CLEAN VEHICLE TECHNOLOGY FUND (CVTF) GUIDANCE NOTES FOR BIDDERS. For local and transport authorities in England

Transcription

1 CLEAN VEHICLE TECHNOLOGY FUND (CVTF) GUIDANCE NOTES FOR BIDDERS For local and transport authorities in England June 2014

2 The Department for Transport has actively considered the needs of blind and partially sighted people in accessing this document. The text will be made available in full on the Department s website. The text may be freely downloaded and translated by individuals or organisations for conversion into other accessible formats. If you have other needs in this regard please contact the Department. Department for Transport Great Minster House 33 Horseferry Road London SW1P 4DR Telephone Website General enquiries FAX9643@dft.gsi.gov.uk Crown copyright 2014 Copyright in the typographical arrangement rests with the Crown. You may re-use this information (not including logos or third-party material) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or psi@nationalarchives.gsi.gov.uk. Where we have identified any third-party copyright information you will need to obtain permission from the copyright holders concerned. Application form is available at: Applications should be ed to airquality@dft.gsi.gov.uk. Please also send one hard copy by post to The Air Quality Team, The Department for Transport, 33 Horseferry Road, London SW1P 4DR. Both electronic and hard copies should reach us by 17:00, Friday 25 July 2014 If you need further assistance with the application process, contact the DfT Air Quality Strategy Team via airquality@dft.gsi.gov.uk

3 Contents 1. Introduction Key Principles Aims of the Clean Vehicle Technology Fund (CVTF) Grant provision Eligibility Completing a bidding proforma Section A. Applicant Information Section B. Project proposal Section C. Proposed technology Section D. About the local vehicles Section E. Project and financial governance Section F. Supporting evidence Timing When do I submit my bid? How do I submit my bid? Advice and support Enquiries Checklist Annexes Local and transport authorities awarded Clean Bus Technology Fund (CBTF) in 2013/ Memorandum of Understanding (MoU) Example References Abbreviations

4 1. Introduction Air quality has improved immensely since the 1950s reflecting large reductions in emissions from industry, the energy sector, transport, domestic heating and other sources. The government is committed to taking further action to improve air quality. It is supporting a number of initiatives which will help reduce air pollution from transport such as measures to promote the uptake of ultra-low emission vehicle technologies and other low carbon vehicles, the delivery of a large number of local sustainable transport projects and support of active travel. Over 2 billion has been committed under this government and into the next term: 400m funding over the lifetime of this Parliament to support the early market for electric and other ultra low emission vehicles and an additional 500m from m Local Sustainable Transport Fund for local authorities to support the delivery of 96 sustainable transport projects. A further 100m capital and 78m revenue in m to improve cycle safety, cycling and walking routes, as well as bike and rail facilities m for cleaning up buses both by supporting the purchase of new low emission buses and by funding the cleaning up of older buses. The UK already meets EU air quality standards for particulate matter (PM10). However, like many other EU countries, we face a big challenge in meeting nitrogen dioxide (NO2) standards, particularly in our main towns and cities and on 20 February the European Commission commenced formal proceedings against the UK (infraction) for failing to achieve legal ambient air concentration limit values (LVs) for this pollutant. Road transport, especially in urban areas, is a major contributor to this problem and older buses and other diesel vehicles operating in urban areas are the main local source. Upgrading such vehicles can be a cost-effective means of significantly reducing emissions of nitrogen dioxides (NOx) and other pollutants and hence public exposure, and will complement other measures to promote cleaner vehicles and reduce road journeys. In June 2013, the Department for Transport launched the Clean Bus Technology Fund (CBTF), a pilot scheme supporting the modification of over 500 older buses with pollution reducing technology. This provided further evidence of the effectiveness of technology in reducing pollution. The new scheme, the Clean Vehicle Technology Fund (CVTF), aims to encourage innovative technologies and support the modification of more buses on some of the most polluted roads. CVTF is also open to other types of road vehicles. 4

