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HomeMy WebLinkAboutDAQ-2024-007647Climate Pollution Reduction Grants –Implementation Grants Utah Department of Environmental Quality Workplan Section 1:Overall Project Summary and Approach The Utah Department of Environmental Quality (UDEQ)has worked with stakeholders and partners to help ensure that the current,unprecedented federal funding opportunities from the Inflation Reduction Act (IRA)–including Climate Pollution Reduction Grants or CPRG–and the Infrastructure Investment and Jobs Act (IIJA)are leveraged to support balanced,state-driven solutions that pave the way for continued growth while maintaining a high quality of life in the Beehive State.Utah honors our pioneer past and is also looking to our future.The next five to ten years will be crucial for our Capital City,the state’s rural areas,and the Wasatch Front and Back (where more than 80%of Utah’s population lives).With Implementation Grants funding from CPRG,Utah can better tackle the threat of climate change, strengthen and diversify our economy,maintain and enhance our quality of life,and help fulfill the 2034 Salt Lake City-Utah Olympic Committee commitment to host a "Climate-Positive"Winter Games.To further our collective goals,Utah’s overall project approach for this application can be summarized as supporting investment in measures,practices,and technologies that reduce greenhouse gas (GHG) emissions,create high-quality jobs,spur economic growth,and enhance the quality of life for all Utahns. Utah Division of Air Quality’s (UDAQ)application is a comprehensive,holistic approach to reducing GHG emissions across multiple sectors and providing benefits across the state,particularly to low-income and disadvantaged communities (LIDACs).While UDAQ believes that the entire application (including all proposed measures)is worth funding,information has been provided at an individual discrete project level to facilitate easier review by the Environmental Protection Agency (EPA)should the agency choose to partially fund the request,as explained in the Implementation Grants General Competition Notice of Funding Opportunity,page 16:“In appropriate circumstances,EPA reserves the right to partially fund applications by funding discrete portions or phases of proposed GHG reduction measures in overall applications.” UDAQ has extensively coordinated with other CPRG Implementation Grant applicants in our state to avoid duplicative measures and have agreed that successful CPRG Implementation Grant awardees in Utah will not provide overlapping funding to a given entity for the same piece of equipment or service. As a result any UDAQ measures perceived to be similar to measures in applications from other eligible entities in Utah should be considered separately. There are nine total GHG reduction measures in this application;some measures include multiple projects or activities.Each measure in this application was selected as a priority because it meets the following criteria: ●The measure is included in Utah’s Priority Climate Action Plan (PCAP)submitted to EPA ●The measure supports the 4 goals of EPA’s CPRG program: ○Goal 1:Implement ambitious measures that will achieve significant cumulative GHG reductions by 2030 and beyond; ○Goal 2:Pursue measures that will achieve substantial community benefits (such as reduction of criteria air pollutants (CAPs)and hazardous air pollutants (HAPs)), particularly in low-income and disadvantaged communities (LIDACs); ○Goal 3:Complement other funding sources to maximize these GHG reductions and community benefits;and, ○Goal 4:Pursue innovative policies and programs that are replicable and can be “scaled up”across multiple jurisdictions. 1 ●The measure is implementation-ready,meaning that the design work for the policy,program,or project is complete enough that a full scope of work and budget has been included in the application. ●The measure can be completed in the near-term,meaning that all funds will be expended,and the project completed,within the five-year performance period for the CPRG implementation grants (approximately October 2024 through October 2029). ●The measure is voluntary and has a broad level of stakeholder support. ●The measure advances or is otherwise consistent with state of Utah priorities as identified in past climate,energy,and natural resource planning efforts,including:any-of-the-above approach,market-based,transformative,cost-effective,reliable and affordable energy, incentives over mandates,involve local leaders/decision-makers. There are several required elements under Section 1 that apply to all GHG reduction measures: ●Tasks and Milestones:See Section 3 for a general timeline that applies to all measures. Measure-specific tasks and milestones are detailed below.These measure-specific tasks and milestones will ensure success of the measure by allowing UDAQ and its partners to track progress and take corrective actions as needed to stay on schedule. ●Underlying assumptions and potential risks:Underlying assumptions for the measures are detailed in the Technical Appendix (Techappx_Utah Department of Environmental Quality). Measure-specific risks are detailed below. ●Why each measure was selected as a priority:UDAQ staff scored each potential measure against all seven EPA Implementation Grant evaluation criteria and 19 sub-criteria and selected the highest-performing measures,making an exception for the Demonstration and Assistance Program,which was determined to have overarching benefits that were not adequately captured by its technical score (e.g.,stakeholder support,viability of project,strong partnership opportunities,community engagement,etc). ●How each measure will meet the goals of the CPRG program:Each measure in this application supports the goals of CPRG because it will achieve significant GHG reductions and community benefits,complement other funding sources,and includes programs that are replicable and can be “scaled up”as evidenced by the required documentation of GHG and co-pollutant reductions, LIDAC benefits,demonstration of funding needed,etc.,provided throughout this application. ●Demonstration of Funding Needed:UDAQ created,published,and frequently updated a Funding Resource Guide (FRG)to assist with the tracking of all GHG-related IRA,IIJA,and other funding sources relevant and applicable to Utah.The FRG is being used both internally and externally to assist with coordination between various entities regarding funding opportunities to support GHG emission reductions.Data sources include the Governor's Office of Planning and Budget (GOPB)IIJA Opportunity Tracker,Atlas Public Policy ’s Climate Program Portal,the White House’s IRA Guidebook,and more.The FRG has been shared with stakeholders,and has been made available on the Beehive Emission Reduction Plan website.Additionally,UDAQ plans to continue gathering data on the intersection of funding opportunities beyond the CPRG program and will update the FRG as these efforts continue.While UDAQ has extensively coordinated with other state agencies (including GOPB)and evaluated the availability of federal and state grants, tax incentives,and other funding sources,CPRG funding for all measures has been deemed necessary as detailed by measure-specific descriptions below. ●Transformative Impact:All measures would have a transformative impact,and would result in benefits like GHG and co-pollutant reductions.Additional benefits of each measure are included in the Outputs and Outcomes table in Section 3 (and attachment Outputs/Outcomes_Utah Department of Environmental Quality). 2 Below is a detailed description of each of the GHG reduction measures in this application: Light-Duty Zero-Emission Vehicle LIDAC Incentives (Utah PCAP Measure #1,page 56) a.Measure Description:Use CPRG funds to create a light-duty,zero-emission vehicle, income-qualified incentive for individuals in Utah.A new Electric Vehicle Replacement Assistance Program (EVRAP)would implement incentives for replacing high-polluting vehicles with new or used electric vehicles (EVs)for income-qualified Utahns in vehicle emissions inspection and maintenance (I/M)program counties:Cache,Davis,Salt Lake,Weber,and Utah.These incentives would be made available to replace vehicles that fail an I/M test,but could potentially be extended to all counties throughout the state through an income-based mechanism similar to that employed by the Vehicle Exchange Colorado (VXC)program.If awarded funds,UDAQ can further explore this VXC program as a potential model. Tasks and Milestones:UDAQ will subaward CPRG funds to five local health departments (LHDs) who implement the I/M emissions programs to offer incentives to income-qualified individuals who fail emissions tests.Over five performance years,1,370 units will be replaced.A $7,000 incentive per unit will be provided for 274 zero-emission vehicles per performance year,each with a 12-year unit life. Potential Risks:The high initial cost of an EV/lack of ability for low-income families to access EVs may dissuade interest which could lead to potential delays or interruptions in implementation of the measure. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for cost-effectiveness of GHG reductions;authorities,timelines,and milestones; LIDAC benefits;past performance;and staff expertise.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed: i.EPA Targeted Airshed Grant (TAG)funding for a similar Vehicle Repair and Replacement Assistance Program (VRRAP)is completely expended in Cache County,and Utah County did not qualify for TAG support;the remaining counties’programs could be extended with CPRG support. ii.Specific criteria of the existing Qualified Clean Vehicle Credit and Used Clean Vehicle Credit may prevent individuals from purchasing (qualification/eligibility criteria of purchaser including maximum adjusted gross income;new vehicle must be made by a qualified manufacturer;new vehicle must undergo final assembly in North America which limits options;and critical mineral and battery component requirements (as of April 18,2023)). iii.EVs are expensive for individuals to buy outright and the federal EV tax credits are not accessible for most low-income households,so this program provides additional support to extend EVs to LIDACs. c.Transformative Impact:This program would be transformative for low-income residents who live in I/M counties of Utah (Salt Lake,Davis,Weber,Cache,Utah counties)who would have better access to EVs.All of these I/M counties include disadvantaged areas according to the EPA IRA Disadvantaged Communities map.The program would support larger market transformations that accelerate the deployment and market adoption of emerging GHG emission reduction technologies/practices.As an income-qualified program,EVRAP also intends to target the low-income population in Utah that is typically less financially able to purchase EVs. Light-,Medium-,and-Heavy-Duty Zero-Emission Vehicle Fleet Incentives (Utah PCAP Measure #1,page 56;Utah PCAP Measure #2,page 65) Measure Description:This measure aims to voluntarily increase adoption of light-duty,medium-duty, and heavy-duty zero-emission vehicles for fleet owners in Utah.Potential incentives could include point- 3 of-sale rebates,ongoing grants,vouchers,and technical assistance navigating incentives.There are several programs included within this measure:Electric Transit Buses,Electric Light-Duty Fleet Vehicles, Electric Delivery Vehicles,Electric Refuse Haulers,and an Electric School Bus Program (including School Bus Ready).Note,the electric light-duty fleet program (for commercial and government light-duty fleets) included in this measure was included in Measure #1 of the PCAP,but administratively aligns more appropriately with the projects in Measure #2,so it is included here in Light-,Medium-and-Heavy-Duty Zero-Emission Vehicle Incentives. Electric Light-Duty Fleet Vehicles a.Description:Use CPRG funds for a program that would provide incremental EV cost incentives for commercial and government light-duty fleets. Tasks and Milestones:Deploy 400 units for commercial and government light-duty fleets over four performance years (units deployed years 2-5).There are 100 units per performance year, each with a 12-year unit life at a level of $5,000 incentive per unit. Potential Risks:Supply chain issues could lead to potential delays in implementation,but those are likely to be overcome before the end of the project period. