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Laws and Regulations 
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Incentive Opportunities
Particulate Matter

Diesel Engine Emissions

The burning of fossil fuels, especially diesel, contributes several regulated air pollutants including particulate matter, PM10 and PM2.5, and nitrogen oxides (NOx) (which contributes to smog formation), which are regulated through the Clean Air Act by U.S. EPA. The California Air Resources Board  (CARB) has declared diesel soot a toxic air contaminant. CARB has been developing regulations for all major sources of diesel emissions. For stationary motors, such as diesel pumps, the local air districts have jurisdiction in addition to CARB. Thus, over the last 10 years several different regulations to reduce the emissions from diesel burning have been issued by both air districts and by CARB. Which regulations apply depends on where the almond orchard is situated. Most directives by CARB apply statewide, while directives from the San Joaquin Valley Air Pollution Control District (SJVAD) apply to the counties from San Joaquin through Kern.

All of these rules have deadlines for replacing or retrofitting older motors with cleaner burning motors or technologies. Often the deadlines vary based on the age and the amount of pollution a motor contributes.  

Air Quality Incentive Programs Available to California Farmers (as of April 20, 2011)

Federal Programs

Natural Resources Conservation Service (NRCS)

As provided by the federal farm bill, the Natural Resources Conservation Service distributes the Environmental Quality Incentives Program (EQIP) funds used to control dust and to reduce emissions from agricultural engines.  Since 2009, NRCS has funded $38 million to replace about 700 tractors in the San Joaquin Valley.

Contact:   Alan Forkey, Program Manager (530) 792-5653

Diesel Emissions Reduction Act (DERA)

U.S. EPA administers DERA, which provides grants to state, local, and tribal governments for programs to reduce emissions from existing diesel engines.  Signed January 1st, 2011, this legislation authorizes $100 million annually for five years, for a total of $500 million, though the actual annual amount will depend on each year's funding appropriation.  In January 2011, the San Joaquin Valley District released a Request for Proposals under the DERA Heavy Duty Truck Voucher Program for the replacement of approximately 48 trucks by providing vouchers for a maximum of $45,000 each.

The Air Resources Board (ARB) was also awarded $5 million in DERA funds, in order to assist small business owners with off-road vehicles.  To distribute these funds, ARB has partnered with the California Capital Access Program (CalCAP) to help fleet owners obtain affordable financing to upgrade their fleets by replacing, repowering, or retrofitting eligible off-road vehicles.  Eligible vehicles include those used in construction, agriculture, mining, and industrial operations.

Contact:  EPA (877) 623-2322

State Programs

California Proposition 1B Goods Movement Emission Reduction Program (Prop 1B)

The Prop 1B program is a partnership between the ARB and local agencies (like air districts and seaports) to quickly reduce air pollution emissions and health risk from freight movement along California's trade corridors, one of which is the Central Valley.  Local agencies apply to ARB for funding, then those agencies offer financial incentives to owners of equipment used in freight movement to upgrade to cleaner technologies.  Projects funded under this program must achieve early or extra emission reductions not otherwise required by law or regulation.

Statewide funds are available for heavy-duty diesel trucks, locomotives, shore power, and harbor-craft projects:

      * During the program’s first funding round, $230 million in projects were funded ($219 million in trucks)

      * For the second funding round, approximately $190 million are currently available for projects ($112 million for    trucks)

More than a third of the trucks being funded operate at least some portion of the time in the San Joaquin Valley.

Contact:  Goods Movement Information Line (916) 444-6637

Carl Moyer Memorial Air Quality Standards Attainment Program

The Carl Moyer Program provides incentive grants for cleaner-than-required engines, equipment and other sources of pollution providing early or extra emission reductions.  Eligible projects include cleaner on-road, off-road, marine, locomotive and agricultural sources.  The program is implemented through a partnership between the ARB and local air districts.  ARB oversees the program by managing program funds; developing and revising program guidelines, protocols, and criteria for covered vehicle projects; and determining methodologies used for evaluating project cost-effectiveness.  ARB also distributes State funds to participating air districts for program implementation each year.  Air districts follow the Carl Moyer Program Guidelines to select, fund, and monitor specific clean air projects in their areas.