5 The new scheme will allow all local and transport authorities 1 in England including those in London 2 to bid for funds to support the modification of vehicles using off-the-shelf technologies (including those used under the CBTF), or where there is a strong business and technical case to pilot new technologies. The total amount available for the scheme is 5m. As there is limited funding in this scheme, CVTF bidders may wish to provide alternative options for the amount they would like to bid. For instance, if the DfT was unable to fund the full requested amount, say, 400,000, would the authority be able to downsize its project with a funding of 100,000? Applications for phased funding will be considered, but must be made clear in the covering note and proforma. The Office for Low Emission Vehicles (OLEV) also has a budget of 5m from 2014 to promote the adoption of ultra-low emission vehicles in central Government and wider public sector fleets and encourage future wide spread acceptance of the vehicles. CVTF bidders should be aware that this is a separate scheme with a different objective and should follow the guidance produced by OLEV if they wish to apply for this fund. It is possible for local authorities to apply for both OLEV and CVTF schemes. More information will be available on the OLEV website 3 shortly following the launch of the scheme. This document provides guidance for local authorities who would like to submit bids and sets out the conditions for the CVTF grant. 1 Local authorities have a duty (under the Environment Act 1995) to put in place measures to improve air quality where these do not meet national air quality objectives. 2 In London, the Greater London Authority (GLA) is invited to coordinate and apply on behalf of London boroughs as a single bid for no more than 500,

6 2. Key Principles 2.1. Aims of the Clean Vehicle Technology Fund (CVTF) CVTF's overarching aim is to modify or upgrade older vehicles that are significant contributors to poor air quality in order to: Reduce the roadside levels of nitrogen dioxide in some of the most polluted areas of England, in particular those zones where the European Commission has commenced infraction proceedings 4 ; Improve public health; Stimulate the supply chain for new technology and promote wider investment for example from local authorities, vehicle operators and technology manufacturers; and Depending on the technology selected, reduce other pollutant emissions and reduce carbon emissions. CVTF aims to build on the learnings of the pilot CBTF scheme to further support opportunity for the UK's retrofitting industry to develop and showcase its expertise for possible new bespoke and off-the-shelf environmental technology solutions in the national or international market place Grant provision The total government funding available to support local authorities with the costs of upgrading vehicles is 5m. Grants are restricted to capital costs. Applicants may submit bids up to 500,000. In London, the Greater London Authority (GLA) is invited to coordinate and apply on behalf of London boroughs as a single bid for no more than 500,000. Grants are determined by the Secretary of State for Transport under Section 31 of the Local Government Act 2003 with the consent of HM Treasury and Department for Communities and Local Government. Successful bidders would be required to agree their project plans with DfT through a Memorandum of Understanding (MoU). A sample MoU is attached in Section

7 2.3. Eligibility Who can apply? The competition is open to all local authorities in England. Those in London may best be represented by the GLA as stated above. Applicants are encouraged to consider forming partnerships with other local authorities and (as appropriate) other public bodies. Where local authorities make joint bids, applicants will need to make clear how they would work together if their bid was accepted and an indication of how vehicles will be used in the two locations. The Department will consider the applicant to be the lead bidder. All types of vehicles and technologies will be considered provided it can be shown that these reduce NOx emissions, and that the benefits will last for at least five years. It is most likely that modifying vehicles in public transport, municipal, other public body and taxi fleets will provide the greatest benefits as there will be greater control on where these vehicles operate (i.e. predominantly on the polluted roads, usually within air quality management areas or AQMA as designated by the local or transport authority). The authority does not have to own or lease the vehicles but may wish to ensure (subject to state aid requirements) that vehicle operators are likely to support the proposals in the application before bidding. It is less likely that applications will be made to modify cars and light vans due to the limited options of pollution abatement solutions for such vehicles. A case for modifying freight and delivery vehicles may also be difficult to make as these will normally be operated over a wider geographical area. Nevertheless all applications are welcome and will be considered on a case by case basis What is out of scope? Bids for CVTF grant will not be accepted for the following purposes: Solely to reduce emissions of carbon dioxide, particulate matter or to tackle urban congestion; For vehicles operating outside England (beyond local cross border traffic); For buses on routes where there is no significant air quality issue either in terms of actual or expected exceedence of NO2 concentration limit values; For other vehicles and fleets that will not be operating predominantly in areas of poor air quality Essential criteria Each bidder (or joint bidders) must prepare a project proposal as the CVTF application proforma is based on evidence of this. These guidance notes and proforma refer to this as your 'proposed project'. In addition there are three main criteria that need to be met before bids can be considered for assessment. These must be certified by a Senior Reporting Officer who should complete page 3 of the proforma. 7

