San Joaquin Valley Truck Replacement Program

District is made up of eight counties in California’s Central Valley:

1. San Joaquin
2. Stanislaus
3. Merced
4. Madera
5. Fresno
6. Kings
7. Tulare
8. San Joaquin Valley Air Basin portion of Kern

The District may consider projects that deviate from the guidelines on a case-by-case basis, but generally the following must be met in order to be considered for eligibility:

• Demonstrate that fleet is in full compliance with the California Air Resources Board Truck and Bus Regulation or applicable regulatory advisories for duration of incentive program participation.
• Clear outstanding ARB violations for vehicles and/or fleets.
• Required documents for replacement projects:
  • A minimum of 2 years registration
    • Current registration card
    • CA DMV Vehicle Registration Information Record printout
  • Mileage documentation for past 30 months
  • Truck title clear of any lien holders
• Trucks must be domiciled within the District boundaries
• Trucks need to have operated at least 75% in California and 50% within District boundaries for the past two years.
• Operate new truck at least 75% of the time in CA and 50% within District boundaries.
• New truck registration must show address within District boundaries.
• Old truck must currently be in-use and in operational condition and maintain this condition until replaced.

Funding amounts are determined based on the information provided for each individual project.  The final eligible incentive amount is determined by assessing the 3 factors (Funding Limit, Cost –Effectiveness, and Funding Percentage) detailed below. In addition, the funding amounts are also subject to eligibility and usage requirements as listed in the guidelines.

1. Funding Cap: The maximum dollar amount below represents a funding cap, or the maximum funding available for the project, based on the weight classification of the project and the new truck option selected:
   1. The weight classification is determined by the weight class of the existing or new truck, whichever is less. For example: old truck is a class 6, new truck is a class 5, and funding cap would be based on the class 5. 
   2. If a project is co-funded, or stacked, with other State funds, the funding cap represents the maximum amount of funds from all State sources that can be applied. 

1. • Zero Emissions:
     • Class 8: $410,000
     • Class 6 and 7: $180,000
   • Low-NOx - 0.02 g/bhr-hr NO-x or cleaner:
     • Class 8: $160,000
     • Class 6 and 7: $120,000
   • Additional amounts available for higher Low-NOx (0.05 and 0.10)
     
     
2. Cost Effectiveness (C/E): The maximum amount of funding available to a project is limited by a cost-effectiveness limit, in addition to the funding caps. Cost-Effectiveness is a measure of the dollars provided to a project for each ton of emission reduction.  The annual mileage and model year of a truck directly affect the C/E:
   - Zero Emission $500,000 
   - Low-NOx  - 0.02 g/bhr-hr NOx  or cleaner $200,000 
   - Low-NOx – 0.05 g/bhr-hr NOx $109,000 
   - Low-NOx – 0.10 g/bhr-hr NOx $109,000 
   
   
3. Maximum Funding Percentage: For fleets with 10 or fewer vehicles over 14,000 lbs GVWR, the funding amount cannot exceed 80% of the new vehicle cost (excluding taxes and fees).  For Fleets with more than 10 vehicles, the funding amount cannot exceed 50% of the new vehicle cost (excluding taxes and fees).  Eligible project costs include the cost of the cab and chassis including parts that are integrated into the vehicle, excluding taxes and fees:
   - 1 – 10 trucks (small fleet) 80% 
   - 11 or more trucks (large fleet) 50%

• Engine Model Year that is 6 or more years of age. Projects funded in the calendar year of 2023 must have an engine model year that is 2017 or older (2023 – 6 = 2017).
• Class 4—8 heavy-duty truck.
• New truck is Zero Emission or Low-NOx (0.02g/bhp-hr NOx)
• Old truck is destroyed

