ITEM:		CONSENT CALENDAR
2.	AUTHORIZE SUBMISSION OF GRANT APPLICATION WITH THE MONTEREY BAY AIR RESOURCES DISTRICT FOR PURCHASE OF ELECTRIC VEHICLE
Meeting Date:			May 16, 2016	Budgeted:	N/A
From:			David J. Stoldt,	Program/
			General Manager	Line Item No.
Prepared By:			Suresh Prasad	Cost Estimate:	None
General Counsel Review: Yes
Committee Recommendation: The Administrative Committee reviewed this item on May 9, 2016 and recommended approval.
CEQA Compliance: N/A

SUMMARY: California Assembly Bill 2766 (AB2766), signed into law in 1990, permits the Monterey Bay Air Resources District (MBARD) to allocate a $4.00 per vehicle registration surcharge fee towards projects that reduce motor vehicle emissions such as zero emission vehicles, roundabouts, traffic signal coordination, or vanpools. Funds may also be used for related planning, monitoring, enforcement, and technical studies. Funds are available to public agencies in Monterey, San Benito and Santa Cruz Counties.

On March 16, 2016, the MBARD Board authorized this year’s AB2766 Motor Vehicle Emission Reduction Grant Program. On September 21, 2016, the MBARD Board will award approximately $1 million to selected projects. Eligible projects must reduce motor vehicle emissions and/or meet other criteria described in the grant packet. Only public agencies may apply for projects, which must be implemented in Monterey, San Benito and/or Santa Cruz Counties.

The Electric Vehicle (EV) replacement incentive program is limited to a recommended cap of $10K. New vehicles may be purchased or leased (minimum of 3 years required). Certified used vehicles may be purchased with a funding cap of $7500 (remaining battery life must be disclosed at time of purchase). Match funds are required for eligibility.

The District’s grant application will be for the purchase of two electric vehicles under category 2, Electric Vehicle Replacement Incentive Program, of the AB2766 FY2015 program. One of the new electric vehicles will replace a 2004 Ford Taurus currently used as a pool car within the Administration and Conservation Department. The second vehicle will be primarily used for the Conservation Department.

RECOMMENDATION: District staff recommends authorizing the General Manager to execute a grant application with MBARD relative to the purchase of electric vehicles. Upon approval of the grant application, staff will return to the Board with request to authorize purchase of electric vehicles utilizing the grant funds.

BACKGROUND: In 1990, California Assembly Bill 2766 (AB2766) was signed into law, which permits the MBARD to allocate a $4.00 per vehicle registration surcharge fee towards projects that reduce motor vehicle emissions such as zero emission vehicles, roundabouts, traffic signal coordination, or vanpools. Funds may also be used for related planning, monitoring, enforcement, and technical studies. Funds are available to public agencies in Monterey, San Benito and Santa Cruz Counties.

On March 16, 2016, the MBARD Board authorized this year’s AB2766 Motor Vehicle Emission Reduction Grant Program. On September 21, 2016, the MBARD Board will award approximately $1 million to selected projects. In addition, each year the MBARD may recover grant funds from completed projects with a residual balance and projects that were not completed or never initiated. These disencumbered funds are then returned to the grant program budget. The current maximum project award is $200,000. However, certain qualifying emission reduction projects that exhibit fixed costs that represent 75% or greater of the total project cost are eligible for awards up to $400,000. Eligible projects must reduce motor vehicle emissions and/or meet other criteria described in this packet. Only public agencies may apply for projects, which must be implemented in Monterey, San Benito and/or Santa Cruz Counties.

Emission reduction projects must enable reduction of ozone precursor emissions (ROG, NO_x) and PM from vehicle sources. Although only public agencies may apply and receive funds, private entities may implement the projects under contract to these agencies.

EXHIBIT

None

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