Federal Funds Help CA Businesses Clean Up Diesel Vehicles

$5 million in American Recovery and Reinvestment Act funds available as loans to small businesses with diesel equipment

The California Air Resources Board (CARB) received $5 million in American Recovery and Reinvestment Act funds to help small-business owners of off-road vehicles to replace, repower or retrofit them with to reduce exhaust emissions. CARB has partnered with the California Capital Access Program, or CalCAP, to provide financial assistance to California fleets to replace off-road vehicles, to repower existing vehicles with cleaner engines, or to install CARB-verified exhaust retrofits on off-road vehicles. The program objective is to encourage diesel emission reductions and is not for fleet expansion.

Who is eligible for the program?

• Companies that have off-road diesel vehicles such as loaders, backhoes and agriculture tractors;

• Small businesses that have 500 or fewer employees;

• Companies with most of their employees living in California and most of the business operation located in California;

• Companies with fleets of all sizes are eligible, as long as they meet the above requirements; and,

• Business owners that have a Diesel Off-road On-line Reporting system (DooRs) CARB-assigned fleet ID number. (If a business owner does not have a DooRs fleet ID number, they can apply for one at no charge at: https://secure.arb.ca.gov/ssldoors/doors_reporting/reporting.php

How do I get a loan?

1. The borrower applies for a loan at a participating CalCAP Off-Road Lender by filling out the Borrower Eligibility Criteria and Certification Form. CalCAP lenders and truck dealerships may be able to assist the borrower in completing this form. In addition, the borrower is required to complete the lender’s required loan application forms.

2. If the borrower qualifies based on the lender’s loan underwriting standards, loan documents are prepared and signed by the borrower and lender.

3. The lender disburses funds to the borrower.

4. For a vehicle purchase or an engine replacement, the old vehicle or engine must be scrapped; borrower or dealer must provide verification of disposal to CalCAP within 90 days of the date of loan.

What can I use my loan for?

You can use your loan to cover any or all of the following:

• Engine repowers to a cleaner Tier 2, Tier 3, or Tier 4 engine that is either a certified engine or a remanufactured engine.

• A replacement vehicle of the same type or similar gross vehicle weight rating or horsepower that is equipped with a cleaner Tier 2, Tier 3, or Tier 4 engine.

• A CARB-verified diesel emission control device (exhaust retrofit).

For a list of verified devices, see CARB’s Verified Technologies pages.

In addition to the equipment, allowable items for financing may include:

• Projected maintenance costs for exhaust retrofits

• Installation

• Extended warranties

How much can I borrow?

Individual businesses can borrow up to $2.5 million to replace, repower or retrofit their vehicles.

What grants can I use with my loan?

Borrowers can use incentive grants as a down payment for off-road vehicles purchased with a CalCAP loan. If fleet owners have received other forms of grant assistance, they should check with the issuing agency to make sure the grant agreement doesn’t restrict them from receiving loan assistance from the off-road vehicle loan program.

How can I learn more?

Contact the CARB diesel hotline at 1-866-6DIESEL (1-866-634-3735) or visit us on the web at:

www.arb.ca.gov/ba/loan/off-road/off-road.htm. You may also email [email protected].