1. Must be one of the following advanced technology vehicles: 
   1. Zero Emission Electric (battery or hydrogen fuel cell) with: 
   i. All-electric range of at least 35 miles 
   ii. All-electric range of at least 20 miles with fast charge capability
   2. Low NOx (0.02 g/bhp-hr NOx) 
2. Replacement vehicle can be new or used.  Used replacement vehicles must meet the following criteria: 
   1. A used HHD (class 8) vehicle must have less than 500,000 miles on the odometer 
   2. A used MHD (class 6-7) vehicle must have less than 250,000 miles on the odometer
   3. A used LHD (class 4-5) vehicle must have less than 150,000 miles on the odometer
3. Weight Class Range: The replacement vehicle must be in the same weight class as the existing vehicle (either LHD, MHD, or HHD as defined in Appendix B). An MHD vehicle can replace an HHD vehicle if they both have the same axle configuration (e.g., an existing HHD vehicle with two axles can be replaced with an MHD vehicle with two axles) but the funding amount must be at the MHD funding level. 
4. Horsepower: The replacement engine or zero-emission vehicle horsepower must be no more than 25 percent (25%) greater than the existing engine horsepower. Increases in horsepower beyond the 25% limit may be considered on a case-by-case basis. E. Engine Class: The engine’s primary intended service class must match the replacement vehicle’s weight class as outlined below.  Exceptions may be made for vocational purposed if the GVWR is within 10% of the engine’s intended service class.  Any exceptions must be approved by the District prior to contract execution.   
5. Engine Class: The engine’s primary intended service class must match the replacement vehicle’s weight class as outlined below.  Exceptions may be made for vocational purposed if the GVWR is within 10% of the engine’s intended service class.  Any exceptions must be approved by the District prior to contract execution.
6. Body and Axel Configuration: The replacement vehicle must have the same axle and body configuration as the existing vehicle. Slight changes based on the latest technology may be approved on a case-by-case basis. In the case of zero-emission replacement vehicles differing from the existing vehicle’s axle and/or body configuration, the following must be provided when possible: 
   1. Confirmation that the intended use of the replacement vehicle would remain the same as that of the existing vehicle. 
   2. Justification for the deviation in GVWR not being within 10 percent and a description of the weight difference between the battery electric powertrains of the existing and replacement vehicles (e.g., the zero-emission vehicle specification sheet). 
   3. How the zero-emission replacement vehicle will safely accommodate the equivalent level and scope of work that the existing vehicle performs (e.g., a letter from the manufacturer or certified statement from the applicant confirming the replacement vehicle can safely operate in the same degree as the old vehicle without adversely impacting its durability).  
   4. Changes must be requested and approved prior to the purchase of the replacement vehicle. 
7. All Electric Range: Electric vehicles must demonstrate an all-electric range of at least 35 miles.  Those with fast charge capability must demonstrate an all-electric range of at least 20 miles.  
8. Eligible Cost: Eligible project costs include the cost of the cab and chassis including parts that are integrated into the vehicle. The cab and chassis cost may include but is not limited to the following:  
   1. Engine or motor and Frame  
   2. Transmission,  Steering system and Suspension system 
   3. Electrical system, Cooling System, Emission system, and Fuel system
9. % Operation: at least fifty percent (50%) of the time within the District boundaries (page 13) and at least seventy five percent (75%) of the time within the state of California during the project life.
10. DMV Registration: Vehicle must be registered within the District boundaries (page 13) during the life of the project.  
11. Purchase of New Truck: Must be purchased through a licensed dealership.
    1. The new truck must have California based registration or California based IRP 
    2. If you are purchasing from an out-of-state dealership you must verify that the new replacement truck has been certified for sale in California with a CARB approved engine.   
    3. For assistance with verification, contact District staff with the following information on the truck engine prior to making any purchases:
    a. Engine EPA Family Name 
    b. Engine make, model, model year, and horsepower
12. Warranty: All participants must purchase a major component engine warranty for the replacement new or used vehicle or repowered engine. The warranty must cover parts and labor. If the purchase of a new or used replacement vehicle is in accordance with currently required warranty periods or warranty requirements for newer engine model years as specified in the Heavy-Duty Low NOx Omnibus Regulation then separate supplemental warranty is not required.  
    1. Electric vehicles must have a minimum warranty period of 3 years or 50,000 miles. The warranty must cover the motor, drivetrain, battery or energy storage, and parts and labor.
13. Not be a glider kit.

