![](media/image1.jpeg){width="4.0in"
height="1.2291666666666667in"}**AMERICAN RECOVERY AND REINVESTMENT ACT
of 2009 FUNDING FOR STATE CLEAN DIESEL GRANT PROGRAM**

**WORK PLAN NARRATIVE AND BUDGET NARRATIVE TEMPLATE**

INSTRUCTIONS: The following template provides States with the
information that should be included in the work plan and budget
narrative submitted for the *Recovery Act Funding for the State Clean
Diesel Grant Program*.

\*\*\*\*

**SUMMARY PAGE (1-2 pages)**

**Project Title:**

**Project Manager and Contact Information**

  ------------------ ----------------------------------------------------
  Organization name  

  Project manager    

  Address            

  Phone              

  Fax                

  Email              
  ------------------ ----------------------------------------------------

**Project Budget**

  ----------------------------------------- -----------------------------
  EPA allocation                            \$

  ----------------------------------------- -----------------------------

**Project Period**

All work plans for the Recovery Act Funding for the State Clean Diesel
Grant Program will run from the date of award through September 30,
2010. States should develop and submit a work plan and budget to their
EPA Regional office. All activities should focus on stimulating the
American economy, preserving and/or creating jobs, and reducing diesel
emissions.

**Summary Statement**

Insert a brief paragraph summarizing the proposed project.

**SCOPE OF WORK**

**Project Description**

Check the appropriate boxes and fill out the appropriate narrative
sections to identify the activities that will be performed with the
funds provided. This section should include a 2-3 page description of
the State's plan to develop and implement grants that are appropriate to
meet State needs and goals relating to the reduction of diesel
emissions, including a description of the tasks and activities that will
be conducted to accomplish this goal.

Technology options:

***Retrofit Technologies***: A "retrofit" project is defined broadly to
include any technology, device, fuel or system that when applied to an
existing diesel engine achieves emission reductions beyond what is
currently required by EPA regulations at the time of the engine's
certification. A list of EPA verified technologies is available at
http://www.epa.gov/otaq/retrofit/verif-list.htm. A list of CARB verified
technologies is available at
<http://www.arb.ca.gov/diesel/verdev/vt/cvt.htm>.

i.   ***Exhaust Controls:*** Exhaust Controls include pollution control
    devices installed in the exhaust system (such as oxidation catalysts
    and particulate matter filters), or systems that include crankcase
    emission control (like a closed crankcase filtration system).

ii.  ***Idle Reduction Technologies***: An idle reduction project is
    defined as the installation of a technology or device that (a) is
    installed in one or more of the following vehicle(s) or equipment: a
    bus; a medium-duty or heavy-duty truck; a marine engine; a
    locomotive; or a non-road engine or vehicle used in construction,
    handling of cargo (including at a port or airport), agriculture,
    mining, or energy production, or is installed in the ground and (b)
    is designed to provide services (such as heat, air conditioning,
    and/or electricity) to vehicles and equipment that would otherwise
    require the operation of the main drive engine while the vehicle is
    temporarily parked or remains stationary, and (c) reduces
    unnecessary idling of such vehicles or equipment. The reduction in
    idling must also lower emissions. EPA has verified a number of
    categories of idle reduction technologies: (1) auxiliary power units
    and generator sets; (2) battery air conditioning systems; (3)
    thermal storage systems; (4) electrified parking spaces (truck stop
    electrification); (5) fuel operated heaters; (6) shore connection
    systems and alternative maritime power. See
    <http://www.epa.gov/cleandiesel/idle-ncdc.htm> for more information.

> **iii.** ***Cleaner Fuels Use***: Cleaner fuels include, but are not
> limited to, ultra-low sulfur diesel fuel (for non-road
> vehicles/engines prior to EPA's mandate), biodiesel, diesel emulsions
> or additives verified by EPA or CARB, compressed natural gas and other
> alternative fuels. Funding available under this program may be used to
> cover the cost differential between the cleaner fuel and conventional
> diesel fuel. Note: This funding may not be used for fueling
> infrastructure, such as that used for the production and/or
> distribution of fuels.

