The Air Quality Improvement Program (AQIP), established by the California
Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and
Carbon Reduction Act of 2007 (Assembly Bill (AB) 118, Statutes of 2007,
Chapter 750), is a voluntary incentive program administered by the
Air Resources Board (ARB or Board) to fund clean vehicle and equipment
projects, research on biofuels production and the air quality impacts
of alternative fuels, and workforce training.
expands ARB’s portfolio of air quality incentives, providing the
opportunity to fund projects that do not fit within the statutory
framework of existing incentive programs such as the Carl Moyer Air
Quality Standards Attainment Program (Carl Moyer Program), Goods
Movement Emission Reduction Program, and Lower-Emission School Bus
Program. These existing programs focus on near-term reductions to
reduce ozone and particulate matter pollution and cut exposure to
toxics. Statute provides much broader flexibility for
implementing the AQIP.
Each year, the Board will approve a
funding plan that serves as the blueprint for expending the AQIP funds
that are appropriated each year to ARB in the State budget. The
funding plan establishes ARB’s priorities for the funding cycle,
describes the projects ARB intends to fund, and sets funding targets
for each project. The funding plan is paired with regulatory
guidelines that direct ARB’s implementation of the AQIP. The
guidelines define the program’s structure and establish minimum
administrative and implementation requirements, providing the
overarching rules for how ARB will run this incentive program.
Each year staff will return to the Board for approval of the next
fiscal year’s funding plan and will update the
Board on the implementation of previous year’s projects.
On April 24, 2009, the Board adopted the AQIP Guidelines and approved the Funding Plan for Fiscal Year 2009-10, the second year of AQIP funding. The first year of AQIP funding was directed to ARB’s new Truck Loan Program
to assist truckers affected by the two ARB regulations adopted in
December 2008 – the Statewide In-Use Truck and Bus Regulation and the
Heavy-Duty Vehicle Greenhouse Gas Emission Reduction Measure.
Solicitations for the second year of AQIP funding will begin starting
the summer of 2009 with the Hybrid Truck and Bus Voucher Incentive
Project, which is the cornerstone of the fiscal year 2009-10
Assembly Bill (AB)
118: California Alternative and Renewable Fuel, Vehicle Technology,
Clean Air, and
Reduction Act of 2007
October 2007, Governor Schwarzenegger signed
(Nunez, Statutes of 2007), into law. AB 118
provides approximately $200 million annually
through 2015 for three new programs to fund air quality improvement
develop and deploy technology and alternative and renewable fuels. The
bill creates a
dedicated revenue stream
for the programs via increases to the smog abatement, vehicle
vessel registration fees. The
Quality Improvement Program will provide about
$50 million per year for grants to fund clean vehicle and
projects which reduce criteria and toxic air pollutants as well as
the air quality impacts of alternative fuels and advanced technology
program will be
administered by ARB. Statute
broad project types which are eligible for funding:
- On- and
off-road equipment projects.
- Projects to
mitigate off-road gasoline exhaust and evaporative emissions.
- Research on
the air quality impact of alternative fuels.
- University California research to increase
sustainable biofuels production and improve
- Lawn and
garden equipment replacement.
- Medium- and
heavy-duty vehicle/equipment projects including lower emission school
buses, electric or hybrid vehicles/equipment, regional air quality
programs in the most impacted parts of California.
training related to advanced technology to reduce air pollution.
- Projects to
identify and reduce emissions from high-emitting light-duty vehicles.
directs ARB to evaluate proposed projects based on potential
reduction of criteria or toxic air pollutants, cost-effectiveness,
to regional air quality improvement, and ability to promote the use of
alternative fuels and vehicle technologies.
also directs ARB to develop guidelines for the Air
Quality Improvement Program and Alternative and Renewable Fuel and
Technology Program to ensure that both programs complement efforts to
federal and state ambient air quality standards and to reduce air
guidelines must also ensure that projects
funded under each program maintain or improve upon the emission
air quality benefits in the State Implementation Plan for ozone and
and diesel fuel regulations.
and Renewable Fuel and Vehicle Technology
Program will provide about $120 million in annual incentive
develop and deploy innovative technologies that transform California’s
fuel and vehicle types to help attain California’s
climate change policies. Funding
in the form of grants, revolving loans, loan guarantees,
loans, or other appropriate measures. The
program will be administered by CEC.
Additional information can be found at CEC’s
AB 118 webpage.
Statute lists eleven broad
project types which are eligible
and renewable fuel projects to develop and improve low-carbon fuels,
including feedstock projects.
and deployment projects that optimize alternative and renewable fuels
for existing and development engine technologies.
- Projects to
produce alternative and renewable low-carbon fuels in California.
- Projects to
decrease impact of alternative and renewable fuels’ carbon footprint
and increase sustainability.
and renewable fuel infrastructure projects.
technology projects to improve fuel efficiency and lower greenhouse gas
- Projects to
accelerate the commercialization of vehicles and alternative and
for on- and off-road vehicles to improve fuel efficiencies.
projects that promote alternative and renewable fuel infrastructure
training related to alternative and renewable fuel and feedstock
- Block grants
to not-for-profit technology consortia for education, promotion, and
development of alternative and renewable fuels and vehicle technology
also directs CEC to create an advisory committee to
help develop an investment plan for the Alternative and Renewable Fuel
Vehicle Technology Program. The
group will include representatives from fuel and vehicle technology
labor organizations, environmental organizations, community-based
public health organizations, recreational boaters, consumer advocates,
institutions, workforce training groups, and private industry.
Fleet Modernization Program will provide
about $30 million per year for voluntary retirement of high
passenger cars and light- and medium-duty trucks. The program will be
administered by the
Bureau of Automotive Repair, but statute directs ARB to adopt