this Notice. The full application package must be submitted to 
the Regional Clean Diesel contact indicated in Section 11 of this 
Notice on or before June 23, 2008, at 11:59 p.m. Pacific Time. EPA 
Regional Offices and the Office of Transportation and Air Quality will 
evaluate applications for compliance with the requirements listed in 
EPAct of 2005 and this Notice.
    Important Dates:
    (1) April 24, 2008--Required Notice of Intent to Apply from 
applicants to EPA.
    (2) May 9, 2008--EPA informs applicants of target budget.

[[Page 12731]]

    (3) June 23, 2008--State application packages due to EPA Regions.
    (4) August 2008--Regional Grant Offices award grants.
    (5) September--October 2008--Project period begins.
    (6) Quarterly--Post-award monitoring, evaluation and reporting of 
results of grant.
    (7) Annually--Renewal of application.

 b. How Do State Agencies Submit the Notice of Intent To Apply?

    A template (sample letter) for the Notice of Intent to Apply is 
available on the National Clean Diesel Campaign Web site at https://
www.epa.gov/cleandiesel under the State Program section. Components of 
the Notice should include (1) the intent to apply for the State Clean 
Diesel Grant Program, (2) signature of appropriate State official(s) 
with authority to commit the State (electronic signature via e-mail 
will be considered officially signed), (3) State's potential ability to 
match allocation and potential source categories of match, and (4) 
relevant programmatic and financial contact information (name, address, 
e-mail and phone). This Notice must be submitted electronically from 
the State's Commissioner or delegated official to EPA's Office of 
Transportation and Air Quality at cleandiesel@epa.gov on or before 
April 24, 2008 at 11:59 p.m. Pacific Time. The subject line of the e-
mail should read ``Intent to Apply: State Clean Diesel Grant Program--
[STATE NAME].''

 c. What Should the Application Package Contain?

    The application package must contain a work plan narrative and 
budget narrative in addition to the standard EPA grant application 
forms. The National Clean Diesel Campaign Web site, https://www.epa.gov/
cleandiesel, will include all application materials and/or instructions 
necessary to complete the forms under the State Program section.
    Work plans must contain sufficient detail so that EPA can determine 
that the proposed work meets the goal of significant reductions in 
diesel emissions and meets the statutory eligibility requirements and 
grant conditions. The work plan should include details on fleets or 
industry sectors the grants or loan program will target initially in 
year one of the program and a plan or framework to sustain the program 
for future years. Plans should designate resources (e.g., personnel, 
contracts, supplies, equipment) for the current budget period and 
corresponding outputs in quantifiable and measurable results. Work 
plans should also indicate how the State plans to meet the priority 
areas outlined in Section 5 of this Notice. A work plan and budget 
narrative template is available at https://www.epa.gov/cleandiesel under 
the State Program section.
    State Agencies must submit application packages to the appropriate 
EPA Regional Office on or before June 23, 2008, at 11:59 p.m. Pacific 
Time. EPA Regional Offices will make awards after review of the 
application package for the applicable requirements. See Section 11 of 
this Notice for a list of EPA Regional contacts.

 d. Are Quality Assurance and Quality Control (QA/QC) Required for 
Application?

    Pursuant to 40 CFR 31.45, QA/QC plans and procedures may be 
required if a grantee's project involves environmentally related 
measurements or data generation.

 e. Can State Clean Diesel Grant Funds Be Used With National Clean 
Diesel Grant Funds?

    For fiscal year 2008, States can apply for both the National and 
State components of National Clean Diesel Programs. State agencies with 
jurisdiction over transportation or air quality are eligible for 
funding under the National Clean Diesel Program; the 50 States are 
eligible for funding under the State Clean Diesel Program. States will 
need to submit separate applications and distinct work plans for each 
program. Applications through the National component are awarded 
through a competitive process and decisions are made separately. In 
fiscal year 2008, decisions on the National component are likely to 
follow the award of the State Clean Diesel grants. See https://
www.epa.gov/cleandiesel for links to regional competitions under the 
National Clean Diesel Funding Assistance Program.

(7) Selection Process

    For the State Clean Diesel Program, EPA expects to award grants to 
all eligible States that meet the applicable requirements described in 
this Notice. As pursuant to Section 793(b)(2)(B) of EPAct of 2005, the 
process by which the Administrator or delegated authority shall approve 
or disapprove each application will be as follows. States must 
substantially comply with the application process outlined in Section 6 
of this Notice including the submittal of the Notice of Intent to Apply 
and the application package. Work plans must also substantially comply 
with the guidelines and requirements as outlined in Section 5 of this 
Notice, Use of Funds. EPA will follow EPAct of 2005, Subtitle G Section 
793 criteria and this Notice to approve or disapprove applications.

(8) Reporting Requirements

    Recipients must submit progress reports and financial reports as 
required in 40 CFR 31.40 and 31.41 throughout the award period and a 
final performance report following the expiration of funding and/or 
prior to renewal of funding.
    40 CFR part 31 requires all grantees to submit timely and 
comprehensive progress reports on the activities funded by the grant. 
These reports provide EPA with the information it needs to ensure that 
each grantee is meeting the schedule and commitments contained in the 
assistance agreement. More importantly, they provide a mechanism for 
evaluating the environmental progress brought about by the State's 
Clean Diesel Program, and for reporting to Congress on this progress 
pursuant to Section 794 of Subtitle G, Diesel Emissions Reduction 
Program under EPAct of 2005. Regions may request that States submit 
quarterly reports and a final performance report following the end of 
the reporting period. Reporting requirements may include actual and 
estimated air quality and diesel fuel conservation benefits, cost-
effectiveness, and cost-benefits. Reporting schedules and submittal 
dates are to be specified in the individual assistance agreements, and 
each State will be expected to adhere to its agreed-upon schedule.
    States should pay particular attention to the grant and program 
conditions attached to their award documents. Some are standard 
conditions required by regulation or policy, others are ``special 
conditions'' added by the program which may be specific to the 
particular region. Compliance with these conditions will be considered 
as part of the program evaluation process.