8 1. Bidders must confirm that they have obtained firm expressions of interest from at least one vehicle operator or representative organisation. Bidders may be the operator where this is a local/transport authority, or another public body where this is a partnership organisation, e.g. municipal vehicles or local/transport authority bus services. 2. Bidders must confirm that they have received legal advice on EU state aid rules and provide a summary of that advice to confirm how the project proposal would fit within the relevant rules. See below for further detail on State Aid. 3. Bidders must meet the project management and other operational costs incurred by the technology. For technologies that are at or near market ready it is expected that bidders (and/or operators) will contribute towards the capital cost; this can include payment in kind Other criteria State Aid Strategic fit: whether the bid is within scope, that it fits the CVTF s objective of establishing and implementing the best technologies. Air quality impact: on the routes selected, that vehicles have a major contribution to poor air quality and that the technology selected is expected to result in significant reductions in NO2 levels and would not increase other harmful emissions. Value for money: that reductions in NOx emissions represent good value for money for government investment and other sources of financial support are proposed. Governance and implementation: that project management and timetable are well defined and realistic, with a commitment to share best practice. Innovation: that the retrofitted technology is innovative. It has not been widely retrofitted to vehicles to date, or is being applied to a vehicle type which has not been widely retrofitted with that technology previously (e.g. stop-start technology). Cross-cutting benefits: whether the project has monitoring systems in place (using test cycles or real world monitoring) to share real world performance of technologies. Whether there are wider benefits identified including encouraging economic growth. It is important that applicants thoroughly consider the relevant EU rules on state aid before submitting an application. As part of the application process, all applicants must confirm that they have received legal advice on the state aid implications of their proposal and provide a short summary of that advice in the proforma to demonstrate why the proposal would not constitute state aid within the meaning of the Treaty; or to show why the proposal would be classed as 8

9 compatible aid which is exempt from the requirement to notify the European Commission in advance of proceeding. State aid involves the transfer of state resources to organisations, or for certain activities, which provides assistance and has the potential to distort competition. State resources can include a number of areas, for example grants, tax reliefs, guarantees or simply providing goods or services on preferential terms. The rules on state aid will normally need consideration when public authorities are providing funds to private organisations, however, it is important to be aware that public bodies can also be caught by the restrictions on state aid if they are engaged in 'economic activity' (i.e. if they are operating in a marketplace where other organisations could conceivably also offer the same services or provide the same goods). It is important to take into account the rules on state aid at an early stage so that any proposals can be designed either so that they do not constitute state aid or so that they can make use of one of the existing approved routes for compatible aid. It may well be the case that an applicant wishes to use the grant funds for its own activities in an area which would not constitute state aid - an example might be a local/transport authority which provides a bus service to fulfil a particular statutory duty where there isn't a market in which commercial operators could compete. Another example which wouldn't constitute state aid would be where the applicant authority wishes to launch a competitive bidding process for the funds which would be open to all organisations operating in the relevant market to apply for. Or, perhaps an authority might design its scheme so that it fits into one of the approved routes and complies with the aid intensity limits under the General Block Exemption Regulations. Whichever route is taken, applicants must ensure that they have a clear idea of how the proposals will fit into the relevant rules and be sure that they will not need to make alterations to design of the scheme at a later stage which may alter the state aid analysis. Further advice on state aid is available at 9

10 3. Completing a bidding proforma These guidance notes should be read before completing the attached proforma. They refer to each section of the form. The word limit guide for all sections, except Sections B1, E1 and F, is 200. Authorities are allowed to bid for different types of technologies and vehicles. Separate application forms should be used for each type of technology, and the table under Section D should be copied for each type of vehicle. See Sections C and D for further instructions. Applicants should then send all bids together with a covering note to the DfT Air Quality team Section A. Applicant Information In this section, bidders are required to provide the name(s) of the local/transport authority, authorities or other public bodies participating in the proposed project. You are encouraged to consider partnerships with neighbouring authorities or between local authorities and other public bodies where this may provide additional air quality/cost benefits. You should specify the lead authority/public body and provide details of the Senior Responsible Owner (SRO) as well as the Bid Manager, if different from the SRO, as DfT's first point of contact. Applicants are encouraged to publish their bids online; where this is the case, please provide the relevant website address. If management of the proposed project is expected to be outsourced, please provide the contact details of the project manager and organisation where known Section B. Project proposal This section should be used to provide a general overview of your project proposal. State your main drivers for seeking funding and what difference this would make to your local air quality. You should provide further details about your project under Section E. Explain any connection with other outstanding bids or grants from government such as the Green Bus Fund, Local Sustainable Transport Fund, Better Bus Areas Fund and Low Carbon Truck Demonstration Trial, and how you will ensure that any CVTF project complements these. Please note that a bid for the Clean Vehicle Technology Fund is not dependant on success in another bid. 10