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for cost-effectiveness of GHG reduction 2025-2030;authorities,timelines,and milestones;past performance;and staff experience.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:The Clean Fuels and Emission Reduction Technology (CFERT) program’s Conversion to Alternative Fuel Grant Program Fund has been expended,but the program could be extended and potentially augmented through CPRG funding.Additionally, specific criteria of existing Qualified Commercial Clean Vehicle Credit may keep entities from purchasing. c.Transformative impact:This program would be transformative for many entities,especially local governments in rural areas who struggle with staff/organizational capacity to secure federal funding opportunities. Electric Refuse Haulers a.Description:Use CPRG funds for an incentive program for Class 8 refuse haulers for commercial and government fleets. Tasks and Milestones:Create an incentive program for Class 8 refuse haulers for commercial and government fleets to deploy 20 units over one performance year (all units deployed in year 2). There are 20 units per performance year,each with a 10-year unit life at a level of $250,000 incentive per unit. Potential Risks:Supply chain issues could lead to potential delays in implementation,but those are likely to be overcome before the end of the project period. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for transformative impact;authorities,timelines,and milestones;past performance;and staff experience.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:This would be a new state program but would complement or replenish funding for the state’s existing Heavy-Duty tax credit,Clean Fuels and Emission Reduction Technology Program (CFERT),and CARROT Program. c.Transformative impact:This program would be transformative for many entities,especially local governments in rural areas who struggle with capacity to secure federal funding opportunities. Electric Delivery Vehicles a.Description:Use CPRG funds for an incentive program for electric Class 5 delivery vehicles for commercial fleets. 4 Tasks and Milestones:Create an incentive program for Class 5 delivery vehicles for commercial and government fleets to deploy 40 units over 4 performance years (units deployed years 2-5). There are 10 units per performance year,each with a 10-year unit life at a level of $50,000 incentive per unit. Potential Risks:Supply chain issues could lead to potential delays in implementation,but those are likely to be overcome before the end of the project period. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for transformative impact;authorities,timelines,and milestones;past performance;and staff experience.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:Current programs are over-saturated,and additional funding is needed.Scrappage requirements and engine model year/other eligibility requirements of programs within Diesel Emission Reduction Act (DERA)often deter interested parties.CPRG funding could extend existing programs such as Clean Fuels. c.Transformative impact:This program would be transformative for many commercial fleets who (for various reasons)have been unable to access other sources of funding. Electric Transit Buses a.Description:Use CPRG funds to create an incentive program for zero-emission electric transit buses.Many transit agencies throughout Utah,such as the Utah Transit Authority (UTA),Cache Valley Transit,High Valley Transit,Park City Transit,and SunTran,have either started electric transit bus deployments or are planning to do so.Any transit agency could apply to this program, but funding can be prioritized for LIDAC areas.This program will support the growth of transit fleets with electric buses (especially for agencies that do not yet have one).Public transit buses often serve disadvantaged communities in Utah,so this program will benefit LIDACs. Tasks and Milestones:UDAQ will implement an incentive program for transit agencies to apply for CPRG funding to procure zero-emission electric buses.UDAQ anticipates that an incentive of $1,300,000 per electric transit bus will be provided for seven electric transit buses over one performance year (all units deployed in year 2),each electric transit bus having a 15-year unit life. Potential Risks:Supply chain issues could lead to potential delays in implementation,but those are likely to be overcome before the end of the project period. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for authorities,timelines,and milestones and LIDAC benefits.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:Transit agencies continue to seek other federal funding for EVs,such as Federal Transit Administration (FTA)5339 Low-and No-Emissions funding,though sources like these are highly competitive and not guaranteed.FTA 5339 Low-and No-Emissions funding has paid for electric buses at UTA,University of Utah (U of U),and Park City Transit. However,smaller rural entities (like the Basin Transit Association and the Navajo Nation Transit System)experience difficulties in accessing federal funding sources like this.These entities also experience the greatest burdens in developing their own budgets,securing enough electricity, and other needed resources for adopting electric buses. c.Transformative impact:Electric buses present a transformative opportunity for transit agencies to promote equitable mobility options,improve air quality,and improve health for passengers throughout Utah.Deploying new electric buses would directly benefit transit passengers and surrounding community members.Transit passengers are often low-income and/or members of minority populations.Multiple LIDAC stakeholders expressed support for this measure. Electric School Bus Program (including School Bus Ready) 5 a.Description:Use CPRG funds for a new Electric School Bus (ESB)program which would be a new pilot program for school districts across the state with a proposed School Bus Ready Program that would not fund school buses,but would instead provide gap funding for complementary items like electrical/utility work,site preparation,and other supporting costs that may not be directly eligible for other funding sources (e.g.,EPA’s Clean School Bus Program,DERA,and TAG). Electric school buses make up less than 1%of Utah’s school bus fleet.Only a handful of Utah school districts (including Salt Lake City,Uintah,Tintic,and Morgan)have secured funding for electric school buses from current sources.Therefore,this new program would increase adoption of electric school buses among the majority of Utah school districts that do not yet have one.It would provide support for school districts to overcome the financial burdens and logistical challenges associated with adopting new technology. Tasks and Milestones:Create a new ESB pilot program to provide 30 ESBs to School Districts over 4 performance years,and create a School Bus Ready Program to provide 30 units of gap funding for school bus complementary items over 4 performance years (units deployed years 2-5).There is an average of 7.5 units per performance year,each with a 20-year unit life at a level of $405,000 incentive per unit (includes incremental cost and estimated support expenses). Potential Risks:Supply chain issues could lead to potential delays in implementation,but those are likely to be overcome before the end of the project period. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for demonstration of funding need;transformative impact;authorities, timelines,and milestones;LIDAC benefits;past performance;and staff experience.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:Existing federally-funded programs do not account for utility costs or infrastructure requirements,and the School Bus Ready program would provide supplemental funding for these burdens.Additionally,requirements for eligibility/criteria of other programs (like EPA’s Clean School Bus Program)make it difficult for some districts to apply. For example,the absence of school districts from EPA's Clean School Bus program priority list has deterred participation.Districts have opted not to reapply for the 2023 rebates because they did not meet the prioritization criteria.CPRG funding could address these gaps,and broaden engagement for electric school bus deployment in our state.Furthermore,scrappage requirements in the DERA and TAG programs deter interested parties as they may not have space in their budget to expand to an EV option while scrapping an existing,functioning bus. c.Transformative impact:This proposal would be transformative for the majority of Utah school districts that have been unable (for various reasons)to secure Electric School Buses and charging infrastructure up to this point.UDAQ will only award funding for school districts in the state that do not yet have an electric school bus.Furthermore,UDAQ can prioritize LIDAC areas. Zero-Emission Vehicle Charging /Refueling Incentives (Utah PCAP Measure #3,page 80) a.Measure Description:This measure intends to voluntarily increase adoption of zero-emission vehicles in Utah through enabling more vehicle charging /refueling.The two proposals within this measure will use CPRG funds to 1)create a proposed Electric Fleet Charger incentive program for the cost of chargers for government and commercial fleets and 2)incentivize EV chargers at multi-family dwellings and workplaces throughout the state.Potential incentives could include ongoing grants and technical assistance navigating incentives.Potential incentives could include ongoing grants,technical assistance navigating incentives,and related support costs.Note, under the proposed measure,a piece of equipment cannot be funded by more than one CPRG implementation grant award (e.g.,funding awarded for a state of Utah CPRG charging program cannot be combined with funding awarded for a Salt Lake City MSA CPRG charging program), thus avoiding "double-dipping." 