THE CARL MOYER PROGRAM 

GUIDELINES

Approved Revisions 2011

 

 

Approved by the Board: April 28, 2011 

Release Date: June 6, 2011
As of 4/28/2011 2 - 1 GENERAL CRITERIA 

Chapter 2: GENERAL CRITERIA 

The project criteria listed below apply to all Carl Moyer Memorial Air Quality Standards 

Attainment Program (Carl Moyer Program) projects. Additional project criteria are 

located in the relevant source category chapters. Projects must also conform to the 

project application, contract, reporting, and other requirements as described in 

Chapter 3: Program Administration. 

A. Emission reductions obtained through Carl Moyer Program projects must not be 

required by any federal, state or local regulation, memorandum of 

agreement/understanding, settlement agreement, mitigation requirement, or other 

legal mandate. 

B. The air quality management district (air district) governing board or the Air 

Resources Board (ARB) rule approval date (or the promulgation date of a federal 

regulation) represents the cutoff date by which a Carl Moyer Program project 

contract must be fully executed, without needing to consider the rule in evaluating 

After that date, the new 

C. A grant recipient subject to an in-use regulation may be eligible to receive funding 

through the Carl Moyer Program if the applicant has met all compliance 

requirements of applicable regulations. Documentation of regulatory compliance 

must be provided by applicants to air districts at the time of pre-inspection. 

D. Participating air districts retain the authority to impose additional more stringent 

requirements in order to address local concerns. 

E. No emission reductions generated by the Carl Moyer Program may be used as 

marketable emission reduction credits, or to offset any emission reduction 

obligation of any person or entity. 

F. The Carl Moyer Program will only take credit for the emission reductions achieved 

from a project or part of the project funded using any Carl Moyer Program incentive 

funds. 

G. No project funded by the Carl Moyer Program may be used for credit under any 

federal or state emission averaging banking and trading program. 

H. Engines operating under a regulatory compliance extension granted by ARB, an air 

district, or the United States Environmental Protection Agency (U.S. EPA) are not 

eligible for funding. 

I. Throughout the contract term, projects funded by the Carl Moyer Program must not 

be used to generate credits or compliance extensions, and must be excluded when 

determining regulatory compliance. 
As of 4/28/2011 2 - 2 GENERAL CRITERIA 

J. Projects funded by the Carl Moyer Program must be included when defining the 

size of the fleet for determining regulatory requirements. 

K. Projects must meet a cost-effectiveness limit per weighed ton of oxides of nitrogen 

(NOx), reactive organic gases, and particulate matter reduced as calculated in 

accordance with Appendix G. 

L. Total funds administered by the air district and contributed to the project must be 

part of the cost-effectiveness calculations and the total funds contributed by the air 

district must meet current cost-effectiveness limits (Health & Safety 

Code § 44283(d)). An example of the calculation methodology is located in 

Appendix C. 

M. If an applicant reports other public financial incentives, the air district must deduct 

this amount from the total incremental costs that can be funded with Carl Moyer 

Program funds (Health & Saf. Code § 44283(g)). An example of the calculation 

methodology is located in Appendix C. 

N. Beginning July 1, 2011, federal funding for programs to reduce greenhouse gas 

emissions (GHG) or funding provided by the Alternative and Renewable Fuel and 

Vehicle Technology Program to reduce GHG are exempt from the requirements in 

sections L and M above. For these exempt projects, grantees must provide at 

least 15 percent of the project cost from non-public sources. 

O. Carl ncremental cost. 

The incremental cost is described in each source category chapter of these 

Guidelines. 

P. Carl Moyer Program funds cannot be used for fuel projects; however other funds 

under an air district's budgetary authority or fiduciary control (e.g. match funds) 

may be used to pay for the incremental cost of liquid or gaseous fuel, other than 

standard gasoline or diesel, which is integral to a project receiving grant funding 

under the Carl Moyer Program. If all Carl Moyer Program criteria are met and the 

-

considered a qualified matching contribution from an air district. 

Q. The contract term must extend to the end of the project life. 

R. The new engine/vehicle/equipment must remain in service for the project life. 

S. Projects must have at least 75 percent of their total activity for the project life in 

California (this requirement does not apply to marine projects). 

T. Potential projects that vary from the requirements of these Guidelines and do not 

meet all of these criteria may be approved by ARB on a case-by-case basis if the 
As of 4/28/2011 2 - 3 GENERAL CRITERIA 

project is demonstrated to achieve real, surplus, quantifiable, enforceable, costeffective emission reduction benefits in California for the full project life. Additional 

information regarding approval of case-by-case projects is found in the Program 

Administration chapter. 

U. Carl Moyer Program projects must meet requirements applicable to that project 

category found in the applicable source category chapter of these Guidelines, in 

addition to the general criteria outlined in this chapter. 

V. In general, projects must have a minimum project life of three years, but some 

source categories allow a project life of less than three years. Refer to the specific 

source category chapter for more detail. 

W. Projects for which activity is based on hours of operation must include a 

functioning hour meter on the new engine. 

X. Project engines and retrofits may only use the fuel allowed by the engine 

certification or retrofit device verification during the project life. Fuel additives are 

not allowed to be used unless specifically identified as allowable in the engine 

certification or retrofit device verification. 

Y. Replacement engines participating in the averaging, banking, and trading program 

that are certified to family emission limits (FEL) higher than the applicable emission 

standards, as designated on the Executive Order are ineligible to participate in the 

Carl Moyer Program. 

Z. Replacement engines that are certified to a FEL NOx or NOx + non-methane 

hydrocarbons (NMHC) level that is lower than the required emission standard are 

eligible to be used in repower and replacement projects. However, the emission 

level that can be used in cost-effectiveness calculations for these engines would 

be the applicable emission standards and not the FEL levels. 

AA. Emission reduction technologies must be certified or verified by ARB. If an ARB 

certification or verification process does not exist or if engines or retrofits are 

preempted from ARB certification/verification, then an engine or retrofit must be 

certified/verified to Federal standards. 

BB. For the purposes of the Carl Moyer Program, a technology granted a conditional 

certification/verification by ARB is considered certified/verified. 

CC. Emission reduction technologies for sale in California must comply with all 

durability and warranty requirements. 

DD. Prior to destruction, an engine that is required to be dismantled may be used as a 

test engine for purposes of retrofit or fuel verification. This can occur as long as the 

engine complies with the requirements of the guidelines, and the old engine must 

be destroyed before a payment to the grantee is issued for the new engine. 
As of 4/28/2011 2 - 4 GENERAL CRITERIA 

EE. In circumstances where projects have multiple engines per vehicle/equipment, the 

replacement (or repower) engines are eligible for funding. The emission benefits 

calculation may be based on overall vehicle/equipment cost-effectiveness and not 

on a per engine basis at the discretion of the air district. The project must meet the 

current project cost effectiveness cap. 

FF. Funding is not available for projects where a spark-ignition engine (i.e., natural 

gas, gasoline, etc.) is replaced with a diesel engine. 

GG. For a new purchase, engine(s) must be certified by ARB to reduce NOx emissions 

by at least 30 percent more than the current NOx emission standard. This criterion 

also applies to locomotives with the exception that the engine(s) must be certified 

by U.S. EPA. For marine vessel new purchases, refer to chapter for specific 

criteria. 

HH. For repower projects, the replacement engine must achieve an annual NOx 

emissions benefit of at least 15 percent and be certified to, if available, either the 

current applicable emission standard or to a FEL NOx or NOx+NMHC level that is 

lower than the required emission standard. 

II. Retrofit projects that reduce NOx emissions must be verified by ARB to a NOx 

reduction level of at least 15 percent from the baseline engine to claim NOx 

reductions from the project. 

JJ. No public monies are allowed for the support of any sectarian or denominational 

school, or any school not under exclusive control of the officers of the public 

schools. 

KK. These 2011 Guidelines must be used for all projects funded with fiscal year 2011-

2012 (Carl Moyer Program Year For projects 

funded using fiscal year 2010-2011 funds (Year 13), or any previously awarded 

funds, an air district has the option of using either the 2008 Guidelines (and 

relevant Program Advisories and Mail-Outs) or using these 2011 Guidelines. Air 

districts may not pick and choose requirements from both sets of Guidelines. The 

2011 Guidelines may be utilized after the Board approval date and would apply to 

projects for which contracts have been fully executed after the Board approval 

date. If an air district chooses to begin applying the 2011 Guidelines to projects, it 

must continue to apply only the 2011 Guidelines to all subsequently funded 

projects. ARB will follow these 2011 Guidelines for administration of the Carl 

Moyer Program following Board approval. 

LL. The revised cost-effectiveness limit and capital recovery factors may be used by 

air districts once the Board adopts the 2011 Carl Moyer Program Guidelines, but 

must be used by July 1, 2011. As required per statute, ARB will update the 

cost-effectiveness limit and capital recovery factors annually through a Mail-out. 
As of 4/28/2011 2 - 5 GENERAL CRITERIA 

MM. Contracts executed after the adoption date of a regulation must consider all 

applicable regulations when determining eligibility for a project. If an existing 

contract is amended to increase the total Carl Moyer Program funding of the 

project, then the air district must reevaluate eligibility and consider all applicable 

regulations. If the total dollars to not increase, then the air district does not need to 

reevaluate eligibility. 

NN. For a repower project, the installation of the engine must be completed in a 

manner such that it does not void the engine warranty provided by the 

manufacturer and any remaining warranty provided by the equipment/vehicle 

manufacturer. 
As of 4/28/2011 3 - 1 PROGRAM ADMINISTRATION 

Chapter 3: PROGRAM ADMINISTRATION 

A. Background 

The responsibilities of the Air Resources Board (ARB) include the management of 

program funds and program oversight. This chapter is divided into discrete sections 

that describe specific administrative requirements that ARB, air districts, and interested 

parties must follow to ensure the Carl Moyer Program achieves the State 

Implementation Plan (SIP)-creditable emission reductions. Air districts may choose to 

require more stringent administrative procedures in implementing their local program. 

These 2011 Carl Moyer Program Guidelines (Guidelines) must be used for all projects 

funded with fiscal year 2011-2012 (Carl Moyer Program Year 14) and subsequent 

Carl Moyer Program Year 1 is defined as fiscal year 1998-1999 (e.g. 

July 1 June 30) to signify the inception of the program beginning in 1998. 

For projects funded using fiscal year 2010-2011 funds (Year 13), or any previously 

awarded funds, an air district has the option of using either the 2008 Guidelines (and 

the subsequent relevant Program Advisories and Mail-Outs) or using these 2011 

Guidelines. Air districts may not pick and choose requirements from both sets of 

Guidelines. The 2011 Guidelines may be utilized after the Board approval date and 

would apply to projects for which contracts have been fully executed after the Board 

approval date. If an air district chooses to begin applying the 2011 Guidelines to 

projects, it must continue to apply only the 2011 Guidelines to all subsequently funded 

projects. ARB will follow these 2011 Guidelines for administration of the Carl Moyer 

Program following Board approval. 

B. ARB Solicitation of Program Fund Availability 

1. Initial Allocation: Each year, ARB shall send a solicitation letter to each air 

Air Pollution Control Officer (APCO) to notify the air districts that Carl 

Moyer Program funding is available and to provide the application that air 

districts need to apply for program funds. The solicitation letter shall provide 

each air dist and tentative match funding 

requirement. ARB shall , 

when necessary, reallocation of returned funds in accordance with Health and 

Safety Code section 44299.2. The process and minimum requirements for 

distribution of these funds is described in Sections C through G of this chapter. 

The typical timeline for each initial allocation funding cycle is provided in 

Table 3-1.
As of 4/28/2011 3 - 2 PROGRAM ADMINISTRATION 

Table 3-1 

Timeline for Initial Allocation of Funds 

Date Action

Mid-September ARB sends application packet to air districts 

Mid-November Air districts apply to ARB for funds 

Early January ARB notifies air districts of final awards 

January - June Air districts receive grant awards 

April 30 Deadline for air districts to accept or decline funds 

June 30 of Following Year Target date for contracts to be executed 

June 30 of Second Year Funds must be expended 

2. Reallocation: If returned funds are available after each expenditure deadline 

(see also Section S), ARB shall send a solicitation letter to each air 

APCO to notify the air districts that such funds are available and to provide the 

application and instructions that the air districts need to apply for the funds. The 

timeline for a reallocation funding cycle is provided in Table 3-2. 

Table 3-2 

Timeline (Deadline) for Reallocation of Funds 

Date Action

August 29 Deadline for air districts to report and return 

unexpended funds to ARB 

September 28 ARB notifies air districts of available returned 

funds 

November 27 ARB allocates returned funds to eligible air 

districts 

December 31 Deadline for air districts to accept or decline 

reallocated funds 

November 27 of the 

following year 

Reallocated funds must be expended within one 

year of the allocation 

3. -

State Carl Moyer Program funds to projects that operate or impact air quality in 

multiple air districts in accordance with Health & Safety Code section 44286(d). 

C. Air District Applications for Program Funding 

1. Air districts must submit a completed application packet within 60 calendar days 

from the date of the solicitation letter. 

2. The completed application packet must include the following documents: 

(A) Completed Application: Submission of the original form signed by the air 

Air districts requesting the minimum $200,000 allocation 

may opt to direct their allocation to the Rural District Assistance Program. 
As of 4/28/2011 3 - 3 PROGRAM ADMINISTRATION 

(B) Match Fund Commitment: Air districts must specify the source and 

amount of local match funding on the application. Air districts requesting 

more than their tentative funding allocation must demonstrate that 

sufficient match funds are available to cover any additional funds 

requested. Refer to Section I to determine the required match fund 

amount if requesting additional funds. Air districts requesting no more 

than the minimum allocation of $200,000 will be exempted from the match 

requirement. Air districts may account for up to15 percent of their match 

requirement with in-kind contributions. Additional information regarding 

allowable sources of match funding can be found in Section I of this 

chapter. 

(C) Air District Board Resolution: Submission of the air district Governing 

Board resolution or minute order that commits the air district to participate 

in the Carl Moyer Program, comply with the Carl Moyer Program 

requirements, and authorizes the air district to accept funds from ARB or 

to have such funds placed into the Rural District Assistance Program is 

required. For air districts with a match requirement, the board resolution 

shall authorize the APCO to supply sufficient funding to meet the match 

requirement. If an air district has previously obtained a board resolution 

that authorizes the air district to implement the Carl Moyer Program for 

multiple years, the air district must state the date of the resolution in the 

application. 

(D) Policies and Procedures Manual: In order to be eligible for continued 

funding, an air district must submit to ARB a copy of their current Carl 

Moyer Program Policies and Procedures Manual for approval. If previous 

approval has been provided by Carl Moyer Program staff, the air district 

must instead submit a statement, signed by an air district representative, 

confirming that an updated version of their Policies and Procedures 

Manual is maintained at the air district office. The manual must describe 

the air 

implementing the Carl Moyer Program. The Policies and Procedures 

Manual, at a minimum, must include: 

(1) Program structure and organization, including coordination with ARB. 

(2) Solicitation of funds from ARB. 

(3) Project solicitation, evaluation, and selection (including schedule for 

program implementation). 

(4) State and match fund expenditure and liquidation. 

(5) Fiscal practices and procedures. 

(6) Pre- and post-inspections. 

(7) Project reports. 

(8) Contract components and contracting with applicants. 

(9) Invoice review, approval, and payment protocols. 
As of 4/28/2011 3 - 4 PROGRAM ADMINISTRATION 

(10) Air district audits of projects. 

(11) Details regarding program components identified in the following 

Sections of this chapter: K.5., L.3., X.8., X.10., Y.6., AA.2., AA.5., AA.6., 

BB.1., BB.4., CC.6., DD.3., and FF.5. 

(12) Environmental justice/at-risk communities (if applicable). 

(13) Light duty vehicle/fleet modernization projects (if applicable). 

D. The Rural District Assistance Program 

1. Rural air districts may use the Rural District Assistance Program (RAP) which 

provides the ability to pool their project funds in order to streamline program 

administration. Funds dedicated to RAP are pooled to fund project grants from a 

statewide list of rural air district projects. 

2. Solicitation, initial project application review and ranking, and assignment of a 

project to an air district may be done by the California Air Pollution Control 

. Additionally, CAPCOA may contract with one 

or more third parties (RAP administrator) to conduct these tasks. CAPCOA is 

responsible for selecting the RAP administrator. Projects are assigned to 

recipient air districts prior to contract execution. Recipient air districts have the 

authority to refuse or accept projects offered through RAP within a time period 

designated by CAPCOA. 

3. An air district whose annual Carl Moyer Program grant application dedicates the 

entire annual grant to RAP is not required to have a current approved Carl Moyer 

Program Policy and Procedure Manual, but the grant application must include a 

board resolution or minute order authorizing dedication of the funds to RAP. Air 

districts dedicating their entire grant are not obligated to submit a yearly report for 

the associated grant. 

4. An air district may dedicate funds to RAP after it has executed an annual grant 

with ARB, but must do so by March 1st prior to the end of the grant funding cycle, 

per the following example timeline: 

Example: 

CMP Year 13 (Fiscal Year 2010-11) 

January June 2011 Air District executes Year 13 Grant Award 

Funds may be dedicated to RAP 

March 1, 2013 Deadline to dedicate funds to RAP 

June 30, 2013 Deadline to expend Year 13 Grant Award 

However, funds that have been disbursed to districts and subsequently returned 

to ARB will be treated as returned funds, and reallocated as specified in 

Section S. 
As of 4/28/2011 3 - 5 PROGRAM ADMINISTRATION 

5. An air district receiving RAP projects and funds must have a current approved 

Carl Moyer Program Policy and Procedures manual. Following project 

acceptance, the air district is fully responsible for all grant obligations, including 

eligibility verification, contract draft and execution, inspections, monitoring and 

reporting. RAP projects will be subject to audit as part of the audit of the 

implementing air district. 

E. ARB Review and Approval of Air District Funding Applications 

1. ARB shall review an application immediately upon receipt and, if necessary, 

provide the air district with a written explanation of what is missing from the 

application within 10 working (business) days of its receipt. Complete 

applications that fulfill all criteria shall be approved no later than 60 business 

days after receipt as identified in Health and Safety Code section 44287(n). 

2. ARB may elect to approve an application that is missing a particular item and 

make the submittal of that item a stipulation of the Grant Agreement. For 

example, sometimes air district staff are unable to obtain a board resolution or 

minute order before the application deadline. In such a case, ARB may allow a 

board resolution or minute order to be submitted with the signed Grant 

Agreement or prior to the air sbursement. 

3. ARB shall review an air 

elements listed in Section C.2. of this chapter and within 30 days of its receipt 

either approve the manual or describe what additional information or clarification 

is needed. ARB approval of an air di Policies and Procedures Manual 

shall be provided by email or in other written format. Once approved, the air 

district must submit a statement that an updated version of their Policies and 

Procedures Manual is maintained on-site. In this case, an annual submittal of 

their Policies and Procedures Manual with the application for funding is no longer 

required. ARB approval of an air 

denotes approval of the air policies and procedures as written. An air 

as implemented can only be fully evaluated 

during the audit process. 

4. ARB shall follow the formula identified in Health and Safety Code 

section 44299.2(c) to redistribute funds declined by air districts. See Section S. 

of this chapter regarding the return and reallocation of unexpended funds. 

F. Final Grant Awards 

1. Once air districts applications have been approved, ARB shall determine the final 

grant awards and corresponding amounts of required match funding. 

2. ARB shall prepare and submit two signed original copies of the Grant Award and 

Authorization Forms to qualifying air districts. 
As of 4/28/2011 3 - 6 PROGRAM ADMINISTRATION 

3. The APCO must sign both original copies of the Grant Award and Authorization 

Form. The air district retains one of the originally signed forms for their files and 

returns the other originally signed form to ARB. 

4. The deadline for acceptance of an annual grant award shall be specified in the 

award letter each year. The deadline for acceptance of a reallocation grant 

award shall be December 31 of each year. 

5. Air districts have until June 30th of the second calendar year after funds are 

accepted from ARB to expend the allocation grant award.

6. For a reallocation grant award, air districts have one year from the date of 

allocation to expend the funds. See Section B of this chapter Table 3-2. 

G. Fund Disbursements to Air Districts 

1. In order to receive a disbursement, each air district must submit a Grant 

Disbursement Request to ARB. The Grant Disbursement Request form must be 

signed by a party authorized and designated by the air district s Governing 

Board. 

2. If there are stipulations on the Grant Award and Authorization form, all 

stipulations must be met before ARB will disburse funds associated with the 

grant award. 

3. Protocol and minimum requirements for air districts to receive disbursements are 

as follows: 

(A) Initial Disbursement: An air district may request an initial disbursement 

that includes all of its administrative funds and up to ten percent or 

$200,000 of its project funds, whichever is greater. Minimum allocation air 

districts may request up to their entire allocation of $200,000. An air 

district has the option to request additional project funds to be included in 

the initial disbursement if they can meet and demonstrate all the criteria 

described in Section G.3.(B). 

(B) Additional Disbursements: Air districts may request any remaining portion 

of their project funds once the following criteria have been met and 

submitted to ARB: 

(1) Preceding Yearly Report demonstrates on-time expenditures consistent 

with Health and Safety Code section 44287(k). 

 -or - 

The unexpended funds identified in the preceding Yearly Report have 

been received by ARB. 
As of 4/28/2011 3 - 7 PROGRAM ADMINISTRATION 

(2) Program staff submission of document(s) listing eligible projects in an 

amount equal to the disbursement request, and confirming the air 

commitment of Carl Moyer Program funds to those projects. 

(3) Program staff certification that an executed contract will not be entered 

prior to project being approved by the APCO or Board approved designee 

(for those air districts not requiring Board action) or air district Board (for 

those air districts requiring Board approval of projects) as consistent with 

their Policies and Procedures Manual. 

 

(4) Air districts will receive one check for both program administration and 

project funds, but must account for the administration and project funds 

separately. 

4. Due to the compressed timeframe for expending reallocated funds, air districts 

may receive the full reallocation grant award once the following has been 

submitted and approved by ARB: 

(A) An original signed copy of the reallocation grant award. 

(B) A completed disbursement request form. 

H. AB 923 - $2 Motor Vehicle Fee 

1. State law allows air districts to collect an additional $2 motor vehicle registration 

surcharge (MV Fee) (Health & Safety Code § 44223), which must be used to 

fund the following (Health & Safety Code § 44229(b)): 

(A) Projects eligible for grants under the Carl Moyer Program. 

(B) The Agricultural Assistance Program. 

(C) Purchase of new school buses pursuant to the Lower-Emission School 

Bus Program. 

(D) An accelerated vehicle retirement or repair program that is adopted by 

ARB. 

2. $2 MV Fees used to meet the Carl Moyer Program match fund requirement (See 

Section I) are subject to the same eligibility, reporting, and auditing requirements 

as State-provided Carl Moyer Program funds. $2 MV Fee funds used to meet 

the match requirement are not required to be expended within two years from the 

date of their collection. However, air districts must expend sufficient match funds 

to meet the obligations for the Carl Moyer Program funds received each year. 
As of 4/28/2011 3 - 8 PROGRAM ADMINISTRATION 

3. Reporting and oversight of the $2 MV Fee depends upon whether the fee is used 

requirement and whether the air district 

takes SIP credit for $2 MV Fee projects. Table 3-3 summarizes the various 

scenarios for treatment of $2 MV Fee funds and projects. Sections R and V.6. of 

this chapter, respectively, describe reporting and oversight on the $2 MV Fee in 

more detail. 

Table 3-3 

Summary of $2 MV Fee Requirements and Oversight 

Requirements/ Oversight $2 MV Fee 

Used as 

Match 

$2 MV Fee 

Used for 

SIP Credit 

$2 MV Fee 

Not Match/ 

not SIP 

Expenditure of funds within two years (1) -- -- 

Meet full and complete Carl Moyer Program 

Guideline criteria 

-- -- 

Subject to ARB Audit -- -- 

Subject to ARB project eligibility evaluation 

(e.g., cost-effective and surplus) 

Fiscal reporting to ARB 

(list total funds expended in four basic 

categories)2

Detailed reporting to ARB 

(project specifics submitted in current 

database)2 -- 

1

 Sufficient funds must be expended, regardless of their year of origin or source, to provide the required match by that 

. For example, for Year 9, air districts must expend their match by June 30, 2009. When 

those funds were received is not a factor in determining this deadline. 

2

 See Section R of this chapter for details. 

I. Air District Match Funds 

1. Health and Safety Code section 44287 requires air districts participating in the 

Carl Moyer Program to provide match funding. Air districts implementing the Carl 

Moyer Program must commit match funds equaling 15 percent of the State funds 

received. 

2. An air district receiving the minimum grant award of $200,000 is exempt from this 

match requirement. 

3. Air d

fiduciary control, with the exception of port funds (Health & Safety Code § 

44287(e)) described in Section I.9. Funds allocated to an air district by the State 

of California, such as Lower Emission School Bus Program Funds or State bond 
As of 4/28/2011 3 - 9 PROGRAM ADMINISTRATION 

funds, may not be used as Carl Moyer Program match funding. Air districts may 

meet their matching fund requirement on an overall program basis rather than a 

project-by-project basis. In other words, air districts do not need to provide 

match funds towards each project funded, but must fund enough projects (in total 

or in part) with match funds in order to meet the match requirement. 

4. An air district may include match funds spent on or after February 25, 1999 that 

would have qualified as matching funds but were not previously claimed as 

matching funds (Health & Safety Code § 44287(h)). 

5. Motor vehicle registration surcharge fees, including the AB 2766 $4 MV Fee, and 

the AB 923 $2 MV Fee, may be used as match funds subject to the following 

provisions: 

(A) In order to qualify as match funds, MV Fees must fund motor vehicle 

projects that meet the Carl Moyer Program criteria. Consistent with Health 

and Safety Code section 44287(j), MV Fees may not be used as match 

funds on projects involving stationary or portable engines, locomotives, or 

marine vessels. Table 3-4 identifies the source categories that are 

considered motor vehicles for the purposes of match funding. 

Note that statute allows the $2 MV Fee to be used to fund any eligible 

Carl Moyer Program project both motor vehicle and non-motor vehicle 

projects (Health & Safety Code § 44229(b)(1)). However, only motor 

vehicle projects funded with MV Fees may be counted as match projects. 

Table 3-4 

Eligibility of Motor Vehicle Registration Surcharge Fee Projects 

as Air District Match 

Eligible Not Eligible 

On-road* Locomotives Stationary or portable engines

Off-road mobile Marine vessels Agricultural Assistance 

projects 

* Lower Emission School Bus Program projects must meet Carl Moyer Program 

cost-effectiveness and other criteria to count as match. 

(B) Motor Vehicle Fees that pay for incremental fuel costs consistent with 

Section J.1.(B) and J.1.(C) of this chapter may be used as match funds. 

Fuel must be dedicated to a source category potentially eligible for Carl 

Moyer Program funds (such as heavy-duty trucks). 

(C) MV Fees that pay for accelerated light-duty vehicle retirement and repair 

and lawn and garden programs that meet all Carl Moyer program criteria 

may be used as match funds. 

(D) MV Fees used to fund Lower Emission School Bus Program projects may 

count towards the air district match requirement if they meet the Carl 
As of 4/28/2011 3 - 10 PROGRAM ADMINISTRATION 

Moyer Program requirements and the current cost-effectiveness threshold. 

All air district or state incentive funds used to help pay for a school bus 

project must be included in this cost-effectiveness calculation. 

(E) $2 MV Fees used to fund Agricultural Assistance Program projects may 

not be counted towards the Carl Moyer Program match requirement 

(Health & Safety Code § 44287(j)). 

6. Other (non-MV Fee) locally-generated funds may be counted as match if they 

fund projects that meet all Carl Moyer Program requirements and criteria, 

including those project types described in Section J.1.(A) through J.1.(C). 

7. Air districts may use federal funds as Carl Moyer Program match if written 

confirmation is received from the administering federal agency (for example, the 

United States Environmental Protection Agency) that 1) the administering agency 

has no objection to the air district using those funds as match, and 2) the 

emission benefits obtained from those funds will not be used by the 

administrating agency in a State Implementation Plan. The air district must also 

ensure that it will not use such funds as match for any other program and that the 

use of the funds as Carl Moyer Program match does not conflict with any State or 

local requirements regarding the funds. Also, like all match funds, such funds 

must meet all Carl Moyer Program Guideline requirements. If this option is used, 

supporting documentation must be included in all relevant project files. 