11 3.3. Section C. Proposed technology Describe the proposed NOx abatement/reduction technology for your scheme. This section requires you to consider appropriate NOx abatement/reduction technology for your project. You will need to consider the risks associated with your chosen technology including whether this affects other pollutant emissions or CO2. Please note that if your bid includes more than one pollution abatement technology, you are required to complete a separate application form for each type of technology. In addition to pollution abatement technologies, you may also bid funds to purchase equipment to monitor the technologies (on-board or on-street monitoring) in order to measure tailpipe emissions and air quality. With a good business case, CVTF may also be partly used for infrastructure, such as fuelling stations, if the bidder chooses to convert vehicles to more sustainable fuels, e.g. biofuels. The CVTF is technology neutral. Bids are expected to focus on: Technologies where there is good evidence that they will deliver significant reductions in emissions from older diesel vehicles (Euro III/3 or before). This may include some of the technologies evaluated in the CBTF, in particular those that are (or near) market ready. These and other technologies that could result in effective reduction in emissions from newer diesel vehicles, i.e. reduce emissions from Euro IV/4 or Euro V/5 to that expected from Euro VI/6 in terms of real world emissions. Technologies that could result in effective reduction in emissions from other vehicles, i.e. taxis or vans, to that expected from Euro VI/6 in terms of real world emissions. A list of technologies and contact points for the technologies explored in the CBTF is presented in Section 6. A seminar will be held on Friday 20 June 2014 from 11:00 to hours at DfT's Great Minster House office in London to help further guide potential applicants, including reviewing some of the technologies from the CBTF. Please refer to map and contact details in Section 5. Where the technology has not been shown to be market (or close to market) ready; or may be subject to further development, the applicant is encouraged to make a strong case on the future potential, and/or wider benefits including growth and innovation (see above). 11

12 Describe the expected environmental impact of the technology chosen in terms of emission reductions. Provide expected reductions in NOx emissions and the impact on other emissions including CO2 per vehicle over five years. Calculations must outline the current tailpipe NOx emissions per kilometre, the resulting percentage reduction in tailpipe NOx emissions per kilometre, and the average annual mileage (or kilometres). Where you do this you should explain how you have arrived at these figures Section D. About the local vehicles This section enables us to establish the age and status of the vehicles to be upgraded, and how suitable they would be for your proposed technology. Provide details of the vehicles you are planning to upgrade with NOx abatement/reduction equipment. You may provide estimates or averages except for those questions with asterisks which are part of the essential criteria. State the vehicle operator(s) committed to the project and discuss any negative financial impact or additional pressures your project may have on them Geographical area, vehicle use and vehicle operator(s): The aim of CVTF is to improve poor air quality on some of the most congested and polluted urban roads in England through reducing harmful emissions from vehicles that operate predominantly on those roads. Therefore information on where the vehicle will be predominantly used and how the applicant can seek to ensure that this will continue for the next five years is an important criterion for successful bids. Although proposals for modifying all types of vehicles are welcome, the vehicles must be based in England and operate in congested areas with high air pollution levels. This includes, but is not restricted to, public transport, municipal fleets (e.g. refuse collection), other public body fleets and taxis. Congestion refers to regular occurrences of stationary traffic due to capacity, junctions, signalling etc. on the routes put forward in the bid. However, as there is no formal definition of congestion bidders should take a pragmatic approach such as number of vehicles and delays at peak times. For buses you may wish to refer to Transport for London's methodology on route selection which used existing emissions data. For further information, contact the Air Quality Strategy team - details are provided in Section 5. 12