6 Tasks and Milestones:1)Create an electric fleet charger incentive program for government and commercial fleets to deploy 400 chargers over 4 performance years (units deployed years 2-5). There are 100 units per performance year,each with a 10-year unit life at a level of $7,000 incentive per unit.2)Create an incentive program for EV chargers at multi-family dwellings and workplaces throughout the state to deploy 700 chargers over 4 performance years (units deployed years 2-5).There are 175 units per performance year,each with a 10-year unit life at a level of $7,000 incentive per unit. Potential Risks:Limited risks that could lead to delays or interruptions in the development or implementation of this measure include changes in prices,supply chain disruptions,and bottlenecks for participants in securing contractors for installation. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for transformative impact;cost-effectiveness of GHG reductions;authorities, timelines,and milestones;past performance;and staff experience.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:Many fleet owners and operators often do not have the resources to navigate and/or pursue federal funding directly. c.Transformative Impact:This funding would be transformative for fleet owners and operators in that a state-managed program will ease the burden of accessing funding.Additionally,a number of the electric fleet chargers may be made available for public use.Overall,there is a need for a greater charging network to encourage Utahns to pursue EVs. Mode-Shifting /Reducing Vehicle Miles Traveled (Utah PCAP Measure #4,page 87) a.Measure Description:This measure intends to voluntarily increase mode-shifting and reduce vehicle miles traveled or VMT (i.e.,individuals adopting modes of transportation other than personal vehicles)in Utah.Use CPRG funds for a low-speed e-bike incentive program for individuals in Utah,including those in low-income households. Tasks and Milestones:Create an e-bike rebate program to deploy 2,000 e-bikes for individuals over 5 performance years.There are 400 units per performance year,each with a 10-year unit life at a level of $600 incentive per unit. Potential Risks:The high initial cost of an e-bike/lack of ability for low-income families to access e-bikes may dissuade interest which could lead to potential delays or interruptions in implementation. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for cost-effectiveness of GHG reductions;authorities,timelines,and milestones and LIDAC benefits.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:There is currently no federal or state of Utah funding allocated for e-bikes specifically.This project could expand an existing statewide e-bike incentive program (currently managed by the Utah Clean Air Partnership or UCAIR nonprofit),in order to increase adoption of e-bikes among more individuals in Utah.Demand is already high for this existing program,since an e-bike is more cost-effective than an EV for many individuals/families. c.Transformative Impact:UCAIR’s e-bike program has already been a highly successful, transformative program and additional CPRG funds could extend the program to new,additional individuals.E-bikes support larger market transformations that accelerate the deployment and market adoption of emerging GHG emission reduction technologies/practices.According to the Bureau of Transportation Statistics,in 2021,52%of all trips,including all modes of transportation,were less than 3 miles;28%of trips were less than 1 mile.E-bikes are a relatively affordable and accessible alternative mode of transportation for short daily trips (those less than 7 3 miles).As a program with an income-qualified component,this incentive also intends to target the population that is typically less financially able to purchase e-bikes. Zero-Emission Nonroad Incentives (Utah PCAP Measure #5,page 93) a.Measure Description:This measure intends to voluntarily increase adoption of zero-emission nonroad equipment in Utah.Use CPRG funds to create an incentive program for electric yard equipment. Tasks and Milestones:Create a rebate program for Electric Yard Equipment to deploy 15,000 units in 5 performance years.There are 3,000 units per performance year,each with a 5-year unit life at a level of $200 incentive per unit. Potential Risks:The high initial cost of electric yard equipment/lack of ability for low-income families to access electric yard equipment may dissuade interest which could lead to potential delays or interruptions in implementation. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for cost-effectiveness;authorities,timelines,and milestones;LIDAC benefits; past performance;and staff experience.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:This measure would allow equipment owners to see the benefits of electric yard equipment without the initial financial burden.Additionally,the Utah Air Quality Board is currently considering two-stroke yard equipment usage limitations that would be phased in,impacting different groups over the next three years.This CPRG funding could incentivize and ease the burden of these changes for yard equipment owners.Furthermore,the CARROT Program,which was enacted in 2014 by the State Legislature for the UDAQ to encourage fleet owners to reduce emissions from heavy-duty engines and nonroad equipment, has no remaining funding.CPRG funding could reinstate this or a similar program. c.Transformative Impact:Electric yard equipment supports larger market transformations that accelerate the deployment and market adoption of emerging GHG emission reduction technologies/practices.As a program with an income-qualified component,this incentive also intends to target the population that is typically less financially able to purchase electric equipment. Facility Energy Efficiency (Utah PCAP Measure #7,page 113) a.Measure Description:This measure intends to voluntarily increase industrial/commercial-size facility energy efficiency efforts in Utah.Use CPRG funds to continue the Intermountain Industrial Assessment Center (IIAC)StepWise Program which currently assists eligible commercial and industrial customers receiving a no-cost energy efficiency assessment that will identify measures for reducing energy usage and emissions.The intent of this program is to serve large public buildings (like K-12 schools)as well.This would provide significant benefits to schools in disadvantaged areas across the state.Few Utah entities have been successful in accessing existing energy efficiency-related federal funding for K-12 schools and public buildings. Lack of staff/organizational capacity is a primary reason.CPRG funding can help fill this gap,in order for more LIDAC students and community members in Utah to access buildings that are safer,healthier,and produce less emissions. Tasks and Milestones:Continue the Intermountain Industrial Assessment Center (IIAC)StepWise Program for 5 years.There are 30 energy assessments at facilities per performance year,each with an 8-year average project life. Potential Risks:This measure involves re-funding an existing program with a known successful track record,so we anticipate few risks that could lead to delays or interruptions in the development or implementation of this measure. 8 Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for demonstration of funding need;magnitude of GHG reductions 2025-2030; cost-effectiveness of GHG reductions;authorities,timelines,and milestones;job quality;past performance;and staff experience.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:Dominion Energy funding for a portion of this existing program is no longer available,significantly limiting the reach and efficacy of the program. c.Transformative Impact:StepWise has already been a highly successful,transformative program and additional CPRG funds could extend the program to new,additional entities (like K-12 public schools). Oil/Gas Methane Emission Reductions (Utah PCAP Measure #8,page 117) a.Measure Description:This measure intends to voluntarily reduce methane emissions related to the Oil/Gas industry.Use CPRG funds to create a new Uinta Basin incentive program which would fund Thief Hatch Replacements for the Oil/Gas industry. Tasks and Milestones:Create a new Uinta Basin Incentive Program which would fund Thief Hatch Replacements for the Oil/Gas industry by replacing 600 thief hatches at oil facilities over 4 performance years and 200 thief hatches at gas facilities over 4 performance years.For oil facilities,there are 150 facilities (3.4 units per facility,on average)per performance year,each with a 10-year unit life at a level of $4,080 incentive per facility.For gas facilities,there are 50 facilities (2.0 units per facility,on average)per performance year,each with a 10-year unit life and a level of $2,400 incentive per facility. Potential Risks:Limited risks that could lead to delays or interruptions in the development or implementation of this measure include changes in prices,supply chain disruptions,and bottlenecks for participants in securing contractors for installation. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for demonstration of funding need;transformative impact;magnitude of GHG reductions 2025-2030;cost-effectiveness of GHG reductions;authorities,timelines,and milestones;past performance;and staff experience.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:There are no existing funding sources to address this measure which is estimated to cost-effectively reduce large quantities of GHG and VOC emissions in an ozone nonattainment area. c.Transformative Impact:This program is transformative because by reducing methane, co-pollutants which contribute to ground-level ozone can be reduced.In recent years, concentrations of wintertime ozone in the Uinta Basin have reached or exceeded the National Ambient Air Quality Standards (NAAQS),raising concerns about the health and environmental impacts of elevated ozone levels in the Basin.Reducing the concentration of methane in the Basin is an important health and environmental goal of this project. Promote Renewable Energy for Homes and Businesses (Utah PCAP Measure #10,page 128) a.Measure Description:This measure intends to increase the deployment of renewable energy for homes in Utah through incentives.Use CPRG funds to provide a general incentive program for onsite residential solar for qualifying residents in Utah.All Utah households will be eligible,but priority will be given to low-income households.The rebate will be a higher amount for these low-income households.If Utah is awarded Solar for All funds,we will either eliminate the low-income aspect of the program or at least ensure that the low-income element of the program is not duplicative. 