HomeMy WebLinkAboutVW Transit Bus Replacement RFA 04-24-2019-VW
AEA Transit Bus Replacement/Repower Program Page 1 of 3
Request for Applications
Transit Bus Replacement/Repower Program
Spring 2019 Program Guidelines
Application Deadline: June 14, 2019
Introduction
Volkswagen (VW) was sued by the Environmental Protection Agency (EPA) for its installation of software
in diesel vehicles that masked the actual in-use emissions of nitrogen oxides (NOx). The parties reached
a settlement which required VW to establish an Environmental Mitigation Trust (Trust) to fund diesel
replacement projects to fully mitigate for the excess NOx emissions that would be produced over the
lifetime of the affected vehicles. Under the Settlement, the State of Alaska, as a Beneficiary, was
allocated $8.125 million of the Trust. The Alaska Energy Authority (Authority) has been designated the
lead agency to administer the State’s allocation.
Consistent with Alaska’s Beneficiary Mitigation Plan describing how the funds will be disbursed, the
Authority is soliciting applications to repower or replace diesel transit buses (Classes 4-8 of model year
(MY) 2009 or older) with new, cleaner diesel, alternative-fueled, or all electric engines or buses. The
Authority anticipates awarding approximately $700,000 to cover up to 20% of the cost for transit bus
repower or replacement projects in the form of reimbursement beginning spring 2019. Purchases and
reimbursement for the intended purpose must be completed within two years of the award.
Application Period
The Authority will accept applications for eligible transit buses during an open application period
starting April 24, 2019 and ending at 5:00 pm on June 14, 2019. The Authority will hold two webinars
explaining the application process and the EPA Diesel Emission Calculator tool on May 2, 2019 1:30 pm -
3:00 pm and May 16, 2019 1:30 pm – 3:00 pm. Additional questions must be submitted to the Authority
in writing to vwsettlement@akenergyauthority.org with VW Transit Bus Q&A in the subject line by May
30, 2019. Q&A will be posted periodically on the Authority’s website up until June 6, 2019.
Eligible Applicants
Eligible applicants include government and non-government public transit owners and contract
agencies. Applicants may apply for funding to replace one or more vehicles; however, each bus will be
evaluated independently, using the information on the Bus Data Form and the criteria described in the
Bus Evaluation Form. An applicant may submit a single Application Cover Form; however, separate Bus
Data Forms and Bus Evaluation Forms must be submitted for each vehicle to be repowered or replaced.
The applicant must be able to provide a title and current registration for each bus prior to
reimbursement. There is a required 80% match for all applicants for the repower or replacement of
eligible public transit buses. Eligible mandatory matching funds include federal (non-DERA only), state,
local and private sources. No single applicant will be awarded more than 50 percent of the total funds
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allocated for transit bus repower and/or replacement.
Eligible Transit Buses
Eligible transit buses include 2009 engine model year or older Class 4-8 diesel shuttle or transit buses
that are operable and currently in use to transport people. The buses must be in good working condition
and have at least three years of serviceable life remaining. Funds may cover up to 20 percent of the cost
to repower an eligible bus with any new diesel, alternate-fueled (e.g., CNG, propane, hybrid), or all-
electric engine, or replace the bus with any new diesel, alternate-fueled, or all-electric vehicle, with the
engine model year in which the replacement occurs or one engine model year prior.
Reimbursement
All projects must be completed within two years of the award date; AEA reserves the right to withhold
funds if the project has not been completed in the defined timeframe. The applicant would have the
option to reapply the following funding cycle.
For reimbursement, the applicant must be able to provide a title and current registration for each bus;
copies of paid invoices for bus purchase and shipping; documentation of labor expended; and
documentation verifying scrappage of the old bus. As a requirement of the settlement, all replaced
buses must be verifiably destroyed or scrapped (i.e., hole drilled into engine block and chassis cut) in
order to receive reimbursement funds.
Applicants must own and operate the transit bus for a minimum of five years following reimbursement,
subject to verification by AEA. If the bus is sold before the 5-year period, or not operated as a transit
bus, the applicant may be required to return up to the full amount of the reimbursement. AEA reserves
the right to conduct audits which may include site visits to ensure compliance.
How to Apply
This is a competitive application on a per bus basis for VW Settlement funding to repower or replace
transit buses. An applicant may submit a single Application Cover Form; however, separate Bus Data
Forms and Bus Evaluation Forms must be submitted for each vehicle to be repowered or replaced.
Applications will be evaluated based on completeness and the criterion provided in the application.
Applications must include a copy of the Environmental Protection Agency’s Diesel Emissions Quantifier
(DEQ) for each vehicle using the data provided in the Bus Data Form as well as report a picture of the
bus odometer. AEA staff will be available to assist applicants in using the DEQ tool. Applications must be
submitted online or postmarked by June 14, 2019, to be considered. Incomplete applications will not be
considered. Late applications will not be considered. The Authority may contact applicants or an
applicant organization for clarification and/or supplemental information; please ensure the contact
inform ation provided is accurate. Applicants must respond to any request for additional
information within 10 calendar days.
Applications may be completed electronically using the transit bus application form s by
downloading and emailing or by printing and completing the attached form . Each application
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must be signed by the individual responsible for authorizing and overseeing completion of the
project. An electronic signature is acceptable so long as it is an image or reproduction of the
signatory's actual signature . Submit applications to vwsettlement@akenergyauthority.org or mail
to the following address:
Alaska Energy Authority
Attn: VW Settlement Fund Application ; Betsy McGregor
813 West Northern Lights Boulevard
Anchorage, Alaska 99503
If you have questions about your application or need assistance with the required information,
please contact Betsy McGregor at (907) 771-3957 or vwsettlement@akenergyauthority.org. All
questions must be submitted by May 30, 2019. Q&A will be posted on the Authority’s VW
Settlement Program website under the Transit Bus Replacement section by June 6, 2019.
Important Dates
Date Time Deliverable
May 2, 2019 1:30-3:00pm Webinar explaining application process and EPA Diesel
Emission Calculator tool. Register Here
May 16, 2019 1:30-3:00pm Webinar explaining application process and EPA Diesel
Emission Calculator tool. Register Here
May 30, 2019 5:00pm All questions must be submitted
June 6, 2019 5:00pm Q&A will be posted on Authority's website
June 14, 2019 5:00pm Applications must be submitted or post marked