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newsrel -- ARB launches loan program for off-road diesel vehicles

Posted: 10 May 2011 12:30:28
Federal funding to help California businesses upgrade to cleaner
diesel vehicles 

. 

Release #11-17
Date:05/10/2011

ARB PIO: (916) 322-2990
CONTACT:  Mary Fricke
         (916) 322-2638
         mfricke@arb.ca.gov

ARB launches loan program for off-road diesel vehicles 

Federal funding to help California businesses upgrade to cleaner
diesel vehicles 

SACRAMENTO - 
The Air Resources Board is offering $5 million from the federal
government’s American Recovery and Reinvestment Act to assist
California small businesses replace, repower or retrofit their
off-road diesel vehicles. 

ARB has partnered with the California Pollution Control Financing
Authority, part of the State Treasurers Office, to offer loan
assistance to help small businesses upgrade their off-road diesel
vehicles used in construction, agriculture, mining and industrial
operations.  The objective of the program is to encourage early
compliance with ARB’s off-road diesel regulation. 

“Small businesses can take advantage of the loan program and
modernize their vehicles improving air quality and public health
ahead of state deadlines,” said ARB Chairman Mary D. Nichols. 
“This funding program comes at a time when small businesses are
trying to survive in a tough economy.” 

ARB forecasts 320 loans will be issued under this loan assistance
program to small businesses who cannot obtain financing for
upgrading their off-road vehicles through conventional methods.

“Assisting small businesses is an important part of getting
California’s economy back on track,” said State Treasurer Bill
Lockyer, Chair of CPCFA.  “This funding will help us achieve that
goal and at the same time help rid the air of harmful
pollutants.”

Eligibility requirements for the loan assistance program are:
• The company must be a small business with 500 or fewer
employees;
• The majority of the employees must live in California;
• Most of the business operation takes place in California;
• Fleets of all sizes are eligible; and,
• The business owner has a Diesel Off-Road On-line Reporting
System, or DOORS, identification number.

The California Pollution Control Financing Authority will process
the loans through its existing California Capital Access Program,
or CalCAP.  Interested borrowers can apply for a loan by
completing an application at a participating CalCAP Off-Road
Lender. The lenders determines the applicant’s eligibility for a
loan.  For vehicle purchase or engine replacements, the borrower
or dealer must provide to CalCAP verification of destruction of
the older engine within 90 days of the loan date.

Loan assistance is available to cover any or all of the
following:
• Engine repowers: Upgrades to a cleaner Tier 2 to Tier 4 engine,
that is either a ARB-certified or remanufactured engine;
• Replacement of an older vehicle with one of the same type and
similar horsepower that is equipped with a cleaner Tier 2 to Tier
4 engine; and,
• ARB-verified diesel emission control devices or exhaust
retrofits.

In addition, applicants may apply for projected maintenance costs
for exhaust retrofits, installation and extended warranties for
purchased vehicles.

Diesel exhaust contains a variety of harmful gases and over 40
other known cancer-causing compounds. In 1998, California
identified diesel particulate matter as a toxic air contaminant
based on its potential to cause cancer, premature death and other
health problems. In 2000, the ARB established California's Diesel
Risk Reduction Plan, which aims to reduce diesel emissions to 85
percent below 2000 levels by 2020.

For more information on the off-road vehicle loan program, go to
http://www.arb.ca.gov/msprog/ordiesel/documents/calcap_ag_off_road.pdf
 or call 1-866-6DIESEL or email at 8666diesel@arb.ca.gov.

 

ARB's mission is to promote and protect public health, welfare,
and ecological resources through effective reduction of air
pollutants while recognizing and considering effects on the
economy. The ARB oversees all air pollution control efforts in
California to attain and maintain health based air quality
standards.


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