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Incentives Archives - Clean Off-Road Equipment Voucher Incentive Project

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CARB Reopens CORE Project with $125M in Incentives to Encourage Deployment of Zero-Emission Technology in Off-Road Applications

By Program UpdatesNo Comments

CALSTART-administered Project Provides Point-of-sale Discount Vouchers for Zero-Emission Off-Road Heavy-Duty Equipment

PASADENA – May 16, 2022 – What could be done with $125 million to reduce the environmental harm being done by off-road equipment? The California Air Resources Board (CARB) aims to find out and has announced the second round of its Clean Off-Road Equipment Voucher Incentive Project (CORE), tripling the amount of allocated funding from the previous round for equipment used in agriculture, airport, railyard, port, construction, and marine operations.

CORE first opened in February 2020 and closed that August after the total allocation of $44.6 million was exhausted. Due to high demand, $30 million of the FY 2021-22 allocation was appropriated ahead of CARB’s board meeting to fund vouchers on a contingency list. The project’s relaunch, scheduled to begin in July 2022, will have $125 million in available funds.

CORE is part of California Climate Investments, a 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 encourages and assists purchasers and lessees of off-road equipment – agricultural tractors, forklifts, airport cargo loaders, container loaders, railcar movers and the like – in acquiring zero-emission versions of this equipment. While conventional internal-combustion engine (ICE) off-road equipment accounts for only a small percentage of all vehicles in California, shifting over to zero-emission equipment can help reduce the significant amount of greenhouse gasses these vehicles release.

The project is streamlined for ease of use. Those who qualify will be provided vouchers by CORE for point-of-sale discounts on off-road equipment, up to a maximum of $500,000 per voucher, and will not have to retire or sell their existing ICE equipment (called a “scrappage” requirement). There will also be additional funding for charging/refueling infrastructure equipment operated in disadvantaged communities and for small businesses.

“California is backing up its commitment to clean the air in overburdened communities with a significant investment in zero-emission vehicles and sustainable transportation,” CARB Deputy Executive Officer Craig Segall said. “CORE is specifically designed to assist industry sectors that currently use off-road equipment and can help clean up the communities hardest hit by air pollution.”

The project, administered by the national clean transportation non-profit CALSTART, is expected to reduce emissions, particularly in the most impacted areas; help build confidence in zero-emission technology in support of CARB strategies and subsequent regulatory efforts; and provide benefits such as technology transferability, reductions in advanced-technology component costs and larger infrastructure investments.

“CORE increases awareness and uptake of zero-emission equipment across many industry sectors and also sends market signals to manufacturers who can bring more of this equipment to the market,” said Niki Okuk, deputy director at CALSTART.  “We are looking forward to the new products coming online and the improvements in emission reductions and air quality.”

There are nine funding categories of zero-emission equipment that CORE supports, including:

  • On- and off-road terminal tractors
  • Truck- and trailer-mounted transport refrigeration units (TRUs)
  • Large forklifts and cargo-handling equipment
  • Airport ground-support equipment
  • Railcar movers and switcher locomotives
  • Mobile power units (MPUs) and mobile shore-power cable management systems
  • Construction equipment
  • Agricultural equipment
  • Commercial harbor craft

The equipment eligible under these categories is manufactured and sold by such companies as:

Orange EV                     Kalmar          eNow

Kalmar Ottawa             AEM              Shuttlewagon

ITW                                Dannar          Worldwide Forklifts

BYD                                Wiggins

Freewire                        Zephir-Trackmobile

To become an approved CORE manufacture or dealer visit californiacore.org. If you are a purchaser interested in zero-emission equipment visit the project page for more information.

About California Air Resources Board (CARB)

CARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. CARB is the lead agency for climate change programs and oversees all air pollution control efforts in California to attain and maintain health-based air quality standards.

About CALSTART

A national nonprofit consortium with offices in New York, Michigan, Colorado, California, Washington, D.C., central Europe and partners world-wide, CALSTART works with 300+ member company and agency innovators to build a prosperous, efficient and clean high-tech transportation industry. We knock down barriers to modernization and the adoption of clean vehicles. CALSTART is changing transportation for good.