13 Level of NO2 emissions and concentrations: The Ambient Air Quality Directive includes concentration limit values for the main airborne pollutants in order to protect the environment and human health. For NO2: An annual mean concentration of no more than 40 μg/m 3. An hourly NO2 mean concentration of 200 μg/m 3 not to be exceeded more than 18 times in a calendar year. In this section, you are required to describe the trends and current state of NOx emissions and roadside NO2 concentrations in the geographical area you have already identified in Section In other words, provide evidence of exceedences, the relative contribution of vehicle type or class emissions to the concentrations of NO2 in pollution hotspots how your chosen technology will reduce NO2 and by how much (expected range by percentage and absolute values). If available, include any additional statistics, such as road lengths exceeding the EU limit value, details of any Air Quality Management Areas (AQMA), observed and forecast impact on health and local environment Describe your future plans for use of the modified vehicles. To ensure maximum value for money, DfT is keen to see modified vehicles in operation in congested urban areas within England for at least five years. For this reason, for applications to modify buses and coaches, it would not be good value for money to upgrade vehicles that have to be removed from fleets in order to comply with Public Service Vehicles Accessibility Regulations (PSVAR) which come into force in 2016/17. To learn more about PSVAR, please refer to our website 5. Use this section to explain how you can ensure that the vehicles stay in service for at least five years and how you would prevent any tampering with the new equipment during this time. Vehicles may be moved to other localities within England (but not to those out of scope - refer to Section ) 3.5. Section E. Project and financial governance Project and risk management: In this section, provide the name of your project, timeline and milestones. You should demonstrate a SMART (Specific, Measurable, Achievable, Realistic, Time-specific) project plan with clear and measurable outcomes as well as appropriate financial governance management structures and controls. You will be expected to deliver the project within the financial year 2014/

14 You should consider how you plan to finance project management and other operational costs incurred by the type of technology you have chosen, as CVTF is a capital grant. Bidders should operate under the procurement rules of their own organisations. In addition, you could add a brief qualitative and quantitative analysis of any impact on end users, for example through taking vehicles out of service. Provide any negative financial impact on operators under Section D1. You will also need to consider the risks associated with your chosen technology such as effect on levels of PM and other pollutants such as ammonia, and emissions of CO2. Describe your proposed actions to mitigate these risks as well as others you may have identified Progress report: We are keen that your project is delivered on time, within budget and to a high quality. Deliverability will be a key criteria on which we will assess bids. We would therefore like to stay engaged and follow your progress as you work with your delivery partners to identify vehicles, and procure and install suitable technology. We will provide you with a template to enter your updates every three months. You will be asked to provide details of the technology used to upgrade the vehicles, the number of vehicles upgraded, new risks you have identified since the start of the project and the mitigation actions you plan to take. Use this section to provide further details on the outputs and outcomes and if applicable, the website on which results will be made available. The data you provide will be used to evaluate the success of the pilot Monitoring and sharing best practice: DfT is keen for all government bodies to work together and share best practice (subject to commercial confidentiality). To this end, we have attached a list of some of the local and transport authorities that received grant awards last year (CBTF) in the Annex to make it easy for bidders to learn from last year's award winners. Experience has shown that a key part of the scheme is sharing up-to-date information on effective technologies. To enable you to do this, you are encouraged to monitor the technologies that you would be installing in vehicles, should you be successful in your bid. In this section, you should set out the types of monitoring you will undertake to evaluate real world emissions. This could include, use of a realistic test cycle, portable emission monitoring systems, on-street monitoring, or other monitoring systems. We will provide you with a template to enter your evaluation results. To reduce burdens, we only ask this is updated 6 months and 12 months after vehicles have been retrofitted. As an important element in sharing best practice this will form a key part of the criteria with which we will assess bids. Refer to Section 3.3 on the types of technologies you would be allowed to purchase with your CVTF grant. 14

15 Describe how you will achieve this objective, both in terms of learning best practice and sharing it with others Contributing to government 'Growth Agenda': Maximising economic growth for the UK economy through efficiency and reform is a key objective for government. You should therefore describe how your project would contribute to economic growth both locally and nationally. Please give examples of how your bid can support local and national growth opportunities, in particular through employment, training and commercial opportunities. Collaboration with other authorities to share resources and the use of apprentices is encouraged where appropriate Outsourcing: In this section, list your delivery partners including experts and technology or service providers. Your list does not have to be comprehensive at this stage as this is something you will develop during the course of the pilot. You are advised to check and operate under the procurement rules of your own organisation Costs The maximum size of any single bid is 500,000. Bidders and operators who propose to contribute financially towards capital costs stand a better chance of being successful in their bids. Use this section to outline the funding sought and indicative contributions from others. Grants only cover capital costs; this can include additional equipment to monitor (on-board or on-street) in order to measure emissions and air quality. With a good business case, CVTF can also be partly used for infrastructure if the bidder chooses to convert vehicles to operate on alternative fuels, e.g. biofuels. Labour costs of installing the new technology can be included in the bid. One year's warranty is often included in the cost of the new technology, but in rare cases where this is not provided by the supplier, DfT can cover the cost of one year's warranty as part of the bid. All other operational costs (project management or ongoing technology-related costs) will not be covered by CVTF. 15

