Moyer Grant FAQs

Who may apply?
How much money is available?
What types of projects are eligible?
What types of vehicles or equipment are eligible?
What costs may be reimbursed by a Moyer grant?
How is the amount of a Moyer Grant determined?
Are electric motors eligible?
Do I have to put up a matching amount?
How are grants awarded?
Is the cost of alternative fuels eligible for a Moyer grant?
What are Moyer grant agreement terms and conditions?
How do I implement a Moyer Grant?
How do I get reimbursed by my Moyer Grant?

Who may apply?
Any private person, company, or public agency who owns and operates a motor over 25 horsepower within the District may be eligible to apply for a Moyer grant, provided that 75% of the total use of the motor is within California. For commercial marine vessels, 75% of the motor(s) existing and proposed operation must be within 10 miles of the coast of California.

How much money is available?
Approximately $1 million is available for grants each year. Based on recent years, approximately 26 projects can be funded this year.

What types of projects are eligible?
Here are some general eligibility guidelines:

• Projects must produce real, quantifiable and enforceable emissions reductions (emission reductions are not required by regulations).
• Existing and replacement motors must operate in Monterey, San Benito and/or Santa Cruz counties.
• Existing engines must be rated at 25 HP or more.
• At least 75% of the operation must be in California.

Research and development, certification testing and training are NOT eligible.Emissions reduced must be surplus to applicable CARB regulations.

What types of vehicles or equipment are eligible?

• Agricultural irrigation pump engines <100 HP if installed by December 31, 2010
• Main and/or auxiliary engines on commercial marine vessels
• Heavy-duty off-road diesel vehicles and self-propelled equipment (graders, dozers, tractors, harvesters, class 7 diesel forklifts, etc.) if the project reduces emissions surplus to regulatory requirements.
• Auxiliary power units (APU) for on-road trucks with the primary engine model year 2006 and older.
• Transport refrigeration units (TRU) model year 2004 and newer in installed at least three years before their respective compliance date.
• Off-road spark ignition (gasoline, natural gas or propane) engines may be eligible.
• Airport ground support equipment and locomotives.
• Auxiliary motors on equipment under District or State operating permits may be eligible (contact the District before applying).
• Other engines under State or District permit are NOT eligible.

Other types of project or equipment may be eligible.  If a project reduces nitrogen oxides (NOx), reactive organic gases (ROG), or particulate matter (PM) exhaust emissions but does not fit into any of the above, call District staff.  For equipment that is subject to pending or adopted CARB regulations, eligibility is determined based on emission reductions surplus to the applicable regulation compliance date.

What costs may be reimbursed by a Moyer grant?
Grants may cover the cost of repowering equipment with a new electric motor, re-powering with a new or remanufactured engine, or replacing the vehicle(s) or equipment with newer equipment. Some projects may require a VDECS to further reduce emissions. Costs eligible for reimbursement must have been incurred after the grant agreement is signed; the District will not reimburse any expenses for purchases made before the grant agreement is signed by all parties.

Some examples of reimbursable costs by project type are:

• Electrification. When replacing diesel motors, certain costs of powering and installing new electric motors are eligible.
• Repowers. Cost of parts, shipping and taxes for new or remanufactured motors are eligible. Parts such as power-takeoffs, exhaust converters and adapter plates required to mate the project engine with a drive train or equipment, or which are integral with the funded motor may also be eligible.
• Replacements. Costs of purchasing a new or newer used off-road equipment.
• Retrofits. Costs required to purchase and install a VDECS on the existing motor are eligible, as are costs of necessary maintenance.

How is the amount of a Moyer Grant determined?
District Moyer grant amounts are calculated by District staff, and are limited to the lesser amount of: a.) cost-effectiveness (cost per ton of emissions reduced), or b.) incremental cost. Most projects are also subject to percentage cap.

• Cost-effectiveness (C-E). C-E is calculated as the grant amount divided by the tons of emissions reduced over the project life, discounted at 3% per year. The total tons are measured by adding the tons of NO_x, ROG, and PM emissions, with the PM amount multiplied by a factor of 20. The District allows grants to reach a C-E of $14,300 per weighted ton, and may be funded to a higher C-E if the project would not otherwise be feasible, up to a limit of $16,000 per ton.
• Incremental cost limit. Incremental cost is the total cost of the project (parts and labor) less the total cost to rebuild the existing engine. The grant may not exceed this value, regardless of project C-E.

