Report on Reductions Achieved from Incentive-Based

Emission Reduction Measures in the San Joaquin Valley 

APPENDIX F: Carl Moyer Program Integrity Demonstration

Release Date: September 22, 2014

Hearing Date: October 23, 2014

California Environmental Protection Agency 

Air Resources Board
As of December 31, 2013

1

Purpose: The following contains citations outlining how the Carl Moyer Memorial Air Quality 

Standards Attainment program (Carl Moyer Program) produces surplus, quantifiable, 

enforceable, and permanent emission reductions. 

Surplus

Emission reductions used to meet air quality attainment requirements are surplus if they are not 

otherwise relied on in air quality-related programs related to the SIP, SIP-related requirements, 

other State air quality programs adopted but not in the SIP, a consent decree, or Federal rules that 

focus on reducing criteria pollutants or their precursors. The following references provide details 

on how the Guidelines ensure that the emission reductions generated by the programs are not 

required by any regulation for the life of the project, the baseline equipment was being used and 

operated within the state, and that projects funded are not already accounted for in future-year 

inventories. The requirement for project funded through the Carl Moyer program to be surplus is 

codified in California Health and Safety Code 44281(b).

General Moyer

The California statutory basis for the Carl Moyer Program (Health and Safety Code §44275-

§44299.2) requires that the emission reductions achieved are above and beyond those required 

under existing regulations that are incorporated into a SIP. As a result, in the development of the 

Carl Moyer Program Guideline1criteria, current and upcoming regulatory compliance dates are 

used as a benchmark for determining the eligibility of a project and the period (project life) that a 

project can claim emission reductions. A project must be installed and in operation prior to any 

compliance date (from one to three years, depending on the category) and cannot be claimed 

towards regulatory compliance for the life of the project. SIP inventories reflect compliance 

with already adopted regulations. As part of the SIP development and/or revision process, ARB 

reviews the Moyer project mix to ensure that the amount of emission reductions credited to the 

program are not included in the future year inventories, including review of fleet turnover and 

equipment lifetime assumptions that are specific to the future year inventory used in each 

individual attainment demonstration

 Moyer Guidelines Chapter 1, Program Overview, Section A.2. (Specifies the core 

program principles including real, surplus, quantifiable and enforceable SIP-creditable 

emission reductions.) 

 Moyer Guidelines Chapter 2, Project Criteria A, H, I, MM. (Specifies that project must 

be surplus to a rule.)

 Moyer Guidelines Chapter 2, Project Criteria E, F and G (Specifies that no project may 

be used in credit for emission reduction credit in any other program or market)

 Moyer Guidelines Chapter 2, Project Criteria B, I and MM. (Specifies that any existing 

rule must be considered at time of contract when determining project eligibility and 

eligible emission reductions.)

 Moyer Guidelines Chapter 3, Section Z.6(B) and AA.2. (Specifies the requirements for 

documentation that the baseline equipment was in use.)

 

1 This document references the 2011 Carl Moyer Program Guidelines: 

http://www.arb.ca.gov/msprog/moyer/guidelines/current.htm
As of December 31, 2013

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 Moyer Guidelines Chapter 3 W.5.(A)(1) (specifies applicants must disclose other 

incentive fund applications

 Moyer Guidelines Chapter 3 X.9. (Specifies no Carl Moyer applications maybe be made 

for Voucher equipment still under contract)

 Moyer Guidelines Chapter 3 Z.4. (Specifies grantees must certify at contract that they 

have received no funding from other sources)

 Moyer Guidelines, Chapter 2, Section S and Chapter 3, Section Z.6.(B). (Specifies the 

geographic location of the operation of the equipment.)

On-road

 New purchase project must be 30% cleaner than the current new engine standard for 

NOx. There is no requirement to replace (and scrap) an existing engine. However, 

emission reductions are only based on the current year diesel engine as the baseline. 

(Moyer Guidelines, Chapter 4, Section D.3.)

 To be eligible for funding the guidelines take into consideration the in-use regulations 

and only fund early and extra emission reductions (Moyer Guidelines, Chapter 4, Section 

E and the Guidelines Supplemental document- “Fleet Rule Implementation Charts” p. 6-

35).