16 3.6. Section F. Supporting evidence If you have additional evidence, you can use this section which has a limit of 500 words. 16

17 4. Timing 4.1. When do I submit my bid? Local authorities must submit bids by no later than 17:00 on Friday 25 July DfT will respond to bids and announce the winning bidders by early September Thereafter we will aim to make the grant payments within one calendar month. DfT may require all of the grant to be repaid if the proposed project does not go ahead as planned and no vehicles are modified with NOx abatement technology. We may also require part repayment if the modified vehicles are taken out of service, taken outside England, or if they have their modification removed before five years of service. (Refer to Section ) 4.2. How do I submit my bid? Bids must be made using the CVTF bidding proforma available on DfT website at The proforma should be sent electronically by to: airquality@dft.gsi.gov.uk in MS Word 2003 or 2013 or PDF format. For assessment purposes, please also send one hard copy of the proforma to: Air Quality Strategy Department for Transport Zone 1/33 Great Minster House 33 Horseferry Road London SW1P 4DR 17

18 5. Advice and support 5.1. Enquiries DfT Air Quality Strategy team For enquiries on CVTF not covered in this guidance document the Air Quality Strategy team on Alternatively, write to us at: Air Quality Strategy, Department for Transport Zone 1/33, Great Minster House, 33 Horseferry Road, London SW1P 4DR Website: If you are attending the best practice seminar on 20 June 2014 referred to in Section 3.3, you can get Directions to Great Minster House on Transport Direct or find the address on Google maps. In the interest of maintaining impartiality, and to give all bidders equal and fair opportunities, we do not offer to review draft bids and provide feedback before assessment results are announced Confederation of Passenger Transport UK (CPT) For practical advice on bus upgrading options buses, you can contact Colin Moore at CPT by to Alternatively you can write to him at the address below. Mr Colin Moore, Technical and Operations Executive 3rd floor Drury House, Russell Street, London WC2B 5HA Telephone: , Website: Low Carbon Vehicle Partnership (LowCVP) For technical advice on accrediting low emissions and clean vehicle technology, you can contact the LowCVP by to Alternatively you can write to them at the address below LowCVP, 3 Birdcage Walk, London SW1H 9JJ Telephone: , Website: 18

19 Local and transport authorities awarded Clean Bus Technology Fund (CBTF) in 2013/14 Annex 6.1 lists a selection of the local and transport authorities that have CBTF projects who you may wish to contact for information and help in completing CVTF proforma, questions on technology effectiveness or their overall views on the last funding scheme. 19

20 5.2. Checklist The checklist below may help you ensure you have included all essential information before you submit your bid. (N.B. This list is for your use only.) 1. Obtained verbal or written commitment from at least one vehicle operator to engage in your proposed project 2. Received legal advice that the bid meets EU State Aid rules and have a good understanding of own responsibility 3. Third page of proforma completed by SRO 4. Provided contact details 5. Described project plan 6. Used a separate application form per technology, and listed these on a covering note (as applicable) 7. Indicated in the covering note any phased applications as described in the introduction (as applicable) 8. Described the proposed NOx abatement technology 9. Provided details of the vehicles to be modified (questions with * are mandatory) 10. Used separate tables in Section D to describe different types of vehicles (if applicable) 11. Identified a geographical area (and selected vehicle routes where appropriate) 12. Provided current state of NOx emissions and what you expect to achieve in terms of a reduction 13. Outlined plans on how you will ensure modified vehicles will be in service for at least five years within England 14. Described project and financial plans including risks, outputs and who the delivery partners are 15. Provided costings 16. Grouped all bids together (if more than one) and listed them in a covering note 17. Prepared to send one electronic and one hard copy to DfT by the deadline 20

21 6. Annexes 6.1. Local and transport authorities awarded Clean Bus Technology Fund (CBTF) in 2013/14 Below is a selection of the local and transport authorities that were awarded funds to upgrade local buses through CBTF. You may wish to contact any one of them for advice. Local or Transport Authority Brighton & Hove City Council Chiltern District Council City of York Leicester City Council and Leicestershire County Council Lincolnshire County Council and City of Lincoln Council Merseytravel St Albans City and District Council & Hertfordshire County Council Southampton City Council Suffolk County Council, Ipswich Borough Council Sunderland City Council & Pollution abatement technology Numb er of buses Contact SCR 50 Nick Mitchell SCR and economiser SCR and electric engine SCR, e-fan and ammonia catalyst Cummins West Port gas engine SCR and economiser Mild hybrid system (engine programming) Hybrid Gyro Flywheel 15 Tracy Farrell 3 Derek McCreadie 32 Chris Randall Address Nick.Mitchell@br ightonhove.gov.uk tfarrell@chiltern. gov.uk Chris.Randall@l eicester.gov.uk 11 Anita Ruffle anita.ruffle@linc olnshire.gov.uk 59 Richard Oglethorpe 40 Rupert Thacker 30 Paul Walker SCR 31 Sharon Payne SCR 19 Paul Muir Richard.oglethor pe@merseytrave l.gov.uk. rupert.thacker@ hertfordshire.gov.uk Paul.Walker@so uthampton.gov.u k Sharon.Payne@ suffolk.gov.uk Paul.Muir@sund erland.gov.uk 21

