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Natural Gas Pilot Demonstration Project (MARAD) - FAQs

1) What is the Natural Gas Pilot Demonstration Project?

The Natural Gas Pilot Demonstration Project is a Maritime Administration (MARAD) funding opportunity intended to support converting an existing U.S.-flagged vessel to natural gas (typically LNG) and then documenting, through real-world onboard testing, how the conversion affects air emissions during actual operations.

2) What is the main purpose of this funding opportunity?

The core purpose is practical measurement and documentation. The project must collect in situ (on-vessel, in-operation) emissions data before and after the conversion and provide MARAD with credible evidence about emissions impacts and operational realities of marine natural gas conversions.

3) What types of emissions must be measured?

Applicants are expected to collect in-operation emissions data on criteria pollutants and greenhouse gas emissions, both before and after the natural gas conversion, along with relevant operational characteristics.

4) Does the project need to include both “before” and “after” testing?

Yes. The opportunity requires collecting and documenting real-world onboard emissions data before the conversion and again after the conversion.

5) Is this funding for a study, or must the vessel actually be converted?

The selected project must complete a real conversion of an existing vessel to natural gas and then perform the required emissions testing. It is not described as a paper-only study.

6) What is the funding mechanism (grant type)?

Funding is offered as a cooperative agreement under MARAD’s Air Emissions and Energy Initiative.

7) What does “cooperative agreement” imply for the recipient?

A cooperative agreement indicates recipients should expect active federal involvement and coordination during the project, rather than a purely hands-off grant relationship.

8) What is the CFDA number for this program?

The opportunity is listed under CFDA 20.817.

9) How much funding is available?

The total funding available is $900,000.

10) How many awards are expected?

MARAD anticipated a single award.

11) What are the award floor and ceiling?

Both the award floor and the award ceiling are listed at $900,000, indicating MARAD anticipated funding one project at the full amount.

12) Is cost share required?

Yes. This is a cost-share program.

13) What is the maximum federal share MARAD will pay?

MARAD will pay no more than 50 percent of total project costs.

14) How much match must the applicant provide?

Applicants must provide at least an equal match (at least 50 percent of total project costs) from non-federal sources.

15) Who is eligible to apply?

Eligibility is focused on real operating vessels in U.S. service. Applicants must be vessel owners, vessel operators, or public sponsors proposing work on a U.S.-flagged vessel.

16) What vessel flags and operating areas are eligible?

The project must involve a U.S.-flagged vessel that operates on inland waterways, coastal waterways, or the Great Lakes.

17) Does the vessel need to be actively operating (not just laid up)?

The opportunity emphasizes real operating vessels in U.S. service and includes evaluation criteria tied to annual vessel operating hours, indicating operational activity is important to competitiveness and feasibility.

18) What does MARAD want to do with the data from the project?

MARAD wants credible, publicly usable evidence about emissions impacts and operational realities. The emissions and operational data collected must be provided to MARAD and may be used publicly.

19) Is data transparency a requirement?

Yes. A key condition is that emissions and operational data collected through the project must be provided to MARAD and may be used publicly.

20) Why is MARAD emphasizing public usability and transferability of results?

MARAD is explicit that it wants demonstration results to be transferable and useful beyond the single vessel, helping government and industry understand public benefits and practical barriers related to alternative marine fuels, and informing future research and potential incentive approaches.

21) What are the key components of a strong proposal?

A strong proposal is expected to be execution-ready and include: a detailed project plan with milestones for conversion and testing, a clear emissions testing plan and procedures, detailed vessel and operations information, identified fueling supply and infrastructure, defined partner roles, and a detailed cost-share analysis.

22) What vessel information must be included in the proposal?

Applicants must describe the vessel in detail, including class, engine type, and size.

23) What operational details must be included?

Applicants must explain how and where the vessel operates, including service area and routes (ports and waterways), frequency of operation, hours of use, and the type of cargo carried.

24) What is required regarding LNG fuel supply and infrastructure?

Proposals must identify the LNG supplier and the location where LNG will be obtained, describe the natural gas infrastructure that will support refueling, and explain how refueling needs will be met.

25) Do applicants need to identify who will conduct emissions testing?

Yes. MARAD emphasizes the rigor of the emissions testing plan, including identification of the organization that will conduct the testing.

26) Are partnerships important in evaluation?

Yes. Proposals are scored on the strength and commitment of partnerships, and applicants must name project partners and define each partner’s role.

27) What are the main evaluation preferences or drivers mentioned by MARAD?

Selection is largely driven by feasibility, speed, operational relevance, and the credibility and detail of the measurement (emissions testing) approach, plus the presence of reliable fueling infrastructure and the ability to meet cost-share requirements.

28) Is there a schedule preference for completing the conversion?

Yes. MARAD indicates a preference for conversions that can be completed in about 12 months after award.

29) When must emissions testing be completed?

Emissions testing must be finished within 12 months after the conversion.

30) Is there an overall end date for wrapping up the agreement?

Yes. The overall agreement (including completion and payments) must be wrapped up before September 30, 2018.

31) How important is schedule realism?

Schedule realism matters because MARAD highlights specific time expectations for conversion completion, post-conversion testing completion, and a firm overall wrap-up deadline.

32) Does MARAD specify a target for annual operating hours?

MARAD notes an ideal target of at least 3,000 operating hours per year for a commercial vessel, and indicates annual vessel operation is part of proposal scoring.

33) Are there proposal format restrictions?

Yes. Proposals are limited to 15 pages total, including appendices and attachments.

34) What happens if a proposal exceeds the page limit?

MARAD states that any proposal exceeding the 15-page limit will not be considered.

35) What happens if a proposal does not address the evaluation criteria clearly?

MARAD indicates proposals that do not clearly address the evaluation criteria risk being rejected outright.

36) What is the funding opportunity number for this solicitation?

The Funding Opportunity Number is DTMA91R1500009.

37) Which MARAD office administers this opportunity?

The opportunity is administered by MARAD’s Office of Environment.

38) When was the opportunity posted and when did it close?

The opportunity was posted on April 7, 2015, and closed on May 7, 2015.

39) Who is listed as the contracting officer contact for access issues related to the full announcement?

A contracting officer contact is listed as Judy Bowers for access issues related to the full announcement.

40) What is MARAD ultimately trying to achieve with this demonstration?

MARAD’s broader goal is to develop credible evidence about emissions impacts and operational realities of marine natural gas conversions and to use the results to inform future research and potential incentive approaches for emissions reduction and alternative fuels in the maritime sector.