Slide 1

Office of Transportation and Air Quality & the DERA Programs Tribal OpportunitiesRosalva TapiaMay 22, 2012

Presentation OverviewWhere OTAQ fits in EPAOffice of Transportation and Air Quality StructureWhere DERA fits in OTAQDERA Grant ProgramTribal ProgramTribal SuccessesFuture Opportunities

Where does OTAQ fit into EPAWhat OTAQ DoesWhere the DERA program fits into OTAQ and how it works

2EPA Has 12 HQ OfficesOAR is one of 12 EPA headquarter offices3Office of Air & RadiationOAR is one of 12 EPA headquarter offices4

Within OAR there are four program offices, plus the Office of Policy, Analysis and Review, and the Office of Program Management Operations5OTAQs MissionOTAQs mission is to reconcile the transportation sector with the environment by advancing clean fuels and technology, and working to promote more livable communities.OTAQ is responsible for carrying out laws to control air pollution from motor vehicles, engines, and their fuels.Mobile sources include: cars and light trucks, large trucks and buses, farm and construction equipment, lawn and garden equipment, marine engines, aircraft, and locomotives.

OTAQs mission is to reconcile the transportation sector with the environment by advancing clean fuels and technology, and working to promote more livable communities.OTAQ is responsible for carrying out laws to control air pollution from motor vehicles, engines, and their fuels.Mobile sources include: cars and light trucks, large trucks and buses, farm and construction equipment, lawn and garden equipment, marine engines, aircraft, and locomotives.OTAQ activities include:characterizing emissions from mobile sources and related fuels; developing programs for their control, including assessment of the status of control technology and in-use vehicle emissions; carrying out a regulatory compliance program, in coordination with the Office of Enforcement and Compliance Assurance, to ensure adherence of mobile sources to standards; fostering the development of State Motor Vehicle Emissions Inspection and Maintenance Programs; and implementing programs for the integration of clean-fueled vehicles into the market.

6OTAQ ActivitiesCharacterize emissions from mobile sources and related fuels; Develop programs for their control, including assessment of the status of control technology and in-use vehicle emissions; Carry out a regulatory compliance program, in coordination with the Office of Enforcement and Compliance Assurance, to ensure adherence of mobile sources to standards; Foster the development of State Motor Vehicle Emissions Inspection and Maintenance Programs; and Implement programs for the integration of clean-fueled vehicles into the market.

OTAQs OfficesOTAQ divided between EPA's HQ and the National Vehicle and Fuel Emissions Lab (NVFEL) in Ann Arbor, Michigan.Staff of ~400 employees, with two-thirds located at NVFELHighly educated: Nearly 40% have MS, PhD, JDSpecialties: engineering, statistics, natural resources, economics, lawMajority of OTAQ staff have 10+ years of EPA experienceThe NVFEL is a world-class state of the art testing & research facility

9Recent OTAQ Clean Air Rules Deliver Tremendous Health Benefits

40,000over 3 millionBased on EPAs estimates of benefits from Light-duty Tier 2, Heavy-duty 2007, Nonroad Tier 4, Mobile Source Air Toxics, Locomotive & Marine Diesel, and Small SI/Rec Marine Engine rules. *Only reflects PM-related premature mortality from rules; EPA began quantifying ozone-related mortality beginning with final Locomotive & Marine Diesel rule in 2008.9When we develop our regulations, we estimate the health benefits and associated costs because poor health is a great cost to our economy.In addition to public health benefits there are other benefits: improved visibility, reduced acid rain, etc.Recent Mobile Source Clean Air Rules:Comprehensively Addressing NOx and PM EmissionsClean Cars and Passenger Trucks Gasoline sulfur control (30 ppm avg / 80 ppm max, 2006 for most refiners)77-95% lower light-duty vehicle standards (phased in from 2004-2009)Same standards for light trucks and cars; gasoline and diesel

Clean Heavy-Duty Trucks and BusesDiesel sulfur control (15 ppm maximum, phased in from 2006-2010)90% lower heavy-duty gasoline & diesel vehicle standardsPM filter forcing standards, NOx catalyst based standards

Clean Nonroad Diesel Engines and EquipmentDiesel sulfur control (2 steps - 500 ppm in 2007, 15 ppm in 2010)Marine diesel sulfur control (15 ppm maximum) in 201290-95% lower emission standards - based on highway technology

Locomotive and Marine Diesel StandardsRequiring same technologies as on-highway and nonroad

Small Engine StandardsNew exhaust emission standards take effect in 2011 or 2012 depending on engine size

10Making Consumers Aware of Vehicle ChoicesMarketing SmartWay certified passenger cars & light trucks and freight truck tractors & trailers.

