The upcoming RFA is intended to implement varied control strategies with local partners to achieve significant reductions in pollution emitted from diesel engines. Subawardees would be eligible for reimbursements of up to 25% of total vehicle cost to replace diesel vehicles (including school buses) with new propane or CNG models using EPA-verified engine technologies. If a subawardee opts for the optional CARB near-zero engine for CNG or propane, the reimbursement is 35%. If a subawardee opts for zero emission electric vehicles, the reimbursement rate is up to 45%, which can also apply to limited electric charging installation costs necessary for the new EVs.

Available federal funds will be approximately $1,300,000 from DERA grants under MEC management (plus an additional 1.5 million MEC may apply for under a new competitive grant opportunity). The anticipated time for selection of the winning Applicant(s) will be early March of 2021. These funds are provided through EPA grants to Metropolitan Energy Center (MEC) and will be administered by MEC in accordance with applicable DOE rules and requirements. Funding will be provided on a reimbursement basis.

Cost-sharing commitments by applicants are required in line with the percentages above, and applicants willing to forgo some percentage (for instance, asking for 20% reimbursement instead of 25%) improve their chances of being funded, though it cannot guarantee that your application will be successful.

Other restrictions apply. Applicants can’t plan to use DERA funding to enlarge your fleet or for fueling infrastructure (except for limited electric charging support), and there are specific requirements to scrap the vehicles being replaced (photos and documents and paid invoices, etc.). Any income that comes from scrapping the old units will reduce the amount of funding subawardees receive in reimbursement, and old units have to be scrapped within a specific time window once new vehicles arrive. Non-diesel vehicles/equipment are not eligible, and vehicle eligibility is restricted by engine model year (EMY), with different eligibility thresholds at MY06 and older, ’09 and older, and ‘10. If you plan to replace diesel vehicles newer than EMY10, they must be replaced with near-zero or electric models.

Most vehicle deployment shall be completed before August 31, 2022; however, if flexibility is needed MEC can work with selected applicants to schedule deployments within a 2-year period. Applications may also be used in a new MEC application to EPA for funds, if projects are scheduled for up to 3 years out.

The geographic scope of selected projects will be limited to Kansas and western Missouri, with some consideration for projects based in other areas of EPA Region 7 (KS, MO, IA and NE).

Priority sectors are goods movement (rail yards, distribution centers, other freight) and transit and school bus fleets. These are of specific interest for the upcoming RFA, given the high potential for air quality improvements and associated positive health impacts from the adoption of cleaner alternatives to diesel and gasoline. However, other fleets and organizations, both public and private, are encouraged to apply

For more information or to be added to a notification list for the Request for Applications, please contact Jeff Windsor, Contract Specialist.

Kansas Biodiesel Rebate – Kansas Soybean Commission

Kansas Soybean Commission offers rebates to Kansans up to $2000 ($200 for individuals) for using biodiesel in diesel trucks/equipment. Fleets and individuals based in Kansas, using diesel-powered equipment, can earn rebates for using biodiesel blends above 10%. Kansas Soybean Commission will distribute rebates on a first-come, first-served basis until program funds are exhausted. Additional terms and conditions apply. For more information, including the rebate application form, please see the Biodiesel Rebate Program webpage.

Natural Gas Vehicle (NGV) Rebate Pilot Program – Kansas Gas Service

Kansas Gas Service offers rebates for NGV purchases or conversions in the amount of $3,000 for a dedicated or bi-fuel vehicle. Each applicant is limited to three rebates per calendar year. Compressed natural gas equipment must be certified by the U.S. Environmental Protection Agency or California Air Resources Board. Kansas Gas Service will distribute rebates on a first-come, first-served basis until program funds are exhausted. Additional terms and conditions apply. For more information, including the rebate application form, please see the CNG Rebate Program website.

VW Environmental Mitigation Trust – Kansas

The State of Kansas will receive nearly $15.6 million over the next ten years for projects that reduce NOx emissions. The Kansas Department Health and Environment is the lead agency to act on behalf of the trust for the State of Kansas.

VW Environmental Mitigation Trust – Missouri

The State of Missouri is a beneficiary of the Volkswagen Diesel Emissions Environmental Mitigation Trust (VW Trust). As the lead agency, the Missouri Department of Natural Resources developed a 10-year Beneficiary Mitigation Plan for awarding over $41 million to Missouri-specific projects by October 2027.

Biodiesel Infrastructure Program – MOSoy

Missouri Soybean Merchandising Council and Missouri Soybean Association provide up to $200,000 for businesses, cooperatives and other entities looking to build new or retrofit existing biodiesel infrastructure, from blending and distribution to fleet and retail locations. Applicants may receive up to 25% of the required cash match for federal funding. For more information, including the application form, please see MOSoy’s Biodiesel Infrastructure Program website.

Federal – Plug-In Electric Drive Vehicle Credit

The federal government offers a tax credit of between $2,500 and $7,500 on electric vehicles (EV). Taxpayers must have tax liability equal to or greater than the credit to be eligible. The tax credit cannot be used at the time of purchase, but reduces the taxpayer’s tax owed dollar-for-dollar.