8. Interest earned on Carl Moyer Program funds received from ARB must not be 

used for match funding. See Section K for more information on earned interest. 

9. Funding provided by a port authority for a qualifying project or for infrastructure 

that serves a qualifying project may count toward the air 

Program matching fund requirement. However, no more than 30 percent of an 

air as identified in 

Health and Safety Code section 44287(e). Port authorities may participate 

through projects involving their own equipment, or by soliciting port tenants to 

apply for project funding. 

10.Per Health and Safety Code section 44287(e), only an air district, or a port 

authority, or a local government teamed with an air district may provide matching 

funds. Private companies are not allowed to provide match funding to satisfy the 

air district's match funding obligation. 

J. Eligible Types of Match Projects

1. The types of projects that can be funded to meet the match funding requirement 

include:
As of 4/28/2011 3 - 11 PROGRAM ADMINISTRATION 

(A) Carl Moyer Program Projects: Match funds may be used to pay for any 

project that meets all Carl Moyer Program criteria and all other statutory 

limitations on the funds such as those specified in Section I.6. of this 

chapter. 

(B) Incremental Fuel Cost: Match funds may be used to pay for the 

incremental cost of liquid or gaseous fuel and electricity, other than 

standard gasoline or diesel, which serves a Carl Moyer Program-eligible 

source category (such as heavy-duty trucks). 

(C) Infrastructure Projects: 

(1) Match funds may be used for electric and alternative fuel infrastructure 

projects that serve Carl Moyer Program qualifying project categories. 

(2) Motor vehicle fees authorized under Assembly Bill (AB) 2766 and AB 923 

can be used to fund infrastructure projects that serve Carl Moyer Program 

qualifying project categories. However, of these, only infrastructure 

projects that serve Carl Moyer Program qualifying motor vehicle project 

categories can be counted towards the air district match requirements. 

Table 3-4 in Section I lists eligible and ineligible motor vehicle project 

types. 

2. In-Kind Contributions: Up to 15 percent of an air 

may be fulfilled through in-kind contributions (Health & Safety Code § 44287(h)). 

Air districts may use any funds under their budget authority -- except for Carl 

Moyer Program administrative funds and interest earned on Carl Moyer Program 

funds -- to cover their in-kind contribution. When using air district funds for inkind match, air districts must follow all relevant statute, guidelines, and other 

legal requirements for expending such funds. In-kind contributions have the 

same expenditure timeline as match funds. Air district in-kind match funds spent 

on program administration and outreach must meet the documentation 

requirements identified in Section L. 

3. Air districts found by ARB to have funded ineligible projects must substitute 

eligible projects, using eligible match funds as describe in Section I, equal to the 

amount found ineligible. 

K. Earned Interest 

1. Interest earned on Carl Moyer Program funds must be reported to ARB. The 

interest earned must either be used to fund projects that meet the current Carl 

Moyer Program Guidelines (including any revisions in effect at the time of 

contract execution) or be returned to ARB. 
As of 4/28/2011 3 - 12 PROGRAM ADMINISTRATION 

2. Calculation of Earned Interest: All air districts must maintain accounting records 

(e.g., general ledger) that track interest earned and expended on Carl Moyer 

Program funds. 

(A) If an air district maintains its Carl Moyer Program funds in a nonsegregated account, the air district must maintain accounting records that 

track the revenue, expenditures, and interest earned by the Carl Moyer 

Program funds separately from other air district programs. 

(B) The calculation of interest must be based on an average daily balance or 

some other reasonable and demonstrable method of allocating the 

proceeds from the fund back into the program. 

(C) Each air 

must be consistent with how it calculates earned interest for its other fiscal 

programs. 

3. Expenditures for Carl Moyer Program Projects: All projects funded with interest 

must meet all the Carl Moyer Program Guidelines current at the time of contract 

execution, including any revisions to those Guidelines in effect at the time of 

contract execution. 

4. Expenditures for Program Administration: An air district can use up to five 

percent of earned interest on administrative expenses if the air district has one 

million or more inhabitants and up to ten percent of earned interest on 

administrative expenses if the air district has less than one million inhabitants, in 

accordance with Health and Safety Code section 442991(c). 

5. Reporting Requirements: Each air district must report on interest in Yearly 

Reports to ARB using the format provided by ARB. 

(A) Air districts must report on projects funded with earned interest the same 

way air districts report on Carl Moyer Program-funded projects (i.e., by 

entering projects in the CARL and in their Yearly Reports). 

(B) In the 2010 Yearly Report, for the period of July 1, 1998, through 

June 30, 2010, air districts reported interest earned on Carl Moyer 

Program, Rural District Assistance Program, and Multi-district fund 

balances by listing the following: 

(1) Earned interest that was liquidated on Carl Moyer Program projects. 

(2) Earned interest that was expended on Carl Moyer Program administration. 
As of 4/28/2011 3 - 13 PROGRAM ADMINISTRATION 

(3) Balance of earned interest held by the air district on June 30, 2010, 

including those interest funds committed to projects but not yet liquidated. 

For this balance, air districts were provided the following options: 

a. Spend that amount on Carl Moyer Program projects and administration 

(consistent with Section K.3. and K.4.) on the same schedule as the air 

13 Carl Moyer Program grant award. For reporting 

purposes, such interest funds were added to the Year 13 Carl Moyer 

Program funds and counted in the Year 13 cumulative contract 

execution and fund expenditure targets tracked by clean air reporting 

log (CARL). 

-orb. Return unspent interest to ARB by October 31, 2010. 

-orc. A combination of (a.) and (b.). 

(C) Beginning with the 2011 Yearly report (due on August 29, 2011), and for 

each Yearly Report thereafter, air districts must report interest earned 

during the previous fiscal year (i.e. July 1 through June 30). For such 

interest earned the previous fiscal year, air districts may choose from the 

following options: 

(1) Add the earned interest to the next funding year and spend it on Carl 

Moyer Program projects and administration (consistent with Section K.3. 

and K.4.) on the same schedule as other Carl Moyer Program funds in 

that funding year. For example, interest earned during fiscal year 2010-

2011 (Moyer Year 13) may be added to an air -2012 (Year 

14) funds, placing those interest funds under the same contract execution 

and expenditure schedule as other Year 14 funds. 

-or- 

(2) Return the interest to ARB by October 31 of the same year as the relevant 

Yearly Report. For example, interest earned during fiscal year 2010-2011 

(Moyer Year 13) and reported in the 2011 Yearly Report should be 

returned to ARB by October 31, 2011. 

-or- 

(3) A combination of (1) and (2). 

6. Interest Documentation: Documentation of earned interest must be retained, at a 

minimum, until the liquidation deadline of the funding target with which it is 

associated (e.g., for interest earned from 6/30/2010 - 6/30/2011 and added to the 

Year 14 target, the funding year liquidation deadline is June 30, 2016). 

Documentation of projects funded with interest (i.e., the project files) must be 
As of 4/28/2011 3 - 14 PROGRAM ADMINISTRATION 

retained for a minimum of two years after the end of the contract term or a 

minimum of three years after final payment, whichever is later. 

L. Program Administration and Outreach Funding 

1. Air District Funding: Air districts with one million or more inhabitants may use up 

to five percent of their Carl Moyer Program funds on program outreach and 

administration (Health & Safety Code § 44299.1(c)), while air districts with under 

one million inhabitants may use up to ten percent of their Carl Moyer Program 

funds (Health & Safety Code § 44299.1(d)). 

2. Allowable Costs: Administrative funds must be used for Carl Moyer Program 

administration and outreach such as: air district staff time; consultant fees; 

printing, mailing, and travel costs; project monitoring and compliance expenses; 

and indirect costs such as general administrative services, office space, and 

telephone services. 

3. Required Documentation: Air districts must maintain documentation of 

Carl Moyer Program funds used for administration and outreach. Air districts 

must keep the following documentation: 

(A) Personnel documentation must make use of timesheets or other labor 

tracking software. Duty statements or other documentation may also be 

used to verify the number of staff and actual hours or percent of time staff 

is devoted to Carl Moyer Program administration and outreach. 

(B) Consultant fees must be documented with copies of the consultant 

contract and invoices. 

(C) Printing, mailing, and travel expenses must be documented with receipts 

and/or invoices. 

(D) If travel and per diem expenses are used to document program 

administrative costs, allowable travel costs and per diem rates must be 

described in the air Air district 

travel cost criteria must be consistent with the air 

policies for other air district programs. Alternatively, if these definitions are 

included in local administrative code or other documents, the air district 

may cite the document that governs its practices in the Policies and 

Procedures Manual. 

(E) Indirect cost calculation methodologies, if used to determine indirect costs 

of program administration, must be fully described or referenced in the air 

es Manual. Air districts must maintain 

documentation for all costs referenced in the indirect cost calculation 

formula. 
As of 4/28/2011 3 - 15 PROGRAM ADMINISTRATION 

4. The documentation, records, and referenced materials described in Section L.3. 

must be made available for review during ARB or other State agency monitoring 

visits and audits. Such administrative records for a given funding year must be 

retained, at a minimum, until the applicable funding year liquidation deadline 

[e.g., for Year 13 (fiscal year 2010-2011) funds, the funding year liquidation 

deadline is June 30, 2015]. 

5. Air districts that charge unallowable costs for program administration or outreach 

must substitute eligible administration and outreach expenses equal to the dollar 

amount found ineligible, or return the funds for the unallowable cost to ARB as 

mitigation or returned funds. 

M. Commitment of Project Funds 

Funds are considered to be committed to a project when the air district officially selects 

an eligible project for funding through any of the following actions: 

1. The contract between the air district and the owner is fully executed. 

2. The air 

resolution, minute order, letter or other written instrument. 

3. The APCO or other Board-authorized representative sends the successful 

applicant a project offer letter. 

4. The air district inputs into CARL project details from applications it has 

determined are eligible for funding. 

5. Program staff submits a list of eligible projects confirming the air district s 

commitment to fund these projects. 

N. Progress Tracking: Contract Execution 

1. Air districts shall make every effort to have all Carl Moyer Program funds 

associated with the funding year one calendar year prior as well as any other 

funds in the applicable funding target (see Section Q.2.) under executed contract 

by June 30th of each year. Thus, for example, all funds awarded Year 13 (fiscal 

year 2010-2011) should be under executed contract by June 30, 2012.

2. Match funds should be under executed contract by the same contract execution 

deadline as the Carl Moyer Program funds with which they are associated 

regardless of the date such funds were collected by the air district.

3. For Carl Moyer voucher programs, the voucher issue date will be used to gauge 

progress in contract execution. 
As of 4/28/2011 3 - 16 PROGRAM ADMINISTRATION 

O. Progress Tracking: Fund Expenditure 

1. By June 30th of each year, air districts must have expended all Carl Moyer 

Program project funds associated with the funding year, two calendar years prior 

(Health & Safety Code § 44287(k)), as well as any other funds in the applicable 

funding target (see Section Q.2.). For example, funds awarded Year 13 (fiscal 

year 2010-2011) must be expended by June 30, 2013. By this date, all 

administrative funds must be liquidated, as described in Section P.3. 

2. Match funds must be expended by the same expenditure deadline as the Carl 

Moyer Program funds with which they are associated regardless of the date the 

match funds were collected by the air district. 

3. xpended for the purposes of 

progress tracking under the following conditions: 

(A) The project is liquidated per Section P.2., or

(B) An invoice for the project has been fully or partially paid by the air district 

consistent with Section CC and such invoice payment covers the grant 

amount for at least one operational new engine, vehicle, or piece of 

. See Chapters 10 (Portable and 

Stationary Agricultural Sources) and 12 (Marine Vessels) for specific 

exemptions for electric agricultural irrigation pump motors and shore-side 

shore power projects, respectively.

4. Any funds associated with an engine, vehicle, or piece of equipment cancelled 

from a contract prior to the liquidation of the contract as a whole will no longer be 

considered expended beginning at the time of the cancellation. 

P. Progress Tracking: Fund Liquidation 

1. Funding Year Liquidation

By June 30th of each year, air districts must have liquidated all Carl Moyer 

Program funds associated with the funding year four calendar years prior as well 

as any other funds in the applicable funding target (see Section Q.2.). For 

example, funds awarded Year 13 (fiscal year 2010-2011) must be liquidated by 

June 30, 2015. The exception is funds awarded Year 8 (fiscal year 2005-2006); 

such funds must be liquidated by June 30, 2011. 

(A) Match funds must be liquidated by the same liquidation deadline as the 

Carl Moyer Program funds with which they are associated regardless of 

the date such funds were collected by the air district. 
As of 4/28/2011 3 - 17 PROGRAM ADMINISTRATION 

(B) A funding year that has been liquidated by an air district and all associated 

projects will be removed from cumulative tracking. 

(C) -liquidated 

funding year may be made to correct for errors discovered in an earlier, 

liquidated, funding year. 

(D) For purposes of progress tracking, ARB considers Years 1-7 (fiscal years 

1998-1999 through 2004-2005) to be liquidated. All projects associated 

with those funding years must remain associated with them; i.e., such 

projects are no longer available for use in cumulative tracking and can not 

be counted in later funding years. Any air district with knowledge of 

un-liquidated funds from such funding years must notify ARB and take 

appropriate actions such as re

discretion, make a funding year adjustment to a later, un-liquidated 

funding year. 

2. Individual Project Liquidation

(A) 

progress tracking if all invoices associated with the project under contract 

have been paid. 

(B) For completed projects for which all invoices have been paid except for a 

small amount withheld for making progress payments, both the paid funds 

and the withheld funds will be considered liquidated for the purpose of 

progress tracking. Such progress payments, if used, must be covered in 

air 

manual. Withheld progress payments considered to be liquidated per this 

section that are not ultimately paid to the grantee due to non-performance 

must be treated like other recaptured funds consistent with 

Section P.2.(C).

(C) Funds that have been liquidated on a given project but are later returned 

to the air district are considered recaptured funds. For the purposes of 

progress tracking, such funds will still be considered to be liquidated with 

regard to the original project, but will be added to the contract execution, 

expenditure, and liquidation targets of the current funding year as a 

funding year adjustment when the funds are returned. 

For example, if Project X is liquidated in 2010 but in February 2012, the 

grantee opts to end the contract early and pays the air district back a 

prorated amount of the grant, for tracking purposes the funds associated 

with Project X are still considered to be liquidated in 2010. However, the 

amount paid back to the air district is added as an adjustment to the air 

-2012) targets. 
As of 4/28/2011 3 - 18 PROGRAM ADMINISTRATION 

(D) Per Section Z.5.(A), each pro

years from the original date of contract execution. Under no 

circumstances may the liquidation date be extended beyond four years 

from the original date of contract execution. 

3. Administrative fund liquidation. Administrative funds associated with a grant 

must be liquidated by the expenditure deadline requirement for the grant 

consistent with Health and Safety Code section 44287(k). For example, 

administrative funds associated with funds awarded Year 13 (fiscal year 2010-

2011) must be liquidated by June 30, 2013.

Q. Cumulative Progress Tracking 

1. ARB shall track, cumulatively, an air district progress in meeting program 

milestones to execute contracts, expend funds, and liquidate funds. Funds 

associated with a given funding year must be fully accounted for; however, 

deadlines may be met on a cumulative basis. For example, an air district that 

must demonstrate expenditure of Year 8 funds by the two-year statutory deadline 

may utilize Year 9 funds expended early in place of Year 8 funds not yet 

expended.

2. To assist participating air districts with cumulative tracking, ARB shall maintain in 

the CARL database appropriate progress tracking targets for each participating 

air district for each funding year. These funding targets shall list the total funds 

required to meet given milestones such as contract execution, fund expenditure, 

and funding cycle liquidation. Such tracking targets shall include, as appropriate, 

Carl Moyer Program grant funds (including Multi-district funds awarded pursuant 

to Health and Safety Code section 44286, Rural District Assistance Program 

funds, and Carl Moyer voucher program funds), required match funds, interest 

funds, reallocated funds, recaptured funds, and any other relevant funds 

associated with the Carl Moyer Program.

3. ARB will adjust progress tracking targets to account for the movement of funds 

into and out of an air 

RAP), for in-kind match, for interest spent on administration, or as otherwise 

needed.

R. Yearly Report 

1. ARB shall send air districts a copy of the appropriate Yearly Report template to 

Report template shall include instructions for t and shall be 

made available to air districts by June 30.

2. Air districts must submit the Yearly Report on or before August 29th. This report 
As of 4/28/2011 3 - 19 PROGRAM ADMINISTRATION 

must provide information regarding projects associated with funds received that 

are under executed contract as of June 30th of that year. Air districts that 

dedicate their full allocation to the Rural District Assistance Program are not 

required to report regarding those funds.

3. The Yearly Report must include the following information:

(A) Project details sufficient to populate the data fields in the CARL database 

for each Carl Moyer Program project, including match fund projects, 

projects funded with earned interest, and AB 923 $2 MV Fee projects 

claimed for State Implementation Plan credit. To provide such project 

details for the Yearly Report, air districts must update all of their project 

information in the CARL database and must ensure that all information in 

CARL is complete, correct, and supported by relevant documentation 

(e.g., executed contracts and project invoices) maintained by the air 

district.

(B) Quantitative information regarding progress through June 30th on reaching 

program milestones such as contract execution, fund expenditure, and 

funding cycle liquidation, as tracked cumulatively. An air district may 

waive contract execution reporting requirements if the air district is 

covered by a contingency plan to move uncommitted funds to RAP or to a 

partnering air district no later than March 1 prior to the expenditure 

deadline of the funding cycle (e.g., by March 1, 2011, for Year 11 funds, 

which have a June 30, 2011, expenditure deadline). Contingency plans 

must receive air district board approval. Contingency plans involving 

participation of multiple air districts must be described in a memorandum 

of understanding (MOU) approved by all participating air district boards.

(C) The APCO, Chief Financial Officer (CFO), and Carl Moyer Program 

Administrator must sign and certify that the project and fiscal information 

contained within the Yearly Report is, to the best of their knowledge, 

accurate and complete. The air district Board may designate an alternate 

for the CFO; however, the designated alternate must be someone in 

addition to the APCO or Program Administrator, therefore ensuring 

certification of the report by more than one person. Submission of 

executed contracts and/or project invoices to ARB is not required. 

Physical documents are to be maintained at the air district office and 

made available to ARB upon request.

(D) A brief narrative specifying any enforcement actions taken and/or any 

funds recaptured from liquidated projects.

(E) Amount of interest accrued on State Carl Moyer Program funds. See 

Section K for more regarding earned interest.
As of 4/28/2011 3 - 20 PROGRAM ADMINISTRATION 

4. Projects funded with the AB 923 $2 MV Fee that are not Carl Moyer Program 

match projects shall be reported as follows:

(A) Air districts claiming State Implementation Plan credit for AB 923 $2 MV 

Fee projects must report project-by-project details by entering them into 

CARL.

(B) Air districts not claiming SIP credit for AB 923 $2 MV Fee projects must 

report fund expenditures for each of the four allowed uses identified in 

Section H.1., but are not required to report project-by-project details. 

However, ARB recommends that air districts make project information 

publicly available in the interest of transparency. 

5. Air districts that have not executed contracts to cover all project funds received 

during the previous calendar year must work with their ARB Carl Moyer Program 

liaison to ensure the air district is on target to expend all required program funds 

within two years (see Section Q). At a minimum, such air districts must provide 

an email or other written documentation briefly describing:

(A) The reason for the delay in executing contracts, and

(B) Their schedule for executing the remaining contracts, returning funds to 

ARB, contributing the funds to the Rural District Assistance Program, or 

other action(s) as needed to ensure project funds are expended within the 

two-year deadline. Air districts choosing to contribute funds to the Rural 

District Assistance Program must do so by the March 1 date preceding the 

applicable funding year expenditure deadline (e.g., by March 1, 2011, for 

Year 11 funds, which have a June 30, 2011, expenditure deadline) 

6. If the Yearly Report identifies an expenditure shortfall, the air district must submit 

and ARB must receive a check for the shortfall amount by August 29, concurrent 

with the deadline to submit the Yearly Report. No additional disbursements will 

be made to the air district until the returned funds have been received by ARB.

7. Receipt of a Yearly Report by ARB does not imply ARB approval of project 

eligibility. Air district staff is responsible for project approval and funding eligibility 

determinations. 

8. Air districts that are found to have funded ineligible projects will be required to 

substitute eligible projects equal to the amount found ineligible or return the 

ineligible amount to ARB as mitigation or returned funds. 

S. Return and Reallocation of Unexpended Funds 

1. Any air district whose latest required Yearly Report does not demonstrate full 

expenditure of program funds within two years, must return the expenditure 
As of 4/28/2011 3 - 21 PROGRAM ADMINISTRATION 

shortfall within 60 calendar days after the June 30th expenditure deadline (Health 

& Saf. Code § 44287(k)). 

2. For returned funds (including funds that have been disbursed to districts that are 

subsequently returned to ARB prior to the expenditure deadline required under 

Health and Safety Code section 44287(k)) ARB shall reallocate those funds to air 

districts per Health and Safety Code section 44299.2(c). Air districts may apply 

for any amount of the available funds. To be considered for funding, an air 

district must apply for the funds and submit a list of eligible projects. The 

application must demonstrate the air ability to expend the amount 

requested on eligible Carl Moyer Program projects expeditiously.

3. If the total returned funds are less than $300,000, ARB shall determine how to 

reallocate the funds to air districts and/or projects identified in Section S.2. 

4. If the total returned funds are $300,000 or greater, ARB shall take the following 

steps to reallocate the funds:

(A) Using the air districts identified in Section S.2., use the allocation 

methodology per Health and Safety Code section 44299.2(a).

(B) Adjust the results from Section S.4.(A) using the project lists submitted in 

Section S.2. to best match the available funds while also attempting to 

provide up to 20 percent of funds to rural air districts.

5. No administrative funds are provided with reallocated funds.

6. No matching funds are required for reallocated funds.

7. For the timeline for reallocation and expenditure of returned funds, see 

Section B.2. of this chapter Table 3-2. 

T. Progress Questionnaire 

1. Twice a year ARB will provide a questionnaire to each implementing air district 

requesting an update regarding air district progress towards meeting its contract 

execution and expenditure targets, measured cumulatively using the same 

calculation methods as used in the Yearly Report. ARB will include, for each air 

o be 

disbursed to the air district.

2. Each air district must submit their completed progress questionnaire to ARB on 

the first business day of April and December each year. At a minimum, the 

questionnaire must include the requested information through the end of 

February and October, respectively. Alternatively, air district staff may notify 

ARB in writing (e.g., email) that the air district has updated all project equipment 
As of 4/28/2011 3 - 22 PROGRAM ADMINISTRATION 

and administrative information in CARL.

3. For contract execution reporting only, an air district may waive progress reporting 

requirements if the air district is covered by a contingency plan to move 

uncommitted funds to RAP or to a partnering air district no later than March 1 

prior to the expenditure deadline of the funding cycle (e.g., by March 1, 2011, for 

Year 11 funds, which have a June 30, 2011, expenditure deadline). Contingency 

plans must receive air district board approval. Contingency plans involving 

participation of multiple air districts must be described in an MOU approved by all 

participating air district boards. 

U. Program Non-Performance 

1. Program non-performance is air district non-compliance with program Guidelines 

or statute that is not corrected by the air district in a timely or satisfactory fashion. 

As directed by Health and Safety Code section 44291(d), ARB shall monitor air 

district programs to ensure that participating air districts conduct their programs 

consistent with the criteria and guidelines established by the state board. ARB 

may become aware of possible air district non-performance through program 

reports, audits of air districts, or other means. Examples of program noncompliance with program Guidelines or statute include:

(A) Failure to return to ARB a check for the expenditure shortfall identified by 

the Yearly Report (Health & Safety Code § 44287(k)). 

(B) Misuse of Carl Moyer Program funds, including funding of ineligible 

projects.

(C) Insufficient or improper program oversight and enforcement, including 

widespread deficiencies in project contracting, inspections, or audits.

(D) Insufficient, incomplete, or inaccurate project documentation.

(E) Failure to submit timely and accurate reports to ARB.

2. ARB shall make every effort to assist any non-performing air district. 

3. When ARB determines that an air district program is non-compliant, ARB shall 

initiate a series of informal steps to assist the air district as follows: 

(A) The ARB air district liaison and manager shall work with the air district 

staff to understand and resolve the issue. 

(B) If the ARB Branch Chief determines that the non-performance issue has 

not been resolved, the ARB Branch Chief shall contact the air district 

APCO and continue the informal process to understand the issue and 
As of 4/28/2011 3 - 23 PROGRAM ADMINISTRATION 

offer help to resolve the issue.

(C) If the ARB Branch Chief determines that the non-performance issue has 

not been resolved through Section U.3.(B), the ARB air district liaison shall 

send a Program Non-Performance Notification email to the air 

program contact that contains the following:

(1) Description of the problem;

(2) Pertinent details, such as names of involved persons and projects, dates, 

dollar amounts, and citations of relevant guidelines sections, Health and 

Safety Code, and regulations;

(3) Possible solutions to the problem, if some have been identified, and/or 

offer ARB assistance; and

(4) Arrangements for a meeting between the ARB Branch Chief and the air 

district APCO to agree on a plan and timeline for resolving the problem. 

The plan and timeline shall be recorded by the ARB air district liaison and 

emailed to the air district APCO within five business days of the meeting.

4. Lacking satisfactory resolution of the issue(s) described above then in 

accordance with Health and Safety Code section 44291(d) the ARB Executive 

Officer shall determine if the non-performance issue(s) identified in 

Section U.3.(C)(1) 

the air district and not yet awarded to approved projects. If so, ARB will send a 

letter of Program Non-Performance to the air district APCO. The letter will set a 

public meeting to be held at the air 

within the air district). The purpose of the meeting will be to consider public 

comments prior to any recapture of funds. 

V. ARB Audit of Air Districts 

1. State law assigns ARB the responsibility and authority to oversee and audit Carl 

Moyer Programs and related emission reduction incentive programs as identified 

in Health and Safety Code section 44291 and Health and Safety Code section 

39500. ARB audits help to ensure that air district programs achieve expected 

emission reductions and are implemented in a manner consistent with program 

guidelines and State law. Besides identifying program deficiencies, audits also 

provide a mechanism for identifying the strengths of air 

specific audit procedures are described in more detail in the Carl Moyer and 

School Bus Program Auditing Policies and Procedures Manual posted on the 

Carl Moyer Program website: 

http://www.arb.ca.gov/msprog/moyer/audits/audits.htm.

2. ARB shall audit a sufficient number of air districts each year commensurate 
As of 4/28/2011 3 - 24 PROGRAM ADMINISTRATION 

with approximately 10 percent of program funds -- to ensure proper program 

implementation. The goals for frequency of air district audits is as follows:

(A) Large air districts - every 4 years

(B) Medium air districts - every 6 years

(C) Small air districts - every 8 years

3. To ensure objectivity and the efficient use of resources, ARB shall use a riskbased approach to select specific air districts for audit during a given year and to 

select specific air district projects to audit. Consistent with this approach, air 

districts that demonstrate good performance when audited will likely be audited 

less frequently in the future than similarly-funded air districts with poorer audit 

results.

4. 

(A) Audits shall be conducted in a manner that reflects the public 

responsibility and accountability entrusted to ARB. 

(B) ARB shall generally limit the scope of an audit to cover the two most 

recently-completed funding years and the two years currently in progress. 

For example, an audit initiated April 2010 would typically cover Year 8 

(completed June 30, 2008), Year 9 (completed June 30, 2009), and 

Years 10 and 11 (in progress).

(C) Once a given funding year is audited, ARB will typically not audit it again 

unless warranted. ARB reserves the right to investigate possible fraud or 

misuse of funds in any program year. 

(D) ARB shall maintain open channels of communication with the air district 

enable open communications. Such provisions include fully explaining the 

preferred channels of communication with the air district, informing the air 

district of potential issues as they unfold, affording numerous opportunities 

for air district input throughout the audit, thoroughly discussing any 

findings and recommendations with the air district during the exit interview, 

and allowing the air district an opportunity to formally respond to the audit 

report. 

(E) To ensure objectivity and predictability, ARB shall base its findings and 

Guidelines and Mail-Outs, Program Grant Award and Authorizations, 

email communications between ARB and the air district, an air 
As of 4/28/2011 3 - 25 PROGRAM ADMINISTRATION 

Policies and Procedures Manual, and an air 

(F) All audit reports, air district responses, and related documents shall be 

Carl Moyer 

Program website. 

