What is the Last Mile Freight Program (LMFP)?
- The LMFP is a grant program established by SCAG and funded in partnership with the Mobile Source Reduction Review Committee (MSRC) for implementation of last mile freight-related clean vehicles, equipment and infrastructure to support cleaner air goals.
Why was this program developed?
- The program was developed to achieve immediate reductions in air pollutants produced by commercial vehicles and equipment. It is also intended to inform key scalability measures including in-revenue service performance, return-on-investment, and overall cost-effectiveness.
Who is eligible to apply?
- Eligible applicants for the LMFP include those engaged in delivering goods within all or any one of the four counties within the South Coast Air Basin (e.g., large and small/medium sized businesses), such as asset-owners/operators, independent contractors, asset-light logistics entities, leasing companies, among others. Applicants must be domiciled in a county, operate a last-mile facility within a county, or perform last mile deliveries within a county, that is part of the South Coast Air Basin. Note: Each project applicant may submit no more than one application as the project lead.
Can one entity submit multiple applications?
- Every entity can only be the lead on one application. However, there is no limit to partnering as a sub-applicant.
Is an applicant or sub-applicant required to be located within the region?
- If the offices of the applicants or sub-applicants are outside the region, but the project will be deployed within one of the four air basins, the project will be considered as eligible.
What is the performance period?
- Projects are expected to be awarded September 2021 and all projects must be completed with at least six-month revenue service by June 30, 2023. Project readiness will be considered as part of the award criteria.
What projects are eligible?
- Zero Emissions and Near Zero Emissions medium- and heavy-duty vehicles, equipment, and supporting infrastructure pertaining to last mile freight operations. Additional details about eligible medium- and heavy-duty vehicles can be found in the eligibility guidelines.
What are the disposition requirements?
- Project must remain in operation during the duration of the contract (through June 30, 2023).
- Project disposition or depreciation must be in line with applicant’s disposition policy.
What is the maximum award amount?
- The maximum award amount per project is $5 million.
Are travel expenses reimbursable?
- Travel expenses are not reimbursable.
Is there a match?
- There is a 1:1 or 50% match required. The match may be met with cash or in-kind but must be expended proportionately throughout the project. Leveraging other grant funds for the same project may be acceptable as in-kind match.
Are indirect costs allowable?
- No, indirect costs will not be reimbursed and cannot be used as in-kind match.
What are the reporting requirements?
- There will be quarterly reports and one final report. The reports will need to include data metrics as outlined in the MOU and will serve as metrics for future implementation projects.
Is there a minimum mileage requirement during performance period for vehicles?
- There is no minimum mileage requirement for vehicles. However, every type of project (vehicle, infrastructure, equipment) must be in operation for six months to collect data.
Does the grant include funding for vehicles in the following operational categories?
- Construction (last mile delivery vehicles supporting construction)
- Food delivery (distribution to groceries)
- Beverage (distribution to businesses) (b2b last mile)
- Mixer Industry (delivering final product to job site)
- Yes, although it is not limited to the categories above. For further guidance on eligible projects see program guideline eligibility below:
ZE/NZE heavy/medium duty vehicle eligible projects include but are not limited to: (1) last mile delivery vehicles supporting e-commerce industries such as package/parcel deliveries to residents and businesses; (2) last mile delivery vehicles supporting retail/wholesale trade, manufacturing, construction, and other transportation and logistics services from business to business; (3) last mile delivery vehicles supporting major freight facilities.
Are OEM’s eligible project applicants?
- OEMs are encouraged to partner with applicants as a sub-applicant. OEMs cannot be considered as a primary applicant as they would be unable to fulfill data reporting requirements as set forth in the program guidelines.
Is trailer equipment eligible?
- Trailer equipment is eligible if it demonstrates emissions reduction specifically related to the equipment itself.
Can funding be stacked with other grant funding? If so, what is the maximum allowed?
- Yes, leveraging other grant funds for the same project may be acceptable as in-kind match. Leveraging is encouraged if all program requirements for the LMFP are met. There must be an alternative funding plan in your application if your funding doesn’t materialize. Projects that demonstrate a stronger level of internal funding commitment will be weighed more heavily.
Are there any restrictions for large companies to apply?
- No, if the project complies with the project/ funding requirements, it is eligible.
Can applicants receive partial ask? (i.e., request the max $5M but only receive $2.5M)
- Section D2. In the program guidelines states:
“SCAG may award funds for a component, instead of the larger project, if that component (1) independently meets minimum award amounts described in the LMFP Award Information section and all eligibility requirements described in the LMFP Eligibility Information section; and (2) independently aligns with the selection criteria specified in the LMFP Application Evaluation and Selection Process section.”
Where is the ideal location of the Last Mile Freight Program?
- The Last Mile Freight Program must be located within the South Coast Air Quality Management District’s jurisdiction. See map here.
Can there be stacking of uses with infrastructure (i.e. EV chargers that support both last-mile delivery routes as well as individuals living in those communities)?
- Synergies are encouraged as long as the connection with Last Mile delivery is made.
Are you looking for solutions that are really tailored to a site that have exceptionally high cost-benefit, etc., or for solutions that may be less performant but more widely usable across the SCAQMD?
- Both. There may be projects that are strong due to their high cost-benefit, while others may be strong for their ability to be scaled. Projects that are in line with the goals of the program are encouraged.