The applicant must meet the following eligibility requirements:

1. Have owned the current truck for the past 24 months at minimum.
2. Submit a completed application to the District.
3. Not purchase, make down payments, or take possession of the replacement truck under funding consideration prior to the issuance of a contract—doing so will render a project ineligible. 
4. Be currently in compliance with the applicable California Air Resources Board’s (ARB) Truck Regulations and submit documentation which indicates the fleet’s selected compliance strategy.
5. Fleet Compliance: The fleet must currently be in compliance with all applicable Federal, State and Local rules and regulations.  For more information about truck regulations, visit http://www.arb.ca.gov/msprog/truckstop/truckstop.htm
   a. Applicants will be pre-screened for regulatory compliance, outstanding violations, open cases, and previous project funding.  
6. Remain the owner of the replacement truck for the life of the project.    
   1. If the truck needs to be sold during the life of the project, the District must approve the truck ownership change prior to its sale.  The new owner of the truck must be willing to assume the Program obligations with the District and comply with the terms and conditions outlined in the Program guidelines.   
7. Maintain replacement value insurance for the replacement truck through the full project life.
8. Demonstrate proof of applicable major component engine warranty for the replacement truck commencing on the day the new truck is purchased as indicated on the final invoice submitted for reimbursement. 
9. Demonstrate that the truck is domiciled within the boundaries of the District.
10. Submit annual reports to the District through the full project life as well as comply with recordkeeping and audit requirements. 
    1. Current truck registration and insurance documentation must be kept. 
11. Surrender the current truck to a District approved dismantler for scrapping. See page 11 of these guidelines for a description of the Dismantler requirements and approved method of destruction.  1. The truck must be delivered to the dismantler in operating condition.
12. Agree to allow the District or its representative(s) to inspect the replacement truck upon request any time for the duration of the project life.
13. Properly maintain the replacement truck in good operating condition and according to manufacturer’s recommendations.
14. Certify that there are no outstanding ARB violations for equipment associated with the truck on the application. 
15. Agree to list the air district as co-lien holder on the title of the funded vehicle for the term of the agreement. A completed Uniform Commercial Code-1 Financing Statement Form must be submitted to the California Secretary of State, with a copy sent to the air district, within 30 days of the purchase of the new vehicle. The financing statement must have the San Joaquin Valley APCD as the secured party and the vehicle should be listed as collateral. More information can be found at: https://bizfileonline.sos.ca.gov/forms/ucc.
16. Military Service Provision: If an applicant has been on active military duty at any time during the previous twenty four (24) months, documentation prior to deployment and covering the same length of time as the deployment period may be used to meet the title, registration, usage, and operation in California requirements. Applicant must submit a copy of DD Form 214, certificate of Release or Discharge from Active Duty, to verify military service during the deployment period. 

To access Form A1 Truck Replacement Program Standard Replacement, please use the following link: https://ww2.valleyair.org/media/oz0fqg0t/trp-form-a1-standard-replacement-applicant-info-6092022_interactive.pdf

Required documentation to submit with A1 Truck Replacement Application (see below):

• One (1) Form A1 per applicant or business entity
• One (1) Certifications Page with signature by Agreement Signing Authority (Legal Owner of Truck(s)
• First page of IRS Form W‐9
• Form A2, for each truck to be replaced
• California DMV Registration for the past 24 months:
  • Current cab card plus past 24 months from date of application submittal
  • California DMV Vehicle Registration Information Record printout may be substituted for past DMV Registration if expired cab cards are not available.  The printout can be obtained online at https://www.dmv.ca.gov/portal/dmv/detail/online/vrr or by mail by submitting a Request for Driver Record Information form (INF 1125) to DMV.
• Copy of title, free of any lien holders, on which the applicant is listed as the registered owner of the truck.
  • Titles on which the lien holder has signed the release of interest for the truck will be accepted.
• Usage Verification for the past thirty (30) months specific to the old truck. 
  • Acceptable documentation includes, but is not limited to, maintenance reports, BIT inspection forms, or GPS reports and must clearly identify the old truck on the application.
• Copy of a quote for the replacement truck you would like to purchase. 
• Proof of insurance for the past 24 months  
• Copy of compliance certificate from CARB’s TRUCRS reporting database. 

To access Form A2 Truck Information Application, please use the following link: https://ww2.valleyair.org/media/ndddpd4j/trp-form-a2-standard-replacement-truck-info_6082022_interactive.pdf

Class 4 ‐ 8 Applicable Engine Model Years: 2010 ‐ 2016

Required information:

• Current Truck Information (old)
• Replacement Truck Information (new)
• Vocation (the use case for your vehicle)
• Current Truck Usage
• Route Maps for Truck traveling over 100 miles per day

Submit all completed application packets by Mail to:

SJVAPCD Strategies & Incentives

1990 E. Gettysburg Ave

Fresno, CA 93726

Email

grants@valleyair.org  

Note: please choose one method of application submittal to avoid duplicate submittals