MSRC and Other AB 2766 Funding Opportunities

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1 MSRC and Other AB 2766 Funding Opportunities Southern California Clean Vehicle Technology Expo October 13, 2008 Money Monday

2 Funding Investments in Clean Air The Mobile Source Air Pollution Reduction Review Committee (MSRC) was established by the California State Legislature in 1990 under Assembly Bill 2766 AB 2766 authorizes an additional $4 motor vehicle registration fee: 30% goes into a Discretionary Fund administered by the MSRC; about $14M annually 30% goes to the South Coast Air Quality Management District (SCAQMD) for programs to reduce motor vehicle pollution and to carry out related planning, monitoring, enforcement and technical studies 40% is distributed by SCAQMD to cities and counties to be used in reducing motor vehicle air pollution; about $19.6M annually

3 Who We Are & What We Do Unique to South Coast AQMD there is only one MSRC Mission: Fund Projects that Result in Direct & Tangible Emission Reductions

4 What We Have to Show For It Each project funded by MSRC has air pollution reductions quantified & reported to CARB MSRC-funded projects have eliminated over 17,000,000 pounds of criteria air pollutants Very cost-effective

5 What We Fund (& What We Don t) FUND DON T FUND On-Road Vehicles Off-Road Vehicles (Except Cranes) Marine Vessels Locomotives Infrastructure

6 MSRC is one of the oldest & longest continuously running incentive programs in California At one time, MSRC funding was the only game in town Nowadays, other funding sources eclipse MSRC MSRC makes effort to identify effective funding role & avoid duplication with other funding sources In the Old Days

7 Our Philosophy for Designing Incentive Programs Our philosophy for incentive program design Keep It Simple Strategies commonly used for MSRC Programs Set incentive levels Simple template-based applications Well defined minimum participation requirements if you meet the requirements & MSRC still has money, congratulations, you re in Simple contracts

8 Where We Put Our Funding Over the MSRC s history, alternative fuel projects have accounted for greater than 60% of total funding investments Transit Bus 19% Other Heavy Duty 25% School Bus 10% Local Govt Match 12% Light/Med Duty Vehicles 2% R&D 5% EV Pgms/Alt Fuel Inf. 9% Trans. Mgmt/TCM's 13% Miscellaneous 5%

9 Alternative Fuel Accomplishments Since inception, the MSRC has co-funded literally thousands of alternative fuel vehicles Transit buses Heavy-duty trucks Low emission school buses Light & medium clean fuel vehicles Plus enabling alternative fuel refueling stations Supports AQMD Fleet Rules (1190 Rules)

10 Cleaning Up In-Use Emissions from Off-Road Diesel Equipment Showcase Program Underway Goal to encourage verification of retrofit devices for off-road construction equipment Includes both public and private equipment owners Cross-section of vehicle types needed to mirror the population of California s construction industry fleet

11 Long Standing Clean Air Programs Alternative Fuel School Buses Buy-down program for both public school districts & private pupil transportation providers Up to $60K off purchase price Enables AQMD Rule 1195 to be legally enforceable Easy to participate NO APPLICATION!

12 Local Government Match Program Provides dollar-to-dollar match to local funding, which consists of AB 2766 Subvention Funds or other locally generated funding Eligible project categories include: Alternative Fuel Infrastructure Heavy-Duty Alternative Fuel Vehicles Other categories vary from year to year, but have included Video Conferencing, Park and Ride Upgrades, and Remote Fleet Vehicle Diagnostics Program consistently offered for past several years

13 AB 2766 Subvention Funds Subvention funds distributed by AQMD on a quarterly basis to 158 participating local governments Based on cities/counties prorated share of population Projects must meet CARB s criteria & guidelines - Emphasis on cost-effective projects ($10 per pound including NOx, VOC, CO/7, PM10) AQMD s Resource Guide revised annually As part of the 2007 State Implementation Plan, CARB, AQMD, and SCAG reached joint decision which included reducing an additional 4 tons/day of NOx by local government from AB2766 projects not accounted for in SIP by 2014

14 Local Government Match Program, part 2 MSRC currently undertaking to: Assess local government air quality funding needs Coordinate development of new/refined emission reduction strategies for potential inclusion in future Local Government Match Program Meld needs with best strategies to create FY Local Government Match Program

15 For More Information Please visit the MSRC s website to sign up for notifications of new funding opportunities as they are released: Cynthia Ravenstein cynthia@cleantransportationfunding.org For assistance with AB 2766 Subvention Funds, please contact Kathryn Higgins, (909) , khiggins@aqmd.gov

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