1. 2015 Northern California Clean Cities Funding Workshop Low Carbon Transportation Investments and Air Quality Improvement Program (AQIP) July 9, 2015 1

2. Fiscal Year 2015-16 Budget Low Carbon Transportation $350 million to ARB to accelerate transition to low carbon freight and passenger transportation ‒ Increased from $200 million last year ‒ Subject to legislative approval AQIP $23 million to ARB for AQIP projects ‒ Consistent with recent years 2

3. FY 2015-16 Low Carbon Transportation and AQIP Allocations $200 million for light-duty projects $167 million for heavy-duty vehicle and equipment projects Low Carbon Transportation investment targets ‒ At least 50 percent of funds to benefit disadvantaged communities ‒ At least 10 percent of funds invested in disadvantaged communities 3

4. Access to Programs and Funds Businesses / Residents Grantees (public agencies / non-profits) ARB Low Carbon Transportation Projects 4

5. Light-Duty Vehicle Funding 5 Project FY 2014-15FY 2015-16 Clean Vehicle Rebate Project$121 M*$163 M Pilot Projects to Benefit Disadvantaged Communities Increased Public Fleet Incentives$3 M$5 M EFMP Plus-up$2 M$20 M Car Sharing and Mobility Options$2.5 M$5 M Financing Assistance$1.5 M$4 M Agricultural Worker Vanpools in San Joaquin Valley (new) -$3 M TOTAL$130 M$200 M *Includes $5 M from Energy Commission.

6. CVRP: Advancing the ZEV Market 6 Accelerates consumer adoption of zero-emission passenger cars Supports ZEV deployment goals 110,000 rebates for $230 million since 2010 Early-stage market, public support still needed

7. Light-Duty Pilot Projects to Benefit Disadvantaged Communities Expands funding for last year’s projects $37 million in funding consistent with SB 1275 provisions 7

8. Heavy-Duty Vehicle and Equipment Funding 8 Project FY 2014-15FY 2015-16 Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) $10 M$12 M Zero-Emission Truck Commercial Deployment $25 M $20 M Zero-Emission Bus Commercial Deployment (includes new rural school bus funding) $45 M Low NOx Truck Incentives (new) -$7 M Advanced Technology Demonstrations $50 M$59 M Zero-Emission Freight Equipment Commercial Deployment (new) -$9 M Truck Loan Assistance Program $10 M$15 M TOTAL$95 M$167 M*

9. Funding for clean trucks and buses Vouchers reduce purchase price or lease cost New for FY 2015-16 ‒ $12 million budget ‒ Add eligibility for vehicle conversions Funding available now! http://www.californiahvip.org/ 9

10. 10 Eligible Trucks & Buses Partial list

11. 11 Electric Trucks & Buses

12. 12 Hybrid Vehicles

13. Zero-Emission Truck and Bus Pilot Commercial Deployment Complements HVIP by supporting larger-scale deployment of zero-emission trucks and buses ‒ Fueling/charging infrastructure eligible New for FY 2015-16 ‒ $20 million for trucks and $45 million for buses ‒ Includes $5 million for rural school buses Combined solicitation with FY 2014-15 funds, timed to maximize leveraging of federal funds 13

14. Low NOx Truck Incentives $7 million for new project category Incentives for trucks certified to optional low NOx engine standards adopted in 2013 ‒ Encourage manufacturers to bring vehicles to market ‒ Low carbon renewable fuel element to maximize GHG benefits Coordinate with Energy Commission on implementation 14

15. Advanced Technology Demonstration Projects Status of FY 2014-15 funding ‒ Solicitations for zero-emission drayage trucks and multi-source facility projects released in June 2015 New funding for FY 2015-16 ‒ $59 million for new demonstration projects ‒ Complements FY 2014-15 funding ‒ Support priorities identified in draft Sustainable Freight document and Heavy-Duty Technology and Fuels Assessment ‒ All projects must benefit disadvantaged communities 15

16. Advanced Technology Freight Demonstrations Zero-Emission Drayage Truck Demonstration Project ‐ $25 million ‐ Demonstration of pre-commercial drayage truck technologies Multi-Source Facility Demonstration Project ‐ $25 million ‐ Large scale demonstrations of multiple types of equipment that employ zero- and near zero- emission technologies and infrastructure 16 Solicitations Open NOW!

17. Advanced Technology Freight Demonstrations Project CategoryDemonstration Projects FY 2015-16 Funding 1 (million) On-Road Trucks Intelligent Truck Systems and Connected Vehicles $30 Advanced Engines and Powertrains Zero-Emission or Near-Zero Emission Short and Regional Haul Trucks Freight Locomotives Zero-Emission or Near Zero-Emission Switchers $10 Zero-Emission Tender Technologies Off-Road Freight Equipment Zero-Emission Cargo Handling Equipment $10 Zero-Emission Ground Support Equipment Advanced Port Equipment Non-Freight Off-Road Equipment Off-Road Near-Zero Agricultural and Construction Equipment$9 Off-Road Passenger Transportation Total Allocation for Demonstration Projects$59 17 Coming Soon!

18. Zero-Emission Freight Equipment Pilot Commercial Deployment $9 million proposed for new project category Incentives for commercially available zero- emission equipment used in freight operations ‒ Pilot to evaluate optimal way to deliver incentives ‒ Envision evolving into first-come, first-served voucher program 18

19. Want More Details? Heavy Duty Projects Peter Christensen, Manager Innovative Heavy-Duty Strategies Section peter.christensen@arb.ca.gov (916) 322-1520 Public Fleet Incentives and Car Sharing Lisa Macumber, Manager Innovative Light-Duty Strategies Section lisa.macumber@arb.ca.gov (916) 323-2881 EFMP Plus Up & Financing Assistance Sam Gregor, Manager Planning and Regulatory Development Section sam.gregor@arb.ca.gov (916) 323-0005 Lucina Negrete, Chief Innovative Strategies Branch lucina.negrete@arb.ca.gov (916) 445-6138 Air Quality Improvement Program and Low Carbon Transportation webpage: http://www.arb.ca.gov/msprog/aqip/aqip.htm HVIP Website: http://www.californiahvip.org CVRP and Fleet Incentives Website: http://energycenter.org/clean-vehicle-rebate-project ARB Disadvantaged Community Investment Guidance and Maps: http://www.arb.ca.gov/cc/capandtrade/auctionproceeds/535investments.htm 19