IC has received some common questions which we would like to use as an opportunity to reinforce some points about the grant:
IC has received some common questions which we would like to use as an opportunity to reinforce some points about the grant:
The DERA Grant is Competitive
· The EPA will receive many times more requests for funding than is available. Applications such as marine diesel projects, DPF retrofit projects, new school bus purchases, off highway retrofits, municipal trucks, offset to the cost of alternative fuels, locomotives, etc are all eligible for funding. We are hearing from across the country of organizations pursuing DERA funds. As such, this is a competitive grant and it is possible that not everyone will receive funding. We need to ensure our customers understand this.
Focus Your Efforts on 25% Funding Level
· Due to the competitive nature of the grant, the key for you to educate your customer on is presenting a winning application. Focusing on the 25% level will help with a winning bid. Why? A major factor in determining the grant award is Cost per Emissions Reduced. Here’s an example of what this means:
Customer A. Submitting for 25% funding level to replace a 1994 school bus with a 2009 school bus w/
MaxxForce DT
Emission reduction
EPA 1994 level 2009 level Total Reduction
NOx 5.0 1.2 3.8
PM 0.10 0.01 0.09
Customer B . Submitting for 50% funding level to replace same 1994 school bus with a 2009.5 CE school bus w/ high HP MXF DT produced after August 1, 2009.
Emission Reduction
EPA 1994 level 2009.5 level Total Reduction
NOx 5.0 <0.5 4.5+
PM 0.10 0.01 0.09
Probable Result:
EPA may likely choose to fund customer A over customer B. The incremental NOx reduction is not double, yet it would cost the EPA twice the funding. The EPA.s goal is to have the greatest impact in reducing diesel emissions. They would likely prefer to fund (2) 25% proposals instead of (1) 50% proposal.
Another note, please keep in mind, the new bus must have a similar horsepower rating to the old bus. The EPA may not allow you to replace a 210 hp engine with a 245 hp engine.
Minimum Grant Requests
· For customers interested in only purchasing a few buses, we have aligned with a national, non for profit organization that will collate similar customers from their EPA regions and submit a combined grant request meeting the minimum award levels on their behalf. Please contact Jason Anderson at salesmanager@hoglundbus.com for more information.
· To complete the grant through the national organization, each dealership must fill out one excel document, collating all customer information onto the excel spreadsheet. In addition, on a Microsoft Word document, each district should provide the following information (One MS Word document per customer):
o Short description of applicant organization
o High level description of the vehicles involved (Number and Type
of Vehicles)
o Project start date if awarded money (Order date and date vehicle
would be put into service)
o Positive impact the project could have on the environment in the
customers area
o If applicable, how this grant can help overcome financial hardship by
a school district
o Any past experience the customer has with diesel emission reduction
projects
o Any potential economic impact of this proposal, including number of jobs retained or created (IC Bus will provide impact from factory manufacturer view)