(G) ARB shall conduct sufficient follow-up activities, including assisting air 

districts and conducting follow-up reviews, to ensure that any identified 

deficiencies are promptly and effectively mitigated.

5. Air district responsibilities during an audit include the following:

(A) Air districts must ensure that program files and other requested 

information are readily available to audit staff. Unless otherwise specified 

for a specific source category, project files must be retained for a minimum 

of two years after the end of the contract term or a minimum of three years 

after final payment, whichever is later. Applications that were not selected 

for funding must be retained for a minimum of three years after receipt. 

Administrative records for a given funding year (including personnel 

documentation and records of various administrative expenses per 

Section L) must be retained, at a minimum, until the applicable funding 

year liquidation deadline (e.g., for Year 13 (fiscal year 2010-2011) funds, 

the funding year liquidation deadline is June 30, 2015).

(B) Air district management must, at a minimum, participate in the entrance 

and exit interviews and ensure that air district staff is cooperative with 

audit staff. 

(C) Air district staff must communicate fully with audit staff and with air district 

management throughout the course of an audit.

(D) If deficiencies are identified during the audit, air districts must make every 

effort, including requesting assistance from ARB if necessary, to ensure 

that the identified deficiencies are fully mitigated. Air districts must report 

on their progress at specified intervals.

6. AB 923 $2 MV Fee projects are subject to audit or evaluation as follows:

(A) A Carl Moyer Program match project funded with the AB 923 $2 MV Fee 

will be subject to the same auditing and oversight requirements and 

protocols as other Carl Moyer Program match projects.

(B) A non-match project funded with the AB 923 $2 MV Fee may be evaluated 

by ARB in conjunction with an audit. Evaluation of these projects shall be 

limited to project eligibility. Any irregularities regarding non-match AB 923 

$2 MV Fee project eligibility must be reported separately from Carl Moyer 
As of 4/28/2011 3 - 26 PROGRAM ADMINISTRATION 

Program audit findings.

W. Minimum Project Application Requirements 

1. Air districts and ARB shall conduct outreach to inform potential project applicants 

of the availability of grants and the requirements and objectives of the 

Carl Moyer Program (Health & Safety Code § 44290).

2. Project applications must include all information needed to populate and 

calculate project cost-effectiveness in CARL. 

3. Information regarding previous years of existing engine usage (e.g. miles 

traveled, hours operated, or fuel consumed per year) must be documented and 

included in the project application. This information must be used to evaluate 

project cost-effectiveness and the maximum grant award amount. At the air 

contract for projects in which at least twenty-four (24) months of complete 

historical usage prior to the application date have been documented and verified 

by the air district.

4. Applications must include a signature section for third parties. A third party may 

complete an application or part of an application on an if the 

vehicle, engine, or equipment owner signs the application. The third party 

signature section must include signature and date lines, and blanks for the third 

party to indicate the amount and source of payment, if any. 

5. Project applications must include language informing the applicant that by 

signing and submitting the application, the applicant certifies under penalty of 

perjury that the information in the application is accurate and true. In addition, 

the application must include the following statements that the applicant or the 

designee must certify as accurate and true:

(A) A disclosure statement.

(1) The disclosure statement must specify whether the applicant has 

submitted an application for incentive funds to any other entity or program 

for the same equipment (for example, repowering of the same project 

engine). If so, the applicant must disclose to whom the other application 

was submitted, and whether funds have been awarded or may be 

awarded. If funds have been awarded or may be awarded, the funding 

amount must be disclosed.

(2) An applicant may re-apply for project funding if a previous application for 

the same project has been rejected by the air district and is no longer 

being considered for funding.
As of 4/28/2011 3 - 27 PROGRAM ADMINISTRATION 

(3) An applicant must disclose the value of any current financial incentive that 

directly reduces the project cost, including tax credits or deductions, 

grants, or other public financial assistance for the same engine. The 

incremental cost of the project will be reduced by the amount of the 

current financial incentive, except for projects, beginning July 1, 2011, in 

which the following funding sources are used to reduce greenhouse gas 

emissions:

a. Federal funding to reduce greenhouse gas emissions. 

b. Alternative and Renewable Fuel and Vehicle Technology Program. 

(4) An applicant who is found to have applied for or received incentive funds 

from another entity or program for the same project without disclosing that 

information as required by Section W.5.(A)(1), shall at a minimum, be 

disqualified from funding for that project from all sources within the control 

of an air district or ARB. ARB and the air district may also seek civil 

penalties for such non-disclosure.

(B) A regulatory compliance statement form requiring the applicant to certify 

that they are currently in compliance with all federal, state, and local air 

quality rules and regulations at time of application submittal.

X. Application Evaluation and Project Selection 

1. Air districts must review all applications for completeness upon receipt and notify 

the applicants within five working days of receipt if their application is not 

complete, consistent with Health and Safety Code section 44288(a). The air 

district must make every effort to clearly state to the applicant what is required to 

make the application complete. The application and all correspondence with the 

he record of 

must be maintained with the project file. 

2. Air districts are responsible for determining that project applications are credible, 

made in good faith, and in compliance with the Carl Moyer Program and its 

objectives.

3. Air districts must ensure that the emission reductions provided by selected 

projects are eligible and surplus to adopted regulations and other legal 

requirements. This should include checking to ensure the project meets all of the 

minimum requirements outlined in the appropriate source category chapter:

(A) Documentation of historical vehicle, equipment, or engine usage;

(B) Documentation of project costs;
As of 4/28/2011 3 - 28 PROGRAM ADMINISTRATION 

(C) Engine or retrofit device Executive Orders, if applicable;

(D) Proof of a vehicle compliance check, as needed, for on-road (which 

includes emergency vehicle) projects; and 

(E) Other documentation identified in the relevant source category chapter.

4. Air districts must have a system for tracking applications. CARL may be used to 

satisfy this requirement if an air district enters the data from all applications 

received into this database, whether the application is provided funding or not. 

At a minimum, the tracking system shall include the minimum information needed 

to readily identify the project applicant, project type, and project eligibility, and to 

calculate project cost-effectiveness and maximum grant award in CARL. Air 

districts that import project information into CARL are responsible for ensuring 

the accuracy of their calculations of cost-effectiveness and eligible funding 

amounts. Minimum allocation air districts and any other implementing air districts 

receiving less than one-half percent of the current fiscal year total Carl Moyer 

Program Funds, or $450,000, whichever is less, are not required to maintain an 

application tracking system.

5. The following requirements apply to those air districts that do not operate and 

maintain their own databases:

(A) Information for projects selected for funding must be entered into CARL to 

ensure each project meets the emission reduction requirements and costeffectiveness criteria of the Carl Moyer Program. 

(B) No project will be funded unless CARL indicates the emission reduction 

requirements and cost-effectiveness criteria of the Carl Moyer Program 

have been met. 

(C) If CARL indicates the project does not meet either the emission reduction 

requirements or the cost-effectiveness criteria of the Carl Moyer Program 

and the air district representative believes the project should actually 

qualify, the air district representative may contact his or her ARB liaison to 

further evaluate project eligibility.

6. The air district must maintain a copy of each application and a file for each 

project selected for funding. An air district may use a solely electronic file system 

only if the air district satisfactorily demonstrates to ARB that all documentation is 

maintained and can be easily accessed on demand. Unless otherwise specified 

for a specific source category, project files must be retained for two years after 

the end of the contract term or a minimum of three years after final payment, 

whichever is later. 
As of 4/28/2011 3 - 29 PROGRAM ADMINISTRATION 

7. Air districts must keep project applications until a minimum of three years after 

receipt for projects not selected for funding.

8. Projects approved for funding must meet all applicable requirements of these 

guidelines. Once an air district has checked the eligibility of projects, the air 

district must follow its Policies and Procedures Manual in selecting projects to 

fund.

9. Carl Moyer Program participants that received funding and are still under 

contract may not apply for funding for the same project through the Carl Moyer 

Program, the Voucher Incentive Program, the Goods Movement Emission 

Reduction Program, or any other program. 

(A) If an air district chooses to amend a contract to reduce the term, the 

amended project must be cost-effective during the reduced contract term, 

based on the cost-effectiveness values and limit that applied when the 

original contract was executed. If an air district agrees to accept a 

prorated repayment of the Carl Moyer Program grant, the repayment and 

amended contract execution must both occur prior to the execution of any 

new contract for funding. 

(B) Emissions reductions that were previously funded are part of the baseline 

and must not be included as emissions benefits of any subsequent project 

designed to achieve emission reductions, including the Carl Moyer 

Program, the Voucher Incentive Program, or the Goods Movement 

Emission Reduction Program. 

10.An air applicants of their prospective award 

must be included in its Policies and Procedures Manual. 

11.Air districts with a population greater than one million inhabitants must select 

from their applicant pool in a way that ensures that 50 percent or more of their 

Carl Moyer Program funds (including the smog abatement fee and tire fee) are 

expended on projects that are located in/or operate in environmental justice/high 

risk communities (Health & Safety Code § 43023.5). Air districts may track this 

on a cumulative basis (see Section Q.1.).

12.ARB shall include a solicitation packet on its website for multi-district projects that 

are solicited and selected by ARB consistent with Health and Safety Code 

section 44286(d). The multi-district project solicitation packet shall include the 

application requirements and application due date, project eligibility criteria, and 

project selection criteria. 

Y. Case-by-Case Determination Process

1. An air district may request ARB review of a project or other Carl Moyer Program 
As of 4/28/2011 3 - 30 PROGRAM ADMINISTRATION 

element that varies from the requirements of these Guidelines for a case-by-case 

determination. ARB Carl Moyer Program staff may approve such a project or 

other program element if the outcome of this approval would not adversely 

impact achievement of real, surplus, quantifiable, enforceable, and cost-effective 

emission reductions, would not significantly reduce program transparency, and is 

not prohibited by law. 

2. An air district requesting a case-by-case determination for a project must submit 

the following to Carl Moyer Program staff (e.g., liaison and/or source category 

expert): 

(A) A summary of the request and reference(s) to the pertinent area(s) of the 

Guidelines which the air district is asking for additional guidance and 

approval. 

(B) Documents providing information essential to the request for approval 

including, but not limited to, baseline and new engine information, the 

associated ARB engine Executive Orders and/or United States 

Environmental Protection Agency Certificate of Conformity for baseline 

and new engines, other related applicant information from a completed 

application. 

(C) Other information and documents as requested by Carl Moyer Program 

staff. 

Once the above information has been submitted, ARB staff will respond to the air 

district within 15 business days with a determination or estimated date of 

determination. 

3. The requested project or program element submitted for review shall be deemed: 

(A) Approved: 

(B) Not Approved: Non-approval of a project does not imply or equate to 

anket non-

(C) No Action / CBC approval not required: ARB evaluation concludes that a 

case-by-case determination is not required as the request already 

conforms to the requirements or intent of the Guidelines. 

4. Air districts are required to request a case-by-case determination even if they 

believe a project is similar to previously-approved case-by-case projects. ARB 

establish general approval. Subsequent requests for ARB approval would not be 

required for a project or program element covered by a general case 
As of 4/28/2011 3 - 31 PROGRAM ADMINISTRATION 

determination. 

5. All case-by-case determinations submitted for review and all general case 

determinations will be made available to the Carl 

Moyer Program website. 

6. Air districts must keep a copy of the determination, either approved or not 

approved, in the project file. Written case-by-case approval for other program 

elements must be kept by an air district with the air district Policies and 

Procedures manual and be readily available for ARB audit staff. 

7. All attempts should be made to request a case-by-case determination prior to 

contract execution. However, in rare circumstances in which an unforeseen 

event, subsequent to contract execution, leads to a project or program element 

that varies from the requirements of these Guidelines, a request for case-by-case 

determination as outlined in Section Y.2. will also be required. 

Z. Minimum Contract Requirements

1. General Requirements. Air districts participating in the Carl Moyer Program must 

execute contracts with prospective grantees who will receive funds under the 

Carl Moyer Program. All Carl Moyer Program project contracts must include the 

elements described in this section. Projects funded by the Carl Moyer Program 

may not be used to generate a compliance extension or credit for determining 

regulatory compliance. All executed project contracts and contract amendments 

must be kept in the air roject file. 

2. Party Names and Date. All contracts must state the name of the air district and 

the grantee as parties to the contract. Contracts must include signature blocks 

with an area for the dates the contract is signed, or the execution date must 

otherwise be clearly indicated in the contract.

3. Notices. All contracts must include contact information for both parties to the 

contract, including how to send and receive notices. 

4. Funds from Other Sources. 

(A) Grantees must certify that they have disclosed all other public funds that 

they have applied for or received for a project. 

(B) A grantee may receive Carl Moyer Program funding from multiple air 

districts for the same project if these entities are coordinating to jointly 

fund portions of the project. The contract must list the entities involved 

and funding provided. 

(C) The contract must prohibit the grantee from applying for or receiving other 
As of 4/28/2011 3 - 32 PROGRAM ADMINISTRATION 

public funds for the same project except in the following situation. Starting 

July 1, 2011, grantees may apply for and receive additional funding for the 

same project from federal programs to reduce greenhouse gas emissions 

(GHG) or funding provided by the Alternative and Renewable Fuel and 

Vehicle Technology Program to reduce GHG. These funds are not 

required to be included in the cost-effectiveness calculations (See 

Appendix C), but they are subject to the disclosure requirements. The 

total public funds received by the grantee during the term of the Carl 

Moyer Program contract cannot exceed 85 percent of the project cost (see 

Chapter 2: General Criteria). 

5. Contract Term. All contracts must specify the term of the contract. The contract 

term shall include two time frames and project 

implementation to ensure that the air district and ARB can fully enforce the 

contract during the life of the Carl Moyer Program-funded project. 

(A) Project Completion. Project completion is the time frame starting with the 

date of execution of the contract to the date the project post-inspection 

confirms that the project has become operational. This includes the time 

period when an engine or vehicle is ordered, delivered and installed. The 

contract must include a specified time frame in which project completion 

will occur so that the contract is liquidated within four years from the 

original date of contract execution. Under no circumstance may the 

liquidation date be extended beyond four years from the original date of 

contract execution. 

(B) Project Implementation. The project implementation time frame is the 

second part of the contract term, and must equal the project life used in 

the project cost-effectiveness calculation. The contract must specify that 

the grantee is required to operate and maintain their Carl Moyer Programfunded project according to the terms of the contract for the full project 

implementation period. 

6. Project Specifications. All contracts must include detailed information on the 

baseline and new vehicles, equipment, and/or engines that were used in the 

project cost-effectiveness calculation. This requirement may be met by including 

the project application as an attachment to the contract as long as the application 

is accurate and complete. 

(A) A program-eligible replacement vehicle, piece of equipment and/or engine 

that is verified or certified to achieve equivalent or greater reductions than 

the original project replacement vehicle, piece of equipment and/or engine 

may be substituted with prior approval of the air district. 

(B) All contracts must specify the amount the engine is to operate within 

California (or the air district) each year based on hours, miles, or fuel 
As of 4/28/2011 3 - 33 PROGRAM ADMINISTRATION 

usage. 

(1) For projects for which at least twenty-four (24) months of complete 

historical usage are documented and verified by the air district, minimum 

annual usage is not required to be specified in the contract. Such 

historical usage must be documented for at least the twenty-four (24) 

consecutive months immediately prior to the application date. 

(2) The types of acceptable documentation for establishing historical annual 

usage will be clearly defined in each air 

(3) Additional forms of documentation to verify historical annual usage that 

are not included in an air cies and procedures manual can be 

evaluated and approved by ARB on a case-by-case basis. 

(C) Contracts must also contain a statement that the project complies with the 

Carl Moyer Program Guidelines and that the grantee will meet the 

following requirements: 

(1) C

compliance with all applicable federal, state, and local air quality rules and 

regulations at time of contract execution. 

(2) Maintain compliance with all applicable federal, state, and local air quality 

rules and regulations for the full contract term. 

(3) For repower projects, the installation of the engine must be completed in a 

manner such that it does not void the engine warranty provided by the 

manufacturer and any remaining warranty provided by the 

equipment/vehicle manufacturer. 

(D) Contracts must specify the following : 

(1) Projects funded by the Carl Moyer Program must be included when 

defining the size of the fleet for determining regulatory requirements. 

(2) Throughout the contract term, projects funded by the Carl Moyer Program 

must not be used to generate credits or compliance extensions, and must 

be excluded when determining regulatory compliance. 

7. Maintenance. All contracts must require the grantee to maintain the vehicle, 

equipment a e 

life of the project, and include a prohibition on engine tampering. The grantee 

must maintain a working hour meter for projects that use hours of operation as a 

means of calculating emission reductions and cost-effectiveness. If the hour 
As of 4/28/2011 3 - 34 PROGRAM ADMINISTRATION 

meter fails, the grantee must immediately notify the air district, and remain 

responsible for validating any hours not recorded by the hour meter. The grantee 

must either repair or replace the non-operating meter or provide other 

documentation of equipment operating hours acceptable to the air district. 

8. Payment. Before a Carl Moyer Program payment may be made to a project 

participant, the project contract must be executed, an eligible invoice must be 

received by the air district, and the project post-inspection must be successfully 

completed to document the completion of the work specified in the invoice. The 

equipment must be operational before the final payment is issued. All contracts 

must include the following payment terms: 

(A) Maximum Contract Amount. The maximum contract amount must not 

exceed the maximum funding level corresponding to the current program 

cost-effectiveness limit, nor may the maximum contract amount exceed 

the project incremental cost. The maximum contract amount must also 

comply with any funding caps and other criteria for the specific project 

category as identified in these Guidelines. 

(B) Itemized Invoices. Payment terms must require itemized invoices from the 

engine supplier for repowers or paid invoices from the vehicle owner for 

new vehicles and satisfactory post-inspection by the air district prior to 

engine, or piece of equipment may not exceed the amount indicated on 

the project contract for that vehicle, engine, or piece of equipment. The 

contract should be clear that the air district will pay the lower of the 

contract amount or the final invoice amount. Invoices must meet the 

minimum requirements of Section CC to be eligible for Carl Moyer 

Program funding. 

9. Reporting. All contracts must include a provision for grantees to submit annual 

reports commencing no later than 18 months after project post-inspection and 

continuing annually thereafter throughout the project implementation phase of the 

contract. The air district must include the dates the grantee Annual Report is 

due. 

(A) If the air district monitoring phase (i.e. project implementation phase) of 

the contract term exceeds five years, the grant reporting responsibility 

may be reduced to once every other year after the initial five years of 

reporting. 

(B) If the project is a zero-emission technology, reporting may be reduced to 

biennially for the first six years of the contract term. No Annual Reports 

are required thereafter. 

(C) During the project implementation phase, the air district is responsible for 
As of 4/28/2011 3 - 35 PROGRAM ADMINISTRATION 

monitoring the project to assure the project is operational and the project 

emissions reductions are realized. 

(D) The contract must inform the grantee that noncompliance with the 

reporting requirements will require on-site monitoring or inspection(s). 

10.On-Site Inspections and Audits. All contracts must include language that allows 

the air district, ARB, or their designee to conduct a fiscal audit of the project 

and/or to inspect the project engine, vehicle, and/or equipment and associated 

records during the contract term. Contracts must require the owner to maintain 

and retain the project records for at least two years after contract expiration or 

three years after final project payment, whichever is later. 

11.Repercussions for Nonperformance. Air districts must include repercussions for 

non-compliance with the obligations of the contract. 

(A) The contract must specify that by executing the contract, the grantee 

understands and agrees to operate the vehicle, equipment, and/or engine 

according to the terms of the contract and to cooperate with the air district 

and ARB in implementation, monitoring, enforcement, and other efforts to 

assure the emission benefits are real, quantifiable, surplus, and 

enforceable. 

(B) The contract must describe the repercussions to the grantee for 

noncompliance with contract requirements, including but not limited to 

cancelling the contract and recapturing project funds in proportion to any 

loss of emission reductions as agreed to in the contract (Health & Safety 

Code § 44291(c)). 

(C) The contract must inform the grantee that ARB and the air district have the 

authority to seek any remedies available under the law for noncompliance 

with Carl Moyer Program requirements and nonperformance with the 

contract. Air districts may consider unforeseen circumstances beyond the 

control in determining repercussions for nonperformance. 

(D) The contract must state that ARB, as an intended third party beneficiary, 

reserves the right to enforce the terms of the contract at any time during 

the contract term to ensure emission reductions are obtained. 

AA. Project Pre-Inspection

1. Once an application is deemed eligible, the air district must complete a preinspection. Air districts may choose to allow public agencies (e.g. public works 

departments, transit organizations, and school districts) to provide documentation 

of the engine(s) and its use in lieu of a pre-inspection. 
As of 4/28/2011 3 - 36 PROGRAM ADMINISTRATION 

2. The pre-inspection form and information to be documented must include, at a 

minimum, the following: 

(A) Information regarding the baseline engine, vehicle, or equipment as 

needed to uniquely identify, establish eligibility, provide a basis for 

emission calculations, populate the CARL database, and ensure contract 

enforceability. Such information includes (as applicable) make, model, 

year, horsepower, fuel type, engine family, engine tier, serial number, 

vehicle identification number (VIN), and any additional information 

pertinent to the project. Engines without a visible and legible serial 

number must be uniquely identified by having the engine block stamped 

with a Carl Moyer Program number or alternative permanent marking such 

as an engine tag. 

(B) The project usage (hours or miles) meter reading if used in the project 

cost-effectiveness calculation. The inspector must verify that stated 

project usage is reasonable given the usage meter reading. 

(C) Verification that the engine is operational (with a start-up) and that the 

engine is working as described in the application (document function and 

use). 

(D) Photo documentation of the engine, vehicle, or equipment information. 

The photos must include the legible serial number of the engine (if 

available) and/or any other identifying markings. Air districts must include 

in their Policies and Procedures Manual a method for cataloging, 

referencing, storing and easily retrieving project-specific photos. These 

methods may include electronic filing for digital photos, the inclusion of 

project-specific information (applicant name, date, project number, etc.) 

within each photograph or inscribing each photo with pertinent projectspecific information. ARB approval of the air 

Procedures Manual shall indicate approval of the photo documentation 

methodology. 

(E) Other relevant information including, but not limited to: 

(1) Name of inspector; 

(2) Date of inspection; 

(3) Name and contact information of engine or equipment owner; and 

(4) Location of the engine or equipment. 

3. Either at the time of application, or no later than the time of pre-inspection the 

district must obtain certification and submission of supporting documentation 
As of 4/28/2011 3 - 37 PROGRAM ADMINISTRATION 

from the applicant that their engine(s), vehicle/equipment, or project fleet is 

currently in compliance with the applicable rules or regulations affecting the 

engine(s), vehicle/equipment for which they are requesting funding. 

4. The air district must maintain a hard copy of the completed pre-inspection form in 

the air 

5. All projects other than on-road retrofit projects must be pre-inspected personally 

by air district staff. An air district may enter into a contract with a vehicle or 

equipment dealer to pre-inspect on-road retrofit projects. An air district that 

enters into such a contract must ensure the following: 

(A) The vehicle or equipment dealer must complete and sign the appropriate 

inspection forms and provide photographic evidence that the equipment is 

correctly identified on the form. Photographic evidence must include the 

engine tag and emissions information. 

(B) The air district must define in its Policies and Procedures Manual its 

protocol for ensuring the correct verified project retrofit will be properly 

installed on the eligible project vehicle. 

(C) The air district must define the consequences of fraud in the contract with 

the dealer. 

(D) The air district must randomly inspect at least ten percent of 

vehicles/equipment that have been pre-inspected by the dealer pursuant 

to the agreement. 

6. The project pre-inspection must be completed prior to a project contract 

execution and the information in the contract must be consistent with the 

information gathered during the pre-inspection. An air district may apply to ARB 

for approval to conduct pre-inspections after contract execution on a case-bycase basis. Case-by-case approval of such a procedure shall depend upon the 

following conditions being met: 

(A) The air district describes the program benefits it would achieve by 

conducting pre-inspections after contract signature. 

(B) The project contract includes language to indicate contract terms may be 

adjusted or the contract may be deemed void based upon information 

collected during the pre-inspection. The air district must also include a 

process for informing the prospective grantee of such. 

(C) The air 

process for conducting pre-inspections after contract execution and any 

additional procedures enacted to ensure the project achieves real, 
As of 4/28/2011 3 - 38 PROGRAM ADMINISTRATION 

surplus, enforceable, and quantifiable emission reductions. Work on the 

project engine, vehicle, or equipment may not commence until after the 

pre-inspection. 

7. Minimum allocation air districts and any other implementing air district receiving 

less than one-half of one percent of the current fiscal year total Carl Moyer 

Program Funds, or $450,000, whichever is less, may reduce their required 

project pre-inspections to a minimum of 25 percent of the total number of projects 

associated with the current fiscal year funds. Projects must be selected from 

each source category funded. 

BB. Project Post-Inspection

1. An air district must gather and document post-inspection information on all 

projects funded under the Carl Moyer Program. 

(A) The air district must conduct a post-inspection after it receives an invoice 

for a project from the grantee or otherwise receives notice the project is 

complete. If the post-inspection occurs before the air district receives the 

project invoice, the invoice must be reviewed for consistency with the new 

engine, vehicle, or equipment information from the post-inspection form. 

(B) For public fleets such as transit organizations where more than 20 of the 

vehicles in the fleet are included in the project, the air district may choose 

to inspect a statistically significant random sample of the vehicles included 

in the project. 

(C) The inspector must record, at a minimum, information regarding the new 

project engines, vehicles/equipment, and retrofit devices as needed to 

uniquely identify, establish eligibility, provide a basis for emission 

calculations, populate the CARL database, and ensure contract 

enforceability. Such information includes (as applicable), make, model, 

year, horsepower, fuel type, engine family, engine tier, serial number, VIN 

number, retrofit device certification level, and any additional information 

pertinent to the project. 

(D) The engine must be operational in the equipment or vehicle as stated in 

the contract. The inspector must visually witness all engine start ups and 

operation of all mobile projects. 

(E) The engine, vehicle/equipment, and retrofit information must be 

documented with photos. The photos must include the serial number of 

the engine or retrofit (if legible) and/or any other identifying markings. 

Photos of the scrapped or destroyed engine must be included. Air districts 

must include in their Policies and Procedures Manual a method for 

cataloging, referencing, storing and easily retrieving project-specific 
As of 4/28/2011 3 - 39 PROGRAM ADMINISTRATION 

photos. These methods may include electronic filing for digital photos, the 

inclusion of project-specific information (applicant name, date, project 

number, etc.) within each photograph or inscribing each photo with 

pertinent project-specific information. ARB approval of the air 

Policies and Procedures Manual shall indicate approval of the photo 

documentation methodology. 

(F) The post-inspection form must also contain other relevant information 

including, but not limited to: 

(1) Name of inspector; 

(2) Date of inspection; 

(3) Name and contact information of engine or equipment owner; and 

(4) Location of the engine or equipment. 

(G) The air district must maintain a hard copy of the completed post-inspection 

form in the air 

2. Post-inspection of a retrofit device requires the collection of additional information 

from the labels affixed on both the retrofit device and the engine. The air district 

may make payment once post-inspection confirms the retrofit device and the 

engine are properly labeled with the manufacturer name, family name, and serial 

number. Retrofit projects that do not have the proper retrofit labels containing 

the required information on both the device and the engine are non-compliant 

with ARB retrofit verification and labeling requirements. The post-inspection form 

must note any missing information and a dated record of the notification must be 

kept in the project file. Potential scenarios are summarized below, which air 

district staff must address prior to payment: 

(A) The retrofit device is properly labeled but the engine lacks a label: An 

engine label should be readily obtainable from the retrofit manufacturer by 

reference to the serial number. The air district may make payment once 

the grantee has been informed that the engine must also be labeled. 

(B) The retrofit device is labeled but the label does not have the required 

items: The air district must contact the manager of the In-Use Control 

Measures section or their Carl Moyer Program liaison to determine if an 

alternate label has been approved. The air district may make payment 

once it gets approval from ARB or a compliant label has been installed on 

the retrofit device. 

(C) The engine is properly labeled but the retrofit device lacks a label: The air 

district may make payment once a compliant label has been installed on 
As of 4/28/2011 3 - 40 PROGRAM ADMINISTRATION 

the retrofit device. 

(D) No label is found on either the engine or the retrofit device: The air district 

may make payment once a compliant label has been installed on both the 

engine and the retrofit device. 