9 Tasks and Milestones:Provide a general rebate program for onsite residential solar for qualifying residents by deploying 5,000 units over 5 performance years.There are 1,000 units per performance year,each with a 20-year unit life at a level of $1,000 incentive per unit. Potential Risks:Limited risks that could lead to delays or interruptions in the development or implementation of this measure include changes in prices,supply chain disruptions,and bottlenecks for participants in securing contractors for installation. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for magnitude of GHG reductions 2025-2030;magnitude of GHG reductions 2025-2050;cost-effectiveness of GHG reduction 2025-2030;and authorities,timelines,and milestones.These high scores demonstrate the strength of the selected measures in meeting CPRG program goals. b.Demonstration of Funding Needed:Since Utah’s residential Solar PV Tax Credit ended on December 31,2023,additional funds are needed to incentivize households to pursue residential solar.Utah has applied for funds from EPA’s GHG Reduction Fund Solar for All program.But even if Utah is awarded Solar for All funds,many households will not meet the income requirements and other qualification criteria. c.Transformative Impact:This program would be transformative for households across Utah, especially in LIDAC areas.Many households still do not have access to residential rooftop solar. Outreach,Education,and Workforce Training Related to Emission Reduction Efforts (Utah PCAP Measure #13,page 152) a.Measure Description:This measure intends to increase outreach and education efforts related to emission reductions in Utah,through a Demonstration and Assistance Program.This Program would include full-time staff and student interns who would provide a cost-free energy coaching service to individuals and entities (like small businesses)in Utah,a trusted resource providing information in various formats about efficiency and clean energy measures (energy efficiency, renewable energy,zero-emission transportation/technology,etc.),financing options (incentives, vouchers,etc.),and climate resiliency (for wildfire,floods,drought,etc.).Programming could include tours,workshops,one-to-one assistance (over the phone,in-person,etc.),and annual community programs aimed at lowering the cost of equipment upgrades for all households,and providing heavily subsidized/free options for low-income households.As envisioned,this energy coaching service provided by staff would be housed at and managed by Weber State University (WSU)in Ogden,Utah.WSU already has a net-zero demonstration home to use with this program.While headquartered in Ogden,services would be available to communities and community members across the state thanks to a traveling Energy Coach staff member. Tasks and Milestones:Create a five-year Demonstration and Assistance Program.The energy coaching service is provided in each of the five performance years with targets for several energy projects,including: i.Heat Pumps:48 units total;4 performance years (deployed years 2-5);12 units per performance year;20-year unit life ii.Enclosure Upgrades:180 units total;4 performance years (deployed years 2-5);45 units per performance year;20-year unit life iii.E-Bikes:60 units total;4 performance years (deployed years 2-5);15 units per performance year;10-year unit life Potential Risks:Limited risks that could lead to delays or interruptions in the development or implementation of this measure include changes in prices,supply chain disruptions,and bottlenecks for participants in securing contractors for installation. Why selected and how the measure will meet CPRG program goals:This measure scored particularly well for authorities,timelines,and milestones,but was further determined to have 10 overarching benefits that were not adequately captured by its technical score (e.g.,stakeholder support,viability of project,strong partnership opportunities,community engagement,etc).This measure was selected for its unique combination of these attributes and to strengthen the overall application. b.Demonstration of Funding Needed:Without CPRG funds,the staffing of this program will be extremely limited to students/volunteers only.CPRG funds will help extend existing funding sources to reach a broader audience and will help optimize the statewide adoption of various state,federal,and utility incentives and other programs for both individuals and entities. c.Transformative Impact:By enabling greater adoption of the other strategies,this program catalyzes the general benefits associated with other emission reduction projects.This program is transformative because of its enabling nature.The program would support Utah residents and small entities in making the change to net-zero,climate-resilient living on their timeline and budget.Multiple LIDAC stakeholders expressed support for this measure. Section 2:Impact of GHG Reduction Measures For measure-specific GHG reductions from 2025-2050 and 2030-2050,see Outputs and Outcomes Table in Section 3 and the Technical Appendix (Techappx_Utah Department of Environmental Quality).The durability of the GHG emission reductions of the measures included in this application stems from the lifetime of the equipment and practices embodied in each measure,which ranges from five to 20 years, with a measure-weighted average of 12 years.Although equipment deployment is inherently impermanent,UDAQ believes that incentivizing these measures will make them more likely to be re-deployed in the future by allowing operators/participants to become more familiar with GHG-reducing technologies and practices which,in turn,will also become more commonplace and affordable over time. a.Magnitude of GHG Reductions from 2025 through 2030: The implementation of all measures included in this application are estimated to result in a combined emission reduction of 426,789.2 metric tons CO2e from 2025-2030. b.Magnitude of GHG Reductions from 2025 through 2050: The implementation of all measures included in this application are estimated to result in a combined emission reduction of 1,401,083.8 metric tons CO2e from 2025-2050. c.Cost-Effectiveness of GHG Reductions: Cost-effectiveness of GHG reductions: $74,744,454 in CPRG funding /426,789.2 metric tons CO2e reduced from CPRG funding from 2025-2030 =$175.13 per metric ton CO2e. This level of cost-effectiveness is reasonable for the near-and medium-term emission reduction goals of the CPRG program and is in line with EPA estimates of the societal net benefits of reducing greenhouse gas emissions released as part of the “Standards of Performance for New, Reconstructed,and Modified Sources and Emissions Guidelines for Existing Sources:Oil and Natural Gas Sector Climate Review”rulemaking.For the purposes of this application,the total cost of a measure includes all costs associated with providing the measure incentive or service and does not include additional participant expenses that are not explicitly included in the budget as a voluntary cost share.As a result,all quantified GHG reductions detailed in this application are considered to stem “from CPRG funding.”Actual GHG reductions and associated cost-effectiveness estimates may be affected by changes in equipment costs or related factors that occur after the submission of this application. d.Documentation of GHG Reduction Assumptions The required Technical Appendix (Techappx_Utah Department of Environmental Quality)is included with this application that demonstrates the reasonableness of the above GHG emission 11 reduction estimates.It explains the methodology and assumptions used to develop measure-specific GHG emission reduction estimates,which are also included for the periods 2025-2030 and 2025-2050.Also provided is an Optional GHG Emission Reduction Calculation Spreadsheet (GHGcalcs_Utah Department of Environmental Quality),which includes the required annual GHG emission reduction estimates which vary by measure and year across both time periods. Section 3:Environmental Results –Outputs,Outcomes,and Performance Measure a.Expected Outputs and Outcomes The proposed projects in this application support the EPA's FY 2022 –2026 EPA Strategic Plan (Agency ’s Strategic Plan),specifically Goal 1,“Tackle the Climate Crisis”;Objective 1.1,“Reduce Emissions that Cause Climate Change.”Measure-specific outputs and outcomes including GHG emission reductions and affected co-pollutants are listed in Table 1 below (a spreadsheet version is also provided as an attachment,see:Outputs/Outcomes_Utah Department of Environmental Quality).Additional resources available for GHG and co-pollutant emission reduction accounting can be found in attachments GHGcalcs_Utah Department of Environmental Quality and Techappx_Utah Department of Environmental Quality. 12 IMPLEMENTATION GRANT MEASURE:Utah PCAP MEASURE:ACTIVITIES:OUTPUTS: OUTCOMES Demonstraon of how the proposed projects will contribute to EPA's Fiscal Year 2022-2026 Strategic Plan: Descripon of Outcomes: Cumulave GHG emission reducons (metric tons of CO2e): LIDAC BENEFITS: 2025-2030 2025-2050 Cumulave GHG emission reducons (metric tons of CO2e) for all Measures: 426,789.2 1,401,083.8 General and LIDAC co-pollutants reduced: *refer to for specific quanficaons Oponal GHG Emission Reducon Calculaon Spreadsheet Light-Duty Zero-Emission Vehicle LIDAC Incenves Measure #1: Light-Duty Zero-Emission Vehicle Incenves Create an income-qualified incenve program, the Electric Vehicle Replacement Assistance Program (EVRAP), to replace light-duty vehicles for individuals. Over five performance years, 1,370 units to be replaced. 1,370 low-income owned/qualified light-duty pollung vehicles replaced with light-duty electric vehicles. GHG and co-pollutant emission reducons (including in LIDAC areas), reduced exposure to unhealthy ambient air quality for LIDACs, increased transportaon opons, vehicle maintenance cost savings for LIDACs, and reduced noise polluon 12,174.9 36,524.7 ☒ NOx ☐ SO2 ☒ PM2.5 ☒ VOC ☒ NH3 Yes - direct and indirect Light-, Medium-, and-Heavy-Duty Zero-Emission Vehicle Fleet Incenves Measure #1: Light-Duty Zero-Emission Vehicle Incenves Create an electric vehicle incenve program for the incremental cost of electric commercial and government light-duty fleets. Over four performance years, 400 units to be deployed. 