 

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CORE Workgroup 5.10.2022

Work Group Meeting to Implement Fiscal Year 2021-22 Clean Off-Road Equipment Voucher Incentive Project (CORE) May 10, 2022

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On May 10, 2022, California Air Resources Board (CARB) staff will hold a third public workgroup meeting to further discuss development of CORE. Topics will include an overview of the Implementation Manual (IM) and the zero-emission equipment manufacturer, dealer, and owner voucher application processes. Note that this version of the IM does not include professional landscaping equipment, which is being developed on an independent timeline.

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View slide deck: CORE Workgroup Slide Deck

Background

California Climate Investments Low Carbon Transportation Funding: The Low Carbon Transportation program is part of California Climate Investments, a statewide program 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. CARB’s Low Carbon Transportation Program is designed to accelerate the transition to low carbon freight and passenger transportation with a priority on providing health and economic benefits to California’s most disadvantaged communities. These investments support the State’s climate change strategy pillars of a 50 percent reduction in petroleum use in vehicles by 2030 and reducing short lived climate pollutants and the Governor’s goal to deploy 5 million zero- emissions vehicles (ZEVs) by 2030. Additionally, these incentives provide important early steps to transform the transportation sector, supporting Governor Newsom’s recent Executive Order N-79-20 calling on the State to accelerate the transformation to a zero-emission transportation fleet. Lastly, these investments reduce ozone precursor emissions and toxic diesel particulate emissions, supporting the State’s goals in these areas.

Since 2013, the Legislature has appropriated a total of over $2.7 billion to CARB for Low Carbon Transportation projects. These funds are being used to fund zero-emission and plug-in hybrid passenger vehicles through CVRP; light-duty vehicle equity projects to increase access to clean transportation in disadvantaged communities and for lower‑income Californians; deployment incentives for clean trucks and buses; and advanced technology demonstration projects for freight trucks and off-road equipment.

Annual Funding Plan: The annual funding plan is each year’s blueprint for expending Low Carbon Transportation and AQIP funds appropriated to CARB in the State budget. The FY 2021-22 Funding Plan covered a total of $1.5 billion in clean transportation appropriated to CARB in the Budget Act of 2021 as amended by SB 129 (Skinner, Chapter 69, Statutes of 2021) and SB 170 (Skinner, Chapter 240, Statutes of 2021).

The FY 2021-2022 Funding Plan for Clean Transportation Incentives allocates $194.95 million to CORE to build upon a program that will bring about greater adoption of cleaner, commercially available off-road technologies by providing a streamlined way for fleets ready to purchase specific zero-emission equipment to receive funding. The modifications approved by the Board include an expansion into equipment types beyond freight, including, but not limited to, construction, agriculture, and material handling. In addition, the creation of set asides for small business or sole proprietors to purchase small off-road equipment, including but not limited to, leaf blowers and lawnmowers for professional landscape services.

Air Pollution Control Fund investments have traditionally funded multiple technologies, overcoming deployment barriers, reducing production costs, promoting consumer acceptance, and accelerating technology transfer to other sectors. This program is designed to achieve both immediate emission reductions and, as emphasized in Governor Newsom’s Executive Order N-79-20, support the transformation of California’s equipment fleet to one that is zero-emitting where feasible. In designing these investments, CARB strives to maximize the benefits for disadvantaged communities, low-income communities, and low-income households.

CORE will provide vouchers for specified types of zero-emission off-road equipment on a first-come, first‑served basis, with increased incentives for equipment located in disadvantaged communities. CORE accelerates the deployment of cleaner off‑road equipment and benefits the citizens of California by providing immediate criteria pollutant and greenhouse gas emission reductions and supporting California’s long-term air quality and climate change goals.

Contact
If you have questions or comments regarding this workgroup, please contact Mr. Todd Sterling, Air Pollution Specialist, at (279) 842-9870. If you require a special accommodation or need this document in an alternate format (i.e. Braille, large print) or another language, please contact CARB via email at [email protected] as soon as possible. TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service.

CORE Workgroup 2.17.2022

Work Group Meeting to Implement Fiscal Year 2021-22 Clean Off-Road Equipment Voucher Incentive Project (CORE), February 17, 2022

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On Tuesday, February 17, 2022 the California Air Resources Board (CARB) hosted a Workgroup Meeting for the Clean Off-Road Equipment Voucher Incentive Project (CORE). The workgroup reviewed the Board-approved Fiscal Year (FY) 2021-22 Funding Plan for Clean Transportation Incentives (Funding Plan). Each year, staff conducts additional public process following Board approval of the Funding Plan to define new mechanisms and criteria for the FY while completing annual updates to the Implementation Manual. This workgroup will discuss various topics, such as lessons learned and potential Implementation Manual updates, equipment categories, dealer/manufacturer participation, and other outstanding CORE topics.  CARB staff will take this opportunity to engage with stakeholders with a question-and-answer session.