***Engine Upgrades***: An engine upgrade is defined as an engine that is
rebuilt or remanufactured to meet higher federal emission standards.
Some engines may be able to be upgraded to reduce their emissions by
applying manufacturer recommended upgrades (or kits) to certified or
verified configurations. It is recommended that funding be applied only
to the emissions-reducing upgrade kit and associated labor costs for
installation.

Note: Both Engine Repowers and Vehicle and Equipment Replacements
require that the engine or vehicle being replaced be scrapped or
rendered permanently disabled. For more information and requirements on
scrapped or disabled engines/vehicles, contact your EPA Regional office.

***Certified Engine Repowers***: Repower refers to the removal of an
existing engine and its replacement with a newer or cleaner engine that
is certified to a more stringent set of engine emissions standards.
Repowers may include diesel engine replacement with an engine certified
for use with a cleaner fuel (such as compressed natural gas or propane).
These projects can also include the replacement of nonroad engines with
highway engines if vehicles/equipment continues to perform the same
function as before the repower.

***Certified Vehicle and Equipment Replacements***: Non-road and highway
diesel heavy-duty vehicles and equipment can be replaced under this
program with newer, cleaner vehicles and equipment that operate on
diesel or alternative fuels and meet a more stringent set of engine
emissions standards. Replacement projects can include the replacement of
diesel vehicles/equipment with newer, cleaner diesel or hybrid or
alternative fuel vehicles/equipment. The replacement vehicle/equipment
must be of the same type and similar gross vehicle weight rating or
horsepower as the vehicle/equipment being replaced (e.g., a 300
horsepower bulldozer is replaced by a bulldozer of similar horsepower).
The replacement vehicle/equipment must perform the same function as the
vehicle/equipment that is being replaced (e.g., an excavator used to dig
pipelines would be replaced by an excavator that continues to dig
pipelines). These projects can also include the replacement of non-road
vehicles/equipment with highway models if the highway models are capable
of performing the same functions as the nonroad models. EPA encourages
the replacement of older vehicles/equipment containing engines that were
manufactured prior to the implementation of emissions standards.

Other: If the project will include emerging technologies not covered by
the above list, please provide information below describing the
technologies/approaches. See
<http://www.epa.gov/cleandiesel/prgemerg.htm> for more information.

Other: If the project will include non-technology approaches (e.g.,
operational strategies) not covered by the above list, please provide
information below describing the technologies/approaches.

Fleets that will be impacted with the technologies (check all that
apply):

School Buses

Transit Buses

Medium Duty Truck

Heavy Duty Truck

Marine Engine

Locomotive

Construction

Cargo Handling

Agriculture

Mining

Energy production

other: (please describe)

**Administrative Activities**

Please provide a summary of any administrative activities that are
funded under this work plan. States may spend up to 15% on
administrative activities.

**Timeline**

States should provide a time-line or schedule of expected target dates,
milestones, and completion dates to achieve specific tasks and
accomplishments during the budget and project period.

  ----------------------------------- -----------------------------------
  **Date**                            **Activity**

                                      

                                      

                                      

                                      

                                      

                                      

                                      

                                      

                                      
  ----------------------------------- -----------------------------------

**Program Priorities**

The State Program will ensure that the programmatic priorities listed
below as outlined in the Energy Policy Act of 2005, Subtitle G will be
met to the extent practicable:

1.  Maximize public health benefits;

2.  Are the most cost-effective;

3.  Are in areas with high population density, that are poor air quality
    areas (including nonattainment or maintenance of national ambient
    air quality standards for a criteria pollutant; Federal Class I
    areas; or areas with toxic air pollutant concerns);

4.  Are in areas that receive a disproportionate quantity of air
    pollution from diesel fleets, including truck stops, ports, rail
    yards, terminals, and distribution centers or that use a
    community-based multi-stakeholder collaborative process to reduce
    toxic emissions;

5.  Include a certified engine configuration or verified technology that
    has a long expected useful life;

6.  Maximize the useful life of any certified engine configuration or
    verified technology used or funded by the eligible entity;

7.  Conserve diesel fuel; and

8.  Utilize ultra low sulfur diesel fuel (15 parts per million of sulfur
    content) ahead of EPA's mandate (for nonroad projects).