400 commercial or government electric light-duty fleet vehicles deployed. GHG and co-pollutant emissions reducons (including in LIDAC areas), increased cost savings for government fleets, reduced exposure to unhealthy ambient air quality for LIDACs, and reduced noise polluon 2,024.5 6,941.1 ☒ NOx ☐ SO2 ☐ PM2.5 ☒ VOC ☒ NH3 Yes - indirect Measure #2: Medium-and-Heavy-Dut y Zero-Emission Vehicle Incenves Create an electric Class 8 refuse hauler incenve program for commercial and government fleets to deploy 20 units over one performance year. 20 electric Class 8 refuse haulers deployed. GHG and co-pollutant emissions reducons (including in LIDAC areas), decreased vehicle maintenance costs for commercial and government fleets, reduced exposure to unhealthy ambient air quality for LIDACs, and reduced noise polluon 2,236.7 4,473.3 ☒ NOx ☐ SO2 ☐ PM2.5 ☒ VOC ☐ NH3 Yes - indirect Create an electric Class 5 delivery vehicle incenve program for commercial and government fleets to deploy 40 units over 4 performance years. 40 electric Class 5 delivery vehicles deployed. GHG and co-pollutant emissions reducons (including in LIDAC areas), decreased vehicle maintenance costs for commercial and government fleets, reduced exposure to unhealthy ambient air quality for LIDACs, and reduced noise polluon 1,528.0 4,365.7 ☒ NOx ☐ SO2 ☐ PM2.5 ☐ VOC ☐ NH3 Yes - indirect Create an electric transit bus incenve program for transit agencies to deploy seven electric transit buses over one performance year. 7 electric transit buses deployed. GHG and co-pollutant emissions reducons (including in LIDAC areas), reduced exposure to unhealthy ambient air quality for LIDACs, increased cost savings for government fleets, and reduced noise polluon 408.2 1,224.7 ☒ NOx ☐ SO2 ☐ PM2.5 ☒ VOC ☒ NH3 Yes - direct and indirect Create a new Electric School Bus (ESB) pilot program to provide 30 ESBs to school districts statewide over four performance years with a complementary "School Bus Ready Program" that provides gap funding for non-eligible "front-of-the-meter" infrastructure expenses. 30 electric school buses deployed and 30 units of gap funding provided for school districts. GHG and co-pollutant emissions reducons (including in LIDAC areas), reduced exposure to unhealthy ambient air quality for LIDACs, increased cost savings for government fleets, and reduced noise polluon 350.5 2,003.1 ☒ NOx ☐ SO2 ☐ PM2.5 ☒ VOC ☒ NH3 Yes - direct and indirect Zero-Emission Vehicle Charging/Refueling Incenves Measure #3: Zero-Emission Vehicle Charging/Refueling Incenves Create an electric fleet charger incenve program for government and commercial fleets to deploy 400 electric vehicle chargers over four performance years. 400 government and commercial fleet chargers deployed. GHG and co-pollutant emissions reducons (including in LIDAC areas), reduced vehicle maintenance costs for government fleets and decreased community exposure to unhealthy ambient air quality 3,931.9 11,234.0 ☒ NOx ☐ SO2 ☒ PM2.5 ☒ VOC ☐ NH3 Yes - indirect Create an electric vehicle charging incenve program for mul-family dwellings (MFD) and workplaces throughout the state to deploy 700 chargers over four performance years. 700 mul-family dwelling and workplace chargers deployed. GHG and co-pollutant emissions reducons (including in LIDAC areas), reduced vehicle maintenance costs for MFD residents (typically LIDACs), and decreased exposure to unhealthy ambient air quality 14,628.3 41,795.3 ☒ NOx ☐ SO2 ☒ PM2.5 ☒ VOC ☐ NH3 Yes - direct and indirect Mode-Shiing/Reducing Vehicle Miles Traveled Measure #4: Mode-Shiing/Reducing Vehicle Miles Traveled Create an e-bike incenve program to deploy 2,000 e-bikes for individuals over five performance years. 2,000 e-bikes deployed. GHG and co-pollutant emissions reducons (including in LIDAC areas), increased transportaon opons/cost savings for LIDACs, reduced exposure to unhealthy ambient air quality, reduced noise polluon and traffic 2,413.3 6,033.3 ☒ NOx ☐ SO2 ☒ PM2.5 ☒ VOC ☐ NH3 Yes - direct and indirect Zero-Emission Nonroad Incenves Measure #5: Zero-Emission Nonroad Incenves Create an electric yard equipment incenve program to deploy 15,000 units in five performance years. 15,000 units of electric yard equipment deployed. GHG and co-pollutant emissions reducons (including in LIDAC areas), reduced exposure to unhealthy ambient air quality in LIDACs, enhanced opportunies for community engagement, and reduced noise polluon 2,450.4 3,224.2 ☒ NOx ☐ SO2 ☐ PM2.5 ☒ VOC ☐ NH3 Yes - direct and indirect Facility Energy Efficiency Measure #7: Facility Energy Efficiency Subaward to the University of Utah to provide funding for staff and training to connue the Intermountain Industrial Assessment Center (IIAC) StepWise Program for five years. 3 faculty, 1 engineer, 1 business manager, 1 post-doc, 2 PhD students, and 4 undergraduate student engineers hired and trained for a five-year extension of IIAC StepWise Program. GHG and co-pollutant emissions reducons (including in LIDAC areas) that reduce exposure to unhealthy ambient air quality, increased energy- and cost-savings opons for LIDACs and businesses, and increased staff and training/workforce development opportunies 152,185.5 304,371.0 ☒ NOx ☒ SO2 ☒ PM2.5 ☒ VOC ☒ NH3 Yes - indirect Oil/Gas Methane Emission Reducons Measure #8: Oil/Gas Methane Emission Reducons Create a new thief hatch replacement program for the oil and gas industry in the Uinta Basin by replacing 600 thief hatches at oil facilies over four performance years and 200 thief hatches at gas facilies over four performance years. 600 thief hatches at oil facilies and 200 thief hatches at gas facilies replaced. GHG and co-pollutant emissions reducons, and reduced exposure to unhealthy ambient air quality in LIDAC areas 85,814.4 245,184.0 ☐ NOx ☐ SO2 ☐ PM2.5 ☒ VOC ☐ NH3 Yes - indirect Promote Renewable Energy for Homes and Businesses Measure #10: Promote Renewable Energy for Homes and Businesses Provide a residenal solar incenve program for qualifying residents by deploying 5,000 units over five performance years. 5,000 residenal solar incenves deployed. GHG and co-pollutant emissions reducons (including in LIDAC areas), increased energy- and cost-savings opons for LIDACs and businesses and enhanced community engagement opportunies 145,693.9 728,469.6 ☒ NOx ☒ SO2 ☒ PM2.5 ☒ VOC ☒ NH3 Yes - direct and indirect Outreach, Educaon, and Workforce Training Related to Emission Reducon Efforts Measure #13: Outreach, Educaon, and Workforce Training Related to Emission Reducon Efforts Subaward to Weber State University for staffing resources to deploy a demonstraon and assistance program that provides a cost-free, energy-efficiency and clean energy measures coaching service to individuals and small businesses over five years. 1 Energy Concierge, 1 Traveling Energy Coach, 1 Home Manager, and 3 student hourly interns hired and trained for a five-year deployment of a Demonstraon and Assistance Program. GHG and co-pollutant emissions reducons (including in LIDAC areas) that reduce exposure to unhealthy ambient air quality, increased energy- and cost-savings opons for LIDACs and businesses, enhanced community engagement opportunies, and increased staff and training/workforce development opportunies 948.7 5,240.0 ☒ NOx ☒ SO2 ☒ PM2.5 ☒ VOC ☐ NH3 Yes - direct and indirect Table 1. Measure-Specific Expected Outputs and Outcomes 13 Other Expected Outputs and Outcomes that Apply to All Measures: Outputs ●Additional UDAQ staff hired and trained to implement proposed measures ●Number of incentives awarded to participants ●Semi-annual progress reports summarizing progress,accomplishments,and milestones achieved,including a description of outputs and outcomes,planned activities and a summary of expenditures for the reporting period,and a detailed final report will be developed and submitted to EPA (see Section 3c Timeline for more information).Milestones in implementing GHG reduction measures are specified in Sections 1 and 3c ●Community engagement meetings that will be held ●The development of public-facing websites,including public comment web pages ●Multiple contract agreements established with key stakeholders,such as the U of U,WSU,LHDs, and program participants ●Partnerships established with key stakeholders such as industry and community organizations, businesses,and government entities ●Distribution of program accomplishments related to the environmental activities through program branding,websites,State of Environment reports,press releases,public involvement processes,and social media Outcomes ●Attaining the NAAQS through the GHG-reduction activities that also achieve co-pollutant reductions,as outlined in the Outputs and Outcomes Table ●GHG-reduction activities may contribute data to research entities including Utah State University ASPIRE Engineering Research Center,designated as the lead research center for strategic planning for electrification of transportation infrastructure through 2023 General Session Utah Senate Bill 125 legislation ●GHG-reduction activities will contribute toward progress on the state of Utah’s Priority and Comprehensive Climate Action plans b.Performance Measures and Plan UDAQ’s plan for effectively tracking,measuring,and reporting progress for each measure includes requesting key data points from participants during the application phase and requiring regular reporting and documentation throughout the project period that demonstrates that the project is making sufficient progress and achieving program goals.The data that is captured throughout these processes will be tracked with a UDAQ-managed database and be used to determine eligibility,quantify emission reductions,and report outcomes. Each measure will have unique milestones,sets of criteria,and requirements in place to ensure that program goals are achieved.UDAQ will assign one or more program managers to each measure who will be responsible for ensuring program goals/requirements are met,tracking progress,issuing incentives, and reporting milestones and outcomes.Subawardees,program participants,and qualified vendors will be contractually obligated to submit documentation through the UDAQ-managed database that details their projects,including quantities of units deployed,and demonstrates their compliance with the respective program criteria. UDAQ plans to assess,quantify,and report benefits to LIDACs,including GHG reductions and co-pollutant impacts.This will be accomplished through tracking the geographic location and relevant metrics (including number and type of units deployed,the number of individuals/households/entities 14 receiving services,and any income-related program data)associated with the implementation of measures.From the deployment total,we can then estimate the emission (GHG and CAP)reductions. See Outputs and Outcomes Table (Section 3 and/or attachment Outputs/Outcomes_Utah Department of Environmental Quality)for our current projected estimates of GHG emission reductions and co-pollutant impacts.After implementation of the measures and at the end of each performance year,we will compare our initial projected deployment numbers to our actual deployment numbers and include these