July 21, 2022 Public Workshop on the Fiscal Year 2022-23 Funding Plan for Clean Transportation Incentives

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June 21, 2022

Public Workshop on the Fiscal Year 2022-23 Funding Plan for Clean Transportation Incentives

Public Workshop on July 21, 2022


The California Air Resources Board (CARB or Board) invites you to participate in the second public workshop on the Fiscal Year (FY) 2022-23 Funding Plan for Clean Transportation Incentives. The Draft FY 2022-23 Funding Plan will describe CARB’s portion of the multi-agency zero-emission vehicle (ZEV) package, as a part of the May revision to the Governor’s proposed 2022 State budget. The May revision to the Governor’s proposed budget includes a total of $6.1 billion over multiple years through FY 2025-26 to accelerate ZEV transportation, with a focus on the communities most impacted by pollution. This proposal builds upon the
$3.9 billion multi-year commitment to ZEV acceleration approved in the 2021 Budget, for a total investment to $10 billion over 5 years to decarbonize California’s most polluting sector and improve public health. This funding will be administered by CARB, the California Energy Commission, the California State Transportation Agency, and Go-Biz.

In the Legislative version of the FY 2022-23 State Budget released in June 2022, the Legislature stated that it would approve the total new ZEV funding level of
$6.1 billion proposed by the Governor, but it would defer considering the detailed program level appropriations until later in the 2022 Legislative session. Because the Legislature has not yet released its detailed proposal for program level appropriations, CARB staff will present the program level appropriations included in the May revision to the Governor’s proposed budget. This includes approximately $1.84 billion for Clean Transportation Incentives, which is comprised of funding that the Governor has proposed to accelerate into FY 2021-22 and funding for
FY 2022-23. This year’s draft Funding Plan includes funding from the Cap-and-Trade Expenditure Plan, the General Fund, and the Air Quality Improvement Fund.

The workshop meeting will be held via Zoom webinar at the following date and time:

Date:            Thursday, July 21, 2022
Time:            10:00 a.m. to 3:00 p.m. (PT)
Location:      Webinar/Teleconference

Please register for the Clean Transportation Incentives Funding Plan Workshop Webinar. After registering, you will receive a confirmation email with information about how to join the webinar by computer or by telephone.

Register

This meeting will be recorded. A link to the recording will be available two weeks after the meeting date on the Low Carbon Transportation Investments Meetings and Workshops page.


Purpose of Workshop

This is the second public workshop in a series of workshops and work group meetings on development of the FY 2022-23 Funding Plan for Clean Transportation Incentives. Staff will discuss and seek input on the options for expending CARB’s portion of the May revision to the Governor’s proposed
FY 2022-23 budget, which includes approximately $1.84 billion in funding for Clean Transportation Incentives. These funds include a total of $925 million for clean transportation equity programs established under Senate Bill (SB) 1275,
$890 million proposed for heavy-duty zero-emission programs, and $28.64 million for the Air Quality Improvement Program (AQIP) from the Air Quality Improvement Fund. Staff will also present and request input on potential refinements and policy recommendations for ongoing projects.

The workshop agenda is now available, and a presentation will be available one day in advance. In addition, the Draft FY 2022-23 Funding Plan for Clean Transportation Incentives outlining staffs’ initial proposals on project categories, funding allocations, and project criteria for this funding will be posted a one week prior to the workshop on CARB’s Low Carbon Transportation/AQIP website.

All interested stakeholders are invited to attend.

More Information


Background

Air Quality Improvement Program: AQIP is a voluntary, mobile source incentive program that focuses on reducing criteria pollutant and diesel particulate emissions with concurrent reductions in greenhouse gas emissions. The May revision to the Governor’s proposed State budget includes $28.64 million for AQIP. AQIP has provided funding for the Clean Vehicle Rebate Project, truck and bus vouchers, advanced technology demonstrations, and the Truck Loan Assistance Program since 2009.

California Climate Investments Low Carbon Transportation Funding: The Low Carbon Transportation program is part of California Climate Investments, a statewide program that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment, particularly in disadvantaged communities. These investments accelerate the transition to low carbon freight and passenger transportation with a priority on providing health and economic benefits to California’s most disadvantaged communities. To date, over 57 percent of CARB’s Low Carbon Transportation funding has been in or benefitting low-income and disadvantaged communities, including low-income households.

The May revision to the Governor’s proposed State budget includes approximately $676 million in Cap-and-Trade auction proceeds for the Low Carbon Transportation Program. This amount has been further suballocated to provide $76 million for vehicle purchase equity incentives established under SB 1275, $600 million for clean trucks, buses, and off-road equipment. In addition, this year’s proposal is being augmented by an additional $1.14 billion from the General Fund that was approved as a part of last year’s budget to equitably develop the ZEV market. This additional funding is described below.

General Fund: This year’s May revision to the Governor’s proposed State budget proposes significant funding from the General Fund to supplement funding from the Low Carbon Transportation Investments to build upon previous investments and provide the additional resources necessary to accelerate the ZEV transition, both in the light-duty and heavy-duty transportation sectors. For FY 2022-23, the May revision to the Governor’s proposed State budget includes General Fund appropriations to CARB of $430 million for vehicle purchase equity incentives established under SB 1275, $419 million to support zero-emission mobility equity projects, $280 million to support zero-emission drayage trucks, school buses, and transit buses, and a total of $10 million to support emerging opportunities in the zero-emission heavy-duty sector.

Annual Funding Plan: The annual funding plan is each year’s blueprint for expending Low Carbon Transportation and AQIP funds appropriated to CARB in the State budget. The plan describes CARB’s policy drivers and vision for advanced technology mobile source investments, eligible project categories and criteria, project funding allocations, program implementation details, and the justification for these investments.

Contact

If you have questions regarding the workshop, please contact Ms. Graciela Garcia, Air Pollution Specialist.

If you require a special accommodation or need this document in an alternate format (i.e., Braille, large print) or another language, please send an email to Clean Transportation Incentives, as soon as possible. TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service.