The State will ensure that, per the Recovery Act, grant activities
preserve and/or create jobs and promote economic recovery. The State
should also commence expenditures and activities as quickly as possible
consistent with prudent management when implementing this grant and/or
loan program.

The State Program understands that all proposals must support Goal 1 of
EPA's 2006-2011 Strategic Plan, Clean Air and Global Climate Change;
Objective 1.1: Healthier Outdoor Air, which states, "Through
2011...\[EPA will\]...protect human health and the environment by
attaining and maintaining health-based air-quality standards and
reducing the risk from toxic air pollutants." See
<http://www.epa.gov/cfo/plan/plan.htm> for more information on EPA'
Strategic Plan.

Check this box if the proposed project involves environmentally related
measurements or data generations that would need quality assurance and
quality control plans and procedures as pursuant to 40 CFR 31.45.

**Reporting**

The State Program understands that reporting will at least be quarterly
and additional reporting may be required for these special Recovery Act
grants. Reporting requirements will be detailed in the grant Terms and
Conditions.

**BUDGET NARRATIVE (1-2 pages)**

**Project Budget**

States should provide a detailed itemized budget (in addition to the
Standard Form 424A) using the table below:

  --------------------------------------- -------------------------------
  **Budget Category**                     **EPA Allocation**

  1\. Personnel                           

  2\. Fringe Benefits                     

  3\. Travel                              

  4\. Supplies                            

  5\. Equipment                           

  6\. Contractual                         

  7\. Other                               

  **Total Direct Charges**                

  8.Indirect Charges                      

  **Grand Total**                         
  --------------------------------------- -------------------------------

**Explanation of Budget Framework**

States must demonstrate that no more than 15 percent of a State's total
allocation from EPA is being used to cover administrative type costs as
identified in OMB Circular A-87 Attachment B (e.g., personnel, benefits,
travel, supplies) The 15 percent maximum does not include indirect cost
rates or funds going directly to projects through grants and/or loans.

1.  [Personnel]{.underline}\
    Indicate salaries, percentage of time assigned to the project and
    total cost for budget period, by job title of all individuals who
    will be supplemented with these funds. For example:

  ----------------------------------------------------------- -----------
  **Category**                                                **EPA**

  Fleet Manager @ \$600/wk x 12 weeks                         \$7,200

  Project Manager @ \$15/hr x 40 hrs/wk x 12 wks              \$0
  ----------------------------------------------------------- -----------

2.  [Fringe Benefits]{.underline}\
    Fringe benefit costs are those costs for personnel employment other
    than the employees' direct income (i.e., employer's portion of FICA
    insurance, retirement, sick leave, holiday pay, and vacation cost)
    that will be paid by the grantee. Provide the total cost of fringe
    benefits unless treated as part of an approved indirect cost rate.
    Provide break-down of amounts and percentages that comprised fringe
    benefit costs, such as health insurance, FICA, retirement insurance,
    etc. Indicate all mandated and voluntary benefits to be supplemented
    with these funds. For example:

  ----------------------------------------------------------- -----------
  **Category**                                                **EPA**

  Health Insurance -- 1 FTE @ \$35/mos x 12 mos               \$420

  Dental -- 1 FTE @ \$40/mo x 12 mos                          \$480
  ----------------------------------------------------------- -----------

3.  [Travel]{.underline}\
    Travel and per diem costs are those costs for travel and subsistence
    which are directly related to the grant. Identify the number of
    trips planned, the purpose of each trip, the destination for each
    trip, the number of travelers, and the estimated cost of each trip.
    For example:

  ----------------------------------------------------------- -----------
  **Category**                                                **EPA**

  *Site visit*                                                

  Local Travel Mileage -- 1000 miles x \$0.36                 \$0

  *Meeting*                                                   

  Air Fare for 1 person to Chicago, IL                        \$0

  Per diem 2 days @ \$40/day for 1 person                     \$80

  Hotel for 1 night for 1 person                              \$75
  ----------------------------------------------------------- -----------

4.  [Supplies\
    ]{.underline}Equipment (less than \$5,000), material, and supply
    costs are those costs directly related to the grant. Identify all
    supplies purchased and its cost. The budget detail should be as
    descriptive as possible. Categories of supplies to be procured;
    e.g., laboratory supplies or office supplies, are acceptable if
    items cannot be reasonably separated. Provide the individual and
    total cost of supplies. For example:

