Proposition 1B:Grants for FY2007-08 Funds

to Reduce Emissions From Goods Movement

California Environmental Protection Agency

Air Resources Board

Board Hearing

May 22, 2008 - Fresno

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OVERVIEW

• Program background• Application process• Staff proposal• Recommendation for Board action

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Proposition 1B: Goods MovementEmission Reduction Program

• $1B to achieve emission reductions from freight movement in trade corridors

• FY2007-08 budget provided first $250M• ARB adopted Guidelines in February,

plus funding targets and priorities• Two-step competitive process

– ARB grants $ to local agencies

– Local agencies provide $ to equipment owners

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45/20/2008

+ Port Hueneme

Trade Corridors

BayArea

Central ValleySJV Air Basin

+ Sac Region

LA/Inland EmpireSouth Coast Air Basin

San Diego/BorderSan Diego + Imperial Counties

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Funding Categories

• Heavy diesel trucks serving ports & intermodal rail yards

• Other heavy diesel trucks, plus electrification of truck stops, distribution centers, etc.

• Freight locomotives• Shore power for cargo ships,

plus cargo handling equipment• Commercial harbor craft

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FY2007-08 Funding: $250M

$221.6M: Grants to local agencies

$25M: Early grants to air districts

$3.4M: ARB administration (1.4%)

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FY2007-08Funding Priorities

• Eligible projects ready for quick implementation

• Truck retrofit projects to add diesel PM filters

• Truck replacement at the Ports of LA/Long Beach

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Applications for $221M

$268.1MCentral Valley

$33.1MBay Area

$15.8MSan Diego/Border

$732.0MTotal

$415.0MLos Angeles/Inland Empire

Funds Requested

Trade Corridor

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ARB Application Review Process

• Evaluated eligibility and compliance with Program Guidelines

• Requested clarifications and updates • Posted applications for public review• Scored using competitive ranking process

(as applicable)• Developed preliminary recommendations

on which projects to fund and at what level

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Public Workshops

• Staff held workshops April 28th-May 2nd to discuss preliminary funding recommendations

– Fresno– Oakland

– Long Beach– San Diego

– Sacramento

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Staff Proposal

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Starting Point

• Divide the $221M based on the corridor targets approved by the Board

$13M6%San Diego/Border

$31M14%Bay Area

$55M25%Central Valley

$122M 55%Los Angeles/Inland Empire

Bond $TargetCorridor

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Proposal by Category

$4.3M17Harbor Craft

$221.6M8,267Total

$2.5M1Shore Power + Cargo Equipment

$16.5M18Locomotives

$89.1M

$109.2M

Bond $ Proposed

4,649Other Trucks + Electrification

3,582Trucks Serving Ports & Rail Yards

#Category

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Emission Reductions of Proposal

1172,620$13.2MSan Diego/Border

1,83926,940$221.6MTotal

Reductions (tons)

5,650

6,510

12,160

NOx

363$31.1MBay Area

608$55.3MCentral Valley

751$122.0MLA/Inland Empire

PMBond $Trade Corridor

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Benefits of Staff Proposal

• Prioritizes truck retrofits and port truck replacement to quickly reduce health risk

• Directs 94% of funds to cleaner trucks and locomotives that may travel in multiple corridors

• Reduces 26,900 tons of NOx and 1,800 tons of diesel PM statewide

• Leverages $1.5 of match funding for every $1 of State funds invested

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Local Agency Project Backup List

• Backup projects in case local agency grant agreements cannot be executed or additional funding becomes available

• Priority for backup projects– Same corridor and category

– Same corridor – Other submitted projects

• To be implemented by Executive Officer

Los Angeles/Inland Empire Corridor ($122M)

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Proposal for LA/Inland Empire

$122.0M$415.0MTotal

---$3.9MCargo Equip

---$5.2MHarbor Craft

---$5.1MShore Power

$3.1M$6.2MLocomotives

$18.3M$90.1MOther Trucks+ Electrification

South Coast District

$2.6M$83.5M

LA/LB Ports$98.0M$221.0MPort & Rail Yard Trucks

Local Agency

Bond $ Proposed

Bond $ Requested

Category

Central Valley Corridor ($55M)

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Proposal for Central Valley

$55.3M$268.1MTotal

$10.3M$10.3MLocomotive(multi-corridor line haul)

Sacramento District

$4.5M$8.4M

SJV District $40.5M$249.4MOther Trucks

Local Agency

Bond $Proposed

Bond $ Requested

Category

Bay Area Corridor ($31M)

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Proposal for Bay Area

$31.1M$33.1MTotal$4.3M$4.3MHarbor Craft

$3.1M$3.1MLocomotives (switcher)

$17.4M$19.4MOther Trucks Bay AreaDistrict

$6.3M$6.3MPorts & Rail Yard Trucks

Local Agency

Bond $ Proposed

Bond $ Requested

Category

San Diego/Border Corridor ($13M)

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Proposal for San Diego/Border

$5.5M

$13.2M$15.6MTotal

SD Port$2.5M$2.5MShore Power

Imperial District

$3.1M

$5.3M$5.3MOther Trucks

San Diego District

$2.3M$2.3MPort & Rail Yard Trucks

Local Agency

Bond $ Proposed

Bond $ RequestedCategory

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Schedule

• Begin local agency equipment project solicitation

• Begin local agency contracts with equipment owners

Summer

Summer/ Fall

• Hold Board hearing to update Guidelines for next funding cycle

Fall

• Sign grant agreements with local agencies

June

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Recommendation

Staff recommends that the Board:

Adopt Resolution 08-6 with the final list of local agency projects to receive FY2007/08 funding under the Program