details in reports.Where and when appropriate,we will use the same quantification tools (AVERT, eGRID,etc.)to estimate actual GHG emissions reductions and associated CAP changes.The actual emission reductions will be compared to the projected emission reductions detailed in the Optional GHG Emission Reduction Calculation Spreadsheet (GHGcalcs_Utah Department of Environmental Quality), which includes approaches used to quantify projected measure-specific GHG and co-pollutant emission reductions. c.Authorities,Implementation Timeline,and Milestones Authorities: As the applicant,UDAQ will oversee the implementation of every measure,whether through direct implementation or through a subaward.For certain measures UDAQ will subaward to LHDs and universities as described in Section 1.,and those subawardees will implement their respective measures with oversight by UDAQ.Subawardees will be contractually obligated to report progress,expenditures for the reporting period,any challenges that arise,and planned activities for the next reporting period. The following Utah code demonstrates UDAQ’s and subawardees’authorities to implement their respective measures: ●UDEQ /UDAQ:Utah Code 19-1-201 [Demonstrating Rulemaking Authority],Utah Code 19-1-106 [Demonstrating Department ’s Boards];Utah Code 19-1-202 [Demonstrating Director's Authority];Utah Code 19-1-105 [Demonstrating Director's Control];Utah Code 19-2-107 [Demonstrating Director's Powers];UDAQ is eligible to apply for assistance under this solicitation,in accordance with 42 U.S.C.16131 and CFDA 66.039 ●U of U and WSU:Utah Board of Higher Education:Utah Code 53B-7-103 [Demonstrating Federal Grant Accepting Authority] ●Utah LHDs and I/M Program Counties:Utah Code 26A-1-114 [Demonstrating Federal Grant Accepting Authority];Utah Code 41-6a-1642 [Demonstrating I/M Program Authority] For all other measures,UDAQ will directly implement the measures through participant support costs in the form of point-of-sale incentives to successful applicants who have qualified for participation in the program and will offer an ongoing,open application process and make awards based on eligibility and a first-come,first-served approach.UDAQ will dedicate full-time employees (FTE)to implement the measures,including establishing program parameters,determining eligibility,developing and facilitating the execution of contract agreements,promoting outreach and program awareness,educating participants on program requirements,tracking progress,reviewing documentation that demonstrates that program goals have been met,and issuing incentives as applicable within program requirements. Participants will apply to/sign up for the program(s)via UDAQ’s Air Quality Incentive Programs website. Where additional support is needed from other entities for measure implementation (through a subaward or participant support costs),roles and responsibilities of the other entities are listed below. Light-Duty Zero-Emission Vehicle LIDAC Incentives: ●Other entities needed for GHG reduction implementation:Utah LHDs 15 ○As the managing agency,UDAQ will work with Utah LHDs to ensure that all activities in this work plan are accomplished. ○The LHDs will oversee the day-to-day operations of the EVRAP and will develop policies and procedures to administer the program.Each LHD will develop relationships with licensed auto dealers and will provide training to those entities that opt to participate in the EVRAP.Each LHD will ensure that the licensed auto dealers that want to participate meet all eligibility requirements.The LHD will enter into an agreement with each participating EVRAP dealership outlining the terms and conditions of EVRAP.The LHDs and UDAQ ,will develop and implement education and outreach strategies that will include advertisements for the program.LHDs will keep records of emission-related data on all participating vehicles (e.g.,failing emission inspection),and records of vehicle emission information of new vehicles.The LHDs will review the eligibility requirements of the motorist and make payments to the recognized auto dealership.The LHDs will provide information to UDAQ to complete the reporting requirements of the grant. ○UDAQ and the LHDs will work with other entities such as city and county governments, media entities,repair facilities,and auto dealers to raise awareness of the program to the public. Light-,Medium-,and-Heavy-Duty Zero-Emission Vehicle Fleet Incentives: ●Other entities needed for GHG reduction implementation:Utah transit agencies,school districts ○As the managing agency,UDAQ will work with Utah transit agencies and school districts to ensure that all activities in this work plan are accomplished. ○For electric transit buses,the transit agencies will apply to the program,demonstrate eligible purchases of the new electric buses,and receive incentive funding from UDAQ. The transit agencies will maintain ownership of the new electric buses and oversee their day-to-day operations. ○For electric school buses,the school districts will apply to the program,demonstrate eligible purchases of the new electric buses and related infrastructure,and receive incentive funding from UDAQ.The school districts will maintain ownership of the new electric school buses and oversee their day-to-day operations. ○Metrics for tracking the progress of electric bus implementations will include projected and actual milestones for procurement,delivery,and deployment,as well as planned budget amounts and final cost for the buses.Metrics for GHG reduction can be measured by the average miles the electric buses operate each year multiplied by the emissions reduction compared to a standard diesel bus operation per mile. Facility Energy Efficiency: ●Other entities needed for GHG reduction implementation:Utah Board of Higher Education, specifically U of U IIAC ○The U of U will oversee the day-to-day operations of the IIAC StepWise Program and report progress to UDAQ throughout the project period.In coordination with the U of U,UDAQ will determine specific milestones and outputs and outcomes that will be contractually required to be met. ○The U of U will be required to certify through contractual obligation with UDAQ their understanding of and commitment to the program requirements.UDAQ will complete a risk assessment that will include a review of the U of U's prior experience with similar subawards,assessment of risk level,and follow-up to ensure that the U of U takes timely and appropriate action on all deficiencies identified through quarterly desk reviews and audits.In addition,UDAQ will work with the U of U to ensure that reimbursements are made when certain milestones and outputs and outcomes are met.Payments to U of U 16 will only be made after an internal review process has determined that program requirements have been met. Outreach,Education,and Workforce Training Related to Emission Reduction Efforts: ●Other entities needed for GHG reduction implementation:Utah Board of Higher Education, specifically WSU. ○WSU will oversee the day-to-day operations of the energy coaching program and report progress to UDAQ throughout the project period.In coordination with WSU,UDAQ will determine specific milestones and outputs and outcomes that will be required to be met periodically. ○WSU will be required to certify through contractual obligation with UDAQ their understanding of and commitment to the program requirements.UDAQ will complete a risk assessment that will include a review of WSU's prior experience with similar subawards,assessment of risk level,and follow-up to ensure that WSU takes timely and appropriate action on all deficiencies identified through quarterly desk reviews and audits. In addition,UDAQ will work with WSU to ensure that reimbursements are made when certain milestones and outputs and outcomes are met.Payments to WSU will only be made after an internal review process has determined that program requirements have been met. Letters of support/commitment that were able to be provided in the given time period are also included in this application’s attachments.Additional information about the roles and responsibilities can be found in the Expenditure of Awarded Funds section (which includes the approach,procedures,and controls that will be implemented)of the attached Budget Narrative (Budget_Utah Department of Environmental Quality). Timeline and Milestones: Below is a breakdown of timeline and milestones for each performance year.These are general items that will be relevant for all measures,unless specified otherwise.Please see Section 1 for measure-specific timeline and milestone items.The attached Technical Appendix (Techappx_Utah Department of Environmental Quality)also includes details on Measure Implementation Assumptions for each performance year. Year 1:October 01,2024 -March 31,2025 ●Anticipated award announcement from EPA to recipients ●Announce award to public via press release,social media,websites,and begin coordination with key partners ●Develop program criteria/requirements ●Develop and execute contracts with subawardees ●Establish participation criteria for vendors and develop an application for potential vendors to apply to become an eligible vendor ●Submit semi-annual report to EPA Year 1:April 1,2025 -September 30,2025 ●Host an ongoing,open application process for vendors to apply to become an eligible vendor ●Review vendor applications and determine eligibility for their participation as qualified vendors ●Develop an application process for potential participants and host an ongoing,open application process ●Evaluate applications from potential participants and identify eligible projects to participate ●Develop and execute financial assistance agreements with participants ●Develop and execute contract agreements with selected vendors 17 ●Subaward specific:U of U,WSU,and LHDs report progress,expenditures for the reporting period,any challenges that arise,planned activities for the next reporting period,and measure-specific data to UDAQ ●Place into service the purchased new vehicles/equipment/units ●Submit semi-annual report to EPA Years 2,3,and 4 :October 01,2025-2028 -March 31,2026-2029 ●Application process for vendors and program participants remain open ●Review newly submitted applications from potential vendors and program participants ●Develop and execute financial assistance agreements with participants ●Develop and execute contract agreements with selected vendors ●Evaluate,track,and document progress on projects ●Place into service the purchased new vehicles/equipment/units ●Subaward-specific:U of U,WSU,and LHDs report progress,expenditures for the reporting period,any challenges that arise,planned activities for the next reporting period,and measure-specific data to UDAQ ●Place into service the purchased new vehicles/equipment/units ●Submit semi-annual report to EPA Year 5:April 1,2029 -September 30,2029 ●UDAQ works with participants,vendors,and subawardees