 The funding amount is based on documentation for the average usage during the previous 

twenty four months (Moyer Guidelines, Chapter 5, Section C.5.(A) and Moyer 

Guidelines, Part 2:VIP Guidelines, Sections C.2.(A)(2))

 The VIP Guidelines fund only fleets of 10 or less trucks (Moyer Guidelines, Part 2:VIP 

Guidelines, Section C.1(A)) and take into account the compliance deadlines of the in-use 

Truck and Bus regulation, when determining eligibility. All other trucks are not eligible 

(Moyer Guidelines, Part 2:VIP Guidelines, Sections C.1 (B) and (G)-(K)). Projects must 

provide at least 2 years (fleets of 1-3 trucks) or 3 years (fleets of 4-10 trucks) early 

emission reductions. These compliance dates are incorporated into determining the 

trucks that are eligible for funding. (Moyer Guidelines, Part 2:VIP Guidelines, Appendix 

O and P). For instance, replacement of a Pre-1996 model year medium heavy-duty truck 

for a fleet of 1-3, is no longer eligible because of the rule compliance date for this model 

year truck (VIP Guidelines, Table P-1, page 76.)

 VIP projects must have operated 75% of the time in CA during previous 24 months 

(Moyer Guidelines, Part 2:VIP Guidelines, Sections C.2.(A)(3))

Off-Road

 Opportunities are limited to funding based on adopted regulations. General description 

includes opportunities for fleets and dates by which projects can be approved prior to

regulatory compliance deadlines in order to be surplus. (Moyer Guidelines, Chapter 7, 

Table 7-1; Part 2: Off-Road Voucher Incentive Program, section C. 1. (A) & (B), page 3 

of 59)

 Only equipment with uncontrolled engines eligible for replacement funding per Off-Road 

VIP to ensure surplus and maximum emission reductions realized (Part 2: Off-Road VIP 

Guidelines, Section C.1.(A), page 2 of 59).

 To be eligible for funding the guidelines take into consideration the in-use regulations 

and fund early and extra emission reductions. This must include at least two or three 

years of surplus emission reductions based on future compliance dates, and assure that 
As of December 31, 2013

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Moyer project reductions achieved cannot count towards a fleet’s regulatory requirements 

for the duration of the project. (Moyer Guidelines, Chapter 7, sections E. through H. and 

Chapter 9, Section C. 7., 8, 9, and 10). The resulting years for which projects are eligible 

and the corresponding project life is provided in the Fleet rule Implementation Charts 

(Moyer Guidelines Supplemental document- “Fleet Rule Implementation Charts” p. 36-

58.)

 In-Use Off-Road Diesel-Fueled Fleets regulation includes provisions that limit funded 

projects from receiving regulatory credit or benefit which ensures emission surplus. 

Equipment owners must report additional information to ensure surplus benefits 

according to funding program guidelines. (Title 13, California Code of Regulations, 

Section 2449(g)(1)(H)).

 Old equipment for replacement projects are required to be operational and verified 

through an inspection by the air district (Moyer Guidelines, Chapter 9, Section C. 2. (F)) 

 Old equipment usage for replacement projects must either be verified for the previous 24 

months (Moyer Guidelines, Chapter 9, Section C. 2. (F) (1) or Part 2: Off-Road Voucher 

Incentive Program , C. 2. (A)(2) and (3), page 4 of 59 ) or if usage isn’t available, the 

annual usage must be included in the contract throughout the contract term and be able to 

provide documentation to demonstrate that the equipment was operational for the 

previous year (Moyer Guidelines, Chapter 9, Section C.2.(F)(2))

 The Off-Road VIP Guidelines fund only small and medium fleets subject to the In-Use 

Off-Road Diesel-Fueled Fleets Rule, or agricultural tractors. (Moyer Guidelines, Part 

2:Off-Road VIP Guidelines, Section C.1.(A)(1), (2), and (3), page 3 of 59). Equipment 

subject to the Cargo Handling or LSI In-Use rule is not eligible (Moyer Guidelines, Part 

2:Off-Road VIP Guidelines, Sections C.1 (B) (1)-(3), page 3 of 59). Projects must 

provide at least 2 years (small fleets) or 3 years (medium fleets) early emission 

reductions. These compliance dates are incorporated into determining the equipment

eligible for funding. For instance, large fleets are not eligible because 2014 is their first 

compliance deadline (Moyer Guidelines, Part 2:Off-Road VIP Guidelines, Sections C.1 

