Background
To achieve California’s federally mandated air quality targets and State directed climate change goals, CARB has adopted a holistic, multipronged strategy that uses incentives to complement its regulatory approaches. Annually, the State Legislature appropriates funds to CARB for certain programs, purposes, or a portfolio of incentive projects, and each project plays a unique role to improve air quality, enhance community protection, and reduce harmful emissions. The portfolio of incentives includes continually funded programs like the Carl Moyer Memorial Attainment Program and the Air Quality Improvement Program (AQIP), along with annually appropriated programs like the Low Carbon Transportation Incentives, Funding Agricultural Measures for Emission Reductions (FARMER), and the Community Air Protection (CAP) Program. Over the last 25 years, $12 billion dollars have been invested, achieving over 11 million metric tons of greenhouse gas emission reductions.
Since 2009, CARB has received an annual appropriation from the Air Quality Improvement Fund (AQIF) to support projects in AQIP. The AQIP regulation requires CARB to develop a funding plan to allocate funds to incentive projects. These incentive projects are designed to support the deployment of the cleanest available technologies – in many cases zero-emission – across multiple sectors. AQIP has traditionally supported a diverse portfolio of technologies at different stages of commercialization, with investments shaped by legislative direction and statewide policy goals. The Proposed AQIP Funding Plan builds on this broader portfolio by outlining CARB’s policy drivers and implementation approach specific to AQIP. Legislative direction requires AQIP funding to support incentive projects that advance the State’s emission reduction goals, as identified in the Climate Change Scoping Plan, State Implementation Plans, and California Sustainable Freight Action Plan, as well as Sustainable Communities Strategies pursuant to SB 375. Current legislative and executive direction, including Governor Newsom’s Executive Orders N-79-204 and N-27-25,5 continue to emphasize accelerating the development and deployment of the cleanest feasible mobile source technologies while improving equitable access to clean transportation. Consistent with these directives, AQIP investments incorporate equity-focused strategies, including engagement with overburdened communities and California Native American Tribes, and targeted support for populations disproportionately impacted by air pollution and climate change.
In FY 2025-26, the budget bills passed by the Legislature and signed by the Governor appropriated approximately $35 million to CARB in the Proposed AQIP Funding Plan for Board approval. For FY 2026–27, the Governor’s proposed budget, released in January 2026, included approximately $35 million for AQIP. Together, these amounts total approximately $70 million proposed for Board approval in this Funding Plan.
Written Comment Period & Comment Submittal
In accordance with the Administrative Procedure Act, interested members of the public may present comments orally or in writing at the hearing and may provide comments by postal mail or by electronic submittal before the hearing. The public comment period for this regulatory action will begin on May 15, 2026. Written comments not physically submitted at the hearing must be submitted no later than June 15, 2026, and addressed to one of the following:
Clerk of the Board, California Air Resources Board
1001 I Street, Sacramento, California 95814
Please note that under the California Public Records Act (Government Code section 7920 et seq.), your written and oral comments, attachments, and associated contact information (e.g., your address, phone, email, etc.) become part of the public record and can be released to the public upon request.
|