3. Post-inspection of a new electric motor on an agricultural pump must also include 

recording of the serial number of the variable frequency device if the project 

includes one. 

4. The air district must verify that the existing (old) engine is destroyed and 

rendered permanently unusable and irreparable. 

(A) Air district staff must verify and document through photographic or video 

evidence that the destroyed engine serial number matches that on the 

project contract. 

(B) Air district staff must verify that engines without a visible and legible serial 

number are uniquely identified by the correct air district stamp or other 

permanent marking prior to engine destruction, as per Section AA.2.(A). 

(C) Methodology for verifying engine destruction must be identified in the air 

and Procedures Manual shall indicate ARB approval of the air 

methodology for verifying engine destruction. 

(D) Destruction methods and requirements specific to the on-road fleet 

modernization category, off-road equipment replacement, and the light 

duty vehicle category are described in those chapters. 

5. The air district must verify that the information collected in the post-inspection is 

consistent with the project contract. 

CC. Project Invoice and Payment

1. With the exception of some progress payments as described in Section CC.6. 

and consistent with Section O of this chapter, an itemized invoice for a project (or 

a completed portion of a project if a partial payment is being made) must be 

received by the air district and a post-inspection of the project must indicate the 

project is in-place and operational before the air district may make a payment. 

See Chapters 10 (Portable and Stationary Agricultural Sources) and 12 (Marine 

Vessels) for specific exemptions for electric agricultural irrigation pump motors 

and shore-side shore power projects, respectively. A project invoice must 

include enough detail to ensure only eligible project costs are being reimbursed, 

yet clear and concise enough to be understandable. The air district must review 

the itemized invoice and only pay for eligible expenses. 
As of 4/28/2011 3 - 41 PROGRAM ADMINISTRATION 

2. Equipment and parts on engine repower projects are eligible for funding only if 

they are required to ensure the effective installation and functioning of the new 

engine, but are not part of typical vehicle or equipment maintenance or repair. 

Ineligible repower costs include tires, axles, paint, brakes, and mufflers. 

Ineligible marine vessel repower costs are described in the marine vessel 

chapter of these Guidelines. 

3. In order to be eligible for Carl Moyer Program funding, labor expenses must be 

included in the project invoice, which must detail the number of hours charged 

and the hourly wage. 

4. Taxes, installation costs for eligible hardware, and transport costs for eligible 

hardware are eligible for Carl Moyer Program funding at the air 

discretion. 

5. A potential grantee may not order or make a down payment on a new engine, 

piece of equipment, or vehicle prior to air district approval of the project, either 

via contract execution or approval by the governing board or board designee. 

Dealers ordering engines, equipment, or vehicles prior to air district approval of 

grant applications assume all financial risk and are in no way ensured program 

funds. A grantee may not receive engines, equipment, or vehicles, nor may work 

begin on a repower or retrofit project, until the project contract is fully executed, 

unless the air district has provided the potential grantee with a written notification 

that any work performed is not guaranteed funding until a contract is executed. 

6. Partial payments, including progress payments, may be made only if the 

payment process and requirements have been reviewed and approved by the air 

district, are described in the air and 

are described in the contract. If multiple engines, vehicles or pieces of 

equipment comprise a project under one contract, all the funds under the 

O.3. of 

this chapter as long as the air district has paid the approved grant amount of one 

or more units that are invoiced and ascertained by post-inspection to be in place 

and operational. 

7. Progress payments (for example, providing partial payment for an engine prior to 

its installation and operation) will only be made after the grantee provides the air 

district with sufficient evidence of completing predetermined milestones such as 

engine delivery. The air district must maintain a clear record of progress 

payments in the file and in the administration or fiscal unit of the air district. 

Funds under a contract for which progress payments are being made may not be 

counted as expended until such time that the air district pays the incremental 

cost of an invoiced engine, vehicle, or piece of equipment that has been 

ascertained by post-inspection to be in place and operational consistent with 

Sections O.3. and P.2.(B) of this chapter. Progress payments include final 
As of 4/28/2011 3 - 42 PROGRAM ADMINISTRATION 

payments that are withheld until all reporting requirements are met (also known 

8. Payments typically will be made directly to the grantee. However, payments may 

be made directly to the dealer or distributor only if such payment arrangements 

are specified in the contract. 

9. Additional project invoicing requirements may also be included in the source 

category chapters. 

10.For all on-road and emergency vehicle projects, should a compliance check 

fleet, no disbursement may be made until the applicant provides proof to the 

district that each violation has been corrected and each fine has been paid. 

11.For projects where the participant must demonstrate that specific regulatory 

compliance requirements have been met, in order to receive funding, air districts 

may not pay invoices until the grantee has provided documentation that the 

requirements have been achieved. A project participant may demonstrate this 

via a detailed letter signed by the vehicle or equipment owner or legal 

representative or, if the regulation requires ARB (or the air district) to certify 

compliance, through ARB (or air district) certification. For more information, see 

the associated category chapter. Air districts are not to be held liable if a grantee 

falsifies this documentation. 

12.Invoices received after the project post-inspection has been complete must be 

evaluated for consistency with the information gathered during the project postinspection (See Section BB.1.). 

13.The air district must maintain copies of all invoices and documentation of 

payment in the project file or otherwise keep copies on-site at the air district 

office and be readily available. 

DD. Grantee Annual Reporting

1. Air districts must require all grantees to submit annual reports commencing no 

later than 18 months after the project post-inspection and annually thereafter for 

the term of the contract, with the following exceptions:

(A) If the air 

other year after an initial five years of satisfactory reporting. 

(B) If the project involves a zero-emission technology, grantee reporting may 

be reduced to biennially for the first six years. No annual reports are 

required thereafter. 
As of 4/28/2011 3 - 43 PROGRAM ADMINISTRATION 

2. The annual report must be in a format prescribed by the air district and must 

contain all of the following information:

(A) name, address, and telephone number. 

(B) Information needed to uniquely identify the project engine, vehicle, or 

equipment, such as engine make, model, horsepower, and serial number. 

(C) Estimated percentage of time the vehicle or equipment has been operated 

in California since the previous annual report. 

(D) Readings of the usage meter (hour meter, odometer, electronic monitoring 

unit (EMU), etc.). 

(E) Except for projects in which usage is not required to be specified in the 

contract (as allowed per Section Z.6.(B)(1) above), if usage is more than 

30 percent below that identified in the project application, the grantee must 

describe any conditions (such as weather, permits, major maintenance, 

etc.) that significantly impacted project usage. In instances where annual 

usage is significantly lower than the contracted level due to unforeseen 

circumstances beyond the control of the grantee, the grantee may request 

a waiver from the air district per Section FF.4.(D). 

3. The air district must review the annual report for completeness, accuracy, and 

usage. A hard copy of the annual report, initialed and dated by the reviewing 

staff, must be maintained in the project file. An air district choosing an alternative 

method to indicate its review and approval of annual reports must identify such 

alternative method in its Policies and Procedures Manual. 

4. If an annual report is incomplete, inaccurate or not received from the grantee on 

schedule, the air district will make a reasonable attempt to obtain a complete and 

accurate report from the grantee. If the air district is unable to obtain the report, 

the air district must audit all of the engines in that project, as per Section EE. 

5. Air districts must keep a list of the grantee(s) from whom any reports are more 

than six months late. Grantees with reports that are more than six months late 

will not be granted any additional Carl Moyer Program funds until all reports are 

satisfactorily submitted. 

EE. Air District Audit of Projects

1. Each calendar year, air districts must conduct audits of projects funded with Carl 

Moyer Program Funds (see definitions, including awarded project funds, interest 

earned on awarded administration or project funds, and local funds used as 

program match funding). The audits must, on an annual basis, include at least 
As of 4/28/2011 3 - 44 PROGRAM ADMINISTRATION 

five percent of or 30 active projects (whichever is less), and all of the projects 

whose owners fail to submit their most recently required project annual report as 

required in Section DD of this chapter. 

2. Audits must be completed by air district staff and, at a minimum, include an 

inspection that verifies that the engines and emission control devices paid for are 

still owned by the grantee named in the contract, operational in the same 

equipment, and meet the mileage, fuel usage, or hours of operation indicated in 

the executed contract. This must be performed by checking the serial number of 

the engine; witnessing the operation of the engine; and checking the odometer, 

hour meter/usage device, fuel receipts, or EMU. 

3. Audits of multi-equipment/engine projects of up to 25 pieces must include 

inspection of at least two pieces, and for projects of 25 pieces or more must 

include inspection of at least five pieces. 

FF. Nonperforming Projects

1. An air district must work with nonperforming project grantees to ensure 

Carl Moyer Program project requirements are met and emission reductions are 

achieved. 

2. Off-road construction contracts for which the usage requirements are not being 

met may be extended to capture the required usage, even if the contract 

extension overlaps the required compliance date. This revision only applies to 

off-road construction contracts that have been executed prior to August 15, 2008, 

and does not modify similar Moyer policy for other eligible categories. 

3. An air district must make all reasonable efforts to recoup Carl Moyer Program 

funds from nonperforming grantees as needed to ensure funded emission 

reductions are achieved. An air efforts to recoup funds may be guided 

by circumstances such as: 

(A) The existence of fraud or intentional misuse of funds; or 

(B) The amount of Carl Moyer Program funding involved; or 

(C) The ability of the grantee to repay the funds. 

4. The air district must take appropriate action to ensure contracted emission 

reductions are realized per engine, equipment, or vehicle. Except for projects in 

which usage is not required to be specified in the contract (as allowed per 

Section Z.6.(B)(1) above), should the average usage over a three year period a 

contracted engine, equipment, or vehicle be less than 70 percent of the activity 

required in the contract, the air district may choose, but is not limited to, the 

options below to address the underutilization. In cases of projects which may 
As of 4/28/2011 3 - 45 PROGRAM ADMINISTRATION 

have a contracted project life of less than three years, the same activity threshold 

of less than 70 percent applies, averaged over the project life. 

(A) Extend the project contract for additional years (precluding overlap with an 

applicable rule implementation requirement). 

(B) Return funds in proportion to the loss in emission reductions. 

(C) Transfer ownership of the engine, vehicle, or equipment to another entity 

committed to complying with the contract terms. 

(D) Grant a waiver, without penalty, to the grantee for a defined time period. 

The grantee must demonstrate to the air district Air Pollution Control 

engine, vehicle, or equipment is not being 

underutilized in favor of operating other, higher-polluting equipment and 

the underutilization was due to unforeseen conditions beyond the 

control. 

(1) The conditions under which a waiver may be issued include, but are not 

limited to, the following: 

a. A decrease in usage due to the economic recession; 

b. Unforeseen fluctuations in water allocations or pumping needs for 

agricultural irrigation pump engines; or 

c. Significant land fallowing for off-road agricultural equipment and 

agricultural irrigation pump engines. 

(2) To be considered for a waiver, the grantee must provide a written request 

to the air district along with documentation that substantiates the need for 

the waiver and verifies that higher-polluting equipment is not consequently 

receiving more use. The types of acceptable documentation must be 

clearly defined and incorporated into each air 

Such documentation may include, but is not limited to, documentation 

from appropriate governmental agencies regarding surface water 

deliveries and fallow land, relevant logs regarding the amount of 

groundwater pumped in lieu of surface water deliveries, agricultural pump 

engine registration or permit information, records that show that idled 

vehicles or equipment are still owned by the grantee, relevant information 

f-Road On-Line Reporting System, or other pertinent 

records. Additional forms of documentation that are not included in an air 

and approved 

by ARB on a case-by-case basis. 
As of 4/28/2011 3 - 46 PROGRAM ADMINISTRATION 

a. The air district must specify the length of time for which the waiver is 

valid. The waiver will not exempt the grantee from any contract 

requirement to provide annual usage reports. 

b. The waiver must be documented in writing, signed by the Air Pollution 

Control Officer or designee, and be included in the project file. 

Appropriate notations to indicate that a waiver has been granted must 

each relevant project, if applicable. 

(E) st-effectiveness based on the reported decrease 

in usage. Based on this recalculation, if the project is still below the costeffectiveness cap, consistent with the cap in effect on the date of contract 

execution and prior to the end of the contract, the air district must continue 

to monitor the project over the next year to determine if additional actions 

are necessary. A waiver is not required in this event. 

5. An air district must describe its procedures for dealing with nonperforming 

grantees in its Policies and Procedures Manual. 
As of 4/28/2011 4 - 1 ON-ROAD 

HEAVY-DUTY VEHICLES 

Chapter 4: ON-ROAD HEAVY-DUTY VEHICLES 

This chapter describes the minimum criteria and requirements for Carl Moyer Memorial 

Air Quality Standards Attainment Program (Carl Moyer Program) on-road heavy-duty 

vehicle projects, excluding Fleet Modernization and On-Road Voucher Incentive 

Program (On-Road VIP) projects (see Chapter 5 and the On-Road VIP Guidelines for 

more information about these programs). Local air quality management or air pollution 

control districts may set more stringent requirements based upon local priorities. 

A. Projects Eligible for Funding 

The Air Resources Board (ARB) has adopted many fleet rules that affect on-road 

heavy-duty diesel-fueled vehicles (see Section E of this chapter). There are limited 

funding opportunities for vehicles subject to these rules and regulations. 

Table 4-1 

Summary of On-Road Heavy-Duty Funding Opportunities

Vehicle Type Subject to ARB 

Fleet Rule 

Moyer Funding Opportunities1

Urban Buses Fleet Rule for Transit 

Agencies2

Very limited opportunity 

Transit Fleet Vehicles 

Solid Waste 

Collection Vehicles, 

excluding transfer 

trucks 

Solid Waste 

Collection Vehicle 

Regulation3

Very limited opportunities for oxides of 

nitrogen (NOx) 

Transport 

Refrigeration Units 

(TRU) 

TRU Air Toxic 

Control Measure 

(ATCM)4

Very limited opportunity 

Auxiliary Power Units 

(APU) 

Idling ATCM5 Very limited opportunity; zero emission 

projects only 

Municipal Vehicles 

and Utility Vehicles 

Fleet Rule for Public 

Agencies and 

Utilities6

Low-population counties - some opportunity 

through 2017 

High-population counties very limited 

opportunity 

Drayage Trucks Drayage Truck 

Regulation7

Very limited opportunity 

Most other On-Road 

Heavy-Duty Vehicles 

Statewide Truck & 

Bus Regulation8

Limited opportunity for fleets of 10 or fewer 

vehicles

1

Limited opportunities 

Contact air district Carl Moyer Program staff or consult fleet rule Carl Moyer Implementation Charts at: 

http://www.arb.ca.gov/msprog/moyer/guidelines/supplemental-docs.htm in addition to these guidelines.

2

Fleet Rule for Transit Agencies: http://www.arb.ca.gov/msprog/bus/bus.htm

3

 Solid Waste Collection Vehicle Regulation: http://www.arb.ca.gov/msprog/SWCV/SWCV.htm

4

TRU Air Toxic Control Measure (ATCM): http://www.arb.ca.gov/regact/trude03/fro1.doc

5

 Idling ATCM: http://www.arb.ca.gov/regact/hdvidle/frorev.pdf

6

 Fleet Rule for Public Agencies and Utilities: http://www.arb.ca.gov/msprog/publicfleets/publicfleets.htm

7

 Drayage Truck Regulation: http://www.arb.ca.gov/msprog/onroad/porttruck/porttruck.htm

8

 Statewide Truck & Bus Regulation: http://www.arb.ca.gov/msprog/onrdiesel/onrdiesel.htm
As of 4/28/2011 4 - 2 ON-ROAD 

HEAVY-DUTY VEHICLES 

Project Types: Taking the above table into consideration, the following categories may 

be eligible for funding: 

1. Truck Replacement Projects (Fleet Modernization and On-Road VIP): The 

replacement of an older, dirtier truck with a newer, cleaner one. Most funding 

opportunities for on-road heavy-duty trucks are available for trucks in small fleets 

of three or fewer trucks through Fleet Modernization or On-Road VIP. Please 

see Chapter 5 for Fleet Modernization guidelines or the On-Road VIP Guidelines 

at www.arb.ca.gov/msprog/moyer/voucher/voucher.htm . 

2. New Vehicle Purchase: The purchase of new vehicles with engines cleaner than 

those required by law. Funding opportunities in this source category will be 

limited due to the lack of availability of new vehicles with engines certified below 

the 0.20 grams per brake horsepower (g/bhp-hr) NOx emissions standard. 

3. Repower Existing Vehicle: Repower with an engine cleaner than that currently in 

the vehicle. Due to technological constraints presented with newer engines 

fitting into older chassis, funding opportunities are limited. 

4. Retrofit Purchase: The installation of a verified diesel emission control strategy. 

Diesel particulate filters are required for most on-road heavy-duty diesel vehicles 

in California, either as original equipment manufacturer (OEM) equipment in new 

trucks or through phased compliance schedules for older trucks complying with 

ARB rules and regulations. Funding is limited to retrofits that provide early or 

extra emission reductions to the regulations. 

5. Transport Refrigeration Units (TRU): Due to the Air Toxic Control Measure 

(ATCM) that sets in-use performance standards for TRUs, projects available for 

funding are limited. 

6. Idling Reduction: Idling reduction projects include electric auxiliary power units 

(APU), as well as truck stop electrification for both on-board and off-board 

infrastructure. Funding is limited to projects that provide emission reductions 

beyond what is required by regulation, such as zero emission technologies. 

Please see Section D (Project Criteria) for detailed minimum eligibility requirements. 

B. Maximum Eligible Funding Amounts 

Table 4-2 summarizes the maximum eligible funding for each project type. All projects 

are also subject to the cost-effectiveness threshold defined in Appendix G. 
As of 4/28/2011 4 - 3 ON-ROAD 

HEAVY-DUTY VEHICLES 

Table 4-2 

Maximum Funding Amounts for Carl Moyer On-Road Vehicle Projects

Project Type Maximum

New Vehicle Purchase 25 percent

Repower $30,000

Retrofit: Highest Level particulate 

matter (PM)+ NOx 

$10,000 

Retrofit: 

2007 Engine Standard Equivalent* $20,000 

TRU Retrofit 100 percent 

Idling Reduction Retrofit 100 percent 

* Including ARB verified selective catalytic reduction retrofits 

C. Emission Standards 

Table 4-3 lists the NOx and PM emission standards for new on-road heavy-duty 

engines. Urban buses have a separate set of emission standards which are now 

aligned with those for heavy-duty vehicles. 

Table 4-3 

Emission Standards for On-Road Heavy-Duty Diesel Engines 

(g/bhp-hr1)

Model Year NOx PM

2007-2009 1.2020.01 

2010 and later 0.20 0.01 

1

gram per brake horsepower-hour 

2 Between 2007-2009, U.S. EPA requires 50 percent of heavy-duty 

diesel engine family certifications to meet the 0.20 g/bhp-hr NOx 

standard. Averaging is allowed, and it is expected that most engines 

will conform to the fleet NOx average of approximately 1.20 gbhp/hr. 

D. Project Criteria 

The minimum qualifications for on-road heavy-duty vehicles are listed below. All 

projects must also conform to the requirements in Chapter 2: General Criteria and in 

Chapter 3: Program Administration. Participating air districts retain the authority to 

impose additional requirements in order to address local concerns.

 

1. General On-Road Heavy-Duty Vehicle Project Criteria 

(A) Maximum project life for on-road projects:

(1) Buses > 60,001 gross combined weight or 12 years

gross vehicle weight (GVW) New 

(2) School buses 33,001 GVW New 20 years

(3) Other On-road - New 10 years

(4) Repower Only (No Retrofit) 7 years

(5) Repowers + Retrofits 5 years
As of 4/28/2011 4 - 4 ON-ROAD 

HEAVY-DUTY VEHICLES 

(6) Retrofits 5 years

(7) Fleet Modernization See Chapter 5

A longer project life may be approved on a case-by-case basis if 

applicants provide justifying documentation. 

The maximum project life does not consider regulatory requirements that 

may reduce actual project life below these maximum values. 

(B) On-road heavy-duty diesel vehicles with a gross vehicle weight rating 

(GVWR) between 8,501 and 14,000 pounds may be considered for Carl 

Moyer Program funding for new, repower and retrofit projects on a caseby-case basis.

(C) On-road heavy heavy-duty (HHD) vehicles (with GVWR over 

33,000 pounds) must be powered by an engine certified to the HHD 

intended service class as shown on the engine certification Executive 

Order. Engines certified to the medium heavy-duty (MHD) service class 

(over 14,000 pounds and up to 33,000 pounds) may not be installed in 

HHD vehicles. However, MHD engines may be installed in a vehicle with 

a GVWR up to 39,601 pounds (20 percent higher than 33,000 pounds 

GVWR) with written warranty verification by the engine and chassis 

manufacturer. A copy of the written warranty verification must be 

maintained in the air district project file.

(D) To receive funding, a fleet owner/operator must have all engines in the 

fleet that are eligible for a low NOx software upgrade (reflash) reflashed 

within 60 days of receipt of payment. The fleet owner/operator may selfcertify to the air district that the reflash has been performed by submitting 

from the reflashed engine to the air district. Most HHD, and some MHD 

engines manufactured between 1993 through 1998 are eligible for reflash. 

A list of engines eligible for reflash is available at: 

http://www.arb.ca.gov/msprog/hdsoftware/hdsoftware.htm.

(E) Except as provided below, on-road calculations shall be based on 

projected annual mileage instead of fuel usage or engine hours, due to the 

fact that the mileage-based exhaust emission factors are more robust. 

Fuel-based calculations may be used only if documentation of previous 

fuel use and mileage records submitted to the air district with the 

application show the project to be at least 30 percent more cost-effective 

when using fuel-based calculations. If using the fuel-based calculations, 

usage must be based on two years of historical fuel usage documentation 

specific for the equipment being funded. Documentation may include fuel 

logs, purchase receipts or ledger entries. Fuel-based analyses are 
As of 4/28/2011 4 - 5 ON-ROAD 

HEAVY-DUTY VEHICLES 

appropriate for projects that involve extended idling, including but not 

limited to street sweepers and solid waste collection vehicles.

(F) The emission factors in Appendix D, Tables D-3 and D-4 are based on 

in-use dynamometer testing data. All other on-road emission factors in 

Appendix D are converted emissions standards based on the engine 

certification level. On-road cost-effectiveness calculations shall use the 

same quantification methodology for the baseline calculation and the 

reduced emission calculation.

(1) Mileage-based calculations must use mileage-based emission factors in 

Appendix D, Tables D-3 and D-4, for the baseline and reduced emission 

calculation. 

(2) Fuel-based calculations must use converted emissions standards for the 

baseline and reduced emission calculation. Converted emissions 

standards are found in Appendix D, Tables D-1a, D-1b, D-2a, D-2b, D-5 

and D-6.

(3) Other calculation methods will be considered by ARB on a case-by-case 

basis.

(G) Cost-effectiveness calculations for projects with power take-off (PTO) will 

be considered by ARB on a case-by-case basis. Hours of PTO operation 

must be documented through hour meter records or data from the 

emission control module.

(H) The engine model year, not the vehicle model year, must be used to 

determine the appropriate emissions factors. 

(I) Although electronic monitoring units are not required by the ARB, when an 

EMU is required by an air district, it is an eligible expense for any 

category.

(J) Refuse vehicles and street sweepers often have two engines, one for 

motive power and one for auxiliary operations. Since only the main 

engine is eligible for funding, emission benefits are calculated individually 

for each engine using fuel consumption rates for each unit if available. If 

individual engine fuel consumption information is not available, the 

applicant must provide and document an estimate for the typical activities 

of each engine based on best engineering judgment so that eligible 

surplus emissions reductions can be determined. The estimate must 

include factors such as fuel economy, typical operating loads, and hours 

of operation for each engine. 
As of 4/28/2011 4 - 6 ON-ROAD 

HEAVY-DUTY VEHICLES 

(K) Surplus requirements are determined by the regulation to which a project 

is subject. Any vehicle with an off-road engine that is subject to an onroad regulation must comply with the on-road surplus requirements 

described in this chapter. For example, a yard truck with an off-road 

engine that is subject to the Statewide Truck & Bus Regulation must 

comply with all off-road eligibility and funding criteria described in 

Chapters 7 and/or 9, as well as all on-road surplus criteria described in 

Section E.(2) of this Chapter.

(L) Glider kits are not an eligible expense for Carl Moyer Program funding.

(M) Case-by-case projects must receive approval from ARB prior to contract 

execution. These projects must follow the requirements as described in 

Chapter 3, Section Y.

2. Compliance Check 

After the district receives an application for any on-road project but before contract 

execution, the district must submit information regarding the project to ARB to check 

for outstanding violations and previous project funding.

(A) 

vehicle identification number, California Highway Patrol number, 

Department of Transportation number or Interstate Commerce 

Commission number for each vehicle to be repowered or retrofitted in the 

large number of vehicles that could require compliance checks, air districts 

are encouraged to submit this data as soon as possible after receipt of the 

application.

(B) The liaison will forward that information electronically to the responsible 

parties at ARB. The liaison will email the air district the results of the 

compliance check within 10 business days.

(C) If the compliance check indicates that the vehicle has already received 

funding and is still under contract, the air district will be notified and the 

application must be rejected.

(D) If the compliance check indicates there is an outstanding violation with any 

air district shall inform the engine owner in 

writing that no disbursement may be made until the owner provides proof 

that each violation has been corrected and each fine has been paid. 

(E) If the outstanding violation is based on problems with the baseline engine 

(e.g., gross polluter), then a new engine must be installed instead of fixing 

the old engine. The engine owner must pay the fine for each violation and 
As of 4/28/2011 4 - 7 ON-ROAD 

HEAVY-DUTY VEHICLES 

submit documentation of violation correction with, or before submitting, the 

invoice.

3. New Purchase: New purchase projects must be 30 percent cleaner than the 

current NOx emissions standard. Based on the 2010 NOx standard of 

0.20 g/bhp-hr, engines that are certified to a NOx standard of 0.14 g/bhp-hr or 

lower and a PM standard of 0.01 g/bhp-hr or lower are eligible for new purchase 

funding. Vehicles with engines certified to a family emissions limit (FEL) are not 

eligible for new purchase funding. The maximum grant amount is 25 percent of 

the new purchase cost. Due to tighter emissions standards, new purchase 

projects are not a common funding category. 

4. Repower 

A replacement engine for a repower project must be an ARB certified engine 

meeting emissions levels of 0.50 g/bhp-hr NOx and 0.01 g/bhp-hr PM or lower. 

Repowers with replacement FEL engines that meet these emissions levels must be 

based on emission factors for model year 2007-2009 engines.

However, due to technological constraints presented with the limited feasibility of 

newer engines with advanced emissions control equipment fitting into older chassis 

and maintaining durability, single vehicle repower projects are not eligible for Moyer 

funding, except as described below. 

There are a limited number of cases where the technical repower constraints 

described above do not apply. The economics of repower projects involving a large 

quantity of the same chassis and engine combination may allow compliance with the 

engine manufacturer quality assurance process that is equivalent to an OEM 

package. In these cases, a prototype vehicle (or vehicles) is thoroughly reviewed 

and tested to ensure that the installation meets OEM requirements, and the 

successful prototype installation is then replicated in other vehicles with the same 

chassis and engine combination. Air districts may approve repower projects that 

meet the above described OEM quality assurance process, subject to the following:

(A) Carl Moyer Program funding may not be used for any costs associated 

with the prototype vehicle or vehicles.

(B) Repower contracts may not be executed until the prototype testing 

specified by the engine manufacturer is successfully completed.

(C) Written documentation from the engine manufacturer confirming that the 

prototype was successful must be maintained in the project file.
As of 4/28/2011 4 - 8 ON-ROAD 

HEAVY-DUTY VEHICLES 

5. Retrofits 

A list of currently verified retrofits may be found at 

http://www.arb.ca.gov/diesel/verdev/verdev.htm. A searchable database of verified 

retrofits is available at http://arb.ca.gov/diesel/verdev/vdb/vdb.php. Please refer to 

Appendix E for more details on retrofit verification. 

(A) The maximum retrofit grant amount is:

(1) $10,000 or the total retrofit cost, whichever is less, for the highest level 

retrofit verified to achieve Level 3 PM reductions of 85 percent, and NOx 

reductions if available for the specific engine.

(2) $20,000 or the total retrofit cost, whichever is less, for retrofit devices 

verified to reduce NOx and PM emissions equivalent to 2007 engine 

standards of 1.20 g/bhp-hr NOx and 0.01 g/bhp-hr PM.

