Loan Incentive Program for Mobile Sources
In October 2007, Governor
Schwarzenegger
signed Assembly
Bill 118 (Chapter 750, Statutes of 2007) into law. AB 118 created two new
incentive programs with
potential funding for heavy-duty vehicles – the Alternative and
Renewable Fuels
and Advanced Technology Program to be administered by the California
Energy
Commission, and the Air Quality Improvement Program (AQIP) to be
administered
by ARB. The
2008-2009 FY State budget
includes a one-time appropriation of approximately $48 million from the
AQIP
fund to implement a heavy-duty vehicle air quality loan program to
assist
on-road fleets affected by the ARB’s proposed In-Use
Truck and
Bus Regulation and the proposed Heavy-Duty
Vehicle Greenhouse
Gas Emission Reduction Measure.
These two regulatory proposals are currently scheduled for
Board
consideration in December 2008.
Posted June 8, 2008
- The
Air Resources Board has posted a Notice of Public Meeting for June 25,
2009. The Air Resources Board will consider an update on outreach and
funding assistance for truck owners. To view a copy of the
notice, please go to the following website: http://www.arb.ca.gov/lispub/comm/bclist.php
- Heavy-Duty Vehicle Loan Program Overview: Click this link to access a brief overview of the ARB's Heavy-Duty Vehicle Air Quality Loan Program.
SECOND
PUBLIC WORKSHOP TO DISCUSS HEAVY-DUTY VEHICLE
AIR QUALITY LOAN PROGRAM
- ARB staff will
hold its second public workshop to discuss development of the
Heavy-Duty
Vehicle Air Quality Loan Program. The workshop will provide
an
opportunity for stakeholder input on possible program structure;
possible
financial tools and program partners; and target fleets and possible
applicant
criteria. The workshop will be held in
- November
6, 2008, Workshop Notice
- Workshop Handouts
- Proposed Loan Program Structure - Flowchart (pdf - 15 KB)
- Sample Loan Product Packages (pdf - 24 KB)
- Draft Applicant Criteria for Loan Program (pdf - 27 KB)
- Workshop Presentation (pdf - 2.5 MB)
- In conjunction with the August 19, 2008, AQIP public workshop, ARB staff held its first public workshop to discuss initial development of the heavy-duty vehicle loan program. The workshop notice and Loan Program presentation from the August workshop are available on the AQIP Meetings and Information web page.
Frequently Asked Questions
Eligibility
- The company must be a small business, meaning it has 100 or fewer employees, and less than $10 million in annual revenue, averaged over three years.
- The company must have their primary economic effect in California (most of the vehicle miles traveled must occur in California, most jobs in California, etc.)
- Fleets of 20 or fewer heavy-duty vehicles are eligible, as long as they meet the above requirements
Process
- The
borrower applies for a loan at a participating CalCAP lender by filling out the
Borrower Eligibility Criteria and Certification Form. (Sample Form)
CalCAP lenders
and truck dealerships may be able to assist the borrower in completing
this form. In
addition, the borrower completes the lender’s required loan application
forms.
- If
the borrower qualifies, based on the lender’s loan underwriting
standards, loan documents are prepared and signed by the borrower and
lender.
- Lender disburses
funds to the borrower.
You can use loan proceeds only to purchase on-road diesel-powered heavy-duty vehicles and equipment for compliance with the ARB’s Statewide In-Use Truck and Bus Regulation and the Heavy-Duty Vehicle Greenhouse Gas Emission Reduction Measure. Eligible purchases with loan proceeds include:
- Used and new tractors equipped with 2007 – 2009 model year engines certified to engine emission standards of 1.20 g/bhp-hr NOx and 0.01 g/bhp-hr PM or cleaner;
- New tractors equipped with 2010 and later model year engines certified to engine emission standards of 0.20 g/bhp-hr NOx and 0.01 g/bhp-hr PM or cleaner;
- New 2011 and later model year sleeper cab tractors that are U.S. EPA SmartWay certified (only applicable if the tractor is used to haul a 53-foot or longer box-type trailer) ;
- New 2011 and later model year 53-foot or longer box-type trailers that are U.S. EPA SmartWay certified;
- U.S. EPA Approved SmartWay aerodynamic technologies (examples: trailer side skirts, front trailer fairings, rear tail fairings, dual- or single-wide low-rolling resistance tires);
- ARB-verified diesel emission control devices (exhaust retrofits). For verified devices, please see ARB's Verified Technologies pages.