IMPORTANT NOTICE:
NEW! Zero-Emission Off-Road projects under the Carl Moyer Program
PA2024-05 (PA2024-05 Amendment 2) is now open and will close on January 31, 2025 at 11:59 PM (or when funds are depleted). The application portal will open on Tuesday, August 6th at 7AM. To apply for funding after 7AM on August 6th, please click here: Application Portal. For additional information on how to apply, please click here.
For additional information, please visit the off-road and cargo-handling equipment webpages located in the menu.
You can also sign-up for our e-newsletter to receive information on other incentive programs.
Background:
The Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program) is named after Dr. Carl Moyer in recognition of his work in improving air quality. The Carl Moyer Program does not pay for compliance with a regulation - instead, it provides competitive grants for the incremental cost of cleaner-than-required engines, vehicles, and equipment. The program focuses on cleaning the air by replacing older heavy-duty diesels with electric, alternative-fuel, or cleaner diesel technologies.
Since 1998, the Carl Moyer Program (CMP) has provided funding to encourage the owners of diesel engines to go beyond regulatory requirements by retrofitting, repowering, or replacing their engines with newer and cleaner ones. The CMP has been a successful and popular air pollution reduction program. While air pollution regulations continue to be the primary means to reduce air pollution emissions, the CMP plays a complementary role to California’s regulatory program by providing incentives to obtain early or extra NOx, PM and ROG emission reductions.
CMP funding is provided via two legislative bills, SB 1107 and AB 923. SB 1107 provides approximately $61 million per year in statewide funding, and AB 923 permits air districts in designated non-attainment areas to collect an additional two dollars in vehicle registration fees to expend on programs to reduce emissions from vehicular sources and off-road equipment. A resolution approving such fees was adopted by the South Coast AQMD Board on December 3, 2004.
Who is Eligible?
Any owner of an eligible heavy-duty on-road or off-road project, public or private, that results in cost-effective NOx, PM and/or ROG emission reductions. The project must not be required by a current regulation or within three years of a regulatory compliance deadline. Projects must operate at least 75% of the time within the South Coast AQMD boundaries. To be eligible for CMP funds, projects must meet the criteria described in the 2017 Carl Moyer Program Guidelines and all subsequent advisories to the Guidelines. Projects must also be in compliance with applicable California Air Resources Board (CARB) regulations. In addition, projects must meet the cost-effective threshold of $34,000 per weighted ton of total reduced emissions, and if applicable, meet the cost-effective threshold of $522,000 per weighted ton of reduced emissions (for projects that are zero-emission or meet the cleanest certified optional standard). Projects must be fully in operation within eighteen (18) months of contract execution.
What Types of Projects Qualify for the Carl Moyer Program?
The project categories identified for funding under the South Coast AQMD’s 2021 CMP solicitation are:
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On-Road: Eligible project types include vehicle replacement and repower/conversion projects; on-road retrofit projects will be considered on a case-by-case basis. Emergency vehicles, including but not limited to prisoner transport buses and fire apparatus, are exempt from CARB regulations and therefore are eligible for CMP funding. All on-road projects must generate surplus emission reductions and be fully compliant with all applicable fleet regulations.
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Off-Road: Propulsion engines greater than 25 horsepower on mobile off-road equipment are eligible for CMP funding, with limitations. Off-road projects must demonstrate compliance with any applicable CARB regulation at the time of application. Off-road heavy-duty equipment/engines include, but are not limited to, construction equipment, agricultural tractors, marine engines, shore power and locomotive equipment. Portable equipment are not eligible for CMP funding.
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Construction equipment projects fall into three district categories: (a) repower with an emission-certified engine, (b) retrofit with a verified-diesel emission control strategy, and (c) replacement by a vehicle with an engine certified as meeting the current off-road emission standards.
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Cargo handling equipment electrification projects operating at seaports or intermodal rail yards in trade corridors. This applies to rubber-tired gantry (RTG) cranes projects either converting or replacing diesel-powered cranes with a zero-emission power system.
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Marine vessel project types include engine repower with cleanest available technology.
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Shore power projects within port locations must be surplus to CARB’s At-Berth Regulation and approved on a case-by-case basis.
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Locomotive projects for new locomotives and replacement engines must be certified to Tier 4 standards.
- Infrastructure: The 2017 update to the CMP Guidelines allow funding for infrastructure projects that enable the deployment of alternative, advanced, and cleaner technologies to support the State’s air quality goals. Specifically, projects that install fueling or energy infrastructure to fuel or power a “covered source” are now eligible for CMP funding consideration. A “covered source” includes heavy-duty on-road vehicles, off-road non-recreational equipment and vehicles, locomotives, marine vessels, agricultural sources of air pollution, and other categories as determined by CARB and South Coast AQMD that are necessary for the state and air district to meet air quality goals.
How is the Size of a Carl Moyer Program Grant Determined?
The Carl Moyer Program grants are based on the cost-effectiveness and emission benefits of the project.
How will Applications Be Evaluated?
South Coast AQMD staff will evaluate each project based on the cost-effectiveness of NOx, PM10 and ROG reduced, as well as the project’s status with respect to the disadvantaged community and low-income criteria prescribed by CARB. All qualified applications are ranked accordingly by cost-effectiveness (except for infrastructure projects). At least 50 percent of South Coast AQMD’s CMP funds are targeted for projects that meet the criteria of a disadvantaged or low-income community.
Each project will be evaluated in accordance with the latest version of the Funding Guidelines for Agencies that Administer California Climate Investments established by the California Air Resources Board, including the CalEnviroScreen tool, to identify those projects that are located within a disadvantaged and/or low-income community. To see if a particular community is within a disadvantaged or low income community, please visit:
https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/communityinvestments.htm
Cost-Effectiveness Limit
Per 2017 CMP Guidelines, all project awards shall not exceed the project’s incremental cost, funding caps or the maximum cost-effectiveness limits, as applicable. The “Step 1” cost effectiveness limit, $34,000 per weighted ton of emissions reduced, applies to projects that bring vehicles and equipment up to current standards. The “Step 2” cost effectiveness limit, $522,000 per weighted ton of emissions reduced, applies to projects that are zero-emission or meet the cleanest certified optional standard applicable (by source category).
Useful Links and Resources:
To sign up for vehicle funding program updates, please click here.
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