Missouri – Alternative Fueling Infrastructure Tax Credit

Missouri residents can claim an income tax credit for the cost of constructing a qualified alternative fueling station (including home EVSE). The credit is 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment or electric vehicle supply equipment (EVSE), up to $1,500 for individuals or $20,000 for businesses. Tax credits may be carried forward for two years and may be transferred or sold, but will be forfeited if a tax credit recipient stops dispensing alternative fuel or electricity for vehicle charging. This tax credit expires on January 1, 2018. For more information, see the Missouri Alternative Fuel Infrastructure Tax Credit website.

Kansas – Alternative Fuel Vehicle (AFV) Tax Credit

An income tax credit is available for 40% of the incremental or conversion cost for qualified AFVs, based on gross vehicle weight rating (GVWR), between $2,400 and $40,000. Qualified AFVs include vehicles that operate on a combustible liquid derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source.

Alternatively, a tax credit of 5% of the cost of the AFV, up to $750, is available for the purchase of an original equipment manufacturer AFV. This credit is allowed only to the first individual to take title of the vehicle. For motor vehicles capable of operating on E85, the individual claiming the credit must provide evidence of purchasing at least 500 gallons of E85 between the time the vehicle was purchased and December 31, of the following calendar year. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, see the Alternative Fuel Tax Credit page.

Kansas – Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for 40% of the total cost to install alternative fueling infrastructure after January 1, 2009. Qualified property must be directly related to the delivery of alternative fuel into the fuel tank of a motor vehicle propelled by such fuel. The tax credit may not exceed $100,000 per fueling station. Alternative fuels are defined as combustible liquids derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source. Excess credits may be carried over for up to three years after the year in which the expenditures were made. The credit is only available to entities with corporate income tax liability. For more information, see the Alternative Fuel Tax Credit page.

Metropolitan Energy Center (MEC) and its Clean Cities Coalitions keep a project bank for alternative fuel and other clean transportation projects, including alternative fuel refueling and recharging infrastructure, alternative fuel vehicle purchase and/or conversions, and clean diesel retrofits. Current submissions will form the basis for any future funding opportunity proposals MEC makes on behalf of the region or on behalf of individual project sponsors. Proposals may be for DOE Clean Cities funding opportunities, EPA Clean Diesel opportunities, state-based opportunities, or otherwise. MEC requires that all projects included in each application decrease dependence on petroleum by increasing the use of alternative fuels and advanced technologies and/or decreasing diesel emissions. Submit your project ideas to Anissa Parra-Grooms.

Property Assessed Clean Energy (PACE) is a clean energy funding program that allows commercial building and property owners to acquire low-cost capital for projects that lead to energy savings, including new structures and gut-rehabs. Missouri recently passed the legislation allowing the PACE program to be utilized, and Metro Energy Center can help match you with a lender to get your commercial or multifamily project funded.

With no money down and all soft costs wrapped into the financing, PACE is an elegant finance program that allows you to fund energy-impacting projects such as lighting, furnaces, windows, and much more. The program was built on the idea that the loan would be paid back with savings from cutting energy bills, allowing many types of projects to acquire the funding they need.

For more information or to begin exploring the idea of PACE for your project, please email Basit (basit@metroenergy.org) here at Metro Energy Center, or learn more at the page on PACE on Missouri’s Department of Energy website.

• Clean Cities Program promotes alternative fuels and vehicles, fuel blends, fuel economy, hybrid vehicles, and idle-reduction. In addition to financial assistance for projects, Clean Cities maintains a database of state and federal assistance.
• Diesel Emission Reduction, Pollution Prevention, and other EPA Grants
• Alternative Fuels and Advanced Vehicles Data Center database compiles state and federal incentives and laws related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics/
• Voluntary Airport Low Emissions Program (VALE) is a national program to reduce ground emissions at commercial airports located in designated air quality non-attainment and maintenance areas. The VALE Program allows airport sponsors to use the Airport Improvement Program (AIP) and Passenger Facility Charges (PFCs) to finance low emission vehicles, refueling and recharging stations, gate electrification, and other airport air quality improvements.
• The Congestion Mitigation and Air Quality Program (CMAQ) CMAQ provides funding to state departments of transportation, metropolitan planning organizations, and transit agencies for surface transportation and other related projects that improve air quality and reduce congestion. Funding is available for areas that do not meet the National Ambient Air Quality Standards (non-attainment areas) as well as former non-attainment areas that are now in compliance (maintenance areas). Priority is given to diesel engine retrofits, and other cost-effective emission reduction and congestion mitigation activities that provide air quality benefits.
• Rural Development Loan and Grant Programs assist agricultural producers and rural small business with purchasing renewable energy systems and making energy efficiency improvements.
• Department of Energy Loan Programs Office  provides an opportunity for those with an energy project to apply for loan programs.