to finalize projects ●Place into service the purchased new vehicles/equipment/units ●Project period ends October 1,2029 -December 31,2029 (or as specified): ●UDAQ prepares final evaluations of outputs and outcomes ●UDAQ submits final reports to EPA Section 4:Low-Income and Disadvantaged Communities a.Community Benefits The proposed measures have been prioritized by UDAQ ,in part,due to the benefits they are anticipated to provide to low-income and disadvantaged communities (LIDACs).To advance the Justice40 Initiative,it is anticipated that 40 percent of overall benefits from the measures will flow to LIDACs in Utah.Many parts of Utah include LIDAC areas.According to data from the EPA IRA Disadvantaged Communities mapping tool,which includes data from the Climate and Economic Justice Screening Tool (CEJST)and the Environmental Justice Screening and Mapping Tool (EJScreen),there are 634 total Census Block Groups in the state of Utah that are low-income and disadvantaged.Disadvantaged communities in the state of Utah are shown in orange in Figure 1 below: 18 Figure 1.EPA IRA Disadvantaged Communities Map -State of Utah UDAQ assesses that benefits resulting from the projects that are funded and implemented are expected to accrue in LIDAC areas statewide.Benefits to LIDACs may be direct (in the case of LIDAC incentives) and/or indirect (in the case of reduced GHGs/climate mitigation).Cumulatively,these benefits include the following:Reduced emissions of GHGs and co-pollutants;Improved air quality and public health; Increased energy efficiency;Increased savings associated with fuel and energy;Increased job creation/workforce development opportunities;Increased community engagement opportunities;and Contributions to larger (i.e.,regional/national)efforts on climate mitigation.Any other unique measure-specific benefits and measure-specific GHG/co-pollutant reductions (including in LIDAC areas) are included in the Outputs and Outcomes Table in Section 3 (and attachment Outputs/Outcomes_Utah Department of Environmental Quality).This Table also notes whether LIDAC benefits are direct and/or indirect. Cumulatively,potential disbenefits (and accompanying mitigation strategies to avoid disbenefits)related to the proposed measures include the following: ●Potential Disbenefit:High financial cost of clean vehicles/equipment for individuals and entities ○Mitigation Strategy to Avoid Disbenefit:Incentive program designs that encourage participation in and provide higher priority to LIDACs ●Potential Disbenefit:Traditional/existing jobs lost in transition to cleaner technologies/practices ○Mitigation Strategy to Avoid Disbenefit:Workforce development/job transition strategies,especially to LIDACs ●Potential Disbenefit:Community member/stakeholder concerns and lack of knowledge about cleaner technologies/practices ○Mitigation Strategy to Avoid Disbenefit:Additional education/outreach efforts,especially to LIDACs As required,a full list of Census block group IDs for areas that may be affected by Utah’s proposed measures can be found in the Areas_Utah Department of Environmental Quality attachment.UDAQ’s plan and process for continuing to assess,quantify,and report benefits to LIDACs,including co-pollutant impacts,includes tracking the geographic location and relevant metrics (including number and type of 19 units deployed and number of individuals/households/entities receiving services)associated with the implementation of measures.This is described in further detail in the Performance Measures and Plan in Section 3 of this application. b.Community Engagement UDAQ worked to transparently communicate with LIDACs throughout Utah’s PCAP and Implementation Grant process.UDAQ also worked to pursue early,frequent,and meaningful engagement with LIDACs to incorporate community-driven priorities in both Utah’s PCAP and UDAQ’s Implementation Grant application.UDAQ engaged LIDACs through online,in-person,and hybrid participatory methods.Several meetings were held with organizations and community members in the development of Utah’s PCAP and Implementation Grant application.See Table 11 Outreach and Coordination Log (page 49)in Utah’s PCAP for a comprehensive list of all meetings held. UDAQ received LIDAC-specific input throughout the process,and it was incorporated into this application as much as possible.For instance,UDAQ asked Utah’s LIDAC Working Group to complete an online survey about their priorities and received several responses.The most important benefits of measures/projects included:improving air quality and public health,reducing energy/utility bills,and improving transportation options.The best types of measures/proposals focused on the following:more energy efficiency,more renewable energy,more electric transportation,and less industrial emissions. Recurring comment themes included the following:wanting multiple transportation options (including active transportation like public transit and bikes)and strong support for the Demonstration and Assistance Program proposal.Feedback from the Salt Lake Environmental Justice (EJ)Resident Committee was also received,reviewed,and incorporated in this application.Other input from Utah’s LIDAC Working Group and Salt Lake’s EJ Resident Committee included the need for continued efforts focused on community engagement and capacity-building,which is another reason why the Demonstration and Assistance Program proposal is a crucial inclusion in this application. The state of Utah strives for accessibility of resources (webpage,email lists,news releases,social media, public meeting recordings,video conferencing options,etc.)through online,in-person,and hybrid participatory methods.UDAQ will pursue meaningful engagement activities with LIDACs throughout the life of this grant,working to continuously include LIDAC feedback.Specifically,UDAQ will convene regular meetings with the LIDAC Working Group as long as LIDAC-focused community partner staff and other external participants are willing to participate.Based on feedback from the LIDAC Working Group, additional outreach and engagement activities to LIDACs in Utah will be pursued by UDAQ throughout project development and implementation.UDAQ will pursue inclusive stakeholder representation and work to overcome obstacles to engagement,including linguistic,cultural,institutional,geographic,and other barriers.Reference the LIDAC Benefits Analysis section (page 32)and the Coordination and Outreach section (page 44)of Utah’s PCAP for more information. Section 5:Job Quality The proposed measures in this application intend to help support the creation of high-quality jobs and workforce development opportunities for Utahns.Many if not all of the state’s emission reduction strategies focused on energy efficiency,zero-emission technology,and renewable energy will not be fully realized without a Utah workforce that is trained with the skills needed to implement the programs and projects.UDAQ has reviewed and,if awarded,can work to support the eight Good Jobs Principles developed by the U.S.Department of Labor and Department of Commerce in the implementation of the proposed measures in this application. 20 One of the proposed measures in this application–Facility Energy Efficiency (StepWise Program proposal)–is heavily focused on workforce development by design.In addition to facilitating energy efficiency savings,another critical benefit of this program is the training /workforce development component.Currently,professionals at the U of U complete the evaluations while providing opportunities for student involvement and development.For all other measures,UDAQ will work with stakeholders like industry,other state agencies,state universities,colleges and technical colleges, businesses,nonprofits,and others to help identify funding to support workforce training and development.Emissions reduction strategies can be job creators,with opportunities in fields like electricians,HVAC work,construction,auto maintenance,water conservation,and others that can offer career opportunities and may not require a traditional 4-year college degree. Another example is the transition to cleaner transportation (like electric vehicles)will require training on new vehicles and equipment so the current workforce is not displaced.Potential jobs impacted by cleaner transportation projects include transportation and fleet managers,administrative services staff, financial office staff,drivers,mechanics,electricians,and other essential personnel.If awarded CPRG Implementation Grant funds,UDAQ will engage with groups like these. Additionally,Utah’s renewable energy industry is predicted to grow from 42 –61%by 2030,especially impacting rural and Tribal Nation communities (NREL,2022).Utah State University (USU)is planning to aid the state of Utah in developing a comprehensive clean energy training program as the state begins to embrace the opportunities of a green energy economy.USU has already been awarded and is currently working on a statewide “Green Jobs”grant from the Jobs for the Future Foundation.This is one example of a key partner organization that UDAQ will collaborate with.Other potential examples of specific, concrete workforce-focused strategies could include,but are not limited to 1)Use of Project Labor Agreements or Community Workforce Agreements on construction projects and 2)Health and safety plans that are developed in conjunction with workers,including anti-harassment training for workers and management,OSHA training to minimize workplace hazards (e.g.,OSHA 10 and OSHA 30),and supplemental health and safety training as needed to ensure job quality,support “high road”labor practices,and develop a diverse,highly skilled workforce in the implementation of the measures in this application. Section 6:Programmatic Capability and Past Performance a.Past Performance:See Table 2. b.Reporting Requirements:See Table 2. Table 2.Past Performance and Reporting History Project Title Assistance Agreement No.Funding Agency Listing Number (CFDA Number) FY19 National Clean Diesel Funding Assistance Program DE-96846701-3 EPA 66.039 Description:UDAQ was awarded $2.4 million to offer incentives for diesel fleet owners to replace short-haul delivery trucks and nonroad equipment with cleaner,current model year vehicles and equipment. Discussion/Status:This program is in process.UDAQ hosts an open application process for diesel fleet owners to apply for funding assistance,determines eligibility,and coordinates with successful applicants to implement the projects. Staff Contact:Molly Parker,mkparker@utah.gov 21 Reporting History:18 quarterly reports were submitted to and accepted by EPA throughout the project period in a timely manner.All reports demonstrated progress toward achieving the expected outputs and outcomes of the program.The final report will be submitted in a timely manner when the grant closes. FY20 State Clean Diesel Funding Assistance Program DS-96859601-3 