BOARD MEETING DATE: July 9, 2010
AGENDA NO. 6
PROPOSAL:
Adopt Resolution Accepting Terms and Conditions for 2010 Multidistrict Award under On-Road Heavy-Duty Vehicle Voucher Incentive Program (Year 12) and Approve Match Funds to CARB Funds
SYNOPSIS:
This action is to adopt a resolution recognizing up to $1,471,433 in 2010 Multidistrict funds from CARB to continue implementation of the Carl Moyer On-Road Heavy-Duty Vehicle Voucher Incentive Program (VIP) and accept terms and conditions for the Multidistrict award. As required by CARB, AQMD will provide a match to the CARB funds comprised of $690,895 from SB 1107 Multidistrict returned funds and up to $780,538 from the AB 923, Carl Moyer Program Fund.
COMMITTEE:
Technology, June 18, 2010, Recommended for Approval
RECOMMENDED ACTIONS:
Approve the attached resolution to recognize up to $1,471,433 from CARB and place these funds in the Carl Moyer Fund SB 1107 Multidistrict-Program (Fund 32);
Accept the terms and conditions of the FY 2010 Multidistrict Grant Award for continued implementation of the Voucher Incentive Program through FY 2010; and
Approve up to $1,471,433 in match funds comprised of $690,895 from the Carl Moyer Fund SB 1107 Multidistrict-Program (Fund 32) returned funds and up to $780,538 from the Carl Moyer Program AB 923 Fund (Fund 80) for continued implementation of the Voucher Incentive Program through FY 2010.
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. The California Health & Safety Code, Section 44286, gives CARB the authority to reserve up to 10 percent of the CMP funding in any given year for multidistrict projects. This year, like the previous year, CARB has allocated all of the multidistrict funds for FY 2010 towards the continued implementation of the On-Road Heavy-Duty Vehicle Voucher Incentive Program (VIP). The VIP was initially developed by CARB in March 2009 to reduce the purchase cost to applicants replacing an old heavy-duty diesel vehicle with a newer, lower-emission vehicle.
Since its initial implementation in March 2009, participation in the VIP has been much lower, throughout the state, than anticipated by CARB. On March 25, 2010, in an effort to increase program participation, CARB adopted several program modifications which are anticipated to greatly expand the pool of eligible applicants. These modifications include reducing the minimum Gross Vehicle Weight Rating to 19,501 lbs., increasing the eligible engine model years for the old engine to 2002 and older, increasing the maximum eligible funding amount to $45,000 per vehicle, and adding a retrofit option for truck owners with engine model years 2004 to 2006 for a maximum funding of up to $10,000 per retrofit device. Participation in the VIP is voluntary for local air districts and on January 19, 2010 CARB issued a solicitation to local air districts for the 2010 Multidistrict funds. Total funding available under this solicitation was approximately $6 Million.
Proposal
This action is to approve the attached resolution (Attachment 1) to recognize up to $1,471,433 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 2010 Multidistrict Grant Award (Attachment 2) to continue implementation of the VIP.
As required by CARB, the attached resolution commits the AQMD to comply with all terms and conditions of the 2010 Multidistrict Grant Award. This includes the Voucher Incentive Program Guidelines. The VIP Guidelines do not allow local air districts to impose additional limitations on project criteria or make any changes to the VIP Guidelines. As a result of the new retrofit funding section that was added to the VIP by CARB, AQMD will be required to train each retrofit installer on the terms, conditions and requirements of the program and execute contracts with those retrofit installers that meet the eligibility criteria outlined in the VIP Guidelines. This will be in addition to the existing requirement to execute contracts with truck dealerships and dismantler yards. To date, AQMD has executed contracts with ten dealerships and six dismantlers. AQMD must review and approve applications on a first-come first-served basis. Additional requirements specified by CARB for AQMD include: 1) providing all program participants (applicants, dealerships, dismantlers and retrofit installers) with the required VIP forms and documents, 2) approve/reject applications within 5 business days of receipt, 3) conduct salvage inspections (only for replacement projects) within 60 days of delivery to dismantler, 4) mail out annual usage surveys to voucher recipients for 3 years, and 5) retain records for a minimum of 5 years.
CARB also specifies requirements for the truck owners/operators participating in the VIP. Participants must: 1) operate the vehicle at least 75% of the time in California for 36 months from the date of purchase, 2) insure and register the replacement vehicle in California with the Department of Motor Vehicles (DMV) with a declared Gross/Combined Vehicle Weight Rating greater the 60,000 lbs for Heavy-Heavy Duty (HHD) Trucks and between 19,501 and 33,000 lbs for Medium-Heavy Duty (MHD) Trucks, 3) allow CARB to verify registration with the DMV after awarded a voucher and be available for follow-up inspections as requested, 4) not make any modifications to the emission control system, 5) notify the district of any change of ownership, and 6) return annual usage surveys as requested by the air districts.
The Multidistrict funds will be used by AQMD to continue the administration and implementation of the VIP in the geographical boundaries of the South Coast Air Quality Management District. As required by CARB, AQMD will provide a match to the CARB funds using $690,895 from SB 1107 Multidistrict returned funds and up to $780,538 from the Fund AB 923 Account, Carl Moyer Program Fund. Total combined funding to continue implementation of the VIP will be up to $2,942,866 for FY 2010.
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
The total amount of Multidistrict funds awarded by CARB is up to $1,471,433. These funds will be placed in the Carl Moyer Program Fund SB 1107 Account. In addition, AQMD will provide a match to the CARB funds for the VIP using $690,895 from SB 1107 Multidistrict returned funds and up to $780,538 from the Fund AB 923 Account, Carl Moyer Program Fund.
Attachments (EXE, 154k)
- A Resolution of the South Coast Air Quality Management District Board Recognizing and Accepting the Terms and Conditions of the 2010 Multidistrict Grant Award.
- Terms and Conditions of the 2010 Multidistrict Grant Award