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Freight Archives - Clean Off-Road Voucher Incentive Project.

$30 million now available for trucks, switcher locomotives and marine vessels in California

By News

DIAMOND BAR – Today, the second Volkswagen (VW) Environmental Mitigation Trust funding program was announced for projects across California. The South Coast Air Quality Management District (South Coast AQMD) Governing Board today approved $30 million in funding for Combustion Freight and Marine Projects that will replace or upgrade engines for older, in-use vehicles such as freight trucks, switcher locomotives, ferries, tugboats and towboats. The VW Environmental Mitigation Trust program is intended to fund projects that will fully mitigate the excess NOx emissions caused by the vehicles included in the statewide VW settlement. The first installment of funds for the Combustion Freight and Marine Projects category will provide up to $30 million for projects to repower or replace older, in-use vehicles and equipment with the cleanest commercially available internal combustion or hybrid technologies certified by the California Air Resources Board (CARB) including:

• On-road replacements of Class 7 and 8 freight trucks (including waste haulers, dump trucks and
concrete mixers) or low NOx engine upgrades;
• Freight switcher locomotive replacements or engine upgrades to Tier 4; and
• Ferry, tugboat and towboat upgrades to Tier 4 or hybrid with Tier 4-equivalent NOx emissions.

A second solicitation for the remaining allocation of $30 million for this category is expected to be released in late 2021 or early 2022.

To be eligible to participate, new engines, vehicles and equipment funded through this program must be operated in California for a minimum of three years. The existing vehicle, equipment or engines that will be replaced or upgraded is required to be scrapped. South Coast AQMD will administer the funding statewide with CARB providing program and fiscal oversight. Applications for the program must be submitted online at http://www.aqmd.gov/vw/ by 1:00 p.m./PST, Wednesday, March 4, 2020. The VW Environmental Mitigation Trust is a nationwide program that provides funding for California to fully mitigate the excess NOx emissions caused by VW’s use of illegal emissions testing defeat devices in VW diesel vehicles. More than 50 percent of the total project funds are expected to benefit disadvantaged and low-income communities. Read the complete SCAQMD release.

California Air Resources Board announces new incentive program for clean off-road freight and cargo handling equipment

By Funding Updates, News, Program Updates, Uncategorized

SACRAMENTO – The California Air Resources Board today announced the launch of a new $40 million program designed to accelerate the purchase and use of zero-emission off-road freight technologies.  The “Clean Off-Road Equipment Voucher Incentive Project” (CORE) will feature a streamlined voucher process for buyers to receive funding that will offset the higher costs of clean, zero-emission equipment including terminal tractors, transport refrigeration units, cargo-handling equipment and more.

“Forward-thinking, savvy business owners will want to take advantage of CORE because it will enable them to replace their dirty older equipment and get the cleanest, most advanced models available for about the same price as the diesel- or gas-powered version.  The result is equipment that saves businesses on fuel costs and has zero tailpipe emissions—a winner for the pocketbook and the community,” said CARB Executive Officer Richard W. Corey.

Under the CORE program  a business owner could receive $180,000 to cover the difference between a zero-emission tractor and one that is powered by diesel. The program also encourages deployment of cleaner technology in disadvantaged communities by providing up to 10 percent higher incentives for zero-emission equipment that will be used in these areas..  Awards can’t exceed $500,000 per piece of equipment.

CORE is based on California’s popular Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which is helping to facilitate and commercialize use of clean on-road technologies by transit agencies throughout the state. From its inception in 2009, more than $447 million has been allocated to HVIP.  The investment will bring the total number of ultra-clean trucks and buses operating on California’s roadways to more than 7,000 over the next two years with more on the way, as demand for vouchers continues to grow. Additionally, HVIP has helped more than 1,100 California fleets buy cleaner vehicles.

CALSTART, a national nonprofit consortium that works with innovators to advance modernization and adoption of clean vehicles, administers HVIP, and was recently awarded the contract to administer the CORE program.  Both programs are funded by California Climate Investments, the statewide initiative that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy and improving public health and the environment—particularly in disadvantaged communities.

CORE targets commercialized zero-emission products, including the types of equipment listed below. Other equipment categories may be added in the future.

  • On- and off-road terminal tractors
  • Transport refrigeration units
  • Forklifts (greater than 8,000 lbs. lift capacity)
  • Container handling equipment
  • Airport cargo loaders
  • Wide-body aircraft tugs
  • Railcar movers
  • Rubber-tired gantry (RTG) cranes

To obtain CORE discounts, business owners will work with CORE-approved dealers to choose the appropriate equipment. Buyers will receive the discount at the point of sale. The dealer then submits a CORE voucher request form on behalf of the buyer and is reimbursed once all required paperwork is provided and the new zero-emission equipment is delivered to the buyer. Funds for the new program are available on a first-come, first-served basis.

Anyone interested in buying equipment through the CORE program should note that their fleets must already be in full compliance with the state’s existing applicable regulations (Truck and Bus, TRU, Off-Road, Large Spark Ignition, Cargo-Handling, etc.).  The CORE program cannot be used to bring fleets into compliance.

CORE funding is expected to be available before the end of the year.

More Information

CARB announces more than $200 million in new funding for clean freight transportation

By News

SACRAMENTO – The California Air Resources Board (CARB) today announced up to $205 million in grants for projects designed to accelerate the adoption of clean freight technologies and reduce air pollution caused by the movement of goods throughout the state. 

Eleven projects will receive $150 million from California Climate Investments – using proceeds from the state’s landmark Cap-and-Trade program – and other sources, with another $55 million to be considered by the Board at its October meeting. The grants will be matched by $210 million invested by private and public partners, bringing total investment to more than $400 million.

The projects range from electric locomotives, trucks and refrigeration trailers at railyards in Stockton and San Bernardino, to a hybrid tugboat and electric cranes and forklifts at the Port of Long Beach. All 11 projects are located within disadvantaged communities that are heavily impacted by air pollution from freight facilities.

“California is again leading the world, showing what can be done when government and the private sector combine forces to drive technology and innovation,” said CARB Chair Mary D. Nichols.  “The implications for the future are clear.  Businesses will benefit by lowering their operational costs, and because all these projects are located in disadvantaged communities, residents who have long suffered the impacts of pollution will benefit by having cleaner air to breathe.” 

Kenworth truck with Toyota fuel cell
Kenworth trucks with Toyota fuel cells will begin serving the Port of Los Angeles in 2020.

The goal of CARB’s Zero and Near Zero Emission Freight Facility program is to support transformative, cost-effective clean technologies that can be adopted by other freight facilities and accelerate the commercialization of these technologies statewide. The projects will reduce pollution that contributes to regional air quality problems, particularly diesel particulate emissions that impact communities located near ports, rail yards and warehouses.

“I applaud the California Air Resources Board for its vision and commitment to helping disadvantaged communities in California improve their air quality by fostering innovative clean technologies,” said Senator Connie M. Leyva (D-Chino). “These significant investments show that California businesses can thrive while helping to further our efforts to clean the air of our state’s most impacted communities. I look forward to witnessing firsthand the benefits that these projects will bring to the 20th State Senate District and the Inland Empire.”

Each of the 11 projects will receive matching funds from private and public partners. Grants are expected to be executed over the coming months. Read more: CARB announces more than $200 million in new funding for clean freight transportation

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