Are electric motors eligible?
Yes. We encourage projects to replace diesel with electric motors by automatically putting them at the top of the wait list.

Do I have to put up a matching amount?
As an incentive program, grants never cover the full cost to implement the project. Grantee costs may be substantial, since the cost to implement the project may be considerably greater the eligible grant amount.

How are grants awarded?
Application forms are available for download from the District website, Carl Moyer Grant Program page.  To have an application form mailed to you, call the 24-hour Moyer grant line (831) 647-9418 x215 and leave a message clearly describing the type of project you will be applying for, your postal address and phone number. We will mail you the appropriate grant application form within a day or so. The District processes applications on a first-come, first-served basis. It takes up to a year or more to reach the head of the list, so apply as soon as possible. District staff will review your application in order received.  If found  incomplete or inconsistent with State or District program guidelines, staff will call you and ask for revised or supplemental information. Only when applications are found complete by staff are they processed further.

Once your completed application reaches the top of the wait list, District staff will call to schedule a field inspection of your existing engine.

Staff will offer of a grant amount subject to available funds. If the grant amount is acceptable to you, a formal written offer will be mailed, and the grantee must sign a grant acceptance agreement to be able to receive any funds. Payment from the grant is only made after completion of the project, following a second inspection by the District. If the District finds the project was implemented by the grantee in accordance with the grant agreement, the District pays the full grant amount within ten days of processing the request for reimbursement.

Is the cost of alternative fuels eligible for a Moyer grant?
No. Moyer funds are not available for the cost of any fuel, including alternative fuels such as natural gas, biodiesel or emulsified fuels (Purinox, etc.).

However, the incremental cost of alternative fuels or fueling infrastructure are eligible for grant funding from the District's AB2766 grant program. Contact the District for more information.

What are Moyer grant agreement terms and conditions?
All Moyer grants require a signed grant agreement which sets forth contractual obligations of the owner/grantee and the District. Terms and conditions of the grant agreements vary by type of project, but generally contain the following:

• The project is not required by any local, state and/or federal rule, regulation or MOU currently in effect.
• Rights to the emission reductions cannot be claimed by any owner/grantee for credits or for a credit averaging, banking, or trading program.
• The proposed project technology must either be certified or verified or meet current emission standards for sale in California.
• The new motor/equipment/vehicle may not be purchased prior to District signature on the Moyer grant agreement.
• The new motor/vehicle/equipment must remain in service for the project life and operate in California for a total amount or annual average amount as specified in the grant agreement.
• The existing engine must be destroyed and/or rendered useless. This destruction must be documented by District staff.
• Motors to be repowered must have a complete and fully legible serial number, or District staff must mark the motor block and personally verify that the specific motor was removed and destroyed as noted above.
• For the life of the project, grantees will keep records and submit annual reports on usage of each motor or equipment funded.
• If usage of the funded motor(s) or equipment does not meet agreed usage amounts, the District may require repayment of all or part of the grant.
• For the life of the project grantee/owner will: Maintain the motor/vehicle according to the manufacturer's specifications, not tamper or alter its emissions control devices or systems, allow inspection of the funded engine/equipment, retain usage/maintenance records, maintain a working hour meter or other approved usage measurements (if the approved monitoring device fails, the owner will record the failure date and repair or replace the device as soon as possible).

How do I implement a Moyer Grant?

1. Call Nathan Pierce, District staff, at (831) 647-9418 x243 if you have questions or need to discuss your project.
2. After the inspection, district staff will calculate the amount of emission reductions expected as a result of your project and notify you of the funding amount that can be granted.
3. If the grant amount is acceptable to you, District staff will offer a Moyer grant valid for thirty days. To accept the grant, you must sign and return the original grant agreement which spells out the terms and conditions.  Grant terms and conditions vary by type of project and are specific to each project.

How do I get reimbursed by my Moyer Grant?
If you agree to accept a Moyer grant, you will have 180 calendar days to implement your project from the date the agreement is signed by both parties. The District may extend this time period, if delays were not caused by the grantee.

Reimbursement is accomplished as follows:

• Expenditures incurred before the grant agreement is signed cannot be reimbursed; the District will not reimburse any expenses for purchases made before the grant agreement is signed by all parties.
• Once the project is complete, the grantee must invoice the District per instructions in the agreement.
• After District staff inspects the project and finds it was implemented as agreed in the grant agreement, the District shall issue a check for the grant amount within ten days of invoice approval.