(9) Renewal Process

    Each year that adequate appropriations are available for State 
Grant and Loan Programs under Section 793 EPAct of 2005 Subtitle G, 
States with current programs under this authority will need to follow 
EPA guidelines on renewing funds. Renewal decisions will be based, in 
part, on satisfactory performance the previous year on the work plan's 
stated activities. EPA has established a streamlined process for 
renewal of existing grants that will include at a minimum, evaluation 
of submitted quarterly

[[Page 12732]]

reports, whether awardees are making adequate progress in meeting their 
Stated goals, and a revised work plan to identify next year's 
activities. EPA will provide specific dates and guidelines for the 
renewal process through a Federal Register Notice as funding is 
appropriated by Congress. Eligible entities who did not apply in fiscal 
year 2008 will have an opportunity to participate in the program for 
following years and may be required to submit a Notice of Intent to 
Apply. Specific processes and deadlines will be available through 
subsequent Federal Register Notices.

(10) Resources and Tools

    EPA has developed resources and tools for States including 
technical guidance on the cost-effectiveness of retrofit technologies 
for on-highway and non-road heavy-duty diesel engines. These resources 
are available at https://www.epa.gov/cleandiesel.

(11) EPA OTAQ and Regional Clean Diesel Contacts

    a. Office of Transportation and Air Quality (Headquarters)--
Washington, DC, Jennifer Keller, U.S. EPA, 1200 Pennsylvania Ave., NW., 
Washington, DC 20460, Mail-Stop: 6405-J. Phone (202) 343-9541, Fax 
(202) 343-2803, keller.jennifer@epa.gov.
    b. Administrator Address:
    U.S. Environmental Protection Agency, Administrator Stephen L. 
Johnson, 1200 Pennsylvania Ave, NW., Washington, DC 20460.
    c. Regional Clean Diesel Contacts
    (1) Region I--Connecticut, Maine, Massachusetts, New Hampshire, 
Rhode Island, Vermont: Lucy Edmondson, USEPA Region I, EPA New England, 
One Congress Street, Boston, MA, T: (617) 918-1004; F: (617) 918-0004; 
edmondson.lucy@epa.gov.
    (2) Region II--New Jersey, New York: Melanie Zeman, USEPA Region 
II, 290 Broadway, 25th floor--Air Programs Branch, New York, NY 10007-
1866, T: (212) 637-4022; F: (212) 637-3901; zeman.melanie@epa.gov.
    (3) Region III--Delaware, Maryland, Pennsylvania, Virginia, West 
Virginia: Bill Jones, USEPA Region III, 1650 Arch Street, Philadelphia, 
PA 19103, T: (215) 814-2023; F: (215) 814-2101; jones.bill@epa.gov.
    (4) Region IV--Alabama, Florida, Georgia, Kentucky, Mississippi, 
North Carolina, South Carolina, Tennessee: Scott Davis, USEPA Region 
IV, Sam Nunn Atlanta Federal Center, 61 Forsyth Street, SW., Atlanta, 
GA 30303-8960, T: (404) 562-9127; F: (404) 562-9019; 
davis.scottr@epa.gov.
    (5) Region V--Illinois, Indiana, Michigan, Minnesota, Ohio, 
Wisconsin: Steve Marquardt, USEPA Region V, 77 West Jackson Blvd., Mail 
Code A-18J, Chicago, IL 60604, T: (312) 353-3214; F: (312) 886-0617; 
marquardt.steve@epa.gov.
    (6) Region VI--Arkansas, Louisiana, New Mexico, Oklahoma, Texas: 
Ruben Casso, USEPA Region VI, 1445 Ross Avenue, Dallax, TX 75202, Mail 
Code: 6PD-Q, T: (214) 665-6763; F: (212) 665-6762; casso.ruben@epa.gov.
    (7) Region VII--Iowa, Kansas, Nebraska, Missouri: Alan Banwart, 
USEPA Region VII, 901 N. 5th Street, Kansas City, KS 66101, T: (913) 
551-7819; F: (913) 551-7844; banwart.alan@epa.gov.
    (8) Region VIII--Colorado, Montana, North Dakota, South Dakota, 
Utah, Wyoming: Rebecca Russo, USEPA Region VIII, 1595 Wynkoop Street, 
Denver, CO 80202, T: (303) 312-6757; F: (303) 312-6064; 
russo.rebecca@epa.gov.
    (9) Region IX--Arizona, California, Hawaii, Nevada: Michael Mann, 
USEPA Region IX (Air-1), 75 Hawthorne Street, San Francisco, CA 94105, 
T: (415) 972-3505; F: (415) 947-3581; mann.michael@epa.gov.
    (10) Region X--Alaska, Idaho, Oregon, Washington: Wayne Elson, 
USEPA Region X, 1200 Sixth Avenue, Suite 900, M/S AWT-107, Seattle, WA 
98101, T: (206) 553-1463; F: (206) 553-0110; elson.wayne@epa.gov.

    Dated: February 27, 2008.
Margo Tsirigotis Oge,
Director, Office of Transportation and Air Quality.
 [FR Doc. E8-4702 Filed 3-7-08; 8:45 am]
BILLING CODE 6560-50-P
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