Driving a Cleaner Illinois – Diesel Emissions Reduction Act (DERA)

The Illinois Environmental Protection Agency (Illinois EPA) strives to achieve reductions in diesel emissions through its Driving a Cleaner Illinois Program. The Illinois EPA receives Diesel Emission Reduction Act (DERA) funding from the U.S. Environmental Protection Agency for the purpose of making awards to eligible applicants for implementing electric vehicle projects that reduce diesel emissions. Grants are awarded to selected applicants through the Driving a Cleaner Illinois – DERA Program.

This Notice of Funding Opportunity (NOFO) is to inform potential applicants of the availability of funds through the DERA Program in Illinois. Under this NOFO, the Illinois EPA will fund up to 45% of the eligible costs associated with replacing (not repowering) eligible diesel-powered Class 5-8 trucks (at least 16,001 lbs. GVWR). The new vehicle must be fully battery-electric, have no internal combustion engine, and have a vehicle model year of 2021 or newer.

The diesel-powered vehicle being replaced can be of any engine model year and must be scrapped. Grantees will be required to submit proof of scrappage that complies with U.S. EPA guidelines and must attest that:
* The vehicle being scrapped is fully operational. A fully operational vehicle can: start, idle, and move forward and backward under its own power; and can perform its primary vocational function without major mechanical failure.
* The grantee has owned and operated the vehicle being scrapped for two full calendar years prior to scrappage.
* The vehicle being scrapped has accumulated at least 7,000 miles/year during the two years prior to scrappage.

NOTE: if the vehicle being scrapped is predominately used in a nonroad application (e.g. emergency response vehicles, vocational trucks, terminal tractors, etc.), the grantee must attest that the vehicle has operated 500 hours/year during the two years prior to scrappage. Special approval is required from U.S. EPA to use operating hours instead of mileage, and eligibility will be determined on a case-by-case basis.

* The vehicle being scrapped has at least three years of remaining life.

Scrappage costs are not eligible.

The new vehicle:
* Must be fully battery-electric with no internal combustion engine; hybrid or plug-in hybrid models are not eligible.
* Must be a brand-new vehicle model year of 2021 or newer.
* Must be of the same weight class as the vehicle being replaced (cannot be lower or higher weight class).
* Must resemble and continue to perform a similar function of the vehicle being replaced.
* Must be registered (plated) as a commercial vehicle in the State of Illinois.

Eligible costs also include the purchase and installation of one (1) electric charging unit per vehicle being purchased. Eligible costs for charging units are limited to the charger, charging cable, and either a wall mount or pedestal. Chargers may be L2 or L3 (DC fast chargers), and must be compliant with Build America Buy America (BABA) requirements.

Funding cannot be used for “Make-Ready” infrastructure costs. Ineligible costs may include, but will not be limited to:
* power distribution to the pedestal, electrical panels and their installation
* upgrades to existing electrical panels or electrical service, transformers and their installation
* wiring/conduit and its installation
* electricity
* operation and maintenance
* stationary battery energy storage systems that power the equipment and their installation
* on-site solar, wind, or other power generation systems that power the equipment and their installation.

Applications may be downloaded below, and will be processed on a first-come, first-served basis. Applications must meet all minimum requirements to be funded. Applications will be accepted until funding is depleted. See the IEPA’s Driving a Cleaner Illinois website at https://epa.illinois.gov/topics/air-quality/driving-a-cleaner-illinois.html for announcements regarding funding availability. This is Federal pass-through funding from the United States Environmental Protection Agency (U.S. EPA).

In completing projects under this NOFO, applicants must comply with all applicable federal, state, and local laws, ordinances, and regulations thereunder.

Funding for this program is provided through the U.S. EPA’s Diesel Emissions Reduction Act (DERA) Program.

Applicants may not combine funding from this program with other funding such that they receive in excess of 100% funding for any project. Applicants may not combine funding from this program with funding from Illinois-VW funding, Illinois EPA’s Climate Pollution Reduction Grants, or any other state or Federal funding.

Build at-risk or pre-award costs may be allowed if the costs are incurred AFTER the publication of this NOFO and are directly in anticipation of receiving an award, where such costs are necessary for efficient and timely performance of the project. Such costs are allowable only to the extent that they are eligible costs and would have been allowable if incurred after the date of an award. Reimbursement of pre-award costs may only occur post-award and post-execution of a grant agreement between the Illinois EPA and the applicant.

For the Budget section, IEPA expects most expenses to be in the following categories: (4) Equipment and (6) Contractual Services & Subawards.

An applicant may have personnel/fringe/travel if their employees are installing the chargers. Federal Assistance Listing: 66.040. Administered by the Illinois Environmental Protection Agency via the Illinois GATA Catalog of State Financial Assistance (CSFA 532-10-2086).