22 Durham County Council Transport for Greater Manchester Tunbridge Wells Borough Council West Yorkshire PTE (Metro) Wiltshire Council SCR, Diesel Oxidation Catalysts and Diesel Particulate Filters Diesel Particulate Filter, economiser and Exhaust Gas Recirculation SCR and ammonia catalyst Hybrid Gyro Flywheel 34 Steve Wurr m.com 4 Giuliano Gianforte 119 Ciara Trafford gov.uk ciara.trafford@w estyorksca.gov.uk 19 Ian White ian.white@wiltshi re.gov.uk 6.2. Memorandum of Understanding (MoU) Example The Secretary of State for Transport has determined under Section 31 of the Local Government Act 2003 that a grant of [insert amount] (insert amount in words) should be paid to [insert name of local or transport authority]. (Grant Determination Reference 31/2357) The Treasury has consented to payment of this grant. A About the Grant The Secretary of State has determined that the grant be paid based on the understanding that: The grant only covers capital expenditure relating to the modification of [insert number] [insert type of vehicles] to reduce emissions of nitrogen oxides, and any necessary additional capital expenditure to demonstrate the effectiveness, practicability and value for money of the technology. The Grant Recipient must not use the grant for purposes other than eligible expenditure (see definition in Section B). Modified vehicles should operate predominantly on roads that are designated as having poor air quality, due to being, at least in part, in one or more local air quality management areas and where these areas include roads in regular exceedance of legal concentration limits for harmful pollutants as set-out in the bid application. The grant is being given on the understanding that the vehicles will be used in their modified state and in the areas specified in the bid for at 22

23 least five years unless there is an environmental or other reason not to do so. It is up to the Grant Recipient to ensure that this is implemented and to consult DfT if there are new proposals to deviate from this agreement so that together, we can ensure how best to realise air quality benefits. The project should be delivered according to the project plan presented in the bid. Progress reports are to be sent to the DfT every three months from end of November Reports will include 6 : i. Progress in modifying the vehicles in line with the project plan, including numbers of vehicles and any issues encountered, ii. Measured or assessed reductions in oxides of nitrogen emissions from modified buses, iii. Any effect on emissions of other pollutants and carbon, including mitigation measures where other pollutants or carbon could increase due to the vehicle modification. iv. Environmental monitoring carried out to demonstrate reduction in the roadside levels of nitrogen dioxide and other pollutants. The grant will only be used in a manner which is compliant with EU state aid rules, in particular, the grant will be used in accordance with the Grant Recipient s explanation of legal advice obtained to ensure the project is state aid compliant as set out in the bid. If and when appropriate, the Grant Recipient should be available to meet representatives of DfT, and, as necessary, other interested parties including other Grant Recipients and appropriate nongovernment organisations to review the progress both on individual projects and collectively across the programme to share best practice and support opportunities for economic growth. All efforts will be made to ensure that such meetings are at the convenience of the Grant Recipients, including the use of video-conferencing. The Grant Recipient may request that certain information may be withheld from meetings that include other parties in addition to DfT on the grounds of commercial sensitivity. All reasonable requests will be agreed by DfT. If the Grant Recipient has any grounds for suspecting financial irregularity in the use of any grant paid under this funding agreement, they must notify DfT immediately, explain what steps are being taken to investigate the suspicion, and keep DfT informed about the progress of the investigation. For these purposes financial irregularity includes fraud or other impropriety, mismanagement, and the use of grant for purposes other than the purposes of the Project. If and when appropriate, the Grant Recipient (and, as necessary and wherever possible, the vehicle operator/s) must give appropriate publicity to the project by drawing attention to the benefits and 6 A standard template for progress reports may be developed. 23