(B) Only ARB-verified retrofits are eligible for funding. 

(C) Retrofit projects that reduce NOx emissions must be verified by ARB to a 

NOx reduction level of at least 15 percent from the baseline engine to 

claim NOx reductions from the project.

(D) Retrofit projects must use the highest level technically feasible technology 

verified for the engine being retrofitted. ARB considers the retrofit device 

that achieves the highest level of PM reductions (Level 3 - 85 percent) and 

the highest level of NOx reductions to be the highest level retrofit.

(E) Fleets/agencies affected by fleet regulations may be able to use Carl 

Moyer Program funding for retrofit projects if the project life expires prior to 

the final compliance date or achieves reductions beyond the regulatory 

requirements. See applicable criteria below for each fleet regulation.

(F) If the retrofit device reduces both NOx and PM emissions and is being 

installed to comply with a PM requirement, only the costs of the NOx 

reductions are eligible for Carl Moyer Program funding. 

(G) The full cost of a retrofit kit, up to the maximum incentive amount 

described above, and maintenance of the retrofit during the project life 

may be funded subject to the weighted cost-effectiveness limit.

(H) Only the minimum ARB verified levels of NOx and PM emission reductions 

will be used to calculate cost-effectiveness for retrofit projects.
As of 4/28/2011 4 - 9 ON-ROAD 

HEAVY-DUTY VEHICLES 

E. Funding Eligibility for Projects Subject to In-Use Regulations 

Most on-road vehicles are subject to an in-use regulation. Funding is available for 

emissions reductions that are early or extra to regulatory requirements. In addition, 

fleets that have achieved compliance with the final regulatory deadline may be eligible 

for funding. For detailed information on eligible emissions reductions and calculation 

methodology, please see the 2011 on-road supplemental guidance located at: 

http://www.arb.ca.gov/msprog/moyer/guidelines/current.htm.

1. Drayage Trucks

(A) Current Drayage Trucks: Carl Moyer Program funding is available for the 

incremental NOx benefit between 1.20 g/bhp-hr and 0.20 g/bhp-hr for all 

drayage trucks, as defined in California Code of Regulations, title 13, 

section 2027(c)(15). Beginning on January 1, 2017, drayage trucks will be 

subject to, and must be surplus to, the Statewide Truck and Bus 

Regulation. No other funding opportunities are available for drayage 

trucks that access the Ports of Long Beach or Los Angeles. Drayage 

trucks outside the Ports of Long Beach or Los Angeles with model year 

2006 or older engines in fleets of 1-3 vehicles are eligible for limited 

funding through December 31, 2011.

(B) Former Drayage Trucks: The following requirements apply for vehicles 

that previously operated as a drayage truck, as defined in California Code 

of Regulations, title 13, section 2027(c)(15): 

(1) Vehicles that operated one or more times as a drayage truck in the 

previous two years, but no longer operate as a drayage truck, are not 

restricted by drayage truck surplus criteria.

(2) Vehicles that previously operated as a drayage truck must be contractually 

prohibited from drayage operations that are regulated by California Code 

of Regulations, title 13, section 2027 throughout the contract term.

(3) To help ensure that the replacement vehicle does not operate as a 

drayage truck during the contract term, replacement vehicles will be added 

to the Drayage Truck Registry as non-compliant until the contract end 

date.

2. Private Fleets (Statewide Truck & Bus Regulation)

For vehicles that are subject to the Statewide Truck & Bus Regulation (Regulation), 

the following final funding deadlines apply. Please note that the following sections 

include final funding dates for all engine model years. The actual final funding date 

for specific projects will vary depending on fleet size, regulatory compliance status, 

GVWR, engine model year, pollutant type, and other factors. 
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HEAVY-DUTY VEHICLES 

(A) Fleet size of 1-3 trucks: Funding for the first, second, and third vehicle 

must be provided no later than two years before the applicable compliance 

deadline for each pollutant. The final funding date for PM and NOx is 

January 1, 2021.

Table 4-4 

Final Funding Dates for Fleets of 1-3 Vehicles 

Fleet Type PM NOx 

1-3 vehicles 1/1/2021 1/1/2021 

(B) Fleet size of 4-10 vehicles: Funding is available for fleets with 4-10 

vehicles subject to the Regulation. Funding must be provided no later 

than three years before the applicable compliance deadline. The final PM 

funding date for trucks with a GVWR over 26,000 pounds is 

January 1, 2014, and for trucks from 14,001 through 26,000 pounds the 

final PM funding date is January 1, 2020. The final NOx funding date is 

January 1, 2020. Projects that receive funding for retrofits are not eligible 

for the compliance extension to meet the 2010 model year emission 

equivalent requirement as described in California Code of Regulations, 

title 13, sections 2025 (f)(4) and (g)(4). 

Table 4-5 

Final Funding Dates for Fleets of 4-10 Vehicles 

Fleet Type GVWR PM NOx 

4-10 

vehicles 

over 26,000 1/1/2014 1/1/2020 

14,001 - 26,000 1/1/2020 1/1/2020 

(C) Agricultural Vehicles: Eligibility for agricultural vehicles as defined in 

California Code of Regulations, title 13, section 2025(d)(5) depends on 

annual mileage accrual and engine model year. Funding for agricultural 

vehicle projects must be provided no later than three years before the 

applicable compliance deadline. The final funding date for PM and NOx is 

January 1, 2020. 

Table 4-6 

Final Funding Dates for Agricultural Vehicles

Fleet Type PM NOx 

Agricultural Fleets 1/1/2020 1/1/2020 

(D) Low-Mileage Construction Trucks & Vehicles That Operate Exclusively in 

NOx Exempt Areas: Low-mileage construction trucks, as defined in 

California Code of Regulations, title 13, section 2025(d)(40), and vehicles 

that operate exclusively in NOx exempt areas of the state as defined in 

California Code of Regulations, title 13, section 2025(d)(46) are eligible for 
As of 4/28/2011 4 - 11 ON-ROAD 

HEAVY-DUTY VEHICLES 

PM funding through January 1, 2014 and NOx funding through 

January 1, 2020. Funding must be provided no later than three years 

before the applicable compliance deadline. Participant contracts for NOx 

exempt vehicles must include a provision that requires the vehicle to 

operate exclusively in NOx exempt areas of the state as defined in 

California Code of Regulations, title 13, section 2025(d)(46). 

Table 4-7 

Final Funding Dates for Low-Mileage Construction Trucks 

and Vehicles in NOx Exempt Areas 

Fleet Type PM NOx 

Low-Mileage Construction 

and 

NOx Exempt Vehicles 

1/1/2014 1/1/2020 

(E) Log Trucks: Log trucks as defined in California Code of Regulations, 

title 13, section 2025(d)(39) are eligible for funding through 

January 1, 2020. Funding for log trucks must be provided no later than 

three years before the applicable compliance deadline. 

3. Public Agency and Utility Fleets

Due to low mileage, public agency and utility vehicle projects are generally eligible 

only for minimal grant amounts. 

(A) All public agency and utility vehicle projects must submit total fleet 

compliance records as described in the Fleet Rule for Public Agencies and 

Utilities showing that the funds will not be used to meet rule requirements.

(B) Fleets that have achieved all applicable final compliance requirements are 

eligible for NOx and ROG funding for retrofit, repower, and new purchase 

projects.

(C) Low-Population County fleets must declare with submittal of their 

application which compliance schedule they will follow. Fleets that follow 

the regular compliance path have limited PM funding opportunities through 

December 31, 2014 with a three year surplus life. Fleets that follow the 

accelerated turn-over compliance path have limited PM funding 

opportunities through December 31, 2022.

4. School Buses

Public school buses are eligible for Carl Moyer Program funding if they meet the 

general program criteria above; however, their relatively low annual miles usually 

allow only for minimal grant amounts.
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HEAVY-DUTY VEHICLES 

(A) School buses are eligible only for NOx and ROG reductions. 

(B) School bus calculations must use the MHD vehicle emission factors and 

conversion factors to calculate cost-effectiveness. 

5. Solid Waste Collection Vehicles (SWCV)

Solid waste collection vehicles are eligible for limited funding opportunities, but 

emission benefits are generally low because older vehicles have already been 

replaced or retrofitted to comply with regulatory requirements.

(A) SWCV fleets that have achieved compliance with the final regulatory 

deadline are eligible for NOx and ROG funding. 

(B) Solid waste transfer trucks are subject to the Statewide Truck & Bus 

Regulation, and must meet applicable eligibility criteria identified above.

6. Transit Vehicles (Urban Buses and Transit Fleet Vehicles) 

Transit vehicles are eligible for limited funding opportunities, but emission benefits 

are generally low because most older vehicles have already been replaced or 

retrofitted to comply with regulatory requirements.

(A) Transit Fleet Vehicles: Transit Fleet vehicles that have achieved 

compliance with the final regulatory deadline are eligible for funding. 

(B) Urban Buses: Urban Bus fleets that have achieved compliance with the 

final regulatory deadline are eligible for funding. 

(C) The Federal Transit Administration (FTA) provides up to an 80 percent 

grant for new urban bus purchases and repowers. For projects receiving 

FTA or other public funding, the incremental cost must be reduced by the 

publicly funded grant amount. See Chapter 2: General Criteria for more 

information.

7. Idling Reduction

Idling reduction projects are eligible for limited funding opportunities, but emission 

benefits are generally low because heavy-duty trucks are already required by 

regulation to limit idling emissions. 

(A) Heavy-duty trucks are eligible for zero-emission technologies for APUs. 

The baseline for these projects would be an ARB certified Tier 4 engine 

with a level 3 diesel emission control strategy. 
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HEAVY-DUTY VEHICLES 

(B) An hour meter or other means to measure usage must be installed with an 

idling reducing project to track operation. The participant shall provide this 

information to ARB or the air district upon request during the life of the 

project. 

(C) The installation of electric power infrastructure at truck stops and 

distribution centers is eligible for funding through an air district s 

Carl Moyer Program match funds. 

(D) Advanced truck stop electrification - Carl Moyer Program funds may be 

used for installing advanced truck stop electrification, such as external 

systems that provide heating, cooling, and other energy needs. In these 

cases, a partial payment would be made upfront to help offset the initial 

capital investment. The remainder of the grant amount would be paid out 

in installments based on system utilization. The amount of the initial 

payment and subsequent installments will be determined on a case-bycase basis. 

(E) Other idling reducing projects may be considered on a case-by-case 

basis. 

8. Transport Refrigeration Units (TRU) 

Transport refrigeration units projects are eligible for limited funding opportunities, but 

emission benefits are generally low because many older TRUs have already been 

replaced to meet regulatory requirements. 

(A) Funding opportunities may exist for a zero emission new purchases or 

repowers on a case-by-case basis. 

(B) Alternative technologies such as electric standby and pure cryogenic 

systems are not required to be verified, but ARB must review and approve 

such systems in writing on a case-by-case basis. 

(C) The participant shall install an hour-meter or other means to measure 

usage on the TRU to track operating hours, and shall provide this 

information to ARB or the air district upon request. 

 
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FLEET MODERNIZATION 

Chapter 5: ON-ROAD HEAVY-DUTY VEHICLES FLEET MODERNIZATION 

This chapter describes the minimum criteria and requirements for the Carl Moyer 

Memorial Air Quality Standards Attainment Program (Carl Moyer Program) On-Road 

Heavy-Duty Vehicles (HDV) Fleet Modernization projects. 

A. Projects Eligible for Funding 

All provisions regarding the in-use regulations as described in Chapter 4: 

On-Road Heavy-Duty Vehicles also apply in this chapter.

Fleet modernization provides incentives to replace old high-polluting heavy-duty 

vehicles with newer, lower-emission replacement vehicles, providing real emission 

benefits earlier than would have been expected through normal attrition. 

Please see Section C (Project Criteria) for detailed minimum eligibility requirements. 

Most on-road vehicles are subject to more stringent requirements as described in 

Section C. (1). 

The following HDV fleet modernization projects may be eligible for funding. Note: the 

existing old vehicle engine must be model year 2002 or older. Existing old school buses 

may have an engine of any model year. 

1. New Replacement Vehicle Purchase: The purchase of a new vehicle or school 

bus with an engine certified to the 2007 or newer emission standards to replace 

an existing vehicle that is to be scrapped. 

2. Used Replacement Vehicle Purchase: The purchase of a used vehicle or school 

bus with an engine certified to the 2007 or newer emission standards to replace 

an existing vehicle that is to be scrapped. 

B. Maximum Eligible Funding Amounts 

Table 5-1 summarizes the maximum eligible funding for each fleet modernization 

project. All projects are also subject to the cost-effectiveness threshold defined in 

Appendix G. 
As of 4/28/2011 5 - 2 ON-ROAD 

FLEET MODERNIZATION 

Table 5-1 

Maximum Funding Amounts for Fleet Modernization Projects 

Oxides of Nitrogen (NOx) Certification Level1

grams per brake horsepower hour (g/bhp-hr) Maximum 

0.20 g/bhp-hr (Heavy Heavy-Duty (HHD)) $60,000 

0.50 g/bhp-hr (HHD) $50,000 

0.20 g/bhp-hr (Medium Heavy-Duty (MHD)) $40,000 

1.20 g/bhp-hr (HHD) $40,000 

0.50 g/bhp-hr (MHD) $30,000 

1.20 g/bhp-hr (MHD) $25,000 

School bus (used) 100% of vehicle value 

School bus (new) 100% of invoice 

1

 applies to new or used vehicles unless otherwise noted 

C. Project Criteria 

The minimum qualifications for fleet modernization projects are listed below. All 

projects must also conform to the requirements in Chapter 2: General Criteria and in 

Chapter 3: Program Administration. Participating air districts retain the authority to 

impose additional requirements in order to address local concerns.

1. General Criteria 

(A) For vehicles that are subject to in-use regulations, please see the eligibility 

requirements in Section E of Chapter 4: On-Road Heavy-Duty Vehicles. 

(B) Any fleet modernization project that would replace an existing vehicle with 

an off-road engine that is subject to an on-road regulation must comply 

with the on-road surplus requirements. For example, a yard truck with an 

off-road engine that is subject to the Statewide Truck & Bus Regulation 

(including yard trucks used primarily in agricultural operations) must 

comply with all off-road Carl Moyer Program criteria described in Chapters 

7 and/or 9, as well as all surplus criteria described in Section E of 

Chapter 4. 

(C) Existing glider kit vehicles are eligible. The replacement vehicle must be a 

complete original equipment manufacturer vehicle and not a glider kit. 

2. Participant Requirements 

Participants must meet the following requirements: 

(A) The participant must provide conclusive documentation of annual mileage 

or vehicle usage in California.

(B) The participant must currently own and have operated the old vehicle for 

the previous twenty-four (24) months, documented through a copy of the 
As of 4/28/2011 5 - 3 ON-ROAD 

FLEET MODERNIZATION 

old vehicle title. If it is unclear whether a vehicle is owned or leased by a 

participant, the air district will determine whether the vehicle is eligible. 

(C) The participant must submit documentation of annual miles traveled or 

gallons of fuel consumed for the previous twenty-four (24) months to 

determine cost-effectiveness. Examples of documentation include 

logbooks, fuel records, and maintenance records or tax records. 

(D) The participant must provide copies of California registration as specified 

in Section 3 below. 

(E) The participant must provide copies of proof of insurance for the old 

vehicle for the previous twenty-four (24) months. 

(F) The participant must be in compliance with all applicable air quality laws 

and regulations; all outstanding citations must be paid. 

(G) The participant must be the registered owner of the replacement vehicle 

for the project life. 

(H) The participant must maintain replacement value insurance coverage for 

the project life. 

(I) The participant must re-flash all trucks in the fleet that are eligible to have 

Low NOx Software installed prior to receiving funding. Please refer to 

Section D.(1)(D) of Chapter 4: On-Road Heavy-Duty Vehicles for 

additional re-flash information. 

(J) Throughout the contract term, the participant must complete the following 

minimum reporting requirements: 

(1) Provide registration and proof of insurance to the air district annually. 

(2) Provide annual reports that include information such as hours of 

operation, miles driven in the air district and California, the amount of fuel 

consumed in the twelve months preceding the report date, details 

regarding maintenance and servicing, and any other items specified by the 

air district. 

(3) If the replacement vehicle is involved in an accident, report the accident to 

the air district within 10 business days. The participant must provide a 

police report of the accident, a letter from the insurance company 

regarding the accident and any other additional information requested by 

the air district. The participant must repair the vehicle and return it to 

operation, if possible. If the vehicle is totaled, the participant and the air 
As of 4/28/2011 5 - 4 ON-ROAD 

FLEET MODERNIZATION 

district staff must come to an agreement regarding any requirements that 

still need to be met. 

3. Existing Vehicle Requirements 

All existing vehicles must meet the following conditions: 

(A) The existing vehicle must have an engine of model year 2002 or older, 

except for school buses which may have an engine and chassis of any 

model year. 

(B) The existing vehicle must either be 1) currently registered and have been 

registered in California for the past twenty-four (24) months; or 2) must 

have been registered in California for the previous eight (8) consecutive 

months supplemented by alternate documentation showing California 

operation for the past twenty-four (24) months. 

If the existing vehicle operates seasonally, then the existing vehicle may 

be eligible to participate if it has been registered in California for at least 

three (3) months per twelve (12) month period for the previous twenty four 

(24) months. DMV registration documentation for each month the vehicle 

was registered must be included with the application. 

(C) The existing vehicle must meet the criteria for either a MHD vehicle or a 

HHD vehicle, as defined below: 

(1) MHD vehicles must have a manufacturer Gross Vehicle Weight Rating 

(GVWR) of 19,501 through 33,000 pounds. 

(2) HHD vehicles must have a manufacturer GVWR of 33,001 pounds or 

greater. 

(3) GVWR may be documented with a photo of the vehicle manufacturer tag 

or a copy of the manufacturer build sheet. Air districts may request ARB 

approval of alternate GVWR documentation on a case-by-case basis. 

(D) The existing vehicle must be in operational condition, as determined 

through a California Highway Patrol (CHP) Biennial Inspection of 

Terminals (BIT) or equivalent air district-approved inspection. If the air 

district does not conduct a pre-inspection, the following methods may be 

used: 

(1) The vehicle owner may submit a completed CHP 90-Day Safety 

Inspection Form documenting an inspection that occurred within 90 days 

of the application date; 

-or- 
As of 4/28/2011 5 - 5 ON-ROAD 

FLEET MODERNIZATION 

(2) An air district approved contractor may conduct the inspection of the old 

vehicle and provide pictures verifying that the vehicle is in operational 

condition. The participant will pay the cost of the inspection. 

(E) All existing school buses must have a current CHP safety certification as 

of December 31, 2008, and at the time funding is awarded to replace the 

bus (i.e., the school bus may not have a lapsed CHP safety certification), 

and must be currently registered with the DMV. 

(F) If the old vehicle engine tag is missing, then verification of the engine 

information can be satisfied with the engine serial number. The participant 

must provide verification of the engine make, model, model year, engine 

serial number, and horsepower from the manufacturer. The participant 

may also verify the horsepower with the results of a dynamometer test. 

The dynamometer test will take into account a 15 percent loss in actual 

horsepower, accounting for transmission loss. Verification can include a 

letter or a printout from an engine manufacturer or dealership. On a caseby-case basis, the Air Resources Board (ARB) may approve other means 

of obtaining the information. 

4. Replacement Vehicle Requirements 

All replacement vehicles must meet the following conditions: 

(A) Emission Standards: Replacement vehicles with a 2007 model year or 

later engine certified to a particulate matter (PM) emission standard of 

0.01 g/bhp-hr and a NOx family emission limit or NOx standard level of 

1.20 g/bhp-hr or lower are eligible for funding. 

(B) Mileage: A used HHD replacement vehicle must have less than 

500,000 miles and a used MHD replacement vehicle must have less than 

250,000 miles, with odometer verification to occur at the post inspection. 

(C) Horsepower: If the replacement engine horsepower is more than 

25 percent greater than the existing engine horsepower, it must be derated (reduced) to not exceed a 25 percent increase. In limited situations, 

the air district may approve a greater than 25 percent increase in 

horsepower. 

(D) Weight Class: The replacement vehicle must be in the same weight class 

as the existing vehicle (either MHD or HHD). 

(E) Body and Axle Configuration: The replacement vehicle must have the 

same axle and body configuration as the old vehicle. The air district may 
As of 4/28/2011 5 - 6 ON-ROAD 

FLEET MODERNIZATION 

allow slight changes based on the latest technology. Changes must be 

requested and approved prior to the purchase of the replacement vehicle. 

(F) Warranty Requirements: The following warranty requirements apply: 

(1) Except for school buses, all participants must purchase a minimum of a 

one-year or 100,000-mile major component engine warranty for the 

replacement new or used vehicle. The warranty must cover parts and 

labor. If the purchase of a new or used replacement vehicle already 

includes a minimum one year or 100,000 mile warranty as specified 

above, a separate supplemental warranty is not required. However, it is 

recommended that the highest grade warranty be purchased in order to 

avoid expensive repairs in the future. 

(2) No Carl Moyer Program funds will be issued for maintenance or repairs 

related to the operation of the vehicle. The participant takes sole 

responsibility for ensuring that the vehicle is in operational condition 

throughout the agreement period. 

(G) Replacement vehicles may be purchased from a private party provided all 

required documentation is submitted. This includes warranty 

requirements and all other fleet modernization requirements. 

(H) Engine and Emission Control Modifications: Emission controls on the 

replacement vehicle engine cannot be modified except as permitted by 

law. Unauthorized modification to engine performance including, but not 

limited to, changes in horsepower, emission characteristics, engine 

emission components (not including repairs with like-original equipment 

emission control function or the electronic monitoring unit are not allowed. 

(I) Agricultural Vehicle Reporting: Replacement Agricultural Vehicles must 

comply with the Reporting Requirements for Agricultural Fleets as 

specified in California Code of Regulations, title 13, sections 2025(r) 

and (s). 

5. Determining Grants 

Grant award determinations must be made with the following considerations: 

(A) Grant awards are based on the average usage during the previous twentyfour (24) months. Fleet averages cannot be used. Participants must 

submit conclusive documentation of mileage or fuel consumed including 

logbooks, fuel records, and maintenance records maintained for individual 

vehicles. 

 
As of 4/28/2011 5 - 7 ON-ROAD 

FLEET MODERNIZATION 

(B) The emission benefit of the project is calculated based on the difference in 

emission factors of the replacement, new vehicle engine (new emission 

factors) and the baseline vehicle engine (baseline emission factors). 

(C) The grant amount will be the lesser of the following: 

(1) The cost-effective value of the project based on the weighted emission 

benefits; 

or, 

(2) The maximum grant amount shown in Table 5-1. 

(D) The replacement of two old, like trucks with one replacement truck is 

eligible for funding. Each old truck and the replacement truck must 

comply with all of the applicable guidelines. To determine costeffectiveness, the annual emissions of the two old trucks are determined 

using emissions factors that correspond to the model year of each truck. 

The usage of the two old trucks is summed to establish projected 

replacement truck usage. The maximum allowable combined mileage is 

60,000 miles per year (or 30,000 miles per truck per year). Replacement 

trucks are eligible for only one grant based on the combined usage the 

amount of the grant award is not doubled. 

(E) The eligible project life for cost-effectiveness calculations is as follows: 

(1) For fleets of three or fewer vehicles that are subject to the Statewide Truck 

& Bus Regulation, the minimum project life is two years and the maximum 

project life is five years. 

(2) Fleets in a targeted vocation category of agriculture, construction, mining, 

forestry, and public fleet vehicles in low-population areas have a maximum 

project life of five years. 

(3) For all other fleets, the maximum project life is three years. 

(4) The maximum project life for 1977 and newer school buses is 11 years. 

(5) The surplus period may be less than the maximum project life due to 

compliance deadlines specified in the Statewide Truck & Bus Regulation 

(California Code or Regulations, title 13, § 2025). See Chapter 4 

Section E.4. of these Guidelines for school bus surplus criteria. 

(F) Grant funding can only be used to pay for items essential to the operation 

of the vehicle. 
As of 4/28/2011 5 - 8 ON-ROAD 

FLEET MODERNIZATION 

(G) The participant may obtain financing to assist in the purchase of a 

replacement vehicle. 

6. Air District Administrative Requirements 

(A) Air districts must include fleet modernization as a funding option in the air 

district rocedures before funding fleet 

modernization projects. The Policies and Procedures must include the 

administrative tools that are needed to manage fleet modernization 

projects, including memorandum of understandings (MOU) or agreements 

with vehicle dealerships and dismantlers, reimbursement procedures, 

inspections, monitoring and enforcement, contract development, etc. Air 

districts are not required to submit the initial fleet modernization policies 

and procedures to ARB for approval, but it must be available upon 

request. 

(B) Air districts may fund fleet modernization projects through a regional 

program administered by one designated air district. The designated air 

district may be located within the region, or may be a large air district 

located outside the region. 

(C) The air district may make full payment at the time the new vehicle is 

delivered to the applicant under the following framework: 

(1) Air district staff or an air district approved contractor must complete the 

pre-inspection of the old vehicle and new vehicle to make sure the 

vehicles comply with program requirements. 

(2) Air districts must sign a separate MOU with the dealer and the dismantler 

that contain, at a minimum, the program requirements (including, but not 

limited to, the requirement that the dealer delivers the existing vehicle to a 

qualified dismantler within 30 calendar days of the date that the old vehicle 

was turned in to the dealer by the applicant) that are expected of each 

entity and the repercussions for non-compliance with the terms of the 

MOU for each entity. 

(3) Air districts must ensure the vehicle and engine are scrapped within 60 

the vehicle. This must be 

confirmed through post-inspection by the air district or an air district 

approved contractor. The destruction of the old vehicle and engine must 

be properly documented in accordance with the Carl Moyer fleet 

modernization program requirements. 
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FLEET MODERNIZATION 

7. Dealer Requirements 

(A) Air districts are encouraged to establish contracts with dealers that sell 

replacement vehicles to fleet modernization participants. Reimbursement 

cannot be issued until all forms are submitted and approved by the air 

district. 

(B) Vehicle dealers must: 

(1) Provide basic information to vehicle owners about the fleet modernization 

program. 

(2) Help participants complete the application, if necessary. It is important to 

make sure that all information is filled out correctly and that the participant 

understands the meaning of the program and the contract. Once 

complete, the dealer submits the application package to the air district. 

8. Reimbursement: To ensure that an application package is complete, the 

following items must be included and complete prior to reimbursement: 

(A) Signed and complete application and fully executed contract. 

(B) Documentation showing that the existing vehicle is roadworthy. This 

includes documentation showing that the old vehicle has passed a CHP 

BIT inspection in the past 90 days or conduct an equivalent vehicle 

inspection and sign as appropriate. If documentation is provided by a 

dealership, the air district reserves the right to audit the dealer

record of inspection. 

(C) Invoices of all work performed on the replacement vehicle. The invoices 

must include all engine, transmission, engine horsepower derating, body 

and other work performed on the replacement vehicle. 

(D) Digital photographs of the existing vehicle and the replacement vehicle. 

The air district will specify the required digital format. Reimbursement will 

not be processed until all photographs are received and verified by the air 

district. All photographs must be clear, and all VIN and engine serial 

numbers must be legible. 

(1) Photographs of the old vehicle must include the following views: 

a. Right Side - hood down 

b. Front - hood down 

c. Left Side - hood down 

d. VIN Tag - inside vehicle or on frame rail 

e. Engine - left side 

f. Engine - right side 
As of 4/28/2011 5 - 10 ON-ROAD 

FLEET MODERNIZATION 

g. Engine Serial Number - either tag or stamp on block 

h. License plate 

i. Rear 

(2) Photographs of the replacement vehicle must include the following views: 

a. Right Side - hood down 

b. Front - hood down 

c. Left Side - hood down 

d. VIN Tag - inside vehicle 

e. VIN Tag - on frame rail 

f. Engine - left side 

g. Engine - right side 

h. Engine Serial Number and Engine Information tag 

i. License plate 

j. Rear 

k. Diesel Emission Control Device (if available) 

l. Odometer Reading 

(E) Certification that the old vehicle will be delivered to a qualified dismantler 

within 30 calendar days of receipt of the old truck. The certification must 

include the make, model, year, vehicle identification number (VIN), engine 

make, engine serial number, and the date the vehicle is expected to be 

delivered to the dismantler. 

(F) Documentation of replacement vehicle warranty and registration. 

