**Rescheduled** Notice of Incentive Program Advisory Group (IPAG) Public Meeting to Consider Updates to the Carl Moyer Program for On-Road Heavy-Duty Vehicles as Electrification Transition Accelerates

Invitation to Participate

The California Air Resources Board (CARB or Board) has rescheduled the third public meeting of the Incentives Program Advisory Group (IPAG) originally scheduled for October 5, 2022 to October 12, 2022. CARB invites you to participate in this public meeting to consider updates to the Carl Moyer Program for on-road heavy-duty vehicles as vehicle electrification increases in many sectors. We are eager to engage with stakeholders to consider how the program can best support this transition. This public process is led by Vice Chair Sandra Berg and Board members Davina Hurt and Gideon Kracov. During last November’s CARB Board Hearing, staff heard strong interest from several board members to further accelerate zero-emission vehicles and equity work in the Carl Moyer Program for on-road heavy-duty vehicles.

During this process, staff have discussed several topics of interest with the public, including the importance of available infrastructure, increased outreach, increased incentives for small fleets going to zero-emission technologies, understanding the interconnectivity among CARB’s available incentive programs, and other program improvements to increase equitable access to incentive opportunities. The IPAG will continue to explore and discuss these key issues, including providing greater support and access for small fleets and small businesses statewide, improving access and increasing program usage in the environmental justice communities, and accelerating zero-emission truck funding while better partnering vehicle adoption with infrastructure expansion. CARB staff has had numerous discussions with air districts and stakeholders regarding these issues. As a result of these collaborative efforts, and under authority delegated to the Executive Officer by Resolution 21-24 (https://gcc02.safelinks.protection.outlook.com/?url=https%3A//ww3.arb.ca.gov/board/res/2021/res21-24.pdf%3Futm_medium%3Demail%26utm_source%3Dgovdelivery&data=04%7C01%7Csondra.wynne%40arb.ca.gov%7Ccffa3be4bd8848709e6d08d9c0a9daf7%7C9de5aaee778840b1a438c0ccc98c87cc%7C0%7C1%7C637752658036839439%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=jyO9CHN9kk3D3b0wn2fGt%2BL90sanyW%2BmhD2H7V0Caww%3D&reserved=0), CARB staff are providing proposed updates to the Carl Moyer Program’s On-Road Voucher Incentive Program as well as Chapter 10 of the Carl Moyer Guidelines for Infrastructure projects for consideration.

The Carl Moyer Program’s On-Road Voucher Incentive Program, or VIP, is a key tool for small fleets to access the Moyer Program’s funding opportunities which can lower the upfront cost of transitioning to zero-emission technologies. The VIP program also provides a mechanism for applying increased equity consideration to the Moyer Program in a manner that can also be considered and implemented by other incentive programs.

This meeting will welcome feedback and ideas on improvements to these programs that can strengthen the key principles and concepts noted. Vehicle electrification is accelerating, and CARB is eager to ensure these programs work well for key stakeholders.

Date:                 October 12, 2022
Time:                 4:00 p.m. – 7:00 p.m.
Location:          Zoom Webinar/Teleconference

Please register (https://us06web.zoom.us/webinar/register/WN_Lf0MXvMnRvq5xzrw42sTuQ) for the webinar using the link at the bottom of this page.

Proposed Updates to the Carl Moyer Program On-Road VIP Guidelines

On-Road VIP Guidelines (Proposed Updates in Strikeout and Underline)

The following sections highlight the major updates proposed for the On-Road VIP Guidelines for on-road heavy-duty vehicles. In general, staff expects the proposed changes would increase funding opportunities and participation, align the VIP Guidelines to be consistent with Board priorities, and clarify requirements in order to simplify program implementation. On-road heavy-duty projects funded under staff’s proposed changes would still need to meet the program’s guideline requirements.

Staff’s proposed changes to address these remaining issues include:

• Amend VIP Guidelines to align with Chapter 4 of the Carl Moyer Program Guidelines for on-road heavy-duty vehicles
  • Update Engine Model Year eligibility
  • Increase flexibility for required minimum annual usage
  • Allowance of remote inspections
• Guidance on incentives for environmental justice and communities with priority populations
• Additional zero-emission funding opportunities with VIP
  • VIP Plus-Up: up to 15% increase for fleets of 3 trucks or less and an up to 10% increase for fleets of 4 to10 trucks
  • Allow co-funding with zero-emission voucher projects
• Increase flexibility on VIP requirements

Staff’s proposed modifications to the VIP Guidelines are available on CARB’s website in strikeout and underline at CARB’s website (//ww2.arb.ca.gov/events/ipag-public-meeting-oct-5-2022).