Fuel economy labelingDeveloped new procedures to better reflect real-world driving for MY08.

Green Vehicle Guide and Fuel Economy Guide

Developing guidance to identify clean vehicles for:HOV lanes and fuel tax credits (EPAct 2005).Federal fleets (EISA 2008).

11Green Vehicle Guide: Consumer-oriented website with emissions and fuel economy information. In 2004, this site received over 12 million hits and has already received 8 million hits in 2005Fuel Economy Guide: Publication to help car buyers choose the most fuel-efficient vehicle to meet their need. EPA compiles the data and DOE publishes them in print and on the web.

Addressing the Legacy Fleet: National Clean Diesel CampaignFocus on Key Sectors: School buses, Marine Vessels, Ports, Construction, Agriculture, Freight, Mining, Utility Vehicles

Promoting retrofitting, early engine and vehicle replacement

Program activities:Technology verification Technical and policy analysisCoalitions and outreach Innovative funding for projectsFederal grants

12Office of Transportation and Air Quality Organization

Immediate Office (IO) The IO includes the Chief of Staff function, which is responsible for processing regulatory packages, handling the press, and managing congressional relations. The Planning and Budget Office develops and organizes OTAQ's budget work, and takes the lead in implementing improvements to the planning process.Deputy Office Director (DOD) DOD manages human resources, implements organizational development, enhances internal communications, and manages OTAQ's public information services. In addition, DOD supports NVFEL's unique requirements for infrastructure, physical security, safety, environmental management, quality assurance and purchasing.Assessment and Standards Division (ASD) ASD is responsible for developing national policy and regulations involving emission standard-setting for vehicles, engines, and their fuels. These responsibilities include: identifying and developing control programs to reduce emissions from passenger cars, trucks, motorcycles, construction and farming equipment, locomotives, aircraft, marine, and lawn and garden equipment; conducting testing programs to evaluate and developvehicle/engine/fuel test procedures and emission control technologies; conducting programs to assess the feasibility of new vehicle/engine technologies; developing emission models and emission inventories; evaluating the health and environmental effects of pollutants emitted by vehicle, engines, and their fuels; determining the cost and effectiveness of emission control strategies and evaluating air quality benefits; conducting environmental and economic impact assessments; assessing the in-use effectiveness of past and future emission control programs; and conducting outreach to support the success of emission control programs. The Division is also responsible for providing EPA Regional Offices and state and local air quality and transportationplanning agencies with emission models and other technical and policy guidance for the preparation of emission inventories.Compliance Division (CD) CD develops and implements national air pollution control programs required by the Clean Air Act, Energy Policy and Conservation Act, and Energy Independence and Security Act for vehicles, engines, and fuels. CD staff manage all national clean fuel programs, including the renewable fuel standard, ultra low sulfur diesel, and reformulated gasoline programs. CD staff manage the certification, in-use compliance, and recall programsfor U.S. vehicles and engines, including nonroad engines. CD staff oversee fuel economy and CAFE compliance, and develop the Fuel Economy and Green Vehicle Guides. CD is also responsible for information management for the vehicle, engines, and fuels programs. Significant outreach to stakeholders and the public is required.Testing and Advanced Technology Division (TATD) TATD is responsible for the complete range of tasks required to provide the necessary laboratory testing and support services, IT management services, and advanced technology services at the National Vehicle and FuelEmissions Laboratory in support of OTAQs most critical programs.Transportation and Climate Division (TCD) TCD is primarily responsible for: (1) Coordinating OTAQs strategic climate programs; (2) Implementing programs required by the Clean Air Act to be included in State Implementation Plans to address the impact of in-use vehicles and transportation systems on air quality; and (3) implementing programs and distributingCongressional funding to address criteria and GHG emissions from vehicles in the U.S legacy fleet.

