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The California Energy Commission (CEC) and California Air Resources Board (CARB) are accepting applications for the Zero-Emission Drayage Truck and Infrastructure Pilot Project with a funding availability of $44.1 million and a 50% minimum matching requirement. The deadline to submit applications is February 1, 2021.

Grant funding will support large-scale deployments of on-road, zero-emission Class 8 drayage and regional haul trucks as well as the necessary zero-emission vehicle fueling infrastructure needed for service operation.

What are the goals of this project? The overarching goals for the Zero-Emission Drayage Truck and Infrastructure Pilot Project solicitation are to:

• Advance zero-emission technology for Class 8 on-road trucks with a focus on regional haul or drayage service;
• Understand fleet dynamics when deploying a large number of zero-emission trucks and supporting infrastructure, including assessing the ability of fleets to recharge or refuel large numbers of trucks on a daily basis – sometimes multiple times per day;
• Support zero-emission, on-road heavy-duty truck manufacturers to realize economies of scale that come with larger production volumes;
• Holistically reduce greenhouse gas (GHG), criteria pollutant, and toxic air contaminant emissions in and around ports and freight facilities; and
• Provide economic, environmental, and public health benefits to disadvantaged and low-income communities.

Who is eligible to apply for this program? This solicitation is open to local air districts, California-based public entities, and California-based non-profit organizations.

Private sector parties (i.e., technology manufacturers and end-users) interested in securing funding for a technology or strategy, must partner with an eligible Applicant. Only projects submitted by eligible Applicants will be evaluated.

What are the project requirements? The project requirements are as follows:

• All proposed projects must be located in California.
• All proposed projects must deploy on-road zero-emission Class 8 trucks and the necessary charging or refueling infrastructure and include a ZEV Workforce Plan.
• All technologies, including trucks and supporting infrastructure, should be a commercial product at the time of application.
• Vehicle technologies must produce no tailpipe emissions of GHG, criteria pollutant, or toxic air containment during the truck’s entire duty cycle, whether stationary (idling) or operating.
• Applicants must demonstrate that the proposed projects will reduce on-road motor vehicle air emissions.
• Applicants must demonstrate how proposed projects will support air quality improvements in and provide measurable benefits to disadvantaged and low-income communities, priority populations, and/or tribal lands.
• Projects are not required to be located in disadvantaged communities to be eligible for funding; however, in accordance with the evaluation criteria, projects will be evaluated, in part, on the degree to which the proposed project is located in disadvantaged or low income communities. Refer to the Solicitation Manual, Section III.D.7. for requirements.
• Each funded project must provide a minimum of 12 months of data collection on the full deployment of vehicles and infrastructure, submitted electronically as part of the quarterly progress reports, rather than in a summary report at the conclusion of the 12 months.

Additional eligibility information is detailed in the project’s Solicitation Manual attached below.

What are eligible project costs? Costs incurred for the following are eligible for the CEC or CARB reimbursement or as the Applicant’s match share and can include:

1. For Vehicle Technology: truck purchase as defined in Solicitation Manual, Section II, subsection B-2; vehicle maintenance; and data collection equipment.
2. For Battery Electric Vehicle Charging Infrastructure: electric vehicle supply equipment (EVSE or chargers); transformers; electric panels; electricity transmission materials (wiring, conduit, hangers, etc.); energy storage equipment; photovoltaic solar panels separately metered for electric charging; installation/construction costs; maintenance facility upgrades; utility service upgrades; planning and engineering design costs; network agreement with network provider; extended warranties; stub-outs; demand management equipment; equipment maintenance; electricity costs for charging if metered separately; and data collection equipment.
3. For Hydrogen Refueling Infrastructure: subcontracts; compressors; heat exchangers; hydrogen transmission materials (piping, etc.); chillers; dispensers with hose and nozzles; high pressure hydrogen storage tanks; onsite hydrogen production; electrical upgrades necessary to power hydrogen station; installation/construction costs; maintenance facility upgrades; mobile refueling trucks; equipment maintenance; hydrogen costs (if purchased); electricity costs for hydrogen generation if separately metered; and renewable electrical generation to power the hydrogen station.
4. For the ZEV Workforce Plan (No more than $100,000 in project funds funding per project): ZEV Workforce Plan development (Attachment 8); workforce training and development; hiring plan; ASE certification costs for non-fossil fuel technologies; tuition reimbursement at community colleges, trade schools, etc.; train-the-trainers; curricula development; EVITP training and certification; and data collection.
5. For Administration (10 percent retention will be withheld on Administration expenses): project management; report preparation; and invoicing.
6. For Outreach (10 percent retention will be withheld on Outreach expenses): public outreach on the benefits of alternative transportation fuels and vehicle technologies; and community outreach and equity engagement that highlights environmental, economic, and jobs benefits of zero-emission vehicle and infrastructure technologies and supply chains.

Awardees will not be reimbursed for permitting or vehicle-related expenses, such as electricity for charging or fuel costs. These expenses may be counted towards match share only. Utility incentives for behind-the-meter infrastructure and rebates for charging equipment may also be counted towards match share.

What are the funding levels for this program? Projects are eligible for up to 50 percent of total project costs, or $44.1 million, whichever is less. This solicitation offers $24 million for the purchase of on-road zero-emission Class 8 trucks, $20 million for supporting zero-emission vehicle infrastructure, and $100,000 for workforce training and development. Selected Awardees will enter into two grant agreements: one with the CEC to fund infrastructure and workforce training and development, and one with CARB to fund trucks.

What is the match share requirement? Applications must include a minimum 50 percent total match share of the total allowable project costs (i.e., the sum of requested grant amount plus the Applicant’s match share). Match costs for infrastructure and workforce training and development may be counted towards the CEC’s grant agreement; match costs for trucks may be counted towards CARB’s grant agreement. Other match costs associated with administrative and data collection tasks may be split between CEC and CARB.

What is the anticipated award timeline? Applications are due on February 1, 2021 by 5:00pm PT. Awards are expected to be announced in March 2021 and projects are to begin in the second quarter of 2021.

When does the project need to be completed by? The trucks and infrastructure must be completely deployed and operational by June 15, 2023. All reimbursable work for the CARB tasks must be scheduled for completion by no later than March 31, 2025 and all reimbursable work for CEC tasks must be scheduled for completion no later than March 31, 2026.

The Program Solicitation Manual can be found here.

For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.