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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 December 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.

Current Activities

Drayage Truck Advisory Extension for Truck Replacements and Retrofits (Revised and Expanded) December 8, 2009

This advisory now applies to both existing drayage trucks with (1) committed incentive funding through Prop. 1B or a defined, closely related program, or (2) documentation submitted to ARB on or before December 31, 2009, of an order to purchase complying equipment with private or other funds.  Eligible trucks can continue to operate at ports and rail yards until the replacement truck or retrofit device is operational, but no later than April 30, 2010.  Please see advisory for specifics on eligibility and extension requests.

To support this advisory, local agencies may now use Prop. 1B funds after January 1, 2010 for retrofits on drayage trucks qualifying for the extension, provided that the retrofits are completed and operational no later than April 30, 2010.  Drayage truck replacement projects can continue to be funded with Prop. 1B monies in 2010.

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 ($241 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.  ARB is receiving the third and fourth installments of funding that total $131 million from the October and November 2009 bond sales, which will provide the balance of the project funding for FY2007-08 grants.  ARB continues to seek the remainder of administrative funding for these grants.

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.  ARB expects to send letters to local agencies to restart the remainder of the projects in December 2009.

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)

Upcoming Events

  • To be announced   

Resources

Program Guidance and Program Requirements Technical Tools and Documents
  • Directions for Project Benefits Calculators to estimate the emission reductions and bond cost-effectiveness of proposed projects
Forms for Local Agencies
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:

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