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State and Federal Incentives and Laws

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Funding for Emission Reductions - South Coast

The South Coast Air Quality Management District (SCAQMD) administers the Air Quality Investment Program (AQIP). The AQIP is a fund created by the SCAQMD, which allows employers within SCAQMD's jurisdiction to make annual investments into an administered fund to meet employers' emission reduction targets. The revenues collected are used to fund alternative mobile source emission/trip reduction programs, including alternative fuel vehicle projects, on an on-going basis. Programs such as procurement of low-emission, alternative fuel or zero emission vehicles, and old vehicle scrapping could be considered for funding.

Point of Contact

Shashi Singeetham
Air Quality Specialist
South Coast AQMD
Phone (909) 396-3298
Fax (909) 396-3608
ssingeetham@aqmd.gov
http://www.aqmd.gov/trans/aqip.html

Alternative Fuel Vehicle (AFV) License

In order to equalize the vehicle license fee between AFVs and conventional fuel vehicles, the incremental cost of purchasing an AFV is exempt from the vehicle license fee (of 2%) when the costs are more than the most comparable conventional fuel vehicle, as determined by the California Energy Commission. This reduction applies to new, light-duty AFVs that are certified to meet or exceed Ultra Low Emission Vehicle standards. This program expires January 1, 2009. (Reference California Revenue and Taxation Code Section 10759.5)

Emissions Reduction Requirements - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District is authorized to do the following: 1) Adopt rules and regulations that require the use of best available control technology for new and modified sources of pollution, promote the use of cleaner burning alternative fuels, and encourage and facilitate ridesharing for commuters; 2) Impose a $1 fee on the initial and renewal of motor vehicle registration in the district for reducing air pollution from motor vehicles through activities including the establishment of a clean fuels program; and 3) Establish expedited permit review and project assistance mechanisms for facilities or projects that are directly related to research and development, demonstration, or commercialization of electric and other clean fuel vehicle technologies. (Reference California Health and Safety Code Sections 40603 and 40605)

Alternative Fuel Incentive Development

The California Air Resources Board and California Energy Commission have been asked to develop a joint plan, allocating $25 million in incentives, to promote the use and production of alternative fuels. Incentives would be provided for projects in California that promoted high efficiency, high mileage, alternative fuel light-, medium-, and heavy-duty vehicles, for both individual and public fleets. Incentives would be available to replace the current state vehicle fleet with clean, high mileage alternative fuel vehicles and for the construction of both publicly accessible alternative fuel retail fueling stations and fleet fueling facilities, including E-85. In addition, incentives would be provided for alternative fuel production in California and funding for research, development, and testing of alternative fuels and advancing vehicle technology. (Reference Assembly Bill 1811, 2006)

Alternative Fuels Plan

On October 31, 2007, the State Energy Resources Conservation and Development Commission, in partnership with other state agencies, developed and adopted the State Alternative Fuels Plan to increase the use of alternative transportation fuels (Reference Assembly Bill 1007, 2005, Assembly Bill 1012 and 2264, 2006, and California Health and Safety Code Section 43865)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

When awarding a vehicle procurement contract, every city, county, and special district, including a school district and a community college district, is authorized to require that 75% of the passenger cars and/or light-duty trucks acquired be energy-efficient vehicles. Vehicle procurement contracts are also authorized to evaluate fuel economy and life-cycle factors. By definition, this includes hybrid vehicles or alternative fuel vehicles that meet California's advanced technology partial zero-emission vehicle (AT PZEV) standard for criteria pollutant emissions. Furthermore, by July 1, 2009, vehicles owned or leased by the state that are capable of operating on an alternative fuel must operate on that fuel unless alternative fuels are not available. The Secretary of State and Consumer Services must develop and implement a plan to reduce or displace the state fleets consumption of petroleum products on or before July 1, 2009. (Reference Assembly Bill 1660, 2005, Assembly Bill 236, 2007,California Health and Safety Code Section 43810, and California Public Resources Code Section 25725)

Alternative Fuel Vehicle (AFV) and Refueling Infrastructure Grants and Loans

The Assembly Bill 2766 program provides incentive funding for projects that reduce on-road and off-road motor vehicle pollutant emissions (focusing on nitrogen oxides emissions and particulate matter). The program provides applicants with grant money to implement activities or purchase equipment that reduces air pollution from vehicles, including purchasing alternative fuel vehicles and building alternative fuel and advanced technology infrastructure. Check with local air districts to learn how the AB 2766 Motor Vehicle Registration Funds grants are distributed. Some programs include: Yolo-Solano AQMD, South Coast AQMD, Bay Area AQMD, Antelope Valley AQMD, Feather River AQMD, Kern County AQMD, Mojave Desert AQMD, Monterey Bay Unified APCD, North Coast Unified APCD, Northern Sierra AMD , and San Luis Obispo APCD. (Reference Health and Safety Code 44220 to 44246)

Point of Contact

Jeff Weir
Air Pollution Specialist
California Air Resources Board, Planning and Technical Support Division
Phone (916) 445-0098
jweir@arb.ca.gov

Alternative Fuel Vehicle (AFV) Rebate Program

The "Driving Alternatives" vehicle rebate program has allocated $1.8 million toward vehicle incentive grants for qualifying AFVs. Grants of up to $5,000 will be made available to consumers who purchase or lease eligible zero emission vehicles (ZEVs), plug-in hybrid electric vehicles, and AFVs between May 24, 2007, and March 31, 2009. For the purposes of this program, ZEVs include full function battery electric vehicles, hydrogen fuel cell vehicles, low-speed or neighborhood electric vehicles, and zero emission motorcycles.

Point of Contact

Mary Venables
California Center for Sustainable Energy
Phone 866-984-2532
fuelingalts@energycenter.org
http://www.fuelingalts.energycenter.org

Alternative Fuel Research and Development

The Alternative and Renewable Fuel and Vehicle Technology Program will provide grants and loans to public agencies, businesses, fleet owners, consumers, and academic institutions to develop and deploy innovative technologies that transform California's fuel and vehicle types to help attain the state's climate change policies. (Reference Assembly Bill 118, 2007)

Low-Emission Vehicle Incentives and Technical Training - San Joaquin Valley

The REMOVE II Program provides incentives for the purchase of low-emission passenger vehicles, light-duty trucks, small buses, and trucks under 14,000 pounds Gross Vehicle Weight Rating. The purpose of this program is to encourage the early introduction of low-emission vehicles in the San Joaquin Valley. The program pays between $1,000 and $3,000 per vehicle depending on the emission certification level and size of the vehicle. Vehicles must be powered by alternative fuel, electric, or hybrid electric engines/motors. The program also has an Alternative Fuel Vehicle (AFV) Mechanic Training Component that provides incentives for the education of personnel on the mechanics, operation safety, and maintenance of AFVs, equipment structures, fueling stations, and tools involved in the implementation of alternative fuel emission reducing technologies.

Point of Contact

Heavy-Duty Engine Program Hotline
San Joaquin Valley Air Pollution Control District
Phone (559) 230-5858 or (559) 230-5800
sjvapcd@valleyair.org

City of Riverside Employee Vehicle Purchase Incentives

City of Riverside employees are eligible to receive a rebate toward the purchase of qualified alternative fuel and hybrid electric vehicles that are purchased from a City of Riverside automobile dealership. New qualified vehicles can receive up to $2,000 and used qualified vehicles can receive up to $1,000.

Point of Contact

Chris Durham
Administrative Analyst
City of Riverside Public Works Administration
Phone (951) 826-5283
cdurham@riversideca.gov