EPA 66.040 Description:UDAQ was awarded $979,814 through an Assistance Agreement to implement a rebate incentive program for diesel fleets to replace refuse haulers,short-haul delivery trucks and school buses in priority areas during a project period of 10/01/2019 -3/30/2025. Discussion/Status:This program is in progress,and applications to the program are being received. There are no problems that have been encountered that will prevent UDAQ from meeting the program objectives. Staff Contact:Courtney Ehrlich,cehrlich@utah.gov Reporting History:13 quarterly reports have been submitted to and accepted by EPA throughout the project period in a timely manner.All reports demonstrated progress toward achieving the expected outputs and outcomes of the program.The final report will be submitted in a timely manner when the grant closes. FY18 Targeted Airshed Uinta Basin Grant Program TA -96892201 EPA 66.956 Description:UDAQ was awarded $5 million through an Assistance Agreement to replace pump jack engines used in oil and gas production with electric.The project period is 10/1/2019 -9/01/2024. Discussion/Status:This program is in process.UDAQ hosts an open application process for oil and gas producers to apply for funding assistance,determines eligibility,and coordinates with successful applicants to implement the projects.UDAQ’s experience with this program will inform the program design and implementation of the proposed Oil/Gas Methane Emission Reductions Measure to replace thief hatches for the oil and gas industry. Staff Contact:Courtney Ehrlich,cehrlich@utah.gov Reporting History: 13 quarterly reports have been submitted to and accepted by EPA throughout the project period in a timely manner.Reports identified any challenges that occurred during the project period and explained how challenges were resolved. All reports demonstrated effort toward achieving the expected outputs and outcomes of the program. Wood Burning Appliance Change-Out,Salt Lake City,Utah EM-96877701-4 EPA 66.202 Description:UDAQ was awarded $3,184,875 to convert non-EPA-certified,wood-burning devices to gas-burning appliances,replace uncertified wood stove inserts with EPA-certified wood-burning units and destroy uncertified wood stove inserts in priority areas. Discussion/Status:The total funding for the program has been expended.The program opened to the public on September 23,2018,and was successfully implemented resulting in 22 a total of 887 projects completed.The activities carried out under this program are expected to reduce 26.9 tons of PM2.5 and 33.7 tons of VOC over the next 20 years Staff Contact:Mat Carlile,mcarlile@utah.gov Reporting History: 14 quarterly reports were submitted to and accepted by EPA throughout the project period in a timely manner.All reports demonstrated progress toward achieving the expected outputs and outcomes of the program.The final report was submitted on 2/24/2022/14/2024 and EPA closed the grant on May 22, 2023.. FY16 Targeted Airshed Grant - Vehicle Repair and Replacement Assistance Program for the Logan Utah-Idaho PM2.5 Nonattainment Area EM-96838601 EPA 66.202 Description:UDAQ was awarded a $2,477,250 award through an Assistance Agreement to subaward to five LHDs who implement the I/M emissions programs to offer incentives to income-qualified individuals who fail emissions tests.The Vehicle Repair and Replacement Assistance Program (VRRAP)provides funding assistance for either replacing their failing vehicle with a newer,cleaner one or repairing it. The program is offered in Cache County. Discussion/Status:The total funding for the program has been expended.The program opened to the public on April 20,2017,and was successfully implemented resulting in 1,191 vehicles repaired and 259 vehicles replaced.The activities carried out under this program are expected to decrease annual emissions by 17.89 tons of NMOG, NOx,and PM and reduce lifetime emissions of NMOG,NOx,and PM by 128.30 tons. Staff Contact:Mat Carlile,mcarlile@utah.gov Reporting History: 26 quarterly reports were submitted to and accepted by EPA throughout the project period in a timely manner.All reports demonstrated progress toward achieving the expected outputs and outcomes of the program.The final report was submitted on 2/14/2024 and is currently being reviewed by EPA. c.Staff Expertise The UDAQ is required by the federal government to ensure compliance with the EPA’s NAAQS statewide and visibility standards at national parks.UDAQ enacts rules pertaining to air quality standards,develops plans to meet the federal standards when necessary,administers emissions reductions incentive programs,issues pre-construction and operating permits to stationary sources,and ensures compliance with state and federal air quality rules,statutes,and regulations.UDAQ allocates a large portion of its resources to implementing the CAA.The Utah Air Conservation Act (Utah Code §19-2)delegates rulemaking power to the Utah Air Quality Board to promulgate rules pertaining to air quality issues. UDAQ staff responsible for the implementation of potential CPRG funding is made up of environmental program managers,environmental scientists,policy analysts,and environmental planning consultants. Additional UDAQ staff is available with a wide range of qualifications.If funded,new CPRG programs may 23 result in additional UDAQ staff to oversee the implementation of the funded measures.These staff members will be managing the design,implementation,and success of new programs implemented through the CPRG.Current staff resources are detailed below,and associated resumes for key staff are included as attachments to this grant application. Key Staff: Lisa Burr (Environmental Program Manager)manages the Grants/Incentives Section at UDAQ.She has worked at the UDAQ for fifteen years.Prior to her current position,she served as an Environmental Planning Consultant and Section Lead for grant programs in the Air Quality Policy Section.Lisa currently manages five grants/incentives staff who oversee a combined total of 20 incentive programs.Lisa provides technical expertise in issues related to environmental grant/incentive program management, environmental research,analysis,planning,policy development,budget management,trends,and coordination and management of partnership agreements. Mat Carlile (Environmental Planning Consultant)has over twenty years of experience working with UDAQ and has been the State I/M Coordinator and a liaison between the LHDs and EPA since 2010.Mat has previously managed the VRRAP program,which involved monitoring the progress of a subawardee,and coordinating,tracking,promoting,and evaluating the program to ensure successful use of grant funds. Additionally,Mat has successfully administered five DERA Grants from 2008 through 2013,the Workplace Electric Vehicle Charging Program,the Volkswagen Settlement Environmental Mitigation Electric Vehicle Supply Equipment Program,the Alternative Fuel Heavy-Duty Tax Credit Program,and the Conversion to Alternative Fuel Grant Program. Courtney Ehrlich (Environmental Planning Consultant)is an environmental scientist with Bachelor and Master of Science degrees in Environmental Science,Sustainability,and Climate Change.Courtney has worked with the UDAQ for over five years.Courtney oversees the Utah Charge Your Yard Program, Marginal Conventional Wells Grant,and State Clean Diesel Grants. Rachel Hancock (Environmental Planning Consultant)is an environmental scientist with a Bachelor of Science in Biology and has spent over five years working with the UDAQ.Rachel oversees the Volkswagen Settlement Environmental Mitigation Fund and assists with the Utah National Clean Diesel Program. Christianna Johnson (Environmental Planning Consultant)is a Grant and Outreach Manager with Bachelor of Science Degrees in Political Science and Urban Planning and is pursuing a Master of Public Policy degree.Christianna has over five years of combined experience in program/grant management, community outreach,and public engagement for organizations in the Salt Lake area in Utah.Christianna is the LIDAC engagement and outreach coordinator for UDAQ grant work and will be responsible for managing the engagement and partnership coordination efforts of this grant. Molly Parker (Environmental Planning Consultant)is an environmental scientist with a Bachelor of Science in Geology and Environmental Studies.Molly has over four years of experience with the UDEQ. She oversees the Utah National Clean Diesel Program,the Targeted Airshed Heavy-Duty Diesel Program for Logan,Utah,and provides technical assistance with the Climate Pollution Reduction Grant. Glade Sowards (Environmental Scientist IV)is a Senior Policy Analyst at UDAQ and also serves as the Beehive Emission Reduction Plan/CPRG Coordinator.He has a Bachelor of Arts in Economics and Environmental Studies and a Master of Science in Forestry.Glade has over eighteen years of experience 24 working at UDAQ ,where he has worked on multiple statewide climate planning initiatives,served as lead staffer for Utah’s Western Climate Initiative delegation,and was the coordinator for the Clean Power Plan and the Affordable Clean Energy programs.Prior to working for UDAQ ,Glade led the Technical Analysis Section at the Utah Office of Energy and Resource Planning. Sheila Vance (Environmental Scientist III)is an environmental scientist with a Bachelor of Science in Physiology with a focus on Environmental Toxicology.Sheila has over 20 years of professional and environmental experience.Sheila maintains excellent relationships with stakeholders in the project focus area,the Uinta Basin,including relationships with industry and local tribes.Sheila will be available to provide technical expertise as the policy expert for oil and gas operations. Administrative Staff: Andrea Riddle (Administrative Services Manager)has been the main accountant for UDAQ for eight years.She has extensive experience overseeing the UDAQ budget,creating financial reports,and tracking expenses,revenues and quarterly reports for the grant programs.She also assists in grant budgets and closeouts for UDAQ. Jeffrey Robb (Contract/Grant Analyst II)is a contract and grant analyst and has spent the last five years with UDAQ.He helps monitor grant balances and program budgets and helps program managers understand the data through reconciliations and reports.He communicates directly with program managers to answer questions and put together contract documents and amendments for approval.He also communicates with contractors to get them set up as vendors with the state. Section 7:Budget a.Budget Detail:See Budget Spreadsheet attachment Budgetcalcs_Utah Department of Environmental Quality. b.Expenditure of Awarded Funds:See attachment Appendix 2:Budget Narrative (Budget_Utah Department of Environmental Quality). c.Reasonableness of Costs:See attachment Appendix 2:Budget Narrative (Budget_Utah Department of Environmental Quality). 25