BOARD MEETING DATE: May 1, 2009
AGENDA NO. 10

PROPOSAL:

Adopt Resolution Accepting Terms and Conditions for 2009 Multidistrict Award to Implement On-Road Heavy-Duty Vehicle Voucher Incentive Program

SYNOPSIS:

This action is to adopt a resolution recognizing up to $3,400,000 in 2009 Multidistrict funds from CARB to implement a Carl Moyer On-Road Heavy-Duty Vehicle Voucher Incentive Program and accept terms and conditions for the Multidistrict award. As required, AQMD will provide an equal match to the CARB funds. The AQMD match funds of up to $3,400,000 will be comprised of $920,581 from SB 1107 Multidistrict returned funds, $179,419 from SB 1107 Multidistrict interest, and up to $2,300,000 from the AB 923, Carl Moyer Program Fund.

COMMITTEE:

Technology, April 17, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

1. Approve the attached resolution to recognize up to $3,400,000 from CARB and place these funds in the Carl Moyer Program Fund SB 1107 Account, and accept the terms and conditions of the FY 2009 Multidistrict Grant Award for implementation of the Voucher Incentive Program; and
2. Approve up to $3,400,000 in match funds comprising of $920,581 from SB 1107 Multidistrict returned funds, $179,419 from SB 1107 Multidistrict interest, and up to $2,300,000 from the AB 923 funds for implementation of the Voucher Incentive Program.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Carl Moyer Memorial Air Quality Standards Attainment Program (CMP) provides incentive funds to help pay for the incremental cost of purchasing cleaner than required engines, vehicles and/or equipment. Section 44286 of the Health & Safety Code gives CARB the authority to reserve up to 10 percent of the CMP funding in any given year for multidistrict projects. This year, CARB allocated all of the multidistrict funds for a new On-Road Heavy-Duty Vehicle Voucher Incentive Program (VIP). The VIP was developed by CARB to reduce the purchase cost to applicants replacing an old heavy-duty diesel vehicle with a newer, lower-emission vehicle. Participation in the VIP is voluntary for local air districts and on March 10, 2009, CARB issued a solicitation to local air districts for the 2009 Multidistrict funds. Total funding available under this solicitation was approximately $7.4 million.

Proposal

This action is to approve the attached resolution to recognize up to $3,400,000 in Multidistrict funds from CARB and place these funds in the Carl Moyer Program Fund SB 1107 and accept the terms and conditions of the FY 2009 Multidistrict Grant Award to implement an On-Road Heavy-Duty Vehicle Voucher Incentive Program.

As required by CARB, the attached resolution commits the AQMD to comply with all terms and conditions of the 2009 Multidistrict Grant Award. This includes the Voucher Incentive Program Guidelines. The VIP Guidelines do not allow local air districts to place additional limitations on project criteria or make changes to the VIP Guidelines. AQMD will be required to contract directly with vehicle dealerships and dismantlers to run the VIP. AQMD must review and approve applications on a first-come, first-served basis. Additional requirements specified by CARB for AQMD include: 1) provide applicants and dealerships with the required VIP forms and documents, 2) must approve/reject applications within 5 business days of receipt, 3) must conduct salvage inspections within 60 days of delivery to dismantler, 4) mail out annual usage surveys to participants for 3 years, and 5) retain records for a minimum of 5 years.

CARB also specifies requirements for the participants in the VIP. Participants must: 1) operate the vehicle at least 75% of the time in California for three years, 2) register the replacement vehicle in California with the Department of Motor Vehicles with a declared Gross/Combined Gross Vehicle Weight rating greater than 60,000 pounds, 4) allow CARB to verify registration and inspect the vehicle for three years, 5) not modify the emission control system, and 6) return annual usage surveys as requested by the air district.

The multidistrict funds will be used by AQMD to administer and implement the VIP in the South Coast Air Basin. As required by CARB, AQMD will provide an equal match to the CARB funds using $920,581 from SB 1107 Multidistrict returned funds, $179,419 from SB 1107 Multidistrict interest, and up to $2,300,000 from the AB 923, Carl Moyer Program Fund. Total combined CMP funding to implement the VIP will be up to $6,800,000.
 

Benefits to AQMD

The successful implementation of the Carl Moyer On-Road Heavy-Duty Voucher Incentive Program (VIP) will provide emission reductions of both NOx and PM as required by the program. Since the vehicles to be funded under this program will operate for many years, the emission reductions will provide long-term benefits.
 

Resource Impacts

Total amount of Multidistrict funds awarded by CARB is up to $3,400,000. As required by CARB, AQMD will provide an equal match to the CARB funds, including $920,581 from SB 1107 Multidistrict returned funds, $179,419 from SB 1107 Multidistrict interest, and up to $2,300,000 from the AB 923, Carl Moyer Program Fund.

There are sufficient funds in the Carl Moyer Program Funds SB 1107 and AB 923 to implement these activities.
 

Attachment (DOC, 27k)

A Resolution of the South Coast Air Quality Management District Board Recognizing and Accepting the Terms and Conditions of the 2009 Multidistrict Grant Award