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AB2766 Motor Vehicle Emission Reduction Grants

ATTENTION: The MBARD Board of Directors approved AB2766 Guidelines for FY2023-24 during their regular Board Meeting that occured on April 19, 2023. The application period will be May 1 - June 30th. Please standby for an announcment, a link to the application form, and other updates to this webpage. Also, please subscribe to the AB2766 EMAIL LISTS for the latest news and updates.

California Assembly Bill 2766 (AB2766), signed into law in 1990, permits MBARD to allocate a $4.00 per vehicle registration surcharge fee towards grant projects that reduce motor vehicle emissions such as roundabouts, adaptive traffic signal control systems, medium to heavy-duty vehicle electrification and light-duty zero emission vehicle incentives. Funds may also be used for related planning, monitoring, enforcement, and technical studies pursuant to the California Clean Air Act. Funds are available to public and private agencies as well as residents (see EVIP) in Monterey, San Benito and Santa Cruz Counties.

Since MBARD initiated the AB2766 grant program 33 years ago, the MBARD Board of Directors has authorized $40.4 million to over 613 projects in Monterey, San Benito, and Santa Cruz Counties. The following are current AB2766 motor vehicle emissions reduction programs: Clean Air Management Program, Clean Vehicle Program, and the Electric Vehicle Incentive Program.

1.  Clean Air Management Program

These projects are identified as fixed assets for which travel activity data is available to calculate the expected reductions in motor vehicle emissions. Typical projects include roundabout construction and adaptive traffic signal control system installation.

Projects in this category are scored based on calculated emissions reduced. Applicants must submit travel activity data for the project as indicated in the application attachment, FY 2023-24 Activity Data Spreadsheet. A quantifiable cost-effectiveness (C/E) score for these projects is used to rank projects. C/E is expressed in dollars per ton of pollutant reduced in conjunction with the project’s total annual emission reduction in tons. Maximum funding per project will be $400,000.

Application: AB2766 Clean Air Management Program

AB2766 - Activity Data Spreadsheet.xlsx
2.  Clean Vehicle Program

Incentivizes public agencies and fleet owners/operators to replace internal combustion engine vehicles with zero-emission, battery-electric vehicles.

  • Light-Duty Vehicles – Recipients must replace an existing public agency fleet vehicle with a new battery-electric vehicle. Projects will not be ranked by C/E or total annual emission reduction, but instead will be awarded on the availability of program funds per individual county allocation. The incentive amount is $10,000.
  • Medium and Heavy-Duty Fleets – All replacement vehicles must be 100% battery electric. Leveraging of other funds outside of the AB2766 program may be used to offset incremental project costs.

Application: AB2766 Clean Vehicle Program

3.  Electric Vehicle Incentive Program

Incentivizes residents within Monterey, San Benito, and Santa Cruz Counties to purchase or lease plug-in hybrid, battery-electric, or hydrogen fuel cell vehicles. Go to the Electric Vehicle Incentive Program webpage for additional details and to apply.



FY24 AB2766 Guidelines - Policies & Procedures for implementing AB2766 programs.

Carl Moyer Program (CMP) Guidelines - Provides the basis for evaluating applications.

Congestion Mitigation and Air Quality Improvement (CMAQ) Program - Methodology used to analyze emissions reductions and the cost-effectiveness of air quality projects.


Time Table

Staff posts announcement and application packet to District website.May 01, 2023
All applications due no later than 4:00 pm.June 30, 2023
Staff completes scoring and ranking of eligible applications. List of projects posted on MBARD websiteOctober 02, 2023
Grant award recommendations presented and announced at October 2023 Board meeting. October 18, 2023