(B) (1), page 3 of 59) and medium fleets are only eligible through 2013 because 2017 is 

their first compliance deadline (Moyer Guidelines, Part 2:Off-Road VIP Guidelines, 

Sections C.1(A)(3), page 3 of 59)

 Off-Road VIP projects must have operated 75% of the time in CA during previous 24 

months (Moyer Guidelines, Part 2:Off-Road VIP Guidelines, Sections C.2.(A)(4), page 5 

of 59)

 If subject to regulation, data from applicant must include information to determine if old 

equipment or equipment to be repowered is registered in Off-road In-Use regulations 

reporting system. (Moyer Guidelines, Chapter 7, Section E.1 (A) and Chapter 9, Section 

C.2.(D)). 

Quantifiable

In order for the emissions and emission reductions to be attributed to an Economic Incentive 

Program (EIP) they must be quantifiable, in that they can reliably be measured or determined, as 

well as be replicated. The following references provide details on how the Guidelines ensure 

that the factors, as well as all formulas and instructions to calculate emissions reductions are

publicly available, current and accurate, and that the data provided by the applicant is sufficient 

to accurately determine the emission reductions, and that checks are in place to ensure projects 
As of December 31, 2013

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are completed and emission reductions are fulfilled. Emissions benefits are calculated in a 

validated database. Factors and methodologies are tested, maintained and updated by ARB.

General Moyer

The Moyer Guidelines rely on the data and emissions factors inherent in ARB’s emissions 

inventory, Executive Orders, as well as State and Federal regulatory emission standards. All 

factors used in determining a project’s emission reductions, as well as the calculations 

themselves, are provided in the Guidelines, which are publicly available. Any modification to 

these factors within the Guidelines must be released to the public for a 45-day comment period 

prior to finalization by ARB’s Executive Officer.

 Moyer Guidelines, Appendix D and G (Factors used in calculations) 

 Moyer Guidelines, Appendix C (contains formulas and instructions)

 Moyer Guidelines, Supplemental document, “Sample Calculations” (contains formulas 

and instructions)

 Requirement Moyer Guidelines, Appendix C, Section B.5, and Supplemental document, 

“Sample Calculations” (contains explicit instructions regarding inputs)

 Moyer Guidelines, Chapter 3, Section Z.6.(B) (contains contractual usage requirements) 

 Moyer Guidelines Chapter 2, Section S. (Requires 75% operation in California.)

 Moyer Guidelines Chapter 3, Sections Z.10. (Contractual obligation of the grantee to 

inspect funded equipment during the contract term.)

 Moyer Guidelines Chapter 3, Sections EE. (District requirement to annually audit a 

percentage of active projects)

 Chapter 1, Section E.7 (Allows ARB Executive Officer to modify the Guidelines under a 

public process, to keep them effective and up-to-date.)

 Moyer Guidelines Chapter 2, Section AA. (Requires emission reduction technologies to 

be certified or verified). 

On-road

 The fuel based calculations must use converted emissions standards for baseline and 

reduced emission calculations. The mileage-based calculations must use mileage-based 

emission factors for baseline and reduced emission calculations. (Moyer Guidelines, 

Chapter 4, Section D.1 (F))

 In determining the appropriate emissions factors the engine model year, not the vehicle 

model year must be used (Moyer Guidelines, Chapter 4, Section D.1 (H))

Off-Road

 Engine emission standards adopted by ARB and U.S. EPA must be used for calculating 

benefits for off-road engines and equipment. (Moyer Guidelines, Chapter 7, Section 

D.1.(C))

 If an engine built under the “Tier 4 Early Introduction Incentive for Engine 

Manufacturers” is funded, the emission reductions calculated are to the Tier 3 emission 

factors to ensure no added regulatory benefits are assumed from this equipment. (Moyer 

Guidelines Chapter 7, Section D.1.(D) and Chapter 9, Section C.3.(A)(7))
As of December 31, 2013

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 Maximum project life for all off-road non-farm compression-Ignition (CI) equipment is 

based on equipment type except for farm equipment which, by statute, is allowed a 10 

year project life, but can be reduced if the applicant requests (Moyer Guidelines, Chapter 

7, Section D.1.(A) and Chapter 9, Section C. 1. (C)) 

 Old equipment usage for replacement projects must either be verified for the previous 24 

months (Moyer Guidelines, Chapter 9, Section C. 2. (F) (1) and Part 2:Off-Road Voucher 

Incentive Program, Section C.2.(A)(3), page 4 of 59) or if usage isn’t available, the 

annual usage must be included in the contract throughout the contract term and be able to 

provide documentation to demonstrate that the equipment was operational for the 

previous year (Moyer Guidelines, Chapter 9, Section C.2.(F)(2))

 Off-Road Voucher Incentive Program projects– equipment must have operated at least 

75 percent of the time within CA. (Moyer Guidelines, Part 2:Off-Road VIP Section

C.2.(A)(4), page 5 of 59). 

