---

Strong Demand for Diesel-Replacement Funds

5 July 1999

Strong Demand for Diesel-Replacement Funds; Requests Outstrip Funds by $63 Million

    LOS ANGELES--July 2, 1999--The potential demand for clean-fueled heavy-duty trucks, buses and other equipment in the Southland is so strong that incentive funds requested this year to help buy the vehicles have exceeded available funds by more than $63 million.
    "This strong response shows a high degree of interest among industry and public agencies in converting highly polluting diesel vehicles and equipment to cleaner alternative fuels," said William Burke, chairman of the South Coast Air Quality Management District.
    "The overwhelming demand for these programs creates a strong argument for an ongoing diesel-emission-reduction fund."
    Two programs -- the Carl Moyer Memorial Air Quality Standards Program and the AB2766 Discretionary Fund -- accepted funding applications this year to offset the higher cost of clean-fueled heavy-duty trucks, transit and school buses and off-road equipment such as marine vessels, forklifts and construction equipment.
    The state launched the Carl Moyer program with a $25 million statewide budget for the 1998-99 fiscal year. The California Air Resources Board (CARB) allocated $11.3 million of that amount to AQMD. Gov. Davis' budget for the new fiscal year allots $23 million statewide to the program.
    Assembly Bill 1571, sponsored by Antonio Villaraigosa, D-Los Angeles, is now being considered in the state Legislature and would continue the Moyer program until 2004.
    By July 1, the Moyer program deadline, AQMD had received 52 applications for 832 vehicles and pieces of off-road equipment totaling $51.8 million. Funds have been requested for refuse, delivery and dump trucks; school, transit and shuttle buses; forklifts; street sweepers; and a locomotive fueled by compressed natural gas, liquefied natural gas, propane or electricity.
    AQMD staff plans to recommend the first group of Moyer projects for funding at AQMD's Governing Board meeting on Aug. 13.
    The AB2766 program, named for the state Assembly bill that created it in 1990, provides funds from a $1.20 annual vehicle- registration fee to reduce vehicle air pollution. The program is administered by the eight-member Mobile Source Air Pollution Reduction Review Committee (MSRC).
    This year's program has $3.4 million available for heavy-duty on- and off-road vehicles; applications so far total $9.3 million. The gap is even greater for transit buses, with $6 million available and a total of $23 million in requests to date. The deadline for AB2766 applications is July 31.
    "Each year, we are seeing more and more proposals to replace diesel-powered buses and trucks with clean-fueled models," said Will Kleindienst, chairman of the MSRC. "This cleaner equipment is available now, and companies and public agencies taking steps to buy it should be recognized for their proactive efforts to clean the air."

    Diesel Emissions Toxic

    Although state regulations in the next several years will require cleaner diesel equipment, existing diesel engines will continue to be used for several more decades. The Moyer and AB2766 programs aim to speed up the introduction of clean-fueled heavy-duty vehicles, which pollute only about half as much as diesel models.
    The state Air Resources Board has declared diesel-particulate emissions a cancer-causing toxic air contaminant, and preliminary estimates indicate that diesel particulate is responsible for about 70 percent of the cancer risk from all toxic-air-pollution sources in the South Coast Air Basin.
    In addition, heavy-duty trucks and buses account for about 25 percent of the smog-forming nitrogen oxides and 70 percent of the particulates from all mobile sources.

    Programs Offer Incentives to Switch

    Both the Moyer and AB2766 programs offer funds to pay the difference in cost between a diesel engine or truck and a cleaner model or the retrofit cost.

    In general, projects will be selected according to the following criteria:

--   First-come, first-served basis;
--   Engines or retrofit kits for on-road vehicles must be certified
     to CARB low-emission standards; and
--   All projects must meet a cost-effectiveness criterion, costing no
     more than $12,000 per ton of nitrogen oxides reduced annually.

    In addition, for Moyer projects:

--   Replacement of diesels with clean fuels such as natural gas will
     be given preference over replacing or retrofitting older diesel
     engines with newer, cleaner ones; and
--   New vehicles must achieve a 30 percent reduction of nitrogen
     oxides compared with current emission standards, and retrofits
     must achieve a 25 percent reduction.

    AQMD is the air-pollution-control agency for the urban portions of Los Angeles, San Bernardino and Riverside counties and all of Orange County.