13Office of Transportation and Air Quality Organization

Immediate Office (IO) The IO includes the Chief of Staff function, which is responsible for processing regulatory packages, handling the press, and managing congressional relations. The Planning and Budget Office develops and organizes OTAQ's budget work, and takes the lead in implementing improvements to the planning process.Deputy Office Director (DOD) DOD manages human resources, implements organizational development, enhances internal communications, and manages OTAQ's public information services. In addition, DOD supports NVFEL's unique requirements for infrastructure, physical security, safety, environmental management, quality assurance and purchasing.Assessment and Standards Division (ASD) ASD is responsible for developing national policy and regulations involving emission standard-setting for vehicles, engines, and their fuels. These responsibilities include: identifying and developing control programs to reduce emissions from passenger cars, trucks, motorcycles, construction and farming equipment, locomotives, aircraft, marine, and lawn and garden equipment; conducting testing programs to evaluate and developvehicle/engine/fuel test procedures and emission control technologies; conducting programs to assess the feasibility of new vehicle/engine technologies; developing emission models and emission inventories; evaluating the health and environmental effects of pollutants emitted by vehicle, engines, and their fuels; determining the cost and effectiveness of emission control strategies and evaluating air quality benefits; conducting environmental and economic impact assessments; assessing the in-use effectiveness of past and future emission control programs; and conducting outreach to support the success of emission control programs. The Division is also responsible for providing EPA Regional Offices and state and local air quality and transportationplanning agencies with emission models and other technical and policy guidance for the preparation of emission inventories.Compliance Division (CD) CD develops and implements national air pollution control programs required by the Clean Air Act, Energy Policy and Conservation Act, and Energy Independence and Security Act for vehicles, engines, and fuels. CD staff manage all national clean fuel programs, including the renewable fuel standard, ultra low sulfur diesel, and reformulated gasoline programs. CD staff manage the certification, in-use compliance, and recall programsfor U.S. vehicles and engines, including nonroad engines. CD staff oversee fuel economy and CAFE compliance, and develop the Fuel Economy and Green Vehicle Guides. CD is also responsible for information management for the vehicle, engines, and fuels programs. Significant outreach to stakeholders and the public is required.Testing and Advanced Technology Division (TATD) TATD is responsible for the complete range of tasks required to provide the necessary laboratory testing and support services, IT management services, and advanced technology services at the National Vehicle and FuelEmissions Laboratory in support of OTAQs most critical programs.Transportation and Climate Division (TCD) TCD is primarily responsible for: (1) Coordinating OTAQs strategic climate programs; (2) Implementing programs required by the Clean Air Act to be included in State Implementation Plans to address the impact of in-use vehicles and transportation systems on air quality; and (3) implementing programs and distributingCongressional funding to address criteria and GHG emissions from vehicles in the U.S legacy fleet.

14

SmartWay

Advancing Best Practices in the Freight Industry through SmartWay-Launched in 2004 with a primary focus on the freight sector, SmartWay is expanding to also address passenger transport.

-Freight sector partners include 387 carriers, 55 shippers, 57 logistics companies, 89 affiliates, 10 rail, plus vendors, trucks stops, and dealer/service centers>>>Trucking companies join the partnership and agree to improve fuel efficiency (reduce fuel consumption) and reduce emissions over a 3 year period>>>Shipping companies join the partnership and agree to ship 50% or more of their product on SmartWay trucking partners, as well as improving their operations over a 3 year period.-In return, EPA provides freight partners with (1) guidance and measurement tools, (2) technology research and demonstration, (3) innovative finance, and (4) marketing and recognition

-Grow & Go promotes the environmental benefits of renewable fuels, and provides a renewable fuel component for EPA's existing SmartWay Transport Partnership. By 2012, EPA's goal is for 25 percent of our SmartWay partners to commit to use renewable fuels, and by 2020 to have 50 percent of our partners commit to use renewable fuels.

SmartWay Partnership program works with the freight and shipping sectors to adopt sustainable transportation strategies that save fuel, reduce emissions, and protect the environment.

We currently have over 1,100 SmartWay Partners committed to reducing emissions

SmartWay Partners drive over 600,000 trucks and travel over 50 billion miles per year.

Partners will save the trucking industry at least $2.3 billion in annual fuel and maintenance costs

The program employs a number of cost-effective strategiesIdle control, use of single wide tires, improved aerodynamics, PM/NOx after treatment devices

Strong International Interest in Adopting SmartWay Program in Other Countries

15

Diesel Emissions Reduction Act (DERA)Authorized in the Energy Policy Act of 2005

Enables EPA to offer funding assistanceGoal is to reduce diesel emissionsCompetitive process for eligible entitiesAuthorized through 2011; Congress can provide annual appropriations for DERAReauthorized through 2016; DERA 2