Enforceable

Emission reductions are enforceable if there is an enforceable contract that defines the 

requirements, as well as the parties liable for fulfilling the requirements. The following 

references provide details on how the Guidelines require enforceable contracts, reporting by the 

grantee, and project inspections to ensure that contract requirements are met and that the actual 

baseline replaced/repowered and new equipment purchased is consistent with the specifications 

in the contract. 

General Moyer

The Carl Moyer Guidelines require that the grantee enter into contract for the life of the project 

for which emission reductions are being claimed. The district and grantee are signatories of the 

contract, and ARB is specified as a third party to the contract, with the right to enforce the terms 

of the contract. The guidelines require that non-performing projects be addressed by transferring 

funds to an eligible project, adjusting the contracted project life or returning funds to the 

program.

 Moyer Guidelines, Chapter 3, Section Z, (Minimum contract requirements,.)

 Moyer Guidelines Chapter 3, Section Z.11. (Liable parties and repercussions for nonperformance, including the requirement that ARB be specified as a 3rd party.)

 Moyer Guidelines, Chapter 3, Sections Z.9 and DD (Requirements for grantees to report 

annually)

 Moyer Guidelines Chapter 3, Sections AA and BB. (Pre and post-inspection 

requirements)

 Moyer Guidelines Chapter 3, Sections EE. (District requirement to annually audit a 

percentage of active projects)

 Moyer Guidelines Chapter 3, Section FF.3 and 4. (Specifies that non-performing projects 

be addressed through contract enforcement)

 Moyer Guidelines Chapter 3, Section V (requires ARB to audit air district programs to 

insure project information and resulting emission benefits are real, reproducible, and 

accurate). 

 Moyer Guidelines Chapter 3, Section FF (mechanism in place to hold air districts 

accountable for insuring project emission reductions are achieved).
As of December 31, 2013

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On-road

 VIP Projects- The owner must agree to return annual surveys and to be available for 

follow up inspections. (Moyer Program Guidelines, Part 2:VIP Guidelines, Section C.2 

(B)(4))

 VIP Projects- The Air District is responsible to perform a pre-inspection of the existing 

vehicle and a post-inspection of the replacement vehicle (VIP Guidelines, On-road 

Heavy-Duty Vehicles, Section C.7 (T))

Off-Road

 For replacement projects, air districts are responsible for completing inspections of the 

old equipment and new equipment (Moyer Guidelines, Chapter 9, Section C.5.(G))

 Air district required to document equipment destruction of old equipment and 

replacement at salvage and post-inspection to ensure equipment is consistent with 

contract (Moyer Guidelines, Chapter 9, Section C.4 and 5.(G)). 

 Off-Road replacement project contracts must include that equipment is maintained in 

accordance with manufacturer specifications for the life of the project enforceable 

according to contract requirements. (Moyer Guidelines, Chapter 9, Section C.1.(D) and 

Section C.3.(F)).

 All new replacement equipment must have an installed and fully operational hour meter. 

If fuel usage has been approved for determining emission reductions, then future annual 

usage must be based on fuel logs, purchase receipts or ledger entries specific to the 

funded equipment (Moyer Guidelines, Chapter 9, Section C.3.(I))

 Off-Road Voucher Incentive Program projects– owner must agree to own and operate 

equipment at least 75% in CA, return annual surveys indicating usage, and be available 

for follow up inspections at the request of the air district or ARB (Moyer Program 

Guidelines, Part 2: Off-Road Voucher Incentive Program, C.2.(A)(11), page 6 of 59). 

