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Funding Updates

California CORE Project FY21-22 Changes

By Program Updates, Funding Updates, News

On Friday, November 19, 2021 the California Air Resources Board (CARB) conducted a Board Meeting via Zoom to present programmatic changes to current clean transportation incentives, including potential changes to the California Clean Off-Road Equipment (CORE) Project. CARB announced it has allocated approximately $195 million to continue funding the CORE Project for FY21-22.

Potential changes to the CORE Project for FY21-22: Based on Board priorities and input received from stakeholders, staff is considering the following changes to the program:

  • Equity and Small Business Considerations: Staff will evaluate methods to build awareness and make funds more accessible to small businesses while continuing to prioritize the deployment of CORE-funded equipment in low-income, disadvantaged, underserved and rural communities. This includes a $30 million set-aside for zero-emission small off-road equipment purchases made by small California landscaping companies or sole proprietors following legislative direction.
  • New Equipment Categories: Staff has received interest from manufacturers of off-road equipment types that are not currently eligible to participate in CORE, such as those used in construction, agriculture, and lawn and garden. Staff sees a significant opportunity to expand the eligible equipment categories to include equipment used in these industries.
  • Voucher Amounts, Off-Ramps for Mature Equipment Categories, and Other Programmatic Changes: CORE is intended to spur market growth of advanced technology in off-road equipment. Staff will continue to adjust voucher levels in a way that continues to move the needle to advance technology, ensure equipment diversity, and maximize the impact of available funding. Potential adjustments could include reducing voucher amounts for equipment categories that are further along in their commercialization arc, establishing project caps, and adjusting enhancements, as appropriate.

These changes and plans to reopen the project to new voucher requests, and other topics to be included in the FY 2021-22 Implementation Manual will be discussed in more detail in upcoming CORE Workgroup meetings beginning of 2022. Information about upcoming workgroup meetings will be announced via GovDelivery notice soon (follow link to subscribe to CORE GovDelivery email notifications if you have not already). CALSTART will provide more details via email.

For questions or comments, please email [email protected].

Open Now: Solicitation for Combustion Freight and Marine Grant Funding in California

By Funding Updates, Funding Opportunity, Industry Opportunities

Approximately $26 million in Volkswagen Environmental Mitigation Trust funding is available to entities throughout California for Combustion Freight and Marine Projects. This category is intended to accelerate the replacement of older, higher polluting engines throughout the state of California, including but not limited to areas that are disproportionately impacted by air pollution, such as freight corridors, ports, and rail yards. The funding is now available statewide on a first-come first-served basis until funding is exhausted.

Learn more today: https://bit.ly/3hjs5QB

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

By Uncategorized, Program Updates, Funding Updates, News

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.

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