      * For fiscal year (FY) 2010/2011, statewide, approximately $69 million of State funding is available through the Carl Moyer Program, with an additional $50 million of local funds that can be spent on similar projects. 

      * In the San Joaquin Valley, during fiscal year 2009/2010, approximately $7.6 million were granted for projects through the Carl Moyer Program and approximately $7.1 million are proposed for FY 2010/2011.

      * In April 2011, the ARB will consider proposed revisions to the Carl Moyer Guidelines that include extending funding opportunities for off-road equipment such as the development of an Off-Road Voucher Incentive Program and providing flexibility for districts to fund projects surplus to local rules.

      * As a result of SBx2 3, mobile and portable farm equipment have additional flexibilities under the Carl Moyer Program, including the option to have an extended project life of 10 years, allowing for these projects to receive more money, as well as the ability to be funded without being surplus to any applicable regulatory compliance requirement.

Contact:  ARB’s Diesel Hotline (866) 634-3735

AB 118 Air Quality Improvement Program (AQIP)

ARB administers AQIP, a voluntary incentive program to fund clean vehicle and equipment projects, research on biofuels production, the air quality impacts of alternative fuels, and workforce training with a focus on promoting post-2020 technologies.  The AQIP Guidelines and Annual Funding Plans guide ARB's implementation of AQIP. 

Project categories include:  Hybrid Truck and Bus Voucher Incentive Project, Clean Vehicle Rebate Project, Lawn and Garden Equipment Replacement Project, Zero-Emission All-Terrain Agricultural Work Vehicle Rebate Project, Advanced Technology Demonstration Projects, and Hybrid Off-Road Equipment Pilot Project.

      * In FYs 2009/2010 and 2010/2011, available funds amounted to approximately $30 million per year.  ARB allocated $1.0 million to the Zero-Emission All-Terrain Agricultural Vehicle Rebate Project in FY 2009/2010.  These funds are sufficient to meet the projected demand for rebates in 2010/2011.

      * In April 2011, ARB is holding workshops for developing the FY 2011/2012 Funding Plan, which is scheduled for Board consideration in July, 2011.

Contact:  Andrew Panson (916) 323-2881

Local Programs

Heavy-Duty Engine Program:

The San Joaquin Valley District’s Heavy-Duty Engine Program provides incentive funds for the implementation of new reduced-emission technologies.  Eligible funding categories include heavy-duty off-road vehicles, electric forklifts, and stationary agricultural irrigation pump engines.  Except for agricultural engines that pump irrigation water, only self-propelled vehicles are eligible for funding.  All other stationary and “mobile” engines/equipment are ineligible.  Funds are provided on a first come, first served basis.

Tractor Replacement Option

This component provides incentives to replace existing agricultural off-road tractors with new reduced-emission replacement tractors.  An applicant is eligible for funding if not currently under contract to receive funding from any other local, State, or federal agencies for the tractor or equipment.  Eligible equipment includes but is not limited to wheel loaders, balers, combines, graders or tractors.  Funding amounts are based on a dollar per horsepower table as determined by the horsepower of the engine in the new tractor, not to exceed 80% of the eligible costs.  The application period closed January 31, 2011.  The district received over 1200 applications and will aim to fund about 700.  This is in addition to the EQIP funding described previously.

Stationary Agricultural Irrigation Pump Engine:

This component provides incentives for engine replacement (repower) or new electric motor purchase of engines/motors used to power agricultural irrigation pumps.  Many different funding sources contribute to this program (including Carl Moyer).  

Contact: San Joaquin Valley APCD (559) 230-5858

External Links:

Diesel Pumps
Permits and criteria on diesel pumps (SJVAD)
Permit-exempt diesel pumps but still require registration (SJVAD)
Stationary ag. equipment, including pumps (CARB)
Stationary diesel equipment (CARB)

Mobile Diesel Engines
New Air Resources Board training seminar provides an overview of several new and existing ARB regulations that apply to diesel vehicle owners (CARB)
Mobile diesel equipment including trucks, boats and farm equipment (CARB)
Truck diesel motor retrofit/replacement rules (CARB)
Ag off-road equipment (CARB)

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