(G) Proof of replacement vehicle financing. The financing package will enable 

the air district to determine the reimbursement costs that may be accrued 

in case the participant defaults on the contracted performance 

requirements. 

(H) Dealerships must possess pre-inspection documentation of the existing 

and replacement vehicles prior to releasing the replacement vehicle to the 

participant. Upon request of the air district, ARB may waive inspection 

requirements. 

(I) Proof of replacement vehicle sale after the application and all required 

documentation have been approved by the air district. 

(J) A third party (e.g., engine dealer or distributor) may complete an 

only if the vehicle 

owner signs and agrees to the application. Applications must include a 

signature section for third parties. The third party signature section must 

include signature and date lines, and sections for the third party to 

disclose how much they are being paid, if anything, to complete the 

application and the source of funds used to pay them. To make the Carl 
As of 4/28/2011 5 - 11 ON-ROAD 

FLEET MODERNIZATION 

Moyer Program accessible to all potential applicants, including those that 

cannot afford to hire third party assistance, air districts are encouraged to 

provide assistance to applicants. 

9. Compliance Checks: Fleet modernization projects must complete the compliance 

check process described in Chapter 4, Section D.2. 

10.Inspections: Air districts may enter into a contract, written agreement, or 

memorandum of understanding with a contractor to perform project inspections 

(pre-inspections, post-inspections, or dismantle inspections). If an air district 

chooses to use contractors to perform inspections, air district staff must conduct 

and document at least one inspection on each project without the use of a 

contractor. Air districts must ensure all inspection requirements are met and 

shall retain legal responsibility for full compliance with the inspection provisions 

of these Guidelines, regardless of the use of contractors. 

11.Dismantler Requirements 

(A) Fleet modernization requires that the existing truck be dismantled. This 

requirement has been established to ensure that emission reductions are 

real, preventing the truck from continuing to emit high levels of pollutants. 

Destruction of the existing vehicle chassis and engine permanently 

removes the old, high emitting vehicle from service. The existing vehicle 

and engine specified in the application must be dismantled, and may not 

be substituted with a different vehicle. 

(B) To participate in the fleet modernization program, dismantlers must: 

(1) Enter into an agreement with the air district. 

(2) Be licensed by DMV as an auto-dismantler. 

(3) Possess a current, valid California Environmental Protection Agency 

Hazardous Materials Generators Permit. 

(4) Be in compliance with all local, state and federal laws and regulations. 

(C) The dismantler must do the following for each vehicle: 

(1) Dismantle the old vehicle in accordance with program guidelines within 60 

calendar days of receipt. Upon dismantler request, the air district may 

approve an extension. 

(2) Destroy and render useless the existing vehicle engine as specified in 

Chapter 3: Program Administration. 
As of 4/28/2011 5 - 12 ON-ROAD 

FLEET MODERNIZATION 

(3) Completely sever the frame rails of the old vehicle to ensure that the 

vehicle will not be used again. 

(4) Air district staff or the dismantler must take photographs of the destroyed 

engine and severed frame rails. Dismantler photographs of the destroyed 

engine block and severed frame rails must be provided to the air district 

within ten (10) business days of dismantling the vehicle. The following 

picture views must be taken: 

a. Front of vehicle with hood down 

b. Right side of vehicle with hood down 

c. Left side of vehicle with hood down 

d. Serial number printed either on the tag inside in the cab or on the 

frame rail 

e. Engine side view 

f. Engine serial number either stamped on the block or on the tag 

g. Destroyed engine block either in-frame or out of frame as specified in 

Chapter 3: Program Administration 

h. Completely severed frame rails 

(5) Prepare and submit to DMV either -Repairable V

-Repairable Vehicle 

(REG 488C), or a Notice of Acquisition/Report of Vehicle To 

Be Dismantled (REG 42) ensuring the VIN can never be registered again 

in California. 

(6) Upon request of the air district, ARB may approve an alternative 

disposition for the old vehicle. 

12.Recovery of Grant Funds 

(A) The air district must establish a mechanism to assure the participants fulfill 

all contractual obligations, including owning and operating the 

replacement vehicle for the project life. The air district will determine 

noticing requirements and the method to achieve fund recovery. Air 

districts may consider the following option: 

(1) List the air district as co-lien holder on the title of the replacement vehicle 

for the term of the agreement. The participant must submit a completed 

Uniform Commercial Code-1 Financing Statement Form to the California 

Secretary of State, with a copy sent to the air district, within 30 days of the 

purchase of the replacement vehicle. The financing statement must have 

the air district as the secured party and the vehicle should be listed as 

collateral. 
As of 4/28/2011 5 - 13 ON-ROAD 

FLEET MODERNIZATION 

(2) If the replacement vehicle is sold during the project life, the new owner 

must assume the obligation air 

district and comply with the terms and conditions of the contract. The air 

district must approve the change in ownership prior to the sale. 

 
As of 4/28/2011 7 - 1 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

Chapter 7: OFF-ROAD COMPRESSION-IGNITION EQUIPMENT 

This chapter describes the minimum criteria and requirements for Carl Moyer Program 

mobile, self-propelled, off-road compression-ignition (CI) projects such as construction 

and agricultural equipment. This chapter also describes criteria for non-agricultural 

portable equipment. 

This chapter does not cover portable and stationary agricultural equipment (see 

Chapter 10). Criteria and requirements for the off-road equipment replacement 

category can be found in Chapter 9. Air districts may set more stringent requirements 

based upon local priorities. 

A. Projects Eligible for Funding 

The Air Resources Board (ARB) has adopted in-use fleet rules affecting off-road CI 

equipment: the In-Use Off-Road Diesel Vehicle Regulation (Off-Road Regulation) and 

the Cargo Handling Equipment at Ports and Intermodal Rail Yards Regulation 

(CHE Regulation). Portable engines are regulated under the Portable Airborne Toxic 

Control Measure (ATCM). There are limited funding opportunities for equipment subject 

to these rules. 

Table 7-1 

Summary of Off-Road CI Engine Funding Opportunities 

Equipment Type Subject to ARB Fleet 

Rule 

Moyer Funding Opportunities1

Mobile agricultural 

equipment 

No Funding opportunities exist for engine repowers 

and retrofits. 

Cargo handling 

equipment at ports/ 

intermodal rail yards 

Cargo Handling 

Equipment Regulation2 

Very limited opportunities. 

Most other off-road 

equipment (e.g. 

construction, mining, 

rental, airport ground 

support and other 

industries) 

Off-Road Regulation3

Small fleets: Opportunities exist through 

Dec. 31, 2025, after which fleet must show 

100% compliance with the regulation 

Medium fleets: Opportunities exist through 

Dec. 31, 2019, after which fleet must show 

100% compliance with the regulation 

Large fleets: Opportunities exist through 

Dec. 31, 2016, after which fleet must show 

100% compliance with the regulation. After 

Dec. 31, 2012, only filter-based projects eligible 

for funding 

Portable diesel Engines Portable Engine ATCM4Limited opportunities exist ahead of the fleet 

average requirements 

1

Limited opportunities air 

district Moyer Program staff or consult fleet rule Carl Moyer Implementation Charts at: 

http://www.arb.ca.gov/msprog/moyer/guidelines/supplemental-docs.htm in addition to these guidelines. 

2

 Regulation for Mobile Cargo Handling Equipment at Ports and Intermodal Rail Yards:

http://www.arb.ca.gov/ports/cargo/cargo.htm

3

 Regulation for In-Use Off-Road Diesel Vehicles http://www.arb.ca.gov/msprog/ordiesel/ordiesel.htm

4 Regulation for Portable engine ATCM: http://www.arb.ca.gov/diesel/peatcm/peatcm.htm
As of 4/28/2011 7 - 2 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

Project Types: Taking the above table into consideration, the following categories are 

eligible projects: 

1. Repower of Existing Equipment 

2. Retrofit Purchase

3. New Equipment Purchase: Requires case-by-case approval by ARB.

4. Equipment Replacement: Purchases of new or used CI equipment replacing an 

uncontrolled, fully functional CI piece of equipment may be eligible. For these 

projects, refer to Chapter 9 or the Off-Road Voucher Incentive Program.

Please see Section D (Project Criteria) for detailed minimum eligibility requirements for 

all off-road CI project categories. 

B. Maximum Eligible Funding Amounts 

Table 7-2 summarizes the maximum eligible funding for each project type. All projects 

are also subject to the cost-effectiveness threshold defined in Appendix G. 

 Table 7-2 

Maximum Percentage Eligible for 

Carl Moyer Off-Road Compression-Ignition Projects 

Project Maximum

Tier 1 Repower 75 percent 

Tier 2 Repower 80 percent 

Tier 3 and Tier 4 Repower 85 percent 

Retrofit 100 percent 

C. Engine Emission Standards 

ARB and the United States Environmental Protection Agency (U.S. EPA) have adopted 

regulations for exhaust emission standards for new off-road engines and equipment. 

For reference, Tables 7-3 and 7-4 below summarize the hydrocarbon (HC), oxides of 

nitrogen (NOx), and particulate matter (PM) standards in grams per brake-horsepowerhour (g/bhp-hr) for Tier 1, 2, 3, and 4 engines. The actual standards, in grams per 

kilowatt-hour (g/kW-hr), may be found in California Code of Regulations, title 13, 

sections 2449, et seq. 

 
As of 4/28/2011 7 - 3 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

Table 7-3 

ARB and U.S. EPA Tier 1, 2, and 3 Exhaust Emission Standards for 

New Off-

(g/bhp-hr) 

Maximum Rated 

Power 

hp 

(kW)

Tier Model Year NOx HC NOx+NMHC PM

25 hp<50 

(19 kW<37) 

Tier 1 1999-2003(a) 7.1 0.60 

Tier 2 2004-2007 5.6 0.45 

50 hp<75 

(37 kW<56) 

Tier 1 1998-2003(a) 6.9 

Tier 2 2004-2007 5.6 0.30 

Tier 3(b) 2008-2011 3.5 0.30 

75 hp<100 

(56 kW<75) 

Tier 1 1998-2003(a) 6.9 

Tier 2 2004-2007 5.6 0.30 

Tier 3 2008-2011 3.5 0.30 

100 hp<175 

(75 kW<130) 

Tier 1 1997-2002(a) 6.9 

Tier 2 2003-2006 4.9 0.22 

Tier 3 2007-2011 3.0 0.22 

175 hp<300 

(130 kW<225) 

Tier 1 1996-2002 6.9 1.0 0.40 

Tier 2 2003-2005 4.9 0.15 

Tier 3(c) 2006-2010 3.0 0.15 

300 hp<600 

(225 kW<450) 

Tier 1 1996-2000 6.9 1.0 0.40 

Tier 2 2001-2005 4.8 0.15 

Tier 3(c) 2006-2010 3.0 0.15 

600 hp 750 

(450 kW 560) 

Tier 1 1996-2001 6.9 1.0 0.40 

Tier 2 2002-2005 4.8 0.15 

Tier 3(c) 2006-2010 3.0 0.15 

hp>750 

(kW>560) 

Tier 1 2000-2005 6.9 1.0 0.40 

Tier 2 2006-2010 4.8 0.15 

(a) EPA model year. ARB model year for Tier 1 starts at 2000 for 25 hp to <175 hp. 

(b) Engine families in this power category may meet the Tier 3 PM standard instead of the Tier 4 interim PM standard 

in exchange for introducing the final Tier 4 PM standard in 2012. 

(c) Caterpillar, Cummins, Detroit Diesel Corporation, and Volvo Truck Corporation agreed to comply with these 

standards by 2005. 
As of 4/28/2011 7 - 4 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

Table 7-4 

ARB and U.S. EPA Tier 4 Exhaust Emission Standards for 

New Off-

(g/bhp-hr) 

Maximum Rated 

Power 

hp 

(kW)

Tier Model Year NOx HC NOx+NMHC PM

25 hp<50 

(19 kW<37) 

Tier 4 Interim 2008-2012 5.6 0.22 

Tier 4 Final 2013 and later 3.5 0.02 

50 hp<75 

(37 kW<56) 

Tier 4 Interim(a) 2008-2012 3.5 0.22 

Tier 4 Final 2013 and later 3.5 0.02 

75 hp<100 

(56 kW<75) 

Tier 4 

Phase-In 

2012-2014 

0.30 0.14 0.01 

Tier 4 

Phase-Out 

3.5 0.01 

Tier 4 

Alternate 

NOx(b)

2.5 0.14 0.01 

Tier 4 Final 2015 and later 0.30 0.14 0.01 

100 hp<175 

(75 kW<130) 

Tier 4 

Phase-In 

2012-2014 

0.30 0.14 0.01 

Tier 4 

Phase-Out 

3.0 0.01 

Tier 4 

Alternate 

NOx(b)

2.5 0.14 0.01 

Tier 4 Final 2015 and later 0.30 0.14 0.01 

175 hp<750 

(130 kW<560) 

Tier 4 

Phase-In 

2011-2013 

0.30 0.14 0.01 

Tier 4 

Phase-Out 

3.0 0.01 

Tier 4 

Alternate 

NOx(b)

1.5 0.14 0.01 

Tier 4 Final 2014 and later 0.30 0.14 0.01 

hp>750 

(kW>560) 

Tier 4 Interim 2011-2014 2.6 0.30 0.07 

Tier 4 Final 2015 and later 2.6 0.14 0.03 

(a) Engine families in this power category may meet the Tier 3 PM standard instead of the Tier 4 interim PM standard 

in exchange for introducing the final Tier 4 PM standard in 2012. 

(b) The implementation schedule shown is the three-year alternate NOx approach. Other schedules are available. 
As of 4/28/2011 7 - 5 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

D. Project Criteria 

The minimum qualifications for off-road compression-ignition projects are listed below. 

All projects must also conform to the requirements in Chapter 2: General Criteria and in 

Chapter 3: Program Administration. Participating air districts retain the authority to 

impose additional requirements in order to address local concerns. 

1. General Off-Road CI Equipment Project Criteria 

(A) Maximum project life: 

(1) Repower only (no retrofit) 7 years

(2) Repower + retrofit 5 years

(3) Retrofit 5 years

(4) Farm equipment* (all projects) 10 years* 

*Air districts are required to offer a 10 year project life for farm equipment; 

however, applicants may request a project life less than 10 years.

A longer project life may be granted case-by-case approval if an applicant 

provides justifying documentation. The maximum project life does not consider 

regulatory requirements that may shorten the eligible project life. Regulatory 

requirements may reduce actual project lives below these maximum values.

(B) Propulsion engines greater than 25 horsepower on mobile off-road 

equipment are eligible for funding. For projects in which the actual engine 

horsepower cannot be determined based on the engine label, manual, and 

engine records, the engine horsepower can be estimated by the following 

formula: Engine hp = Power Take Off hp X 120 percent.

(C) The certification emission standards and Tier designation for the engine 

must be determined from the Executive Order or U.S. EPA Certificate of 

Conformity (for federally preempted engines) issued for that engine. ARB 

Executive Orders for off-road engines may be found at 

http://www.arb.ca.gov/msprog/offroad/cert/cert.php.

(D) troduction Incentive for 

Engine ifornia Code of 

Regulations, title 13, section 2423(b)(6), are eligible for Carl Moyer 

Program funding provided that they are certified to the final Tier 4 

emission standards. The ARB Executive Order for these engines 

indicates that the engines are certified under this provision. The emission 

rates for these engines used to determine cost-effectiveness shall be 

equivalent to the emission factors associated with Tier 3 engines. Air 

districts must retain this documentation in the project file.
As of 4/28/2011 7 - 6 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

(E) Interim Tier 4 engines between 75 and 750 horsepower certified to the 

Phase-In, Phase-Out, and Alternate NOx standards as detailed in 

California Code of Regulations, title 13, section 2423(b)(1)(B), are eligible 

for funding. The appropriate emission factors for calculating emission 

reductions and cost-effectiveness are listed in Appendix D, Table D-12.

(F) For equipment with baseline engines manufactured under the flexibility 

provision, detailed in California Code of Regulations, title 13, section 

2423(d), baseline emission rates shall be determined by using the 

previous applicable Tier emission standard for that engine model year and 

horsepower rating. The ARB Executive Order for these engines indicates 

that the engines are certified under this provision. Air districts must retain 

this documentation in the project file.

(G) The only forklifts eligible for funding under this chapter are Class 7 diesel 

forklifts. The air district must obtain and verify documentation of the 

classification of the forklift prior to funding.

(H) The criteria of this chapter are applicable to portable off-road engines that 

are not covered by the definition of agricultural source under Health and 

Safety Code section 39011.5. However, portable equipment owned by 

agricultural service companies, rental companies, public agencies, and 

non-agricultural service companies meet the definition of farm equipment 

per this chapter and are subject to the eligibility criteria outlined in 

Chapter 10.

(I) Project emission reductions must be based upon readings from an 

installed and fully operational hour meter. If equipment does not have a 

functioning hour meter at the time of the project, the hour meter must be 

installed, repaired, and/or replaced. If during the project life the hour 

meter fails for any reason, the hour meter must be repaired or replaced as 

approved by ARB for determining emission reductions, then future annual 

fuel usage must be based on fuel logs, purchase receipts, or ledger 

entries specific to the funded equipment.

2. Repower 

A repower is the replacement of the existing engine with a newer emission-certified 

engine instead of rebuilding the existing engine to its original specifications. These 

are commonly diesel-to-diesel repowers and significant NOx and PM benefits are 

achieved due to the higher emission levels of the engine being replaced. 

(A) Funding is not available for projects where a spark-ignition engine (i.e., 

natural gas, gasoline, etc.) is replaced with a diesel engine. 
As of 4/28/2011 7 - 7 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

(B) ns for Equipment 

as detailed in California Code of Regulations, title 13, 

section 2423(d), are ineligible for Carl Moyer Program funding as a 

replacement engine. 

(C) If repowering with an engine meeting the current applicable standard is 

technically infeasible, unsafe, or not available when the air district commits 

to the proposed project, the replacement engine must meet the most 

practicable previously applicable emission standard. For purposes of this 

section, air district

with that stated in their policies and procedures manual. The air district 

shall determine eligibility of a repower project using an engine certified to 

a previous emission standard by one of the following options: 

(1) 

the most recent emission standards or Tier may be limited to the same 

manufacturer as the existing engine. 

(2) If the air district and the applicant do not execute a contract for the project 

within six months of project commitment, then the air district must recheck 

for the availability of engines meeting the current standard. 

(3) Documentation that engines meeting the current applicable standards are 

unavailable must be provided to the air district. Acceptable documentation 

that engines meeting the most recent emission standards are unavailable 

include: 

a. Verifiable information from the engine manufacturer, engine distributor, 

and/or engine dealer regarding the unavailability of engines meeting 

the current emission standards or Tier. 

b. Confirmation (a written declaration by the air district is acceptable) that 

engines from a specific manufacturer meeting the current emission 

standards or Tier are not certified (Executive Order is not available on 

ARB website). Executive Orders for off-road engines may be found at 

http://www.arb.ca.gov/msprog/offroad/cert/cert.php. 

c. A written statement of reason(s) provided by the engine manufacturer 

verifying that a particular piece of equipment cannot accommodate an 

engine meeting current standards without major modifications or safety 

risks. The letter must include information on the equipment being 

repowered, the engine being replaced, the reason why an engine 

meeting the currently applicable standard cannot be used (including 

applicable supporting documentation), and the proposed replacement 

engine. Air districts must retain the written statement of reasons in the 

project files. 
As of 4/28/2011 7 - 8 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

d. The engine manufacturer has provided ARB with sufficient information 

on engine and/or equipment models for which repowers are available, 

and engine and/or equipment models for which repowers are not 

available or feasible. Engine manufacturers who are interested in 

pursuing this option should contact ARB. ARB staff will maintain a list 

of such engines and/or equipment models and make that list available 

to air district staff. 

(D) Notwithstanding Section D.2(C), repower to Tier 1 is eligible for funding 

only in the following cases: 

(1) In a fleet meeting the small fleet definition or a fleet meeting the captive 

attainment area fleet definition of the Off-Road Regulation until 

January 1, 2016. After this date, Tier 1 engines are no longer eligible. 

(2) Equipment specifically exempted from the performance requirements of 

the Off-Road Regulation, California Code of Regulations, title 13, 

section 2449(e). 

(3) Equipment that is not subject to the Off-Road Regulation. 

(E) Notwithstanding Section D.2.(C), repower to a Tier 2 is eligible for funding 

only in the following cases: 

(1) In a fleet meeting the large or medium fleet definition of the Off-Road 

Regulation until January 1, 2018. After this date, Tier 2 engines are no 

longer eligible. 

(2) In a fleet meeting the small fleet definition or a fleet meeting the captive 

attainment area fleet definition of the Off-Road Regulation until 

January 1, 2023. After this date, Tier 2 engines are no longer eligible. 

(3) Equipment specifically exempted from the performance requirements of 

the Off-Road Regulation, California Code of Regulations, title 13, 

section 2449(e). 

(4) Equipment that is not subject to the Off-Road Regulation. 

(F) For repower plus retrofit projects, the cost of datalogging the replacement 

engine can be included in the total project cost. 

(G) If an ARB-verified retrofit is available for the replacement engine at the 

time an air district reviews the application for eligibility, the applicant must 

install the highest level verified retrofit, as discussed in Section D.3.(A) of 

this chapter. 
As of 4/28/2011 7 - 9 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

(1) If the additional cost of the retrofit causes the cost-effectiveness to be 

above the cost-effectiveness limit as defined in Appendix G, then the 

retrofit is not required. 

(2) If documentation can be provided to the air district or ARB that the retrofit 

is not technically feasible, available, or safe, then the retrofit is not 

required. Documentation of retrofit unavailability for mobile cargo handling 

equipment must follow the process set out in the Regulation for Mobile 

Cargo Handling Equipment at Ports and Intermodal Rail Yards, California 

Code of Regulations, title 13, section 2479 (f)(2). Documentation for a 

retrofit that impairs the safe operation of a vehicle must follow the process 

set out in the Off-Road Regulation, California Code of Regulations, 

title 13, section 2449(e)(8). A determination that a retrofit is not required 

due to safety concerns must be made prior to the retrofit installation phase 

of a project. 

(3) If offered by an air district, an applicant may opt-out of the default retrofit 

requirement. Applicants must sign a waiver acknowledging that due to 

current or future regulations, the applicant may be required to install a 

retrofit on the funded equipment at their own cost. Air districts have the 

option to not offer this additional flexibility and are encouraged to evaluate 

individual projects based on the near-source health impacts. 

(4) Equipment that has been issued an exemption from retrofit installation 

from specific manufacturers may be found at: 

http://www.arb.ca.gov/msprog/moyer/retrofit/exemptions.htm. 

(H) For repower projects with new off-road compression-ignition engines 

equipped with original engine manufacturer aftertreatment devices, 

addition of a retrofit is ineligible due to issues with engine warranty and 

anti-tampering provisions. 

(I) All engines replaced as part of an off-road repower project must be 

destroyed and rendered useless, in accordance with the requirements of 

Chapter 3: Program Administration, Section BB.4. 

3. Retrofit 

Retrofit is the installation of an ARB-verified diesel emission control system on an 

existing engine. Examples include, but are not limited to, particulate filters and 

diesel oxidation catalysts. More information on retrofits may be found at 

http://www.arb.ca.gov/diesel/verdev/verdev.htm. 

(A) Retrofit projects that control PM must use the highest level technically 

feasible technology available for the equipment being retrofitted. ARB 
As of 4/28/2011 7 - 10 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

considers the retrofit device that achieves the highest level of PM 

reductions (Level 3 - 85 percent) and the highest level of NOx reductions 

to be the highest level retrofit. 

(B) The cost of the retrofit, filters, and maintenance of the retrofit device 

needed during the project life is eligible for incentive funding, provided its 

inclusion in the project cost still is within the weighted cost-effectiveness 

limit. The datalogging cost of a retrofit-only project cannot be included in 

the eligible project cost. 

(C) Off-road compression ignition engines equipped with original engine 

manufacturer aftertreatment devices are ineligible for retrofit funding due 

to issues with engine warranty and anti-tampering provisions. 

4. New Purchase: New purchase of equipment with engines meeting the Blue Sky 

Standards, certified on-road engines, and electric motors will be considered by 

the air district and ARB on a case-by-case basis. These projects are seldom 

technically feasible or practical and very few have been funded up to this time. 

E. Projects Subject to the In-Use Off-Road Diesel Vehicle Regulation

1. Fleets must be in compliance with the Off-Road Regulation in order to be eligible 

for and receive funding. 

(A) Applicants must submit information regarding fleet size and compliance 

status. This must include the Diesel Off-Road On-line Reporting System 

(DOORS) ID of the fleet and the DOORS Equipment Identification Number 

(EIN) of the funded equipment. All documentation submitted must be 

signed and dated by the applicant and include language certifying that the 

fleet list provided is accurate and complete. 

(1) Applicants should use the online fleet average calculator 

(http://arb.ca.gov/msprog/ordiesel/documents/documents.htm) to 

air district. 

(2) Applicants are not required to submit information on exempted equipment. 

Information on exempted off-road equipment can be found in the Off-Road 

Regulation (California Code of Regulations, title 13, § 2449). 

2. No emission reductions achieved from a funded project can count towards a 

3. Eligibility for a project is based on the best available control technology (BACT) 

requirements of the off-road regulation. 
As of 4/28/2011 7 - 11 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

(A) Any equipment funded through the Moyer program and that is still under 

contract must be deducted from the amount of equipment eligible for 

funding. For instance, a fleet that is eligible for funding to reduce 

emissions for 50 percent of its horsepower, but that has already received 

funding in previous years to reduce emissions from 20 percent of its 

horsepower, is only eligible for funding to reduce emissions from 

30 percent of its horsepower. 

(B) Equipment funded through the Moyer program must be included in the 

epower from which the BACT requirements of the 

regulation are calculated. 

4. Large Fleets 

(A) Eligible projects for large fleets, as defined in the Off-Road Regulation 

must provide at least 3 years of surplus emission reductions to the 

regulation, with a corresponding minimum project life of at least 3 years. 

 

(B) Projects must be installed and in operation at least 3 years before the 

BACT requirements become effective for the funded equipment. 

(C) The first compliance date for large fleets in the Off-Road Regulation is 

January 1, 2014. The final compliance date is January 1, 2023. Funding 

for large fleets is available through December 31, 2016. 

 

(D) Eligible projects for large fleets must include a particulate matter retrofit 

beginning January 1, 2013, for engines 75 horsepower and greater and 

January 1, 2014, for engines less than 75 horsepower. 

 

(E) Large fleets may have additional requirements per subsection E.7. below. 

5. Medium Fleets 

(A) Eligible projects for medium fleets, as defined in the Off-Road Regulation, 

must provide at least 3 years of surplus emission reductions to the 

regulation, with a corresponding minimum project life of at least 3 years. 

(B) Projects must be installed and in operation at least 3 years before the 

BACT requirements become effective for the funded equipment. 

(C) The first compliance date for medium fleets, as defined in the Off-Road 

Regulation, is January 1, 2017. The final compliance date is 

January 1, 2023. Funding for these fleets is available through 

December 31, 2019. 
As of 4/28/2011 7 - 12 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

6. Small Fleets (includes Captive Attainment Area Fleets) 

(A) Eligible projects for small fleets, as defined in the Off-Road Regulation, 

must provide at least 2 years of surplus emission reductions to the 

regulation, with a corresponding minimum project life of at least 2 years. 

(B) Projects must be installed and in operation at least 2 years before the 

BACT requirements become effective for the funded equipment. 

(C) The first compliance date for small fleets, as defined in the Off-Road 

Regulation, is January 1, 2019. The final compliance date is 

January 1, 2028. Funding for these fleets is available through 

December 31, 2025. 

7. Surplus Off-Road Opt-In for NOx (SOON) Program 

(A) Fleets located in air districts that have opted into the SOON program and 

that are subject to the SOON provisions, are eligible for funding in 

accordance with the Off-Road Regulation (California Code of Regulations, 

title 13, §2449.2) and must meet the applicable criteria in section A, B, C, 

and or D above. 

(B) Projects funded under SOON are not subject to Section E of this chapter, 

except for the requirements of this subsection E.7. 

8. For more information on eligibility of off-road diesel equipment, please see the 

In-Use Off-Road Diesel Vehicles Regulation Carl Moyer Program Implementation 

Chart available at http://www.arb.ca.gov/msprog/moyer/guidelines/supplementaldocs.htm. 