 Off-Road Voucher Incentive Program projects - The owner must agree to return annual 

surveys and to be available for follow up inspections. (Moyer Program Guidelines, Part 

2:Off-Road VIP Guidelines, Section C.2 (A)(11), page 6 of 59)

 Off-Road Voucher Incentive Program projects - The Air District is responsible to 

perform a pre-inspection of the existing equipment and a post-inspection of the 

replacement equipment (Moyer Guidelines, Part 2:Off-Road VIP Guidelines, Section 

C.5.(S), page 12 of 59)

 Off-Road Voucher Incentive Program projects- Owner signs declarations on application 

under penalty of perjury that statements true and correct and understands declarations 

made including ARB right to enforce terms of agreement. (Part 2: Off-Road VIP 

Guidelines, Application Package, page 29 of 59).

Permanent

Emission reductions used to meet air quality attainment requirements must be permanent. The 

following references provide details on how the Guidelines ensure that the emission reductions 

generated by the programs reduce emissions for the life of the project in the geographic area 

specified in the contract, and that these projects are monitored before, and throughout the 

contract and project life.
As of December 31, 2013

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Moyer General

In order to ensure that the emission reductions are permanent, the Carl Moyer Guidelines require 

that pre and post-inspections be conducted by the districts, as well as annual audits of active 

projects. Additionally, the engines in repower and replacement projects must be destroyed. 

 Moyer Guidelines, Chapter 3, Sections Z.9 and DD (Requirements for grantees to report 

annually)

 Moyer Guidelines Chapter 3, Sections AA and BB. (Pre and post-inspection 

requirements)

 Moyer Guidelines Chapter 3, Sections EE. (District requirement to annually audit a 

percentage of active projects)

 Moyer Guidelines Chapter 3, Section BB.4 (Destruction requirements for baseline 

engine)

On-road

 New purchase project must be 30% cleaner than the current new engine standard for 

NOx. There is no requirement to replace (and scrap) an existing engine. However, 

emission reductions are only based on the current year diesel engine as the baseline. 

(Moyer Guidelines, Chapter 4, Section D.3.)

 For VIP and Fleet Modernization replacement projects, the dismantler must destroy the 

vehicle and the vehicles engine. The dismantler must notify the air district that the 

vehicle is destroyed and then must be documented by the air district in person and also 

must provide verification of filing DMV form 488C. (VIP Guidelines, On-road HeavyDuty Vehicles, Section C.10 (C) and Moyer Guidelines, Chapter 5, Section C.11)

Off-Road

 All engines replaced as part of an off-road repower project must be destroyed and 

rendered useless, in accordance with requirements with Chapter 3, Section BB.4. (Moyer 

Guidelines, Chapter 7, Section D. 2. (I))

 All new replacement equipment must have an installed and fully operational hour meter. 

If fuel usage has been approved for determining emission reductions, then future annual 

usage must be based on fuel logs, purchase receipts or ledger entries specific to the 

funded equipment (Moyer Guidelines, Chapter 9, Section C.3.(I))

 Equipment replaced requires the high-emitting equipment be scrapped to permanently 

remove it from service. Inspections of the destroyed piece of equipment must occur. 

(Moyer Guidelines, Chapter 9, Sections C. 4. and C. 4. (D)

 Air districts are responsible for completing inspections of the old equipment and new 

equipment (Moyer Guidelines, Chapter 9, Section C.5.(G))

 Off-Road Voucher Incentive Program projects – inspections must occur on the existing 

equipment, replacement equipment, and the destroyed equipment (Part 2: Off-Road 

Voucher Incentive Program , Section C.5.(S), page 12 of 59 and (CC), page 14 of 59).
As of December 31, 2013

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Additional Carl Moyer Program Components

 The following references specify how ARB ensures that any case-by-case approval 

determinations do not impact the SIP creditability of the emission reductions for the 

project.

o Moyer Guidelines, Chapter 2, Section T

o Moyer Guidelines, Chapter 3, Section Y

 The following references specify that all information, including information such as 

emission factors, must go through public approval process. 

o Moyer Guidelines, Chapter 1, Section E.7

o Health and Safety Code 44287(a) and (b)

 The following references specify that surplus, quantifiable, enforceable and permanent 

emissions reductions are overseen via the Incentives Program Review Process

o Moyer Guidelines, Chapter 3 Section V

o Carl Moyer Program Review Guidelines 

http://www.arb.ca.gov/msprog/moyer/audits/09audit_procedures.pdf