Request for Proposals (RFP) = Competition

We have been funded since FY08No Tribal FY08No ARRA FY 09 Tribal grants17

DERA Funding History and StructureState Allocation Program30% of total funding$165 M awardedNational Clean Diesel Grant ProgramSmartWay Finance Grant ProgramEmerging Technologies Grant ProgramState Clean Diesel ProgramNational Competitive Programs70% of total funding$384 M awardedFY 2012 We are only funding one competitive program National program

18Tribal Competition IntroductionFY08 and ARRA (early FY 09) Blended tribal and non-tribal competitionFew applicants; zero tribal awarded grants

Promote tribal participation in the DERA programTribal communication right before the FY 09/10 RFPGrant range requirement of $30K to $800KTribal applications are reviewed separately from non-tribal applications RFP Outlines the requirements for 19Tribal EligibilityTribal or tribal coalitions with jurisdiction over transportation or air quality; and

Nonprofit organization or institution whichRepresents or provides pollution reduction or educational services to persons or organizations that operate diesel fleets; orHas, as its principle purpose, the promotion of transportation or air quality

Ineligible entity can partner with eligible entity

Alaskan tribes have jurisdiction over transportationGenerators are considered part of fleets20Tribal Competition Fiscal Year 09/10 ResultsTotal Tribal Applications: 8Representing Regions 5,7,9 and 10Application requests totaled over $3.1 MillionEPA Awarded4 Tribal DERA grantsAwarded $652,404Tribal projects include school buses, refuse haulers, transport buses, various types of utility vehicles. 21FY 2009-2010 Tribal Awarded Projects Region (State)RecipientDescriptionAward5 (MN)Leech Lake Band of Ojibwa Repower four refuse haulers$134,4047 (IA)Sac and Fox Tribe of the Mississippi in IowaReplace four school buses$190,0009 (CA)Soboba Band of Luiseno Indians Retrofit six school buses$78,0009 (CA)Morongo Band of Mission Indians Retrofit seven vehicles with diesel particulate filters (DPF)s and replace two school buses with compressed natural gas (CNG) powered buses $250,00022Tribal Competition Fiscal Year 2011 ResultsTotal Tribal Applications: 7Representing Regions 2, 7,9, and 10Application requests totaled over $2.5 MillionEPA Awarded4 Tribal DERA grantsAwarded over $1.5MTribal projects include repowering marine fishing vessels and generator and retrofit mining equipment23FY 2011 Tribal Awarded Projects Region (State)RecipientDescriptionAward9 (AZ)Salt River Pima Maricopa Indian CommunityRetrofit mining equipment$150,00010 (WA)Makah TribeRepower fishing vessels $750,00010 (WA)Tulalip TribeRepower fishing vessels$576,52510(AK)Tanana Chiefs ConferenceRepower generator in Fort Yukon $59,00024Eligible Vehicles, Engines & EquipmentProjects may include, but are not limited toBuses;Medium-duty or heavy-duty trucks;Marine Engines;Locomotives; andNon-road engines, equipment or vehicles used in:Construction; Handling of cargo (including at a port or airport); Agriculture; Mining; or Energy production (including stationary generators and pumps)

Eligible Projects for DERA2 Funding: Verified Retrofit TechnologiesVerified Idle Reduction Technologies (bundled with other retrofits technologies)Verified Aerodynamic/Low Rolling TiresCertified Engine RepowersVehicle and Equipment Replacements25DERA Today: FY 2012 Request for ProposalsNational Funding Assistance Program RFP, including Tribal Competition, opened on April 20, 2012

DERA will accept applications until June 4, 2012. Please see RFP for more information.www.epa.gov/cleandiesel

Total funding for competitive grants available for FY 2012: $20M

Diesel Funding Assistance Program 26Please Join Our Listservhttp://epa.gov/cleandiesel/ncdc-cmt.htm

Please join the listserv to get the most up to date developments on the RFP and grant program.27Information to Prepare for Next FY FundingMain DERA National Program Page: www.epa.gov/cleandiesel/prgnational.htm

DERA Tribal Competition Contact:Rosalva TapiaTelephone: 202.343.9534Email: tapia.rosalva@epa.gov

All Questions during RFP Open PeriodDERA Hotline: 1.877.NCDC.FACTS (1.877.623.2322)Submit questions via email to cleandiesel@epa.gov

Diesel Emissions Quantifier (DEQ)Can be used to show expected project results, cost-effectiveness, and public health benefitshttp://www.epa.gov/otaq/diesel/resources.htm

Questions BEFORE DERA Issues RFP28Thank YouQuestions???Office of Transportation and Air Quality Organization

