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A Cash-Strapped CARB Still Has Bond Money PDF Print E-mail
CARB Consultant
Wednesday, 16 June 2010 07:34

I spent some time with CDTOA President Rob McClernon recently where the Governator and legislators were sparring over who has the “b@!!$” to solve the state’s fiscal mess. As that drama will play out daily over the long hot summer, CARB will authorize $475 million in new truck grants in two phases between now and 2012.

I will dedicate this article to demystifying the state grant process with the goal that it help you on the road ahead. Maybe not today, but as the deadlines approach for compliance, CDTOA members will hopefully see work increase and you will be able to ask those who have it to show you the money!

As a brief introduction, the state budgets for fiscal years 2008, 2009, and 2010 each authorized installments of $250 million to CARB for the Proposition 1B program, providing a total of $750 million. The state had problems accessing the bond market and has, to date, only made good on about $200 million of the total. At a series of workshops taking place the first week of June, CARB staff is laying out its plan to go before the Board on June 24 with a request for the currently available $200 million, to be awarded as follows:

  • • $110 million to Los Angeles/Inland Empire corridor.
    Note that a current round of applications are due on July 7;
    • $58.5 million to the Central Valley corridor;
    • $28 million to the Bay Area corridor; and
    • $3.5 million to the San Diego/Border corridor.

When meeting notices and documents are available, they will be posted on CARB’s Program website at: www.arb.ca.gov/gmbond.

CDTOA staff is tracking several programs that are targeting small fleets. The State Treasurer continues to expand the CalCAP loan guarantee program that targets fleets of 20 trucks and smaller. The minimum requirements and maximum awards are address in the Summary Table below.

In conclusion, the good news is that the state will have funds over the next few months to pay a $60,000 maximum toward the purchase of almost 5,500 new trucks. The continuing bad news is that revenues are down so sharply that many truckers think they will not be able to make the payments even on a subsidized truck. I have teamed with capable finance experts and commissioned the CDTOA Grants Hotline to help work through these issues.

Review the Summary Table, any further questions give me a call at (916) 718-7050 or email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Program Fleet Size Summary Maximum Grant Amount Process
South Coast AQMD/State Proposition 1B One and up • About $275 million to be bonded by the state for South Coast projects for 2011-2012 awards (Years 2-4)
 • Up to $60,000 of state Proposition 1B funds and adds a subsidy for a 2010 engine and $40,000 for a 2007+ engine in a new truck
 A second round is due no later than 1 pm on July 7, 2010. Additional applications will be considered for funding only if funds are available after all eligible applications that were submitted by March 12, 2010 have been evaluated and ranked for funding.
San Diego APCD/State Proposition 1B One and up • A total of $60 million for projects over four years • Up to $60,000 of state Proposition 1B funds and adds a subsidy for a 2010 engine and $40,000 for a 2007+ engine in a new truck A workshop on contracts in late May expected to be followed with a Fall call for projects
Bay Area AQMD/State Proposition 1B One and up • About $80 for 2011-2012 awards
 • Up to $60,000 of state Proposition 1B funds and adds a subsidy for a 2010 engine and $40,000 for a 2007+ engine in a new truck District to establish new streamlined application and inspection process for applicants and deputize qualified entities to supply inspection data
San Joaquin AQMD/State Proposition 1B One and up • About $120 million for projects for 2011-2012 awards
 • Up to $60,000 of state Proposition 1B funds and adds a subsidy for a 2010 engine and $40,000 for a 2007+ engine in a new truck A new application process expected this Fall
California Capital Access Program (CalCAP) One to 20 trucks • Administered by State Treasurer’s Office using funds from CARB
• Applicants must have100 or fewer employees, $10 million in annual revenues (averaged over three years)		 • Up to $1.5 million per applicant for new trucks, newer used trucks and truck retrofits that are intended to meet the new CARB regulations
• As of May 2010 only $1.5 million in Government funds committed of $21 million on deposit for this program		 CalCAP may be combined with Proposition 1B funds making for a lower cost new truck
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