Major construction projects like building fueling infrastructure sometimes meet unforeseen delays. Would you have any flexibility on the operations deadline of 12/2022 if the project is awarded and encounters some construction delays?
- Due to the timeline of the program, those projects that demonstrate the most viability for success will be given priority over projects that are not shovel ready.
On page 5 of the LMFP guidelines, it states that other programs such as CEC and CARB funding can be leveraged with LMFP funding. Does this mean that HVIP vouchers can be “stacked” on LMFP funding?
- Yes. Leveraging is encouraged if all program requirements for the LMFP are met. There must be an alternative funding plan in your application if your funding doesn’t materialize. Projects that demonstrate a stronger level of internal funding commitment will be weighed more heavily.
Is the Scope of Work Sample required to be filled out and submitted with the application?
- Yes. The scope of work must be uploaded with the application in the application portal.
Is the budget schedule spreadsheet required to be filled out and submitted with the application?
- Yes. The budget must be uploaded with the application in the application portal.
On page 11 of the LMFP guidelines, it states that projects will be evaluated based on a high benefit-cost score defined as the ratio of NOx and PM2.5 equivalent reduction per dollar of LMFP investment. Does this mean that applicants must calculate their own benefit-cost ratios? Does SCAG recommend using any software/programs, calculations, tools, formulas, etc. in particular to accomplish this?
- Applicants will be required to submit the pollutant reductions and SCAG will calculate the benefit-cost ratio. To calculate the pollutant reductions, use the following calculation:
(1) Annual emissions by pollutant (tons/yr) = (emission factor (g/mi) + deterioration product (g/mi)) * annual activity (mi/yr) * percentage operation in California / 907,200 (g/ton)
(2) Annual surplus emission reductions by pollutant (tons/yr) = annual emissions for the baseline technology (tons/yr) – annual emissions for the reduced technology (tons/yr)
- For help determining the emission factor and deterioration product click here.
Is a route map of the LMFP vehicles required with the application?
- A map of the service area is required including origin/destination, and specific service routes are encouraged.
Are taxes for vehicles included in the purchase price for reimbursement?
- Taxes for vehicles are included in the purchase price for the reimbursement.
Are local governments and or a city specifically eligible for this funding, or it is intended for nongovernmental organizations? If so what types of projects or items might be approved?
- If an organization can establish a last-mile nexus, they may be eligible. There may be instances of public/partnerships. For instance, a public entity could allow right of way usage for projects that demonstrate a last-mile freight connection.
For warehouse/distribution facilities, will first mile count as well as last mile?
- A nexus should be made to the last mile in order to be eligible for the program.
Is there preference for AB 617 communities?
- We recognize the adverse impacts of freight activities on AB617 communities and encourage projects within the affected communities to apply.
Would portable charging solutions be considered infrastructure?
- If the solution can support last mile delivery within the vehicle weight classifications, then it would be acceptable.
Is there an engine model year requirement for any of the class trucks submitting to LMFP?
- While the program does not have a specified engine model year requirement, vehicles that demonstrate greater benefit-cost ratio will score higher.
Can a moving company apply for Last Mile Freight Program Call for Projects?
How is “Near Zero Emission” defined. Is it 0.05g, 0.02g, or something else?
Near zero-emission is defined as 0.02 grams per brake horsepower hour (g/bhp-hr).
When modeling out the emissions reductions for proposals, do you have any specific methodology we should be following? Or should we use our own models and reference them?
Yes. The program will use the Carl Moyer calculation methods formula C(5) and C(9) as follows:
- Annual emissions by pollutant (tons/yr) = (emission factor (g/mi) + deterioration product (g/mi)) * annual activity (mi/yr) * percentage operation in California / 907,200 (g/ton)
- Annual surplus emission reductions by pollutant (tons/yr) = annual emissions for the baseline technology (tons/yr) – annual emissions for the reduced technology (tons/yr)
For help determining the emission factor and deterioration product click here.
Are yard tractors (yard hostlers or yard trucks) eligible?
If the vehicle is supporting last mile delivery directly within the eligible vehicle weight classifications, then it would be acceptable.
Are pre-award expenses eligible at an applicant’s own risk?
Yes, if the expenses are within the eligible costs as defined in Section 3 of the program guidelines and Section 8 of the sample MOU.
Are there character or word limits on the online application portal for each question?
Can the online application portal be started, saved, and then resumed later? Or must it be completed in one sitting?
No, it is recommended that the applicant compile all documents before going into the application portal and complete the application in one sitting.
I just want to confirm that scrapping of existing diesel vehicles is not required for this program?
Scrapping of existing diesel vehicles is not required for this program.
If LMFP-funded vehicles have some operation outside of the SCAB, is that acceptable?
Most of the project must be within the South Coast Air Quality Management District. If a project demonstrates scalability and regional connectedness with some operations outside the district, it should be explained in detail in Section E. of the application. Note: only operations within the South Coast Air Quality Management District will be considered toward pollutant reduction numbers.
If an applicant secures more than 5 letters of intent and/or support, could the applicant email the remaining letters to firstname.lastname@example.org since the portal document max is 5 documents?
In the application portal, for the Scope of Work Section, it asks to upload a narrative about the Scope tasks. Does this mean that a separate narrative must be written and uploaded with the Scope of Work?
No, the Scope of Work is the narrative format of your tasks. You can find the sample scope of work here.