Questions to the audience

Immediate Office (IO) The IO includes the Chief of Staff function, which is responsible for processing regulatory packages, handling the press, and managing congressional relations. The Planning and Budget Office develops and organizes OTAQ's budget work, and takes the lead in implementing improvements to the planning process.Deputy Office Director (DOD) DOD manages human resources, implements organizational development, enhances internal communications, and manages OTAQ's public information services. In addition, DOD supports NVFEL's unique requirements for infrastructure, physical security, safety, environmental management, quality assurance and purchasing.Assessment and Standards Division (ASD) ASD is responsible for developing national policy and regulations involving emission standard-setting for vehicles, engines, and their fuels. These responsibilities include: identifying and developing control programs to reduce emissions from passenger cars, trucks, motorcycles, construction and farming equipment, locomotives, aircraft, marine, and lawn and garden equipment; conducting testing programs to evaluate and developvehicle/engine/fuel test procedures and emission control technologies; conducting programs to assess the feasibility of new vehicle/engine technologies; developing emission models and emission inventories; evaluating the health and environmental effects of pollutants emitted by vehicle, engines, and their fuels; determining the cost and effectiveness of emission control strategies and evaluating air quality benefits; conducting environmental and economic impact assessments; assessing the in-use effectiveness of past and future emission control programs; and conducting outreach to support the success of emission control programs. The Division is also responsible for providing EPA Regional Offices and state and local air quality and transportationplanning agencies with emission models and other technical and policy guidance for the preparation of emission inventories.Compliance Division (CD) CD develops and implements national air pollution control programs required by the Clean Air Act, Energy Policy and Conservation Act, and Energy Independence and Security Act for vehicles, engines, and fuels. CD staff manage all national clean fuel programs, including the renewable fuel standard, ultra low sulfur diesel, and reformulated gasoline programs. CD staff manage the certification, in-use compliance, and recall programsfor U.S. vehicles and engines, including nonroad engines. CD staff oversee fuel economy and CAFE compliance, and develop the Fuel Economy and Green Vehicle Guides. CD is also responsible for information management for the vehicle, engines, and fuels programs. Significant outreach to stakeholders and the public is required.Testing and Advanced Technology Division (TATD) TATD is responsible for the complete range of tasks required to provide the necessary laboratory testing and support services, IT management services, and advanced technology services at the National Vehicle and FuelEmissions Laboratory in support of OTAQs most critical programs.Transportation and Climate Division (TCD) TCD is primarily responsible for: (1) Coordinating OTAQs strategic climate programs; (2) Implementing programs required by the Clean Air Act to be included in State Implementation Plans to address the impact of in-use vehicles and transportation systems on air quality; and (3) implementing programs and distributingCongressional funding to address criteria and GHG emissions from vehicles in the U.S legacy fleet.

30

SmartWay

Advancing Best Practices in the Freight Industry through SmartWay-Launched in 2004 with a primary focus on the freight sector, SmartWay is expanding to also address passenger transport.

-Freight sector partners include 387 carriers, 55 shippers, 57 logistics companies, 89 affiliates, 10 rail, plus vendors, trucks stops, and dealer/service centers>>>Trucking companies join the partnership and agree to improve fuel efficiency (reduce fuel consumption) and reduce emissions over a 3 year period>>>Shipping companies join the partnership and agree to ship 50% or more of their product on SmartWay trucking partners, as well as improving their operations over a 3 year period.-In return, EPA provides freight partners with (1) guidance and measurement tools, (2) technology research and demonstration, (3) innovative finance, and (4) marketing and recognition

-Grow & Go promotes the environmental benefits of renewable fuels, and provides a renewable fuel component for EPA's existing SmartWay Transport Partnership. By 2012, EPA's goal is for 25 percent of our SmartWay partners to commit to use renewable fuels, and by 2020 to have 50 percent of our partners commit to use renewable fuels.

SmartWay Partnership program works with the freight and shipping sectors to adopt sustainable transportation strategies that save fuel, reduce emissions, and protect the environment.

We currently have over 1,100 SmartWay Partners committed to reducing emissions

SmartWay Partners drive over 600,000 trucks and travel over 50 billion miles per year.

Partners will save the trucking industry at least $2.3 billion in annual fuel and maintenance costs

The program employs a number of cost-effective strategiesIdle control, use of single wide tires, improved aerodynamics, PM/NOx after treatment devices

Strong International Interest in Adopting SmartWay Program in Other Countries

31