Proposed Updates to the Carl Moyer Memorial Air Quality Standards Attainment Program Guidelines, Chapter 4: On-road Heavy Duty Vehicles (Includes 11/19/2021 Board Approved Updates)

Summary of Proposed Updates and Approved Updates to the Carl Moyer Program Guidelines

Proposed Updates to Chapter 4: On-Road Heavy-Duty Vehicles

Chapter 4: On-Road Heavy Duty Vehicles (Proposed Updates in Strikeout and Underline)

The following sections highlight the major updates proposed for Chapter 4 of the Carl Moyer Program Guidelines for On-Road Heavy-Duty Vehicles. In general, staff expects the proposed changes would increase funding opportunities and participation, align the Guidelines to be consistent with Board priorities, and clarify requirements in order to simplify program administration. On-road heavy-duty projects funded under staff’s proposed changes would still need to meet the program’s Guideline requirements.

Staff’s proposed changes to address these remaining issues include:

  • Update Eligible Replacement and Repower Options
  • Increase Flexibility for Required Minimum Annual Usage in California
  • Air Districts Requirements:
    • Remove pre-dismantle inspection
    • Allowance of remote inspections procedures
    • Reimbursement adjustment to occur after dismantler accepts baseline vehicle
    • Allow limited delays in destruction of baseline vehicle at the dismantler if documented in file.
  • Dealership and Dismantler Requirements
    • Require dealerships work with air district to understand the program
    • Allowance of Air district authorized third party to deliver baseline vehicle to dismantler
    • Restrict delivery of baseline vehicle stripped for parts where dealership is responsible in ensuring integrity and dismantler has authority to reject

Board Approved Updates (Effective 11/19/2021)

Appendix C: Cost-Effectiveness Calculation Methodology (Board Approved Updates Effective 11/19/2021)

Chapter 4: On-Road Heavy Duty Vehicles (Board Approved Updates Effective 11/16/2021)

The Board approved increasing the cost-effectiveness thresholds to ensure the Carl Moyer Program continues to focus on developing the most advanced zero-emission and low emission technologies, consistent with encouraging further emissions reductions. Cost-effectiveness changes include:

Cost-Effectiveness (CE) Limit Types

Old CE Limits ($/ton)

New CE Limits ($/ton)

Base Limit

$30,000

$33,000*

Optional Advanced Technology Limit

$100,000

$109,000*

On-Road Optional Advanced Technology Limit – 0.02 g/bhp-hr or cleaner

$100,000

$200,000

On-Road Optional Zero-Emission Limit**

$100,000

$500,000

School Bus (combustion)

$276,230

$300,000*

*Adjusted for inflation only
**Includes zero-emission school buses

In general, staff also found substantially higher incremental costs for zero-emission vehicles and equipment in various applications and source categories due to lower volumes. As a result, the Board also approved increasing the maximum funding amounts that will ensure that those incremental costs can be covered by the program. Changes include:

  • Increase State Funding Caps
    • Optional Low NOx Replacements
      • MHD 0.02 g/bhp-hr from $80,000 to $120,000
      • HHD 0.02 g/bhp-hr from $100,000 to $160,000
    • Zero Emission Replacements or Conversions
      • LHD Truck or Bus from $80,000 to $170,000
      • MHD Truck or Bus from $150,000 to $180,000
      • HHD Truck or Bus from $200,000 to $410,000