Proposition 1B: Goods Movement Emission Reduction Program

​Status: Closed

The Proposition 1B: Goods Movement Emission Reduction Program (Proposition 1B) was developed by the Air Resources Board to implement $1 billion in incentive funds to reduce emissions from goods movement in the state of California. They developed guidelines to encourage the use of cleaner trucks, locomotives, marine vessels, cargo equipment, and other technologies to reduce toxic and smog-forming pollution from these sources. The Sac Metro Air District has over $4 million remaining to fund new projects under this option. Specifically, applications will be accepted for:

• Heavy Duty Diesel Trucks
• Locomotives and Railyards
• Transport Refrigeration Units

Based on application demand, staff will allocate funding between the categories. Community Air Protection Incentives can also be used to fund Heavy Duty Diesel Truck applications that benefit the Florin-South Sacramento AB617 Community or Disadvantaged Communities (DAC) in Sacramento and Yolo/Solano Air Districts. All applications use the same evaluation and funding criteria, but applicants in the AB617 or Disadvantaged Communities are especially encouraged to apply.

Heavy Duty Diesel Trucks
Old Truck Eligibility:

• Class 5 & 6 Trucks must have a 1998-2007 model year engine with a diesel particulate filter installed and reported to the ARB or have a 2007-2009 model year engine. The old truck must operate at least 10,000 miles per year in California.
• Class 7 & 8 Trucks must have a 2005-2006 model year engine with a diesel particulate filter installed and reported to the ARB or have a 2007-2009 model year engine. The old truck must operate at least 20,000 miles per year in California.

• The applicant must be the legal and registered owner of the truck with no liens
• The old truck must be used to transport goods to an end user for a fee
• Minimum of 75% of operation in California in the previous 2 years including California registration

 New Truck Eligibility:
The new truck must be in the same weight class as the old truck. Funding is not available for purchasing new diesel trucks, except for certified hybrids. For this solicitation, only the following technologies will be funded:

1. Zero Emission Trucks (battery-electric or hydrogen fuel cell)
2. Hybrid Diesel Truck with Zero Emission Miles
3. Optional Low NOx Truck (0.02 g/bhp-hr NOx)
4. Hybrid Diesel Truck without Zero Emission Miles (except 2005-2006 Class 7/8)
5. Natural Gas Truck (0.20 g/bhp-hr NOx – except 2005-2006 Class 7/8)

The new truck must commit to 5 years of operation in California under contract. Applicants should be aware of new public CNG fueling infrastructure being planned in the Sacramento region for West Sacramento, McClellan Park, and Metro Air Park in addition to existing stations in Elk Grove and Florin-Perkins, and Lathrop.

Funding for the new vehicle will be up to the following:

As of today, new vehicles must be delivered by December 31, 2021. Staff are working to extend this deadline with the ARB, but please plan on having applications capable of meeting this deadline.

Locomotives and Railyards

The Sac Metro Air District will accept applications for all project categories in the 2015 Guidelines for Locomotives and Railyards. Applications will be evaluated and funded according to the guidelines. Generally, applicants must convert older diesel line haul or switcher locomotives to modern Tier 4 standards and commit to operate the new technology in California. Please contact staff if you want to apply for this option for further details.

Transport Refrigeration Units

The Sac Metro Air District will accept applications for all project categories including zero emission transport refrigeration units and/or infrastructure. Applicants can be the end user or a third party who will operate the technology, including but not limited to electric utilities and distribution centers. Only full zero emission technology is eligible for funding. Please contact staff if you want to apply for this option for further details.

Application Process

Due to the COVID-19 pandemic, the Sac Metro Air District is closed to the public with most employees working remotely. This means our incentive solicitation will need to use digital methods as much as possible to ensure compliance with public health orders while providing the best possible customer service. Applicants will need to submit their applications electronically through the District's website.

The application period opens on March 29, 2021 and ends on May 28, 2021. Applicants will enter most of the information through the online form found on each program page and upload attachments as needed for each funding stream. Once complete, applicants will receive an email showing their application was received. The Sac Metro Air District recommends that applicants keep a copy of all application records. It is also recommended that applicants use a PDF app for their Apple or Android phones that can convert pictures into PDF to make the process easier.

Staff may begin contacting applicants before the application period is complete about their project. Some projects may have enough community benefit that awards may be issued prior to the end of the solicitation, but most projects will be evaluated later. Projects with an award greater than $1 million will require approval by the Sac Metro Air District Board of Directors. This may delay projects as the board meets monthly and does not meet in June 2021.

Applications missing information may be given 30 days to submit any incomplete or ineligible documents. Staff may also request additional information from applicants if needed to evaluate the project. If a project is selected for funding, the project may require a pre-inspection where the applicant will be contacted by one of our staff to coordinate a virtual inspection of the equipment. In some cases, the applicant will be offered an award lower than the amount requested in the application or the maximum grant for the project. This reduction is done if the Sac Metro Air District does not have enough funding for the project or staff determines that the application does not qualify for full funding.

If selected for funding, applicants will enter into a funding agreement with the Sac Metro Air District. The agreement will match the individual or business entity listed on the application and Payee Data Record.

Applicants must be compliant with state and local air quality regulations and will be checked. Most agreements have a term of 5 years with annual reporting requirements and penalties for non-compliance. Participants can transfer their agreements to other parties if in the best interest of air quality in the region. On-road vehicle projects require the Sac Metro Air District to be listed a lien holder on the title, and all other projects require a UCC filing to secure interest in the equipment. These are released at the end of the agreement.

For Proposition 1B projects, staff will also rank projects according to the process outlined in the state guidelines. Truck projects may also be funded using Community Air Protection Incentives based on community benefit. If projects are selected for Community Air Protection Incentives, additional review and ranking may be necessary to comply with those guidelines. Applicants will be informed of this in advance to mitigate delays. 

Applications not selected for funding will be placed in a pending file for future funding opportunities. If an applicant does not want their application to be held, she or he must contact the Sac Metro Air District to withdraw their application. The Sac Metro Air District may also forward applications to other agencies who may have funding for the project. Please contact staff if you have any questions about the application process.

Online Application