The Proposed Allocation is Expected to Enable Financing for About 15,000 New Truck Purchases
LOS ANGELES, CA / ACCESSWIRE / October 25, 2019 / On Thursday, the California Air Resources Board (CARB) adopted the 2019-2020 Fiscal Year Funding Plan for Clean Transportation Incentives. The Funding Plan serves as the blueprint for expending the Clean Transportation Incentives funds appropriated to CARB in the State budget.
The plan establishes CARB's priorities for the funding cycle, describes the projects CARB intends to fund, and sets funding targets for each project.
CARB staff recommended a significant increase to the California Capital Access Program (CalCAP) On-Road Truck Loan Assistance Program since need and popularity is expected to grow more in the coming years because of the passage of SB 1, the Road Repair and Accountability Act of 2017 (Beall, Chapter 5, Statutes of 2017).
The loan program is implemented in partnership with the State Treasurer's Office California Pollution Control Financing Authority (CPCFA) and CARB. It leverages public funding with private funding from participating lending institutions to help California fleets upgrade equipment for CARB compliance in anticipation of the upcoming statewide registration ban.
Beginning in 2020, the Department of Motor Vehicles (DMV) will only allow clean trucks in compliance with CARB's Truck and Bus Regulation to be registered. The Truck and Bus Regulation requires most heavy-duty vehicles to be equipped with 2010 or newer model year engines between 2020 and 2023.
The proposed FY 2019-20 allocation for the On-Road Truck Loan Assistance Program is expected to enable financing for about 15,000 new truck purchases. This will help small business truckers comply with the In-Use Truck and Bus Regulation and result in an estimated 2,810 tons of NOx and 207 tons of ROG emission reductions.
Demand by truck owners has increased nearly every year. Source: California Air Resources Board
CARB staff expects the CalCAP On-Road Truck Loan Assistance Program to face unprecedented demand in future fiscal years as truck owners take action to meet truck replacement requirements and come into compliance due to CARB's streamlined enforcement process and DMV compliance verification in 2020.
Launched in 2009, the CalCAP On-Road Truck Loan Assistance Program utilizes Air Quality Improvement Program (AQIP) funds to help small-business fleet owners, affected by CARB's In-Use Truck and Bus Regulation, to secure financing for upgrading their fleets with newer trucks.
Crossroads Equipment Lease and Finance is the top lender in the program with over 6,000 enrolled truck loans since program inception.
The State of California's outreach resources are stretched thin, so Crossroads has launched a campaign to help educate and assist fleet operators in understanding the opportunities for significant financial support in the form of grants, loans, and other programs to help the transition into newer, cleaner trucks.
Click here to watch the explainer video
Because the program primarily reduces criteria and toxic air contaminant emissions, AQIP is the only source of CARB funding available for this program.
About California ARB
The California Air Resources Board (ARB) has issued several regulations covering on-road, off-road, stationary and portable diesel engines. The complexity of these standards can make it difficult to ensure a fleet is in compliance. ARB has already assessed Millions of dollars in fines and settlements for non-compliance with these regulations.
Currently, fleets are being prevented from registering vehicles that have been tagged by ARB for non-compliance. This is any heavy-duty diesel truck over 26,000 pounds GVWR that is not equipped with a diesel particulate matter (PM) control device from either Original Equipment Manufacturer (OEM) or an aftermarket provider. Vehicles from 14,001 to 26,000 pounds GVWR must also meet strict in-use standards to receive operational authority from the California DMV.
For more information visit: https://arb.ca.gov
About CalCAP
The CalCAP Heavy-Duty Vehicle Air Quality Loan Program is a loan loss reserve program, which may provide up to 100% coverage on losses from certain loan defaults. With CalCAP portfolio support, a lender may be more comfortable underwriting small business loans to small fleet owners. If you are an owner of a small fleet of heavy-duty diesel trucks and need to upgrade your engine or exhaust, you may receive more favorable loan terms from a lender if your loan is enrolled in the CalCAP Heavy-Duty Vehicle Air Quality Loan Program.
For more information visit: https://www.treasurer.ca.gov/cpcfa/calcap/arb/
About Crossroads Equipment Lease and Finance
Founded in 2006, Crossroads Equipment Lease & Finance is your professional partner in the transportation industry. We listen to our customers, work to understand their needs and strive to build long term business relationships by offering prompt, flexible, and tailor-made financing that preserves capital and positively impacts their business. Our expertise in underwriting, collateral evaluation and asset re-marketing facilitate solutions that maximize the competitive advantages of our customers in the market. For more information visit: https://www.crlease.com
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If you would like more information about this topic, please call Chris Lewinski at 909-942-9440, or email: [email protected].
SOURCE: Crossroads Equipment Lease & Finance