Background

California Climate Investments Low Carbon Transportation Funding

The Low Carbon Transportation program is part of California Climate Investments, a statewide program 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. CARB’s Low Carbon Transportation Program is designed to accelerate the transition to low carbon freight and passenger transportation with a priority on providing health and economic benefits to California’s most disadvantaged communities. These investments support the State’s climate change strategy pillars of a 50 percent reduction in petroleum use in vehicles by 2030 and reducing short lived climate pollutants and the Governor’s goal to deploy 5 million zero- emissions vehicles (ZEVs) by 2030. These investments also reduce ozone precursor emissions and toxic diesel particulate emissions, supporting the State’s goals in these areas.

Since 2013, the Legislature has appropriated a total of over $2.7 billion to CARB for Low Carbon Transportation projects. These funds are being used to fund zero-emission and plug-in hybrid passenger vehicles through CVRP; light-duty vehicle equity projects to increase access to clean transportation in disadvantaged communities and for lower‑income Californians; deployment incentives for clean trucks and buses; and advanced technology demonstration projects for freight trucks and off-road equipment.

Annual Funding Plan

The annual funding plan is each year’s blueprint for expending Low Carbon Transportation and AQIP funds appropriated to CARB in the State budget. The FY 2021-22 Funding Plan covered a total of $1.5 billion in clean transportation appropriated to CARB in the Budget Act of 2021 as amended by SB 129 (Skinner, Chapter 69, Statutes of 2021) and SB 170 (Skinner, Chapter 240, Statutes of 2021).

The FY 2021-2022 Funding Plan for Clean Transportation Incentives allocates $194.95 million to CORE to build upon a program that will bring about greater adoption of cleaner, commercially available off-road technologies by providing a streamlined way for fleets ready to purchase specific zero-emission equipment to receive funding. The modifications approved by the Board include an expansion into equipment types beyond freight, including, but not limited to, construction, agriculture, and material handling. In addition, the creation of set asides for small business or sole proprietors to purchase small off-road equipment, including but not limited to, leaf blowers and lawnmowers for professional landscape services.

Air Pollution Control Fund investments have traditionally funded multiple technologies, overcoming deployment barriers, reducing production costs, promoting consumer acceptance, and accelerating technology transfer to other sectors. This program is designed to achieve both immediate emission reductions and, as emphasized in Governor Newsom’s Executive Order N-79-20, support the transformation of California’s equipment fleet to one that is zero-emitting where feasible. In designing these investments, CARB strives to maximize the benefits for disadvantaged communities, low-income communities, and low-income households.

For more information about the FY 2021-22 Funding Plan, please visit the Funding Plan website.

The CORE Program is part of California Climate Investments, a statewide program 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.

Contact

If you have questions or comments regarding this work group, please contact [email protected].

If you require a special accommodation or need this document in an alternate format (i.e. Braille, large print) or another language, please contact [email protected] as soon as possible. TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service.

CORE Workgroup Flyer

Work Group Meeting to Implement Fiscal Year 2021-22 Clean Off-Road Equipment Voucher Incentive Project (CORE) January 18, 2022

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On Tuesday, January 18, the California Air Resources Board (CARB) hosted a webinar workgroup for the Clean Off-Road Equipment Voucher Incentive Project (CORE). The workgroup was part of the annual public process following Board approval of the Funding Plan to define new mechanisms and criteria for the fiscal year while completing yearly updates to the Implementation Manual. CARB Staff engaged with stakeholders and established protocol to successfully reopen the project after limited funding was exhausted in 2020.If you were unable to attend or wish to revisit the workgroup meeting, please follow the link below to view the recording.

Agenda:   https://bit.ly/3rv0vVD 

Recording: https://bit.ly/347RXMm

Stay informed about upcoming CORE workgroups by registering for CARB’s list serve today: https://bit.ly/3EoaOzZ

Contact

If you have questions or comments regarding this work group, please contact Todd Sterling.

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].

$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 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.

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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