24 opportunities it affords. In acknowledging the Government s contribution, the Grant Recipient (and as necessary and wherever possible vehicle operator/s) should comply with any guidance on publicity provided by DfT. Subject to commercial confidentiality, any information, knowledge, system or process gathered, developed, or created in operating the project may be disseminated by DfT to all persons or bodies who have responsibility for similar projects under CVTF. The Grant Recipient agrees that such persons may share and use freely all such information, knowledge, system or process for their own purposes. B. Definitions In this funding agreement ( agreement ), except where the context otherwise requires: Modify means the use of technology to reduce emissions of nitrogen oxides, in particular nitrogen dioxide, including, but not limited to, exhaust gas treatment, modified powertrain, and modified combustion process (and the terms modification, modified and modifying have the same meaning). DfT means the Department for Transport; The project is: modification of [insert vehicle type and number of vehicles] managed and funded/part-funded by the Grant Recipient through this grant, and the evaluation and monitoring of the outcome as outlined in the Grant Recipient s bid. CVTF is the collective term for all the projects that will be delivered through the 2014/15 Clean Vehicle Technology Fund grants paid to local and transport authorities under section 31 of the Local Government Act Eligible expenditure means the payment of: The development and purchase cost of the technology required for fitting to a modified [insert type of vehicle] (beyond what is usually required to service and maintain the vehicles in normal operation), including testing or any pilot work. Labour costs of installing the pollution abatement technology and/or infrastructure (such as sustainable gas fuelling station). Additional monitoring equipment (on-board and on-street) required to demonstrate the effectiveness of the modifications in improving air quality. Capital costs of the development of associated software systems. One year s warranty, if not included within the purchase price. Funding Period means the period commencing on 1 April 2014 and ending on 31 March Grant Recipient means [insert name of local or transport authority] 24

25 C. Amount of Grant until the end of Mar 2015 The maximum amount of grant payable for the funding period between 1 April 2014 and 31 March 2015 will be [insert value of the grant]. D. Eligibility criteria Payment of grant cannot be offered unless the Grant Recipient is a local or transport authority in England. E. Breach of this Memorandum of Understanding As per the Grant Determination 31/2357, the purpose of the grant is to provide support to local and transport authorities in England towards expenditure incurred or to be incurred by them. If an authority fails to comply with the conditions to the grant determination, the Minister may reduce, suspend or withhold grant; or by notification in writing to the authority, require the repayment of the whole or any part of the grant. Any sum notified by the Minister shall immediately become repayable to the Minister. F. Acceptance of grant offer and agreement of the Memorandum of Understanding The Grant Recipient accepts this offer of funding, agrees to the Memorandum of Understanding, and confirms that the Grant Recipient meets the eligibility criteria in Section D References Clean Vehicle Technology Fund (CVTF) application form and guidance notes - Department for Transport (DfT) Previous scheme - Clean Bus Technology Fund (CBTF) - Department for Transport (DfT) Office of Low Emission Vehicles (OLEV) - European Commission commencement of infraction proceedings against the UK Ministerial power to pay grant, Section 31 of the Local Government Act Department for Communities and Local Government (CLG) Detailed guidance on EU State Aid rules - Department for Business Innovation and Skills (BIS) 25

26 UK Air Quality Plans for the achievement of EU air quality limit values for NO2 - Department for Environment, Food and Rural Affairs (DEFRA) Clean Air Fund (CAF) report - Transport for London (TfL) UK Air Information Resource - Department for Environment, Food and Rural Affairs (DEFRA) Public Service Vehicles Accessibility Regulations - Department for Transport (DfT) Abbreviations 1. AQMA Air Quality Management Area 2. BIS Department for Business Innovation and Skills 3. CBTF Clean Bus Technology Fund 5. CLG Department for Communities and Local Government 6. CO2 Carbon Dioxide 7. CPT Confederation of Passenger Transport UK 4. CVTF Clean Vehicle Technology Fund 8. DEFRA Department for Environment, Food and Rural Affairs 9. DfT Department for Transport 10. GLA Greater London Authority 11. LV Limit Values 12. NO2 Nitrogen Dioxide 13. NOx Nitrogen Oxides 14. OEM Original Equipment Manufacturer 15. OLEV Office of Low Emission Vehicles 16. PSVAR Public Service Vehicles Accessibility Regulations 17. SCR SCR 18. SMART Specific, Measurable, Achievable, Realistic, Time-specific 19. SRO Senior Responsible Officer 20. TfL Transport for London 26