OVERVIEW:
On February 5, 2016, South Coast AQMD released a Program Announcement to solicit applications for eligible locomotive projects for the Proposition 1B – Goods Movement Emission Reduction Program.  Approximately $22.5 million in funding is expected to be available to South Coast AQMD for owners of diesel-powered freight locomotives to upgrade to cleaner technologies. 
 
Applications are no longer being accepted for locomotive projects.  To be considered for funding, applications must have been submitted by 4:00 PM on March 31, 2016.

STEPS TO APPLY:
Applications are no longer being accepted for locomotive projects.  To be considered for funding, applications must have been submitted by 4:00 PM on March 31, 2016.

Applications are no longer being accepted for locomotive projects.  To be considered for funding, applications must have been submitted by 4:00 PM on March 31, 2016.

Form A1 (PDF, 137KB) - General Application (Required for all applicants)

Business Request Forms (Attachments 1-5 are required to be completely filled out for each applicant):

• Attachment 1 - Business Information Request (PDF, 101KB)

• Attachment 2 - Disadvantaged Business Certification (PDF, 42KB)

• Attachment 3 - W-9 Request for Taxpayer Identification Number and Certification (PDF, 1.2MB)

• Attachment 4 - Withholding Exemption Certificate (PDF, 741KB)

• Attachment 5 - Campaign Contribution Disclosure (PDF, 109KB)

The Program will provide partial funding for eligible projects involving the replacement or retrofit of an uncontrolled, or Tier 0 through Tier 2 locomotive with a new engine or alternative technology certified to meet the U.S. EPA Tier 4 emission standards.  If the old equipment is banned from California operation instead of scrapped, then the funding amount will be reduced by 20%.

Below are the maximum funding amounts for the different project options:

Option 1: Switcher Locomotive (1,006 to 2,300 hp)

Class I, Class II, and Class III Railroads with minimum usage of 20,000 gallons/year:

Class III Railroads with minimum usage of 10,000 to 19,999 gallons/year:

Option 2: Medium Horsepower Locomotive (2,301 to 4,000 hp)

Class I, Class II, and Class III Railroads with minimum usage of 20,000 gallons/year:

Class III Railroads with minimum usage of 10,000 to 19,999 gallons/year:

Option 3: Line-Haul Locomotive (4,001 hp and higher)

• 90% to 100% California Operation:

  Year Project is Operational	Funding Amount
  2016	85% up to $2,550,000
  2017	80% up to $2,400,000
  2018	75% up to $2,250,000

   

• 75% California Operation:

  Year Project is Operational	Funding Amount
  2016	70% up to $2,100,000
  2017	65% up to $1,950,000
  2018	60% up to $1,800,000

   

• 50% California Operation:

  Year Project is Operational	Funding Amount
  2016	45% up to $1,350,000
  2017	40% up to $1,20,000
  2018	35% up to $1,050,000

   

• 30% California Operation:

  Year Project is Operational	Funding Amount
  2016	25% up to $750,000
  2017	20% up to $600,000
  2018	15% up to $450,000

Option 4: Locomotive Emissions Capture and Control System (Contact South Coast AQMD for more information)

IMPORTANT NOTES:

Equipment owner must demonstrate/certify:

• Operation or equivalent locomotive horsepower operation in California for the past 2 years,

• For switchers and medium horsepower locomotives: at least 50% operation or equivalent locomotive horsepower operation within the four California trade corridors for the past 2 years,

• For line haul locomotives: a majority of the minimum percentage operation or equivalent locomotive horsepower operation within the four California trade corridors for the past 2 years,

• There are no outstanding CARB violations or non-compliance with CARB regulations associated with the equipment or the owner,

• Estimated diesel fuel usage of 20,000 gallons or equivalent per year or greater for Class 1 or Class II railroads for the past 2 years,

• Estimated diesel fuel usage of 10,000 gallons or equivalent per year or greater for Class III railroads for the past 2 years,

• Exclude any Program-funded equipment from the compliance calculations for the 1998 agreement for locomotives operating in the South Coast Air Basin for the duration of the project life (applicable to Union Pacific and BNSF Railway only).

USEFUL RESOURCES:

• CARB Goods Movement Emission Reduction Program: http://www.arb.ca.gov/bonds/gmbond/gmbond.htm

• South Coast AQMD Prop. 1B Website (where a copy of the solicitation and application forms can be found) http://www.aqmd.gov/Prop1B

For complete Program requirements, please refer to the latest 2015 Update to the Program Guidelines, the related Supplemental Procedures, and any additional information listed on the CARB Program website at www.arb.ca.gov/gmbond, contact Greg Ushijima at the South Coast Air Quality Management District for guidance at (909) 396-3301 or gushijima@aqmd.gov.

South Coast AQMD Board Actions Regarding Prop. 1B Awards and Rank Lists:

For additional information or questions concerning the Prop 1B Program, please contact the South Coast AQMD Project Officer, Greg Ushijima at 909-396-3301 or gushijima@aqmd.gov.