Washington State Volkswagen Federal Settlement Grant Program

Application Period Opens: July 26, 2023

Application Deadline: Thursday, October 26, 2023

Funds Available Funds available for each project category include:

1. Refuse vehicles and street sweepers: $9.69 million
   - The lesser of up to 80% of eligible project costs per vehicle or $750,000 per vehicle replacement or repower, including associated fueling infrastructure
   
   
2. Freight switcher locomotives:  $3.52M The lesser of up to 60% of eligible project costs or $3.52M per freight switcher, including associated fueling infrastructure
   
   
3. Port cargo handling equipment and forklifts:  $3.08M The lesser of up to 80% of eligible project costs or $400,000 per equipment, including associated fueling infrastructure

Eligible Applicants

Eligible applicants include tribal and public entities that own eligible vehicles/equipment as defined in the Eligible Projects section below.

Eligible applicants include but are not limited to:

• Cities
• Counties
• State government
• Tribes
• Public utility districts/co-ops
• Public ports and public port authorities
• School districts, and public colleges and universities

Eligible Project Categories

Eligible vehicle/equipment categories include publicly or tribally owned:

• • Refuse vehicles: the scrap and replacement or repower of refuse vehicles with zero emission class 4-8 On-Road Local Freight Trucks used for collection or transfer of solid waste3 (examples include but are not limited to garbage, recycle, and yard waste). To be eligible for scrap or repower, refuse vehicles must have an engine model year 1992 – 2009. 
  • Street sweepers: the scrap and replacement or repower of street sweepers with zero emission class 4-8 Local On-Road Freight Trucks used for cleaning or sweeping work that requires the use of power brooms (sweepers), power vacuums, power blowers, or power washers.4  To be eligible for scrap or repower, street sweepers must have an engine model year 1992 – 2009.

Vehicles/equipment being scrapped must:

• Be powered by diesel
• Be owned by the applicant
• Have been licensed and operational in Washington for two (2) years prior to July 2023.
• Be replaced with vehicles/equipment of the same vehicle class (for on-road vehicles), use case, and project category. 

Eligible Costs

Vehicle or Equipment

Eligible vehicle/equipment costs include: 

• The purchase of zero-emission refuse vehicle(s), street sweeper(s), and freight switcher locomotive(s). 
• The repower of diesel refuse vehicle(s), street sweeper(s), and freight switcher locomotive(s) to zero emission.

Infrastructure

Applicants may request funds to purchase and install or upgrade fueling infrastructure associated with the new zero emission vehicles/equipment. All costs must be necessary for and directly connected to the acquisition, installation, and/or upgrading of the fueling infrastructure. Examples of eligible reimbursable costs include: 

• Project/site design
• Electric charging equipment or hydrogen fueling equipment and construction materials
• Optional equipment (e.g., RFID card readers)
• Installation costs directly associated with and required for the safe operation of fueling infrastructure 
• Electric service upgrades from start of property line to charger (e.g., transformer, electrical wiring, conduit, trenching and repaving trenched area, electrical panel)
• EV charging station connection to electrical service, if applicable
• Permitting costs/fees
• Internet connection 
• Extended warranty for the fueling equipment for up to five years
• Fueling station equipment maintenance agreement for up to five years

Examples of Ineligible Costs

• Purchase or rental of real estate
• Construction or general maintenance of buildings and parking facilities
• New paving and landscaping
• Administrative costs
• Electric supply costs
• Operating costs 

Recipients are encouraged to consider future fueling infrastructure needs to expand zero emission vehicles/equipment in the fleet beyond this grant opportunity. This may include the installation of conduit and electrical service box of adequate size and disconnect capacity to allow additional electrical cables to be run to the site for future installation of charging stations and the ability to upgrade higher power stations. 

Vehicles/equipment being scrapped must:

• Be powered by diesel
• Be owned by the applicant
• Have been licensed and operational in Washington for two (2) years prior to July 2023.
• Be replaced with vehicles/equipment of the same vehicle class (for on-road vehicles), use case, and project category. 

All applicants must apply through the electronic grant and loan system called EAGL (Ecology’s Administration of Grants and Loans). To apply through EAGL, applicants must first register for a Secure Access Washington (SAW) account and an EAGL account. Applicants can find detailed instructions for new and current EAGL users at: https://ecology.wa.gov/About-us/How-weoperate/Grants-loans 

• One application may include multiple vehicles/pieces of equipment within the same project category.
• If applicants are applying for awards in more than one project category, applicants must:
  • Submit separate applications per project category
• For all project proposals, be prepared to submit the following information into the EAGL application forms: 
  • Project description including intended goals and outcomes  
  • The number of replacements or repowers you are applying for
  • The amount of funding requested to purchase each new zero emission vehicle/equipment and associated fueling infrastructure, see page 10 for allowable funding amounts  
  • Project timeline including all deliverables that will be completed (Downloadable template available in EAGL). See page 23 for required deliverables
  • Price quotes for vehicle/equipment and infrastructure. Note: Do not place any orders. Any item ordered prior to a signed grant agreement will not be eligible
  • Project budget breakdown
  • Community engagement plan (Downloadable template available in EAGL)
  • Fleet list including details of vehicle(s)/equipment to be scrapped or repowered (Downloadable template available in EAGL)
  • Site-Host agreement if applicant does not own the property on which the fueling infrastructure will be installed

Screening Criteria

Applications will be screened for compliance with the screening criteria, below. Applications that fail any of the screening criteria may be disqualified and eliminated.

• The applicant is an eligible applicant
• The project is an eligible project, see page 11

Scoring Criteria

An Ecology evaluation committee will use the competitive scoring criteria below to score and rank applications meeting the screening criteria above. The committee will rank applications within each project category, not across categories.  