F. Projects Subject to the Regulation for Cargo Handling Equipment at Ports and 

Intermodal Rail Yards

1. Eligible projects must provide at least 3 years of surplus emission reductions to 

the regulation, with a corresponding minimum project life of at least 3 years. 

Much of the applicable cargo handling equipment must already be in compliance 

with the regulation. Therefore, very limited funding opportunities exist. 

2. For more information on eligibility of cargo handling equipment, please see the 

Regulation for Cargo Handling Equipment at Ports and Intermodal Rail Yards 

Carl Moyer Program Implementation Chart available at 

http://www.arb.ca.gov/msprog/moyer/guidelines/supplemental-docs.htm. 
As of 4/28/2011 7 - 13 OFF-ROAD COMPRESSIONIGNITION EQUIPMENT 

G. Projects Subject to the Portable Engine ATCM

1. Portable engines under this chapter are subject to the Portable Engine ATCM 

and must be surplus to the Portable Engine ATCM in order to be eligible. 

Funding is available for achieving reductions required by the regulation at least 

three years prior to regulatory compliance deadlines and for reductions not 

required by the regulation. The first compliance deadline for engines subject to 

the Portable Engine ATCM was January 1, 2010; therefore only limited funding 

opportunities exist for projects in advance of the fleet average compliance 

deadlines specified in the regulation. 

2. If portable diesel engines are required by the air district to be registered or 

permitted then, these engines must have registration or permits to be eligible for 

engine repowers. 

3. Uncontrolled engines subject to the Portable Engine ATCM are not eligible for 

repowers. 

4. Uncontrolled portable engines owned by rental companies are not eligible for 

Carl Moyer Program funding due to the Portable Engine ATCM compliance dates 

of January 1, 2010, and January 1, 2011. 

5. Portable equipment with a Tier 2 engine repowered with a Tier 3 engine must 

also be equipped with a verified retrofit in order to be eligible for funding. 

6. For more information on eligibility of engines used in portable equipment, please 

see the Portable Engine Airborne Toxic Control Measure Implementation Chart 

available at: http://www.arb.ca.gov/msprog/moyer/guidelines/supplementaldocs.htm

H. Projects Subject to the Statewide Truck and Bus Regulation

This regulation impacts the eligibility of all on-road heavy-duty diesel-fueled and 

alternative dieselvehicle weight rating greater than 14,000 pounds. Although this regulation primarily 

affects vehicles with on-road engines, some vehicles with off-road engines are also 

covered. Any application for Carl Moyer Program funding to replace a vehicle with an 

off-road engine that is subject to an on-road regulation must comply with the applicable 

surplus requirements described in Chapter 4. For example, a yard truck with an 

off-road engine that is subject to the Statewide Truck and Bus Regulation (including 

yard trucks used primarily in agricultural operations) must meet the applicable on-road 

surplus requirements described in Chapter 4, Section E, and must also comply with all 

off-road project criteria described in this chapter. 
As of 4/28/2011 9 - 1 OFF-ROAD 

EQUIPMENT REPLACEMENT 

Chapter 9: OFF-ROAD EQUIPMENT REPLACEMENT 

This chapter describes the minimum criteria and requirements for Carl Moyer Program 

mobile, self-propelled off-road compression-ignition (CI) and large spark-ignition (LSI) 

equipment replacement projects. Air districts may set more stringent requirements 

based upon local priorities. 

A. Projects Eligible for Funding 

All provisions regarding the in-use regulations described in Chapters 7 and 8: 

Off-Road Compression-Ignition Equipment and Off-Road Large Spark-Ignition 

Equipment also apply in this chapter. 

Equipment replacement provides incentives to replace old high-polluting off-road 

equipment with newer, lower-emission replacement equipment, providing real emission 

benefits earlier than would have been expected through normal attrition. 

Please see Section C (Project Criteria) for detailed minimum eligibility requirements. 

The following off-road equipment replacement projects may be eligible for funding. 

Note: The existing old equipment engine must be an uncontrolled, Tier 1, or Tier 2 

engine. 

1. New Replacement Equipment Purchase: The purchase of new equipment with 

an engine certified to the current emission standard or Tier to replace existing 

equipment that is to be scrapped. 

2. Used Replacement Equipment Purchase: The purchase of used equipment with 

an engine certified to the current emission standard or Tier to replace existing 

equipment that is to be scrapped. 

B. Maximum Eligible Funding Amounts 

Table 9-1 summarizes the maximum eligible funding for each project type. All projects 

are also subject to the cost-effectiveness threshold defined in Appendix G. 

Table 9-1 

Maximum Percentage Eligible for 

Carl Moyer Off-Road Equipment Replacement Projects 

Project Maximum

New or Used Equipment Purchase 80 percent of total equipment purchase costs 

Retrofit 100 percent 

C. Project Criteria 

The minimum qualifications for off-road equipment replacement projects are listed 

below. All projects must also conform to the requirements in Chapter 2: General 
As of 4/28/2011 9 - 2 OFF-ROAD 

EQUIPMENT REPLACEMENT 

Criteria and in Chapter 3: Program Administration. Participating air districts retain the 

authority to impose additional requirements in order to address local concerns. 

1. General Criteria 

(A) Funding is available for replacement of existing equipment utilizing the 

following engines: 

(1) Large spark ignited engines larger than or equal to 19 kilowatts (kW) 

(25 horsepower (hp)). Engines above 25 hp but with a displacement of 

less than or equal to one liter may be eligible for funding on a 

case-by-case basis. 

(2) Diesel engines larger than or equal to 25 hp. 

(B) Projects involving replacement with an electric forklift are eligible for a 

maximum of 80 percent of total equipment purchase costs. In addition, 

the cost of the recharging station and corresponding installation for the 

funded electric forklift is an eligible cost but must be included in the 

cost-effectiveness calculation. The combined cost-effectiveness of the 

electric forklift, recharging station, and corresponding installation must be 

below the cost-effectiveness limit as defined in Appendix G. 

(C) Project Life 

(1) The maximum project life for all off-road non-farm CI equipment 

replacement projects is five years with the following exceptions: 

a. Three years: excavators, skid steer loaders, and rough terrain forklifts 

as defined in Appendix B: Definitions. 

b. Seven years: crawler tractors, off-highway tractors, rubber tired dozers, 

and workover rigs as defined in Appendix B: Definitions. 

(2) The maximum project life for all off-road non-farm LSI equipment 

replacement projects is three years. 

(3) The maximum project life for all off-road farm equipment replacement 

projects is 10 years. Air districts must offer a 10 year project life for farm 

equipment; however, applicants may request a project life less than 

10 years. 

(4) The maximum project life for the replacement of an LSI forklift with a zero 

emission forklift is 10 years. Senate Bill 467 allows these projects to 

incorporate the remaining life of the equipment being scrapped (three 

years) and the median useful life of the equipment the applicant would 
As of 4/28/2011 9 - 3 OFF-ROAD 

EQUIPMENT REPLACEMENT 

have bought at the time of normal attrition (seven years). Emission 

benefits from two separate transactions may be included in the 

cost-effectiveness calculations: 

a. Emission reductions from existing uncontrolled, Tier 1, or Tier 2 

equipment, as applicable, to zero emission equipment. 

b. Emission reductions from a new piece of equipment meeting the 

emission standards at the time of purchase to zero emission. 

(5) A longer project life may be granted case-by-case approval if an applicant 

provides justifying documentation. The maximum project life does not 

consider regulatory requirements which may reduce actual project life 

below these maximum values. 

 

(D) Equipment must be maintained in accordance with manufacturer 

specifications. 

(E) Equipment may be purchased through an equipment dealer or a private 

party provided all required documentation is submitted, and the equipment 

meets all the requirements of the program. 

(F) The replacement of two (or more) pieces of old, like equipment with one 

piece of replacement equipment is eligible for funding. Each piece of old 

existing and replacement equipment must comply with all of the 

appropriate criteria below. The replacement equipment must execute the 

same job as the old pieces of equipment. For baseline emissions 

calculation, the annual emissions of the two pieces of old equipment are 

summed. For the replacement equipment emissions calculation, the 

annual usage of the two pieces of old equipment is summed for the 

replacement equipment usage. 

(1) The horsepower rating for the replacement equipment must not be greater 

than 125 percent of the original manufacturer rated horsepower (baseline 

horsepower) for the lowest horsepower of the existing equipment engine. 

2. Existing (Old) Equipment Requirements 

All existing equipment must meet the following conditions: 

(A) The old equipment must have an uncontrolled, Tier 1, or Tier 2 engine. 

(For LSI, this equates to a model year 2009 or earlier engine). 

(B) For old equipment with engines manufactured under the flexibility 

provision detailed in California Code of Regulations, title 13, 

section 2423(d), baseline emission rates shall be determined by using the 
As of 4/28/2011 9 - 4 OFF-ROAD 

EQUIPMENT REPLACEMENT 

previous applicable Tier emission standard for that engine model year and 

horsepower rating. The Air Resources Board (ARB) Executive Order for 

these engines indicates that the engines are certified under this provision. 

Air districts must retain this documentation in the project file. 

(C) For old equipment in which the actual engine horsepower cannot be 

determined based upon the engine label, manual, and engine records, the 

engine horsepower can be estimated by the following formula: 

Engine horsepower = Power Take Off (PTO) x 120 percent. 

(D) The old equipment must be registered in the Diesel Off-road On-line 

Reporting System (DOORS) if it is subject to the Regulation for In-Use 

Off-Road Diesel Vehicles (Off-Road Regulation). 

(E) Equipment Ownership - The participant must have owned and operated 

the old equipment in California for the previous two years. The participant 

must be able to provide documentation of the following specific to the 

existing (old) equipment: 

(1) Bill of sale for the old equipment, and 

(2) Two years of documentation for at least one item from the list below. If a 

bill of sale cannot be provided, two items from the following list may be 

submitted in substitution: 

a. Tax depreciation logs 

b. Property tax records 

c. Equipment insurance records 

d. Bank appraisals for equipment 

e. Maintenance/service records 

f. General ledgers 

g. Fuel records specific to the old equipment (To be used as evidence of 

California residency the fuel records must also identify the equipment 

owner) 

h. Other documentation approved by ARB 

(F) Annual Usage Requirement and Operational Requirement: The old 

equipment must be in operational condition to qualify for funding. To 

verify the operational status of the equipment the air district must conduct 

a pre-inspection of the old equipment prior to funding. 

(1) If the participant provides at least two years previous usage 

documentation, as described below, to the air district as part of the 

application process, air districts may exclude the usage requirement in the 

project contract with the participant (per Chapter 3, Program 
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EQUIPMENT REPLACEMENT 

Administration, section Z. 6.). The following types of documents are 

acceptable to demonstrate usage: 

a. Hour meter reading log collected at minimum of once per year from an 

installed and fully functioning hour meter or historical fuel usage 

documentation specific for the old equipment. Documentation must 

include fuel logs, purchase receipts, or ledger entries. 

-orb. At least two items from the following list proving old equipment is being 

used by the fleet: 

1. Revenue and usage records that identify operational, standby, and 

down hours for the equipment 

2. Employee timesheets linked to specific equipment use 

3. Preventative maintenance records tied to specific hours of 

equipment use 

4. Repair work orders specific to the equipment 

5. Six months of tracking normal equipment usage with a functional, 

tamper proof hour meter with prior air district approval 

6. Other documentation approved by ARB 

(2) If two years of usage documentation as required in (1) above is not 

available, the annual usage used to determine project cost effectiveness 

must be included in the project contract (per Chapter 3 Program 

Administration, section Z. 6.). In addition, the participant must provide 

documentation to demonstrate that the equipment was operational for the 

previous year. The following types of documents are acceptable to 

demonstrate that equipment is operational: 

a. Maintenance/service records 

b. Revenue and usage records that identify operational, standby, and 

down hours for the equipment 

c. Routine inspections which document the operating condition of the old 

equipment (Occupational Safety and Health Administration or 

workplace required) 

d. Other documents approved by ARB 

3. Replacement Equipment Requirements 

All replacement equipment must meet the following conditions: 

(A) The new or used replacement equipment must have an engine meeting 

the most recent California emission standard (e.g., the current Tier). If a 

specific piece of equipment cannot be purchased and delivered with an 

engine meeting the most recent emission standard or Tier within six 
As of 4/28/2011 9 - 6 OFF-ROAD 

EQUIPMENT REPLACEMENT 

months from the time the air district commits to the proposed project, then 

equipment with an engine meeting the previous emission standard or Tier 

may be purchased. For purposes of this section, an air district

commitment to a proposed project shall be consistent with that stated in 

their equipment replacement plan and/or their policies and procedures. 

(1) At the applican

meeting the most recent emission standards or Tier may be limited to the 

same equipment manufacturer as the existing (old) equipment or engine. 

(2) If the air district and the applicant do not have an executed contract within 

six months of project commitment, then the air district must recheck for the 

availability of equipment with the most recent emission standard or Tier. 

(3) Documentation that equipment with an engine meeting the most recent 

emission standard or Tier is unavailable must be provided to the air 

district. Acceptable documentation that equipment with an engine meeting 

the most recent emission standard in unavailable include: 

a. Verifiable information from the equipment manufacturer, engine 

manufacturer, distributor and/or dealer regarding the unavailability of 

equipment with an engine meeting the current emission standard or 

Tier. 

b. Confirmation (a written declaration by the air district is acceptable) that 

engines from a specific manufacturer meeting the current emission 

standard or Tier are not certified (Executive Order is not available on 

ARB website). Executive Orders for off-road engines may be found at 

http://www.arb.ca.gov/msprog/offroad/cert/cert.php. 

 

(4) Engines participating in the averaging, banking, and trading program that 

are certified to family emission limits (FELs) higher than the applicable 

emission standards, as designated on the ARB Executive Order, are 

ineligible to participate in the Carl Moyer Program. 

(5) The engine in the replacement equipment must be certified to a oxides of 

nitrogen (NOx) emission standard that is at least 15 percent lower than the 

emission standard(s) applicable to the existing engine certified to either 

the current applicable emission standard or to a FEL NOx or 

NOx+non-methane hydrocarbons (NMHC) level that is lower than the 

required emission standard. 

(6) For CI equipment, 

Introduction Incen

California Code of Regulations, title 13, section 2423(b)(6), are eligible for 

Carl Moyer Program funding provided that they are certified to the final 
As of 4/28/2011 9 - 7 OFF-ROAD 

EQUIPMENT REPLACEMENT 

Tier 4 emission standards. The ARB Executive Order for these engines 

indicates that the engines are certified under this provision. The emission 

rates for these engines used to determine cost-effectiveness shall be 

equivalent to the emission factors associated with Tier 3 engines. Air 

districts must retain this documentation in the project file. 

(7) Interim Tier 4 CI engines between 75 and 750 hp, certified to the 

Phase-In, Phase-Out, and Alternate NOx standards as detailed in 

California Code of Regulations, title 13, section 2423(b)(1)(B), are eligible 

for funding. The appropriate emission factor when calculating emission 

reductions and cost effectiveness are listed in Appendix D, Table D-12. 

(8) 

a Code of Regulations, title 13, 

section 2423(d) are ineligible for Carl Moyer Program funding as 

replacement equipment. 

 

(9) The certification emission standard and/or Tier designation for the engine 

must be determined from the Executive Order or United States 

Environmental Protection Agency Certificate of Conformity (for federally 

preempted engines) issued for that engine. ARB Executive Orders for offroad engines may be found at 

http://www.arb.ca.gov/msprog/offroad/cert/cert.php

(B) The replacement equipment must serve the same function and perform 

the same work equivalent as the old equipment (e.g., replacement of an 

agricultural tractor with another agricultural tractor). 

(C) Only the minimum attachments normally sold with the original equipment, 

as determined by the air district, are eligible for reimbursement on the 

replacement equipment. 

(D) The hp rating for the replacement equipment engine must not be greater 

than 125 percent of the original manufacturer rated hp (baseline hp) for 

the old (existing) equipment engine. In limited situations, such as where 

equipment in the original hp range is not available or the higher hp 

equipment will result in equal or less annual emissions, the air district may 

approve a greater than 25 percent increase in hp. Documentation must 

be provided that the replacement equipment will serve the same function 

as the old equipment. 

(E) Warranty Requirements 

(1) All purchasers of equipment must purchase a one-year or 1600 hour 

power and drive train warranty for the new or used replacement 

equipment. The warranty must cover parts and labor. If the purchase of 
As of 4/28/2011 9 - 8 OFF-ROAD 

EQUIPMENT REPLACEMENT 

new or used replacement equipment already includes a minimum 

one-year or 1,600 hour warranty as specified above, a separate 

supplemental warranty is not required. However, it is recommended that 

the highest grade warranty be purchased in order to avoid expensive 

repairs in the future. Warranty documentation must be provided to the air 

district. Warranty costs are not eligible for funding. 

(F) No funds will be issued for maintenance or repairs related to the operation 

of the equipment. The participant takes sole responsibility for ensuring 

that the equipment is in operational condition throughout the agreement 

period. 

(G) The participant may obtain financing to assist in the purchase of 

replacement equipment. Documentation of financing must be provided to 

the air district. 

(H) For CI equipment, an ARB verified diesel emission control system (or 

retrofit) is required on all replacement equipment if available. Retrofit 

projects that control particulate matter (PM) must use the highest level 

technically feasible technology available for the equipment being 

retrofitted. 

(1) The cost of the retrofit, filters, and maintenance of the retrofit device 

needed during the project life is eligible for incentive funding, provided its 

inclusion in the project cost still meets the weighted cost-effectiveness 

limit. 

(2) The retrofit must be installed prior to equipment delivery to the participant 

and must stay in operation on the replacement equipment for the project 

life. 

(3) If the additional cost of the retrofit causes the cost-effectiveness to be 

above the cost-effectiveness limit as defined in Appendix G, then the 

retrofit is not required. 

(4) If documentation can be provided to the air district and ARB that a retrofit 

is not technically feasible, available, or safe, then the retrofit is not 

required. Documentation of retrofit unavailability for mobile cargo handling 

equipment must follow the process set out in the Regulation for Mobile 

Cargo Handling Equipment at Ports and Intermodal Rail Yards, California 

Code of Regulations, title 13, section 2479 (f) (2). Documentation for a 

retrofit that impairs the safe operation of a vehicle must follow the process 

set out in the In-Use Off-Road Diesel Vehicle Regulation, California Code 

of Regulations, title 13, section 2449(e) (8). A determination that a retrofit 

is not required due to safety concerns must be made prior to retrofit 

installation phase of a project. 
As of 4/28/2011 9 - 9 OFF-ROAD 

EQUIPMENT REPLACEMENT 

(5) Availability of an ARB-verified retrofit for the replacement equipment must 

be determined at the time the air district commits to a proposed project. 

For purposes of this section, air district

project shall be consistent with that stated in their equipment replacement 

plan and/or their policies and procedures. 

a. If the air district and the applicant do not have an executed a contract 

within six months of project commitment, then the air district must 

recheck for the availability of an ARB-verified retrofit. 

b. Documentation that an ARB-verified retrofit is unavailable must be 

provided to the air district. Acceptable documentation of retrofit 

unavailability include: 

1. Verifiable information from the retrofit manufacturer, retrofit 

distributor and/or dealer regarding the unavailability of verified 

retrofits. 

2. Confirmation (a written declaration by the air district is acceptable) 

that no retrofit has been ARB-verified for the engine (the Executive 

Order is not available on ARB website). 

(6) If offered by an air district, an applicant may opt out of the default retrofit 

requirement. Applicants must sign a waiver acknowledging that due to 

current or future regulations they may be required to install a retrofit on the 

funded equipment at their own cost. Air districts have the option to not 

offer this additional flexibility and are encouraged to evaluate individual 

projects based on the near source health impacts. 

(7) Equipment that has been issued an exemption from retrofit installation 

from a specific manufacturer may be found at: 

http://www.arb.ca.gov/msprog/moyer/retrofit/exemptions.htm

(8) Additional information on retrofit systems is included in Appendix E: 

http://www.arb.ca.gov/diesel/verdev/vt/vt.htm.

 

(I) Project emission reductions must be based upon an installed and fully 

operational hour meter. If equipment does not have a functioning hour 

meter at the time of the project, the hour meter must be installed, repaired 

and/or replaced. If during the project life the hour meter fails for any 

reason, the hour meter must be repaired or replaced as soon as possible 

ARB for determining emission reductions, then future annual fuel usage 

must be based on fuel logs, purchase receipts or ledger entries specific to 
As of 4/28/2011 9 - 10 OFF-ROAD 

EQUIPMENT REPLACEMENT 

the funded equipment. LSI equipment may only use the hour based 

calculation for determining emission reductions. 

(J) New Electric Equipment 

(1) For replacement with electric equipment, applicants must provide 

evidence of a plan to either install battery chargers for each piece of 

equipment funded or install fast charging units for use with multiple pieces 

of equipment. 

(2) For replacement with electric equipment, costs for battery chargers and 

necessary peripheral equipment may be included in determination of the 

grant award. These costs are considered infrastructure and can only be 

paid for with air district match funds. 

(3) For replacement with an electric forklift, electric equipment that is less 

than 19 kW may be eligible for funding if manufacturer documentation 

(e.g., manufacturer specification sheet) is submitted verifying the electric 

forklift capacity is equal to or greater than 3,000 pounds. The verification 

documentation must be included in the project file. 

(4) For replacement with electric equipment other than a forklift that is rated 

less than 19 kW, equipment may be eligible on a case-by-case basis with 

prior ARB approval. Documentation must be provided indicating that work 

performed is equivalent to that performed by a 25 or greater hp LSI 

engine. 

(K) Replacement with zero-emission equipment other than electric must 

receive case-by-case approval by ARB (e.g., fuel cell equipment). 

4. Existing Equipment Destruction Requirements 

Equipment replacement requires that the existing high-emitting equipment be 

scrapped to permanently remove it from service. This ensures that emission 

reductions are real and prevents the existing equipment from being moved into 

another locale to continue emitting high levels of pollutants. Destruction of the 

equipment may occur either at an air district approved salvage yard or another 

facility in conjunction with an air district salvage inspection. Equipment salvage 

yards must enter into an agreement with the air district to qualify for participation. 

(A) Funding is not available for the salvage of any existing equipment. 

(B) The existing equipment salvage value will be negotiated between the 

participant, the dealership, and the salvage yard. 
As of 4/28/2011 9 - 11 OFF-ROAD 

EQUIPMENT REPLACEMENT 

(C) The old equipment must be destroyed within 60 days of being replaced. 

The old equipment needs to be destroyed or rendered useless by 

destroying the engine block as described in Chapter 3: Program 

Administration, Section BB and by compromising the structural integrity of 

the equipment. This may be achieved by cutting the structural 

components of the equipment or some other manner approved by the air 

district

to the air district within 10 days of destruction. 

(D) Air districts must conduct a salvage inspection of the old equipment. Air 

districts may use an air district approved salvage yard in lieu of this 

requirement. 

(E) If air districts use an air district approved salvage yard, these additional 

conditions must be met: 

(1) Destroy the old equipment and engine within 60 days of receipt of the 

replacement equipment in accordance with the program guidelines. 

(2) Provide the air district with all photographs required under the air district

salvage inspections requirements per section 5.(G)(3) below within 

10 business days of salvaging the existing equipment. 

(3) The contract must include the make, model, year, serial number, engine 

make, engine serial number, and the date the equipment is expected to be 

delivered. 

 

(4) It is the air district

occurs and to obtain a completed certificate of equipment destruction or 

other similar documentation as defined in the air district

5. Air District Administrative Requirements 

(A) Air districts must establish an off-road equipment replacement plan before 

they can fund off-road equipment replacement projects. Air district 

administrative requirements include pre- and post-inspections, monitoring 

and enforcement considerations, reimbursement procedures, and the 

development of contracts, which are described below. 

 

(B) Air districts may fund equipment replacement projects through a regional 

program administered by a designated air district. The designated air 

district could be either an air district located within the regional program or 

a large air district located outside of the regional program. A regional 

equipment replacement implementation plan must be established, 

containing all the required components as required in an individual air 

district equipment replacement implementation plan. A regional 
As of 4/28/2011 9 - 12 OFF-ROAD 

EQUIPMENT REPLACEMENT 

equipment replacement plan must also contain detailed description of the 

funding mechanism among the participating air districts. All air districts 

participating in the regional program must sign the regional 

implementation plan and must adhere to all the requirements specified in 

such regional implementation plan. 

(C) Any potential partnerships between air districts and dealers must be 

identified in the off-road equipment replacement plan. The plan must 

identify the air district w of dealer 

identified tasks. 

(D) Calculation of funding amounts must be based on the average of at least 

the two most recent years of documented equipment usage per 

section C.2.(F) above. Fleet averages cannot be used. 

(E) Incentive funding can only be used to pay for items essential to the 

operation of the equipment. 

(F) The air district must receive from the dealer proof of sale of the 

replacement equipment. Dealers for the purpose of this program are 

anyone who sells equipment, including private parties. 

(G) Air districts are responsible for completing a pre-inspection of the old 

equipment, a post-inspection of the replacement equipment, and a 

salvage inspection of the old equipment if equipment destruction is not 

conducted by an air district approved salvage yard. Pre-inspections may 

be done by an air district approved dealer. 

(1) Pre-inspection must verify the operational condition of the old equipment. 

The pre-inspection must verify, at a minimum, the following items: 

a. Tires in usable condition (able to hold air, sufficient tread or tracks, 

etc.) 

b. Steering wheel operational 

c. Equipment able to start up and move backwards and forwards 

d. Buckets, blades, rollers, etc. are working 

e. Undercarriage structurally sound 

f. Fuel tank in usable condition 

g. No parts stripped 

h. Equipment not vandalized 

i. In addition, clear photographs of the old equipment must include the 

following views: 

1. Right Side - hood down 

2. Front - hood down 

3. Left Side - hood down 
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EQUIPMENT REPLACEMENT 

4. Equipment serial number 

5. Engine - left side 

6. Engine - right side 

7. Engine Serial Number - either tag or stamp on block 

8. Equipment Identification, if available 

9. DOORS Equipment Identification Number (EIN), if applicable 

10.Rear 

(2) The post-inspection must include clear photographs of the following views: 

a. Right Side - hood down 

b. Front - hood down 

c. Left Side - hood down 

d. Equipment serial number 

e. Engine - left side 

f. Engine - right side 

g. Engine Serial Number and Engine Information tag 

h. Equipment Identification, if available 

i. DOORS EIN, if applicable 

j. Rear 

k. Diesel Emission Control Device (if available) 

l. Hour meter reading 

(3) Salvage inspection must include clear photographs of the destroyed 

engine block and cut frame rails. In addition, the following views must be 

taken: 

a. Equipment serial number 

b. Engine side view 

c. Engine serial number either stamped on the block or on the tag 

d. Destroyed engine block either in-frame or out of frame as specified in 

Chapter 3: Program Administration 

e. Cut structural components 

f. Destroyed attachments, if scrapped 

g. Other views dependent on the method of equipment destruction 

(H) Post-inspection of the replacement equipment and salvage inspection of 

the old equipment must be completed prior to disbursement of funds. 

(I) The air district is allowed to make full payment to the dealer at the time the 

dealer delivers the replacement equipment to the applicant under the 

following framework: 

(1) The air district must complete the pre-inspection of the old equipment and 

post-inspection of the replacement equipment to make sure that all 

equipment complies with program requirements. 
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EQUIPMENT REPLACEMENT 

(2) The air district must sign a separate memorandum of understanding 

(MOU) with the dealer and the salvage yard that contains, at a minimum, 

the program requirements that are expected of each entity and the 

repercussions for non-compliance with the terms of the MOU for each 

entity. This shall include, but is not limited to, the requirement that the 

dealer delivers the old equipment to a qualified salvage yard within 

30 days of the date that the old equipment was turned in to the dealer by 

the applicant. 

(3) The air district must ensure the equipment is scrapped within 60 days of 

with the salvage yard to properly document the destruction of the existing 

equipment in accordance with the Carl Moyer equipment replacement 

program requirements. 

(4) Failure on the air district

air district

Moyer Program. 

6. Dealer Requirements 

(A) Air districts are encouraged to establish contracts with dealers that are 

selling replacement equipment to participants of this program. If air 

districts use equipment dealers in implementing the equipment 

replacement program, reimbursement cannot be issued until all forms are 

submitted and approved by the air district. Participants may purchase the 

replacement equipment from a private party, provided all required 

documentation is submitted. This includes warranty requirements and all 

other equipment replacement requirements. 