Proposed Updates to Carl Moyer Program Guidelines, Chapter 10: Infrastructure

Chapter 10: Infrastructure (Proposed Updates in Strikeout and Underline)

The following section highlights the major updates proposed for the infrastructure chapter of the Carl Moyer Program Guidelines. Overall, the proposed changes will provide additional funding opportunities, clarification of program requirements, and incorporates requested changes to the chapter.

Staff’s proposed changes to address these remaining issues include:

• Additional funding available to site-owners of heavy-duty truck parking facilities that provide communal parking opportunities.
• Clarification for projects receiving funds from other programs.
• Clarification to the competitive bidding requirement.
• Guidance provided for project pre-inspection.

Staff’s proposed modifications to Carl Moyer Program Guidelines, Chapter 10 are available on CARB’s website in strikeout and underline at CARB’s website (//ww2.arb.ca.gov/events/ipag-public-meeting-oct-5-2022).

Background

The Carl Moyer Program (//ww2.arb.ca.gov/our-work/programs/carl-moyer-memorial-air-quality-standards-attainment-program) funds a wide range of on-road heavy-duty vehicles to purchase cleaner replacement vehicles, such as heavy-duty trucks and buses, school buses, transit vehicles, drayage trucks, solid waste collection vehicles, and emergency vehicles to name a few. Emission reductions funded through the Carl Moyer Program must be surplus, permanent, enforceable, and quantifiable in order to meet the underlying statutory provisions and creditable to the State Implementation Plan (SIP). To ensure that projects are surplus to regulations, funded projects must not be required by any federal, State, or local rule or regulation. The Carl Moyer Program has been successfully implemented through cooperative partnerships with local air districts as they review eligible applicants that can receive grants to purchase cleaner replacement vehicles, repowers, or conversions.

In support of Governor Newsom’s Executive Order N-79-20, which sets the goal of 100 percent of medium, and heavy-duty vehicles in the State be zero-emission by 2045 for all operations where feasible, and by 2035 for drayage trucks, the Carl Moyer Program has recently updated the grant cost-effectiveness limit for on-road heavy-duty zero-emission technology [$500,000 per weighted ton for zero-emission]. Additionally, heavy-duty vehicle projects can qualify for up to $410,000 per Class 8 zero-emission vehicle.

The On-Road Voucher Incentive Program (VIP) (//ww2.arb.ca.gov/our-work/programs/road-heavy-duty-voucher-incentive-program) is part of the Carl Moyer Program and directs funding exclusively to small fleets of 10 vehicles or less. As part of VIP, eligible applicants can receive grants to purchase cleaner replacement vehicles. Applications are reviewed on a first-come, first-served basis and are notified of their eligibility within 15 business days upon receipt of their application. As part of the Carl Moyer Program, VIP has been an attractive option to support the transition of small fleets earlier than or to exceed the 2010 engine emission standard of the Truck and Bus Regulation. This year, in alignment with the updates to the Carl Moyer Program for on-road heavy-duty vehicles, CARB expanded VIP to allow additional funding for replacement vehicles meeting the zero-emission standard up to $410,000 per Class 8 vehicle.

These programs have accomplished important goals reducing diesel and particulate matter (PM) emissions. Now there is more to be done as the electrification of on-road vehicles continues. The IPAG will hear from stakeholders on the key issues noted above - small fleets, environmental justice, and infrastructure - as they relate to the on-road Carl Moyer Program.

Written Comment Period & Comment Submittal

September 16, 2022 initiated the start of the 45-day public comment period. The public comment period began September 16, 2022. Comments must be submitted and received no later than 5:00 p.m. on November 1, 2022.Interested members of the public may present comments orally or in writing at the meeting and may provide comments by electronic submittal before the meeting. Please note that comments submitted after the IPAG public meeting is held will continue to be welcomed as well.

Electronic Submittal (mailto:ipag2022@arb.ca.gov)

For questions regarding the public meeting, contact Sondra Wynne (mailto:ipag2022@arb.ca.gov), Air Resources Engineer.