Thursday, July 11, 2013

Got Funds? Statewide Truck Grant Solicitation To Open in August 2013

CARB to recommend $78.5 Million Dollars for truck upgrades in the South Coast Air Quality Management District alone!

California Air Resources Board staff laid out funding recommendations for the 4th round of Proposition 1B grant funds today at a workshop in downtown Los Angeles.

On July 25, 2013, CARB staff will go before their board to request $154 Million for emissions reductions projects across the state. The SCAQMD will be receiving the lion’s share of the funding, all of which is slated for truck replacement. Grant applications will be released sometime in August, at that time truck  operators who can demonstrate CARB compliance for 2013 and 2014 can apply for up to $50,000 to scrap and replace a Class 8 truck equipped with a 1994-2006 engine.

In order to be eligible, truck operators must meet the above criteria and operate a minimum of 75% of total miles in California with the truck they are looking to replace. This is the last opportunity for operators to access grant funds for diesel to diesel replacement outside of the Carl Moyer Voucher Incentive Program or District specific funding opportunities. Other grant replacement  funds are drying up quickly and truck operators will be hard pressed to find public money once 2014 rolls around.

In 2014 the vast majority of the fleet in California will be under regulatory requirements (see CARB Conundrum Post), and state law says public money cannot be used for compliance. So once the rule covers the truck, no public money can be used to upgrade.

Despite the major need for additional funding, not everyone will be eligible. Only operators who travel within the 4 major trade corridors (see map below) and transport “goods” 51% of their total fleet miles can apply. Transporting “goods” basically refers to moving any cargo that is part of a transaction for sale.

 If a fleet can demonstrate the travel requirements, two years of continuous registration, CARB compliance etc, they can apply. For everyone else operating outside of the goods movement corridors or not transporting cargo as part of a sale must use their own (or their bank’s) capital to secure equipment for compliance.

Nevertheless, for those who may qualify, tens of thousands of dollars are available for equipment purchases. Record keeping and annual reporting is required once the grant is processed, and recipients will also receive a 1099, but as many past 1B Grant recipients can attest, “it is better than a sharp stick in the eye”.

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