(B) Equipment dealers must: 

(1) Provide basic information about the equipment replacement category. Air 

districts will provide liaison training to dealership staff. 

(2) Inform participants of rights and responsibilities as outlined in the air 

district and ARB guidelines. 

(3) Help the participants complete the application. The equipment dealers will 

ensure that the participant correctly completes the application. It is 

important to make sure that all information is filled out correctly and that 

the participant understands the meaning of the program and the contract. 

The air district will provide all forms and certificates as appendices to the 

application. Once complete, the dealer will submit the application 

package to the air district. 
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EQUIPMENT REPLACEMENT 

(4) To ensure that an application package contains all necessary information, 

the dealer must make sure that all the following items are complete and 

air district, before 

reimbursement can be made: 

a. Submit a signed and complete application. 

b. Provide all documentation as required in Section C. 2. (E) and (F) of 

these criteria. 

c. Provide certification that the existing equipment will be delivered to a 

qualified salvage yard. The certification must state that the equipment 

will be picked up by the salvage yard within 30 days of receipt of the 

old equipment. The certification must include the make, model, year, 

equipment serial number, engine make, engine serial number, and the 

date the equipment is expected to be delivered. 

d. If equipment destruction will take place at a site other than an 

approved salvage yard, the application must include a timeline and 

description how the equipment will be destroyed. 

e. Provide documentation of replacement equipment warranty. 

f. Provide proof of replacement equipment financing. The financing 

package will enable the air district to determine the reimbursement 

costs that may be accrued in case the participant defaults on the 

contracted performance requirements. 

(5) Prior to releasing the replacement equipment to the participant, the dealer 

must have documentation of an air district pre-inspection of the old vehicle 

and the post-inspection of the replacement equipment. Upon request of 

the air district, ARB may waive inspection requirements. 

a. If the dealer is air district approved to do pre- and post-inspections, the 

dealer must submit digital photographs of the old equipment vehicle 

and the replacement equipment to the air district as defined in the preinspection and post-inspection requirements in Section C. 5 (G) of 

these criteria. The air district will specify the required digital format. 

b. Reimbursement will not be processed until all photographs are 

received and verified by the air district. 

c. Before submitting photographs to the air district, dealers must verify 

that photographs are clear. 
As of 4/28/2011 9 - 16 OFF-ROAD 

EQUIPMENT REPLACEMENT 

(6) After the application and all required documentation have been approved 

by the air district, the dealer must provide the air district with proof of sale 

of the replacement equipment. For the purpose of this program, a dealer 

is anyone who sells equipment, including a private party. 

7. Projects Subject to the In-Use Off-Road Diesel Vehicle Regulation 

(A) Projects are subject to the general program criteria listed above. 

(B) Fleets must be in compliance with the regulation in order to be eligible for 

and receive funding. 

(1) Applicants must submit information regarding fleet size and compliance 

status. This information must include the DOORS-ID of the fleet, DOORS 

EIN of the existing (old) equipment, and, if available, DOORS EIN of the 

replacement equipment. All documentation submitted must be signed and 

dated by the applicant and include language certifying that the fleet list 

provided is accurate and complete. 

a. Applicants should use the online fleet average calculator 

(http://arb.ca.gov/msprog/ordiesel/documents/documents.htm) to 

he information to 

the air districts. 

b. Applicants must submit to the district the DOORS EIN of the 

replacement equipment no later than at post-inspection of replacement 

equipment. 

c. Applicants are not required to submit information on exempted 

equipment. Information on exempted off-road equipment can be found 

in the Off-Road Regulation (California Code of Regulations, title 13, 

§ 2449). 

(C) No emission reductions achieved from a funded program can count 

(D) Eligibility for a project is based upon the Best Available Control 

Technology (BACT) requirements of the regulation. 

(1) Any equipment funded through the Moyer program, and that is still under 

contract, must be deducted from the amount of equipment eligible for 

funding. For instance, a fleet that is eligible for funding to reduce 

emissions for 50 percent of its hp, but which has already received funding 

in previous years to reduce emissions from 20 percent of its hp, is only 

eligible for funding to reduce emissions from 30 percent of its hp. 
As of 4/28/2011 9 - 17 OFF-ROAD 

EQUIPMENT REPLACEMENT 

(2) Equipment funded through the Moyer program must be included in the 

regulation are calculated. 

(E) Large Fleets 

(1) Eligible projects for large fleets, as defined in the Off-Road Regulation 

must provide at least three years of surplus emission reductions to the 

regulation, with a corresponding minimum project life of at least three 

years. 

(2) Projects must be installed and in operation at least three years before the 

BACT requirements become effective for the funded equipment. 

(3) The first compliance date for large fleets, as defined in the Off-Road 

Regulation, is January 1, 2014. The final compliance date is 

January 1, 2023. Funding for these fleets is available through 

December 31, 2016. 

(4) Eligible projects for large fleets must include a PM trap beginning 

January 1, 2013, for engines 75 hp and greater and January 1, 2014, for 

engines less than 75 hp. 

(5) Large fleets may have additional requirements per subsection C.7.(H) 

below. 

(F) Medium Fleets 

(1) Eligible projects for medium fleets, as defined in the Off-Road Regulation 

must provide at least three years of surplus emission reductions to the 

regulation with a corresponding minimum project life of at least three 

years. 

(2) Projects must be installed and in operation at least three years before the 

BACT requirements become effective for the funded equipment. 

(3) The first compliance date for medium fleets, as defined in the Off-Road 

Regulation is January 1, 2017. The final compliance date is 

January 1, 2023. Funding for these fleets is available through 

December 31, 2019. 

(G) Small Fleets (includes Captive Attainment Area Fleets) 

(1) Eligible projects for small fleets, as defined in the Off-Road Regulation 

must provide at least two years of surplus emission reductions to the 

regulation, with a corresponding minimum project life of at least two years. 
As of 4/28/2011 9 - 18 OFF-ROAD 

EQUIPMENT REPLACEMENT 

(2) Projects must be installed and in operation at least two years before the 

BACT requirements become effective for the funded equipment. 

(3) The first compliance date for small fleets, as defined in the Off-Road 

Regulation is January 1, 2019. The final compliance date is 

January 1, 2028. Funding for these fleets is available through 

December 31, 2025. 

(H) Surplus Off-Road Opt-In for NOx (SOON) Program 

(1) Fleets located in air districts that have opted in to the SOON program and 

that are subject to the SOON provisions are eligible for funding in 

accordance with the Off-Road Regulation (California Code of Regulations, 

title 13, § 2449.2) and must meet the applicable criteria in sections 1 

through 6 above. 

(2) Projects funded under SOON, are not subject to Section C.7., except for 

the requirements of subsection C.7.(H). 

(I) For more information on eligibility of off-road diesel equipment, please see 

the In-Use Off-Road Diesel Vehicles Regulation Carl Moyer Program 

Implementation Chart available at 

http://www.arb.ca.gov/msprog/moyer/guidelines/supplemental-docs.htm. 

8. Projects Subject to the Regulation for Cargo Handling Equipment at Ports and 

Intermodal Rail Yards 

(A) Eligible projects must provide at least three years of surplus emission 

reductions to the regulation, with a corresponding minimum project life of 

at least three years. Much of the applicable cargo handling equipment 

must already be in compliance with the regulation. Therefore, very limited 

funding opportunities exist. 

(B) For more information on eligibility of cargo handling equipment, please 

see the Regulation for Cargo Handling Equipment at Ports and Intermodal 

Rail Yards Carl Moyer Program Implementation Chart available at 

http://www.arb.ca.gov/msprog/moyer/guidelines/supplemental-docs.htm. 

9. Projects Subject to the Off-Road Large Spark-Ignition Engine Fleet Requirement 

The regulation impacts owners of fleets of four or more LSI forklifts and/or four or 

more LSI sweepers/scrubbers, airport ground support equipment, and/or industrial 

s equipment in 

the State of California. 
As of 4/28/2011 9 - 19 OFF-ROAD 

EQUIPMENT REPLACEMENT 

(A) Eligible funding must provide at least three years of surplus emission 

reductions to the LSI fleet regulation, with a corresponding minimum 

project life of at least three years. 

(B) Large and Medium Forklift Fleets and Fleets of Four or More 

Sweeper/Scrubbers, Ground Support Equipment, and/or Industrial Tow 

Tractors: In order to be eligible for funding, large and medium forklift fleets 

and fleets of four or more non-forklift LSI equipment must meet the final 

fleet average emission level applicable on January 1, 2013. 

(C) Agricultural Crop Preparation Forklift Fleets Model Year 1990 and Newer: 

These fleets are required to either retrofit, repower, or replace 100 percent 

of their fleet by January 1, 2012 or currently meet a 3.0 g/bhp-hr fleet 

average HC + NOx level. Fleets that have met the 3.0 g/bhp-hr fleet 

average can apply for funding. Additionally, in accordance with SBx2 3, 

fleets that have retrofitted/repowered 20 percent of their fleet in 

compliance with the regulation are eligible for funding up to the final 

compliance date. In order to be eligible, these projects must be under 

executed contract, and must be installed and in operation prior to the 

applicable compliance date. 

(D) Fleets with equipment not subject to the off-road large spark-ignition 

engine fleet requirement are eligible for funding, including: 

(1) Agricultural crop preparation non-forklift equipment and pre-1990 forklifts. 

(2) Forklifts used exclusively in field to harvest and maintain crops. 

(3) Non-forklift LSI equipment such as aerial lifts, lawn and garden tractors, 

commercial turf equipment, mining and construction equipment, crushing 

and processing equipment. 

(4) Small fleets (one to three forklifts and/or one to three sweepers/scrubbers, 

airport ground support equipment, and/or industrial tow tractors). 

(E) Parties interested in applying for funding for this equipment should contact 

the Carl Moyer Program staff at the air district for more detailed 

information. 

10. Projects Subject to the Statewide Truck and Bus Regulation 

This regulation impacts the eligibility of all on-road heavy-duty diesel-fueled and 

alternative dieselvehicle weight rating greater than 14,000 pounds. Although this regulation primarily 

affects vehicles with on-road engines, some vehicles with off-road engines are also 

covered. Any application for Carl Moyer Program funding to replace a vehicle with 
As of 4/28/2011 9 - 20 OFF-ROAD 

EQUIPMENT REPLACEMENT 

an off-road engine that is subject to an on-road regulation must comply with the 

applicable surplus requirements described in Chapter 4. For example, a yard truck 

with an off-road engine that is subject to the Statewide Truck and Bus Regulation 

(including yard trucks used primarily in agricultural operations) must meet the 

applicable on-road surplus requirements described in Chapter 4, Section E, and 

must also comply with all off-road project criteria described in this chapter. 
As of 4/28/2011 10 - 1 PORTABLE AND STATIONARY 

 AGRICULTURAL SOURCES 

Chapter 10: PORTABLE AND STATIONARY AGRICULTURAL SOURCES 

This chapter describes the minimum criteria and requirements for Carl Moyer Program 

portable and stationary agricultural engine projects and non-engine agricultural projects 

as defined in Health and Safety Code section 39011.5. Requirements for self-propelled 

agricultural use equipment (e.g., tractors) may be found in Chapter 7: Off-Road 

Compression-Ignition Equipment. Air districts may set more stringent requirements 

based on local priorities. 

A. Projects Eligible for Funding 

Most engines eligible for funding under this chapter are regulated under the Stationary 

Engine Airborne Toxic Control Measure (ATCM), the Portable Engine ATCM, and/or air 

district rule. There are limited funding opportunities for engines subject to these rules. 

Table 10-1 

Summary of Agricultural Sources Funding Opportunities 

Engine or project type Subject to ARB Rule Moyer Funding Opportunities1

Stationary diesel 

agricultural engines 

Agricultural Provisions of 

the Stationary Engine 

Airborne Toxic Control 

Measure (ATCM)2

Uncontrolled engine repowers: Very 

limited funding opportunity 

Tier 1 and 2 engine repowers: Eligible 

through 12/31/13, Limited opportunity 

through 12/31/15 

Tier 3 engine repowers: Not limited by 

regulation 

Portable diesel 

agricultural engines 

Portable diesel 

agricultural engines 

Portable Engine ATCM3Limited opportunities 

Stationary spark-ignited 

agricultural engine 

repower projects 

No Limited opportunities 

Electric motors new 

purchase 

No Limited opportunities 

Non-engine agricultural 

use projects 

No Limited opportunities 

1 Limited funding opportunities mean that projects funding opportunities may be impacted by the compliance dates of 

the ATCM or air districts local rules. Contact air district Moyer Program staff or consult Carl Moyer Implementation 

Charts http://www.arb.ca.gov/msprog/moyer/guidelines/supplemental-docs.htm in addition to these guidelines. 

2 Stationary Engine ATCM: http://www.arb.ca.gov/diesel/statport.htm#Stationary

3 Portable Engine ATCM: http://www.arb.ca.gov/diesel/peatcm/peatcm.htm 

Project Types: Considering Table 10-1, the following categories are eligible projects: 

1. Repower Existing Equipment 

2. New Purchase: The Carl Moyer Program allows funding for the purchase of 

electric motors for new, non-replacement stationary equipment installations. 

3. Retrofit Purchase 
As of 4/28/2011 10 - 2 PORTABLE AND STATIONARY 

 AGRICULTURAL SOURCES 

4. Non-Engine Agricultural Use Projects: Non-engine agricultural use projects may 

receive Carl Moyer Program funding with approval from ARB on a case-by-case 

basis. 

Please see Section C (Project Criteria) for detailed minimum eligibility requirements for 

all agricultural sources project categories. 

B. Maximum Eligible Funding Amounts 

Table 10-2 summarizes the maximum eligible funding for each project type. All projects 

are also subject to the cost-effectiveness threshold defined in Appendix G. 

Table 10-2 

Maximum Percent Funding for 

Portable and Stationary Agricultural Sources Projects 

Project Maximum

Repower with Diesel Engine 85 percent 

Repower with Certified SI Engine 85 percent 

Repower with Electric Motor 85 percent 

Electric Motor New Purchase 20 percent 

Retrofit 100 percent 

C. Project Criteria 

The minimum qualifications portable and stationary agricultural source projects are 

listed below. All projects must also conform to the requirements in Chapter 2: General 

Criteria and in Chapter 3: Program Administration. Participating air districts retain the 

authority to impose additional requirements in order to address local concerns.

1. General Agricultural Sources Project Criteria 

(A) Existing project engines greater than 25 horsepower (hp) (19 kilowatts 

(kW)) are eligible for funding. The replacement engines may be smaller 

than 25 hp (19kW). An electric motor less than 19kW or 25 hp may be 

funded if the applicant provides documentation from the equipment dealer 

that the electric motor less than 19 kW performs the same work as a 25 or 

greater hp diesel engine. 

(B) The maximum project life for agricultural use engine projects is as follows: 

(1) Diesel engines 7 years 

(2) Spark-ignited engines 7 years 

(3) Electric motors 10 years 

(4) Portable Farm equipment* (all projects) 10 years* 
As of 4/28/2011 10 - 3 PORTABLE AND STATIONARY 

 AGRICULTURAL SOURCES 

*Air districts are required to offer a 10 year project life for portable farm 

equipment; however, applicants may request a project life less than 10 years. 

Farm equipment is defined in Appendix B. 

A longer project life may receive case-by-case approval by ARB if applicants 

provide justifying documentation. The maximum project life does not consider 

regulatory requirements, which may reduce actual project life below these 

maximum values. 

(C) In general, projects must have a minimum project life of three years. 

(1) A one year project life is allowed for engines subject to the agricultural 

engine requirements in the Stationary Engine ATCM. Stationary engines 

not regulated by the Stationary ATCM must use a minimum three year 

project life. 

(2) In accordance with SBx2 3, portable farm equipment may be eligible for 

funding up to the compliance date of an applicable in-use rule and a 

10 year project life. In order to be eligible, portable farm equipment 

projects must be under fully executed contract, and must be installed in 

the equipment and in operation prior to the applicable compliance date. 

(D) State and air district rules impacting agricultural sources must be 

considered when determining whether projects provide emission 

reductions surplus to regulatory requirements. Moyer eligibility may be 

based on the requirements of the local rule if the local rule meets the 

requirements of Health and Safety Code section 39666(d). An air district 

requesting to have eligibility based on local rules must have its Air 

Pollution Control Officer self-certify via email or letter to their ARB Moyer 

liaison that the local rule is equally as effective as or more stringent than 

the ATCM. Note: The self-certification described in this section applies 

solely to the Moyer Program and does not relieve the district of their 

responsibilities under Health & Safety Code section 39666 or any other 

ARB program or requirement. 

(E) Cost-effectiveness calculations must use the hour-based formula as 

discussed in Appendix C. Fuel usage may only be used with case-bycase approval from ARB. If using the fuel-based formula, usage must be 

based on two years of historical fuel usage documentation specific for the 

equipment being funded. Documentation may include fuel logs, purchase 

receipts or ledger entries. 

(F) Future annual hours of equipment operation for determining emission 

reductions must be based only on readings from an installed and fully 

operational hour meter. If equipment does not have functioning hour 

meter at the time of the project, the meter must be repaired or replaced. If 
As of 4/28/2011 10 - 4 PORTABLE AND STATIONARY 

 AGRICULTURAL SOURCES 

during the project life the hour meter fails for any reason, the hour meter 

case-by-case approval was provided by ARB to use fuel usage for 

determining emission reductions, then future annual fuel usage must be 

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

funded equipment. 

(G) The certification emission standard and/or Tier designation for the engine 

must be determined from the ARB Executive Order or U.S. EPA 

Certificate of Conformity (for federally preempted engines) issued for that 

engine. Executive Orders for off-road engines may be found at 

http://www.arb.ca.gov/msprog/offroad/cert/cert.php

(H) 

California Code of 

Regulations, title 13, section 2423(b)(6), are eligible for Carl Moyer 

Program funding provided that they are certified to the final Tier 4 

emission standards. The ARB Executive Order for these engines 

indicates that the engines are certified under this provision. The emission 

rates for these engines used to determine cost-effectiveness shall be 

equivalent to the emission factors associated with Tier 3 engines. Air 

districts must retain this documentation in the project file. 

(I) For equipment with baseline engines manufactured under the flexibility 

provision, detailed in California Code of Regulations, title 13, section 

2423(d), baseline emission rates shall be determined by using the 

previous applicable Tier emission standard for that engine model year and 

horsepower rating. The ARB Executive Order for these engines indicates 

that the engines are certified under this provision. Air districts must retain 

this documentation in the project file. 

(J) Funding for pump and associated plumbing costs associated with 

engine/motor projects require a case-by-case approval by ARB. However, 

the pump cost in a submersible pump-motor system is allowable and does 

not require a case-by-case. 

(K) Costs for necessary peripheral equipment associated with electric motor 

projects from the service pole forward (e.g., service pole with guy wire, 

control panel, motor leads, concrete pad, headshaft or gear head and 

tubing if required for diesel to motor conversion, and up to 150 feet of 

connecting electric line from the pole forward to the motor) may be 

included in the grant award amount. 

(L) Variable frequency devices (VFD) may be eligible for funding provided: 
As of 4/28/2011 10 - 5 PORTABLE AND STATIONARY 

 AGRICULTURAL SOURCES 

(1) The air district provides notification to ARB liaison with correspondence to 

be placed in the air district project file. 

(2) The air district reports VFD cost and serial number information in CARL. 

(3) The VFD costs less than 50 percent of the new motor cost. A VFD cost 

that is 50 percent or greater than the new motor cost requires a case-bycase approval from ARB. 

(M) Air district match funds may be used for infrastructure purchase and 

installation (e.g., line extension for electric motor projects for only Moyer 

qualifying project categories except as prohibited in Health and Safety 

Code section 44287(j)). 

(N) Electrical line extension costs are not eligible for funding if a motor is not 

included with the project. 

(O) Air district match funds may be used to offset the higher cost of electricity 

relative to diesel fuel, if applicable. In this case, the fuel cost difference 

will be accounted for when calculating the cost-effectiveness of the 

project. 

(P) In electric motor projects, the applicant must have documentation of 

payment to the local utility company for power installation. This 

documentation requirement applies to new motor and repower 

installations. 

(Q) A new electric motor on an agricultural irrigation pump project that is under 

contract may be considered for invoice payment once the motor has been 

delivered to the project site and the motor has been connected to the 

electricity grid.

(R) All case-by-case projects must receive approval from ARB prior to 

funding. These projects must follow the requirements as described in 

Chapter 3, Section Y. 

2. Repower 

A repower is the replacement of the in-use engine with an electric motor or a new, 

current model year engine instead of rebuilding the existing engine to its original 

specifications. 

(A) A repower of an engine must be with one of the following: 

(1) A new electric motor. 
As of 4/28/2011 10 - 6 PORTABLE AND STATIONARY 

 AGRICULTURAL SOURCES 

(2) A new off-road diesel engine certified to the current applicable emission 

standards. 

(3) A new off-road spark-ignited (SI) engine certified to the current applicable 

emission standards. 

(4) A new SI engine that exceeds air district emission requirements and is 

subject to and complies with air district permitting, monitoring, record 

keeping and reporting requirements. 

(B) New engine/motor repower projects in which the horsepower of the new 

engine/motor is an increase to 150 percent or larger from the baseline 

(existing) engine requires a case-by-case approval from ARB. 

(C) A repower project in which the total number of existing engines is different 

than the total number of replacement engines/motors requires a case-bycase approval from ARB. 

(D) SI engines cannot be replaced with diesel engines. 

(E) Electric motors may replace diesel or SI engines. 

(F) Genset engines are not eligible for repowers. 

(G) A repower of an emissions-controlled SI engine with a new SI engine that 

meets or exceeds air district emission requirements and is subject to and 

complies with air district permitting, monitoring, record keeping and 

reporting requirements is eligible and must achieve an annual oxides of 

nitrogen (NOx) emission benefit of at least 15 percent. 

(H) Repowering to a Tier 1 or Tier 2 diesel engine is not allowed. 

(I) If repowering with an engine meeting the current applicable standard is 

technically infeasible, unsafe, or not available when the air district commits 

to the proposed project, the replacement engine must meet the most 

current practicable previously applicable emission standard. For purposes 

of this section, air district

consistent with that stated in their policies and procedures. The air district 

shall determine eligibility of a repower project using an engine certified to 

a previous emission standard by one of the following methods: 

(1) 

the most recent emission standards or Tier may be limited to the same 

manufacturer as the existing engine. 
As of 4/28/2011 10 - 7 PORTABLE AND STATIONARY 

 AGRICULTURAL SOURCES 

(2) If the air district and the applicant do not have an executed contract within 

six months of project commitment, then the air district must recheck for the 

availability of engines meeting the current standard. 

(3) Documentation that engines meeting the current applicable standard are 

unavailable must be provided to the air district. Acceptable documentation 

that engines meeting the most recent emission standard are unavailable 

include: 

a. Verifiable information from the engine manufacturer, engine distributor 

and/or engine dealer regarding the unavailability of engines meeting 

the current emission standard or Tier. 

b. Confirmation (a written declaration by the air district is acceptable) that 

engines from a specific manufacturer meeting the current emission 

standard or Tier are not certified (Executive Order is not available on 

ARB website). Executive Orders for off-road engines may be found at 

http://www.arb.ca.gov/msprog/offroad/cert/cert.php. 

(J) 

California Code of Regulation, title 13, 

section 2423(d), are ineligible for Carl Moyer Program funding as a 

replacement engine. 

(K) The use of an uncertified SI engine shall be subject to approval by ARB 

staff. 

(1) Uncertified SI engines must include currently available emission control 

components such as closed-loop fuel control systems, and three-way 

catalysts. 

(2) Uncertified SI engines must be source tested with an ARB-approved 

testing procedure, such as ARB Test Method 100, following air district 

requirements. Source testing shall be conducted upon installation. 

(3) Uncertified SI engines must be emission tested using a portable analyzer 

every 1,000 hours of operation and at least annually, or following air 

district monitoring requirements, whichever is most stringent. The 

emission tests shall measure NOx and hydrocarbon emissions. An 

alternative monitoring schedule may be used upon approval by ARB staff. 

(4) The costs associated with source testing and monitoring requirements for 

uncertified SI engines are not eligible for funding. 
As of 4/28/2011 10 - 8 PORTABLE AND STATIONARY 

 AGRICULTURAL SOURCES 

(L) All engines replaced as part of a repower project must be destroyed and 

rendered useless, consistent with the requirements of Chapter 3: Project 

Administration, Section BB. 

3. New Purchase: A new purchase is an engine or motor that is not replacing an 

existing engine. This is currently only available for non-mobile agricultural 

electric motors purchases of new motors. Moyer eligible peripheral equipment 

costs are covered in this chapter. Refer to section C.1.(K). 

4. Retrofit 

Retrofit is the installation of an ARB-verified diesel emission control system on an 

existing engine. Examples include, but are not limited to, particulate filters and 

diesel oxidation catalysts. More information on retrofits may be found at 

http://www.arb.ca.gov/diesel/verdev/verdev.htm. 

(A) A retrofit of an uncontrolled SI engine that reduces NOx must be with a 

retrofit kit that is verified to reduce NOx or NOx + Non-Methane 

Hydrocarbons (NMHC) emissions to the currently applicable off-road LSI 

engine standard. 

(B) Engines equipped with original engine manufacturer aftertreatment 

devices are ineligible for retrofit funding due to issues with engine 

warranty and anti-tampering provisions. 

(C) The cost of the retrofit, filters, hour meter if none exists on the equipment, 

and maintenance of the retrofit device needed during the project life is 

eligible for incentive funding, provided its inclusion in the project cost still 

meets the weighted cost-effectiveness limit. The datalogging cost of a 

retrofit-only project cannot be included in the total project cost. 

5. Non-Engine Agricultural Use Projects require a case-by-case approval by ARB 

prior to receiving Moyer funds. 

6. Projects Subject to the Agricultural Provisions of the Stationary Engine ATCM 

(A) Diesel engines regulated under the Stationary Engine ATCM must be 

registered (or permitted) in an air district to be eligible for repower 

projects. 

(B) Diesel engine to diesel engine repower costs claiming only NOx and 

reactive organic gases (ROG) emission benefits based on surplus to local 

rules and meeting the conditions of section C.1.(D) are eligible for Carl 

Moyer Program funding at a reduced rate of half of the typical 85 percent 

repower (i.e., 42.5 percent). 
As of 4/28/2011 10 - 9 PORTABLE AND STATIONARY 

 AGRICULTURAL SOURCES 

(C) A retrofit of an uncontrolled off-road diesel engine (regulated under the 

Stationary Engine ATCM) that reduces NOx must be with a retrofit kit that 

is verified to reduce NOx or NOx+NMHC emissions to the applicable 

current off-road engine Tier standard or less. 

(D) For more information on eligibility of engines regulated by the Stationary 

Engine ATCM, please see the Stationary Engine Airborne Toxic Control 

Measure Implementation Chart available at:

http://www.arb.ca.gov/msprog/moyer/guidelines/supplemental-docs.htm. 

7. Projects Subject to the Portable Engine ACTM 

(A) Portable equipment owned by agricultural service companies, rental 

companies, public agencies, and non-agricultural service companies are 

subject to the Portable Engine ATCM and meet the definition of farm 

equipment per Chapter 7. These projects must follow the criteria outlined 

in this chapter (Chapter 10). 

 

(B) If portable diesel engines are required by the air district to be registered or 

permitted then these engines must have registration or permits to be 

eligible for engine repowers. 

(C) Uncontrolled engines subject to the Portable Engine ATCM are not eligible 

for repowers. 

(D) An existing Tier 1 or Tier 2 engine subject to the Portable Engine ATCM 

and subject to SBx2 3 may use a 10 year project life and may be eligible 

for funding up to the compliance date of an applicable in-use rule. 

(E) Portable equipment with Tier 2 engine repowered with a Tier 3 engine 

must also be equipped with a verified retrofit in order to be eligible for 

funding. 

(F) Retrofit projects for engines regulated under the Portable Engine ATCM 

that control particulate matter (PM) must use the highest level technically 

feasible technology available for the equipment being retrofitted. ARB 

considers the retrofit device that achieves the highest level of PM 

reductions (level 3 - 85 percent) and the highest level of NOx reductions to 

be the highest level retrofit. 

(G) For more information on eligibility of engines used in portable equipment, 

please see the Portable Engine Airborne Toxic Control Measure 

Implementation Chart available at: 

http://www.arb.ca.gov/msprog/moyer/guidelines/supplemental-docs.htm.