STAKEHOLDER CALL/MEETING TO DISCUSS AND PROVIDE INPUT ON ZEV INCENTIVE PROGRAM GUIDELINES CALIFORNIA AIR RESOURCES BOARD March 7,

Goals for Today’s Meeting Share preliminary draft staff proposals with Stakeholders Provide opportunity for Stakeholder Group input prior to development and public release of Guidelines Provide continuing opportunities for Stakeholder input

Call/Meeting Format Update on Program Activities Staff Proposal & Discussion –ZEV Grant Program (ZIP I and ZIP II) –Fleet Incentive Program Summarize Meeting & Identify Next Steps

Program Activities Update Public Workshop focused on fleet program held on January 10th Draft Guidelines scheduled for publication week of March 25th Board will consider staff’s proposed Guidelines at April Board Meeting –April 25-26th, in Sacramento

ZEV Grant Program ZIP I & ZIP II

ZEV Grant Program ZIP I and ZIP II ARB Staff Proposal –Program Administration –Eligible Vehicles –Eligible Applicants –Proposed Grant Amounts –Comments received to date Stakeholder Input/Discussion

ZEV Fleet Incentive Program Background Comments Received To Date Program Administration Eligibility Requirements Project Evaluation

ZEV Fleet Incentive Program Background

Legislative Direction Implement ZEV grant program for fleets operating in nonattainment areas $10 million appropriated/ up to $11,000/vehicle Award grants through a competitive bid process Give preference to communities that are disproportionately impacted by poor air quality, including low income communities & communities of color

Proposed Program Goals Implement an incentive program for ZEVs for fleets that operate in the geographical areas of the State with the worst air quality Promote the deployment of ZEVs in communities that are disproportionately impacted by poor air quality, including low income & communities of color Encourage projects that showcase ZEV technology to communities, or include education on the benefits of ZEV technology Support Full Function ZEVs or ZEVs with full function characteristics

Environmental Justice Policy State law defines Environmental Justice as “the fair treatment of people of all races, cultures, and incomes with respect to the development adoption, implementation, and enforcement of environmental laws, regulations and policies”

ARB Environmental Justice Policy Broad ranging Environmental Justice policies adopted by ARB in Dec 2001 Commit to integrate Environmental Justice into all of ARB programs Implementation coordinated with California’s 35 air districts ZEV and other incentive programs are an important part of our Environmental Justice program implementation

ZEV Fleet Incentive Program Comments Received to Date

Fleet Definition Need for flexibility to encourage local business participation Timing of Grant solicitation and fund encumbrance –accommodate local government funding cycles & vehicle availability hurdles

ZEV Fleet Incentive Program Staff Proposals for Program Administration

Each Solicitation Period Has Three Different Stages Pre-Solicitation-- Comprehensive outreach effort with Stakeholders, including Pre- Solicitation Workshops to Inform Fleets About ZEVs and grant opportunities Solicitation --60 day period in which all interested parties can submit an application Grant Allocation-- Applications reviewed and successful applicants notified. Grants payments when all required documentation is submitted

Roles and Responsibilities Program administered at state level by ARB in conjunction with Program Partners and Program Sponsors ARB Program Manager Program Partners -- Air District or other public agency that agrees to work with ARB to implement program in their area or jurisdiction Program Sponsors-- An organization that is willing to support the program, including outreach efforts

Project Review Process Completeness Determination –Applicants notified & given additional opportunity to provide missing information Eligibility Determination –Program Manager in consultation with Program Partners –Appeal process Project Evaluation –All projects reviewed that meet eligibility requirements –ARB Technical Committee in consultation with Program Partners

Grant Allocation Process Successful applicants notified by Program Manager Grant Agreement signed by ARB and by Applicant –Encumbers funds (6-12 months proposed by staff) to accommodate project implementation needs & vehicle availability Grant payments made when required documentation submitted –Payment options: direct to applicant or assign to dealer/auto manufacturer

Discussion Program Administration

ZEV Fleet Incentive Program Staff Proposals for Eligibility Requirements

Proposed Eligibility Requirements Applicant Eligible Fleet Nonattainment area Environmental Justice Criteria Eligible Vehicle Project Administration (larger projects)

Applicant All applicants must fall into one of the following categories –Public Agency (Federal, State, Local) –Business or Corporation –Sole Proprietor –Estate, Trust, or Non-Profit Organization –Private individuals are not eligible A typical applicant would apply for grants for vehicles they will use in their own fleet- -but they could also place and manage vehicles in other fleets

Eligible Fleet Fleet vehicle is defined as a vehicle used for the purposes of conducting business Eligible fleet is defined as any eligible applicant that currently has two or more fleet vehicles –Staff is soliciting comments on defining fleet as any eligible applicant that currently has one or more fleet vehicles –Staff proposes to exempt (from the two or more vehicle requirement) any project where applicants are placing vehicles with organizations other than their own

Other Eligibility Requirements Nonattainment –Vehicle must be garaged in area designated nonattainment for federal ozone standard Vehicle Eligibility –Same as ZIP II ZEV Grant vehicle requirements, but grant amounts differ Project Administration ( Additional Info ) –Supplemental Page to Standard Application –Ensure that funds are encumbered for projects with greatest potential for implementation –State/Federal projects, projects with >10 vehicles

Environmental Justice Vehicle must be garaged in area that meets Environmental Justice criteria ARB staff recommends that criteria include both air quality and economic factor Ask Air District Partners to develop criteria for their area –Districts encouraged to provide information on maps to make it easy for interested applicants to determine if they meet criteria ARB staff proposes that Guidelines include default criteria for areas that do not wish to develop their own criteria

Discussion Eligibility Requirements

ZEV Incentive Program For Fleets Staff Proposals for Project Review & Evaluation Process

Proposed Project Criteria Environmental Justice Criteria Vehicle Miles Traveled Public Education Program Partnerships Vehicle Application/Uses Current concept for scoring –All eligible projects begin with 40 –EJ criteria counts 20, other categories 10 –Total score is 100

Project Evaluation Process Types of Projects--Community & Fleet Use Project Criteria to evaluate and score projects Allocate grants to highest ranking applications Staff proposes that minimum baseline grant funds be allocated to all eligible areas of state and reallocated if insufficient projects in an area

Evaluation/Award Process ARB Technical Committee Program Partners evaluate projects within their jurisdiction Review by ARB/EO Applicants not awarded grants provided assistance with obtaining grant through ZEV Grant Program, ZIP I or ZIPII

Discussion Project Evaluation Process

ARB Staff Contacts ZEV Grant Program: –Judy Yee (916) or Fleet Program: –Gayle Sweigert (916) or