Ecology will evaluate applications based on the following scoring criteria: 

1. 1. Diesel Pollution and Disproportionate Impact: 35 points
      Projects will be awarded the following points based on the location of the fueling infrastructure that will support the new zero emission vehicle/equipment using the Washington Tracking Network’s “Diesel and Disproportionately Impacted Communities” Index (https://fortress.wa.gov/doh/wtn/WTNIBL/). 
      -  In a census tract with a score of “9” or “10” = 35 points 
      -  In a census tract with a score of “8” = 20 points 
      -  In a census tract with a score of “1” through “7” = 0 points 
      
      For applications that include more than one vehicle/equipment and the associated fueling infrastructure will be installed in more than one location, Ecology will score each location individually based on the information above. The points awarded to each location will be averaged and rounded to the nearest whole number to award a total score for this criterion.  
      
      
   2. Overburdened Communities Highly Impacted by Air Pollution: 15 points
      Projects will be awarded the following points based on the location of the fueling infrastructure that will support the new zero emission vehicle/equipment. To determine whether the project is located within an overburdened community highly impacted by air pollution, visit https://ecology.wa.gov/Air-Climate/Climate-CommitmentAct/Overburdened-communities 
      
      If the project is in:
      -  At least one overburdened community highly impacted by air pollution: 15 points 
      -  Communities not identified as overburdened and highly impacted by air pollution in Washington: 0 points
      
      
   3. Estimated average annual fuel consumption: 25 points
      Points will be awarded based on the average annual fuel consumption of the diesel vehicles/equipment proposed for repower or scrap.
      -  9,000+ gallons/year = 25 points 
      -  6,000 – 8,999 gallons/year = 20 points 
      -  3,000 – 5,999 gallons/year = 15 points 
      -  1,500 – 2,999 gallons/year = 10 points 
      -  500 – 1,499 gallons/year = 5 points 
      -  0 – 499 gallons/year = 0 points  
      
      For applications that include more than one vehicle/equipment, Ecology will award points to each vehicle/equipment based on the information above. The points awarded to each vehicle/equipment will be averaged and rounded to the nearest whole number to award a total score for this criterion. 
      
      
   4. Engine Model Year: Up to 25 points possible
      Points will be awarded based on the engine model year of the vehicle/equipment proposed for scrap. 
      -  2007 or older = 25 points 
      -  2008 – 2009 = 0 points 
      -  2010+ = ineligible
      
      For applications that include more than one vehicle/equipment, Ecology will award points to each vehicle/equipment based on the information above. The points awarded to each vehicle/equipment will be averaged and rounded to the nearest whole number to award a total score for this criterion.

Award Selection Process

Ecology will use the process described below to offer grant awards.  

• Step 1: Ecology will rank applications from the highest scoring application to the lowest within each project category.  
• Step 2: Within each project category, Ecology will offer grant awards for one vehicle/equipment per applicant from the highest scoring application to the lowest, as funds allow.
• Step 3: If an application includes more than one vehicle/equipment, Ecology will offer an award for the highest fuel usage vehicle/equipment first. If vehicles/equipment have the same fuel usage, Ecology will offer awards to the oldest vehicle/equipment first.
• Step 4: If funds remain in a project category after awarding one vehicle/equipment to each applicant, Ecology will offer awards for the next highest fuel usage vehicle/equipment per applicant from highest scoring application to lowest.
• Step 5: Repeat Step 4 until all funds are awarded in each project category or until all grant requests have been funded.  

Ecology reserves the right to recommend partial funding for any proposal. In this event, the applicant and the Grants Manager shall meet and reach agreement on a reduced scope of work commensurate with the level of available funding. 

All recipients will comply with the following requirements. Ecology may withhold grant reimbursement and/or reject future grant applications from the recipient if they fail to maintain compliance with these requirements through project implementation and operation. 

If awarded a grant, recipients must: 

• Accept or decline the award within 45 days of Ecology’s offer notification. Requests to extend the deadline may be considered at Ecology’s discretion.
• Be responsible for all costs incurred prior to the execution of a contract, which will not be reimbursed.
• Provide all required matching funds. Applicants may use other grants, rebates, or other incentives as match funds.
• Complete projects by June 30, 2026. Requests to extend the deadline may be considered at Ecology’s discretion.
• Ensure new, zero emission vehicles/equipment are certified to operate in the State of Washington. 

Destruction Requirements

Recipients must:

• Not scrap the vehicle, equipment, or engine prior to a signed grant agreement.
• Use acceptable methods of permanent destruction required by the VW federal settlement agreement, including:
  • rendering the vehicle/equipment inoperable and available for recycling.
  • at a minimum cutting a 3 inch by 3-inch hole in the engine block.
  • disabling the chassis by cutting the vehicles/equipment’s frame rails in half, if applicable. 
• Submit to Ecology a completed and signed Certificate of Destruction. This form is provided by Ecology and must be signed by the scrap yard and the recipient.
• Submit to Ecology photos of the permanent destruction. 
  • For scrap and replace projects:
    • Side profile of the vehicle/equipment, prior to disabling 
    • VIN tag or equipment serial number
    • Engine label (showing serial number, engine family number, and engine model year)
    • Engine block, prior to hole 
    • Engine block, after hole 
    • Cut frame rails or other cut structural components 
    • Others, as needed. 
• Other materials documenting the destruction may be acceptable with prior authorization from the Ecology project manager.  

Additional requirements (i.e., vehicle purchase, infrastructure, installation requirements, reporting, deliverables, etc.) will follow once the agreement is reviewed, signed, and agreed upon.