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Goods Movement Emission Reduction Program

Intent or Criteria:  The $1 billion Proposition 1B:  Goods Movement Emission Reduction Program (Program) is a partnership between the State Air Resources Board (ARB) and local agencies (like air districts and seaports) to quickly reduce air pollution emissions and health risk from freight movement along California's trade corridors (map).  Local agencies apply to ARB for funding, then those agencies offer financial incentives to owners of equipment used in freight movement to upgrade to cleaner technologies.  Projects funded under this Program must achieve early or extra emission reductions not otherwise required by law or regulation.

Guidelines:  Program Guidelines for fiscal year (FY) 2007-08 funds adopted February 2008.

Project List:  FY2007-08 funds awarded to local agencies for projects to upgrade trucks, locomotives, and harbor craft, plus install electrical infrastructure for ships at dock and truck stop/distribution centers.

Program Status:  ARB awarded the first cycle of funds (FY2007-08) totaling $250 million through executed grant agreements with 9 local agencies that were signed in June 2008.  Implementation is underway.  The status of each grant is summarized on the attached July 2009 semi-annual update for the Department of Finance.

Through the State budget, ARB was appropriated the second cycle of funding ($250 million in FY2008-09) and the third cycle ($250 million for FY2009-10).  ARB will be updating the Program Guidelines to implement these cycles when bond funds become available.

Administrative Agency:  California Environmental Protection Agency / Air Resources Board

Recipient Agencies:  ARB awarded FY2007-08 funds to 9 local agencies.

Accountability Plan:  The Department of Finance approved ARB's three-part accountability structure for this Program, required by Executive Order S-02-07, in February 2008.

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Current Activities

Updates to Existing Grant Agreements (Board Action May 28, 2009)

Staff provided an update to the Board describing the changes needed to existing grant agreements to reflect the funding delay and other developments. The Board approved amendments to the Program Guidelines, transfer of funds to backup projects, and other changes to existing grant agreements to support implementation in Board Resolution 09-40. The limited modifications to the current Program Guidelines are for projects awarded first year (FY2007-08) funds – this is not the comprehensive update we are developing for the next funding cycles.

Installments of Bond Funding ($110 million to date)

ARB received the first installment of $20 million in bond funding to cover disbursements made prior to December 2008. ARB received the next installment of $90 million in bond funding in May 2009 to allow restart of some projects covered by signed grant agreements.

We have posted a list (PDF) showing how the $110 million in bond funds has been distributed to a subset of the projects covered by existing grant agreements. On June 26, 2009, ARB sent letters to local agencies authorized to restart projects with the available bond funds. Other projects will remain suspended until additional bond funds are available.

Suspension of Funding

On December 19, 2008 ARB staff instructed local agencies implementing Prop 1B grants that these agencies must suspend entering into new contracts that would be funded from Prop 1B grant monies or expending funds for signed contracts because ARB is not authorized to approve payments until we have access to funds to cover the Prop 1B programs.

• December 23, 2008 Letter Sent to Local Agencies (PDF)

Concepts for Update to Guidelines -- for future funding cycles

• Staff Draft Concept Paper (PDF)
• Staff Presentation for November 17-21, 2008 Workshops (PDF)

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Upcoming Events

Date / Time	Location	Agency / Organization	Purpose and link to more information
Summer 2009	Multiple (to be announced)	ARB	Public workshops on updates to Program Guidelines
Fall 2009	Sacramento	ARB	Board hearing to consider adoption of comprehensive updates to Program Guidelines

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Resources

Program Guidance and Program Requirements

• Program Guidelines that define the responsibilities of ARB, local agencies, and equipment owners, as well as the technical specifications and funding caps for eligible projects
• Board Resolution 08-12 and explanatory Staff Report (includes implementing legislation) on adoption of Program Guidelines and award of $25M in early grants
• Board Resolution 08-06 and explanatory Staff Report on award of $221M in FY2007-08 main grants
• Executive Order 08-012 approving requests by the Bay Area and San Diego air districts to defer early grant funds to main FY2007-08 grants
• Executive Order 08-011 changing the emission specifications for new switcher locomotives
• Executive Order 08-021 (in development) amending the scrappage and post-inspection requirements, including the timing
• ARB staff clarifications on Program requirements that address implementation questions posed by local agencies and equipment owners.
  
• Required information for lease-to-own truck programs that local agencies must provide to ARB and ARB must approve before the local agencies can receive Program funds for lease-to-own programs

Technical Tools and Documents

• Project Benefits Calculators to estimate the emission reductions and bond cost-effectiveness of proposed projects
• Trucks (MS Excel)
• Truck Stop / Distribution Center (MS Excel)
• Locomotives (MS Excel)
• Shore Power (MS Excel)
• Commercial Harbor Craft (MS Excel)
• Cargo Handling Equipment (MS Excel)
  
• ARB Executive Orders certifying new truck engines to show compliance with Program requirements
• ARB Executive Orders verifying diesel particulate filters to show compliance with Program requirements

Forms for Local Agencies

• Grant Expenditure Request form that local agencies use to request administrative and project funds from ARB under existing grant agreements
• Delegation of Authority to Submit Grant Expenditure Requests that local agencies can use to identify individuals authorized to sign these requests
• Compliance check template for local agencies to provide information to ARB to evaluate whether the equipment owner and/or piece of equipment have any outstanding violations of ARB regulations on record

ARB Program Contacts

• Sign up for our list serve gmbond for meetings notices and updates
• Email us at gmbond@arb.ca.gov
• Call the Goods Movement Information Line at (916) 44-GOODS (444-6637)

ARB Liaison to Each Trade Corridor:

• Bay Area:  Catherine Cardozo, Ph.D.
• Central Valley:  Ajay Mangat
• Los Angeles/Inland Empire:  Michael Ginty
• San Diego/Border:  Luis Woodhouse, Ph.D.

Additional Webpage Links:

• 2007 State Goods Movement Action Plan:  http://www.arb.ca.gov/gmp/gmp.htm
• 2006 ARB Emission Reduction Plan for Ports and Goods Movement (and rulemaking links):
  http://www.arb.ca.gov/planning/gmerp/gmerp.htm
• ARB diesel regulations and programs:  http://www.arb.ca.gov/diesel/diesel.htm
• Diesel-related activities and regulations:  (for all:  http://www.arb.ca.gov/diesel/mobile.htm)
• Port trucks:  http://www.arb.ca.gov/msprog/onroad/porttruck/porttruck.htm
• Other Trucks:  http://www.arb.ca.gov/msprog/onrdiesel/onrdiesel.htm
• Locomotives:  http://www.arb.ca.gov/msprog/offroad/loco/loco.htm
• Shore Power:  http://www.arb.ca.gov/ports/shorepower/shorepower.htm
• Harbor Craft:  http://www.arb.ca.gov/ports/marinevess/harborcraft.htm
• Cargo Handling Equipment:  http://www.arb.ca.gov/ports/cargo/cargo.htm
  
• Health risk assessments for goods movement facilities:
• Ports of Los Angeles and Long Beach 
• West Oakland
  
• Major rail yards  

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