  ------------------------------------------------------------ ----------
  **Category**                                                 **EPA**

  50 pamphlets for community members @ \$2 each                \$100

  Copying and postage costs                                    \$100
  ------------------------------------------------------------ ----------

5.  [Equipment]{.underline}\
    Equipment, material, and supply costs are those costs directly
    related to the grant. Identify each item of equipment to be
    purchased which has an estimated acquisition cost of \$5,000 or more
    per unit and a useful life of more than one year. Provide a
    description of each item of equipment and its cost. No equipment may
    be purchased without the expressed approval of the EPA regional
    contact. If equipment purchased wholly or partially with assistance
    agreement funds is to be used on more than one project/program,
    acquisition costs or usage fees must be approved and allocated
    properly.

6.  [Contractual\
    ]{.underline}Contractual services are those services directly
    related to the EPA program/project. Identify each proposed contract
    and specify its purpose, nature, period of performance and estimated
    cost. Do not include procurement contracts which are reflected in
    other object class categories such as equipment, supplies, etc. If
    funds allocated to this object class category include proposed
    expenditures not usually categorized as services to be procured at
    the market place, explanatory footnotes must be included. Provide
    the total cost for contracts. For example:

  ------------------------------------------------------------ ----------
  **Category**                                                 **EPA**

  Contractor assistance: host workshop on how to apply for     \$2,000
  State Clean Diesel Grants and/or Loans                       
  ------------------------------------------------------------ ----------

> Please describe your competitive bid process for contracts and/or
> sub-grants. Contracts must be competed for services and products. You
> must also conduct cost, price and value analyses to the extent
> required in 40 CFR Parts 30 or 31, as applicable, as well as any
> regulations covered by state or local procurement requirements. The
> regulations also contain limitations on consultant compensation. You
> are not required to identify contractors or consultants in your
> application. Moreover, if you have named a specific contractor or
> consultant in your application EPA approves, it does not relieve you
> of your obligations to comply with competitive procurement
> requirements as well as any regulations covered by state or local
> procurement requirements.
>
> Sub-grants or sub-awards may be used to fund partnerships with
> non-profit organizations and governmental entities. Successful
> applicants cannot use sub-grants or sub-awards to avoid requirements
> in EPA grant regulations for competitive procurement by using these
> instruments to acquire commercial services or products to carry out
> its cooperative agreement. The nature of the transaction between the
> recipient and the sub-grantee must be consistent with the standards
> for distinguishing between vendor transactions and sub-recipient
> assistance under Subpart B Section 210 of OMB Circular A-133, and the
> definitions of "sub-award" at 40 CFR 30.2 (ff) or "sub-grant" at 40
> CFR 31.3, as applicable.

7.  [Other\
    ]{.underline}This category should include the funds going toward the
    actual State grants and to eligible entities. This category should
    constitute the main part of your budget. For example:

  -------------------------------------------------- --------------------
  **Category**                                       **EPA**

  Clean Diesel Sub-Grant Funding                     \$166,600
  -------------------------------------------------- --------------------

8.  [Direct Charges\
    ]{.underline}Provide total amount of direct costs (items 1-7
    above).[\
    ]{.underline}

9.  [Indirect Charges\
    ]{.underline}Indirect costs result from allocation of a grouping of
    administrative costs which are not easily identified as a direct
    cost. Provide the total amount of indirect costs. Include a copy of
    your current indirect cost agreement which reflects the approved
    rate.

**SIGNATURES**

This work plan and detailed budget narrative must be signed and dated by
the Authorized Representative signing the SF-424 form.

If your organization has the capability to sign the application with a
digital or electronic signature, this will be accepted.

**APPENDIX**

**Resources**

States may wish to consult the CFR and OMB circulars as referenced in
the Federal Register Notice. Links to these references are:

40 CFR 31: http://www.gpoaccess.gov/cfr/index.html

OMB Circular A-87: <http://www.whitehouse.gov/omb/circulars/index.html>

More information is available on EPA's web site at
<http://www.epa.gov/otaq/eparecovery/progstate.htm>