California Assembly Bill 2766 (AB 2766), 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.

ATTENTION: A list of eligible AB 2766 projects for FY2024-25 is posted below. The specific grant amounts being offered will be announced once our Board of Directors has approved them during the upcoming October 16, 2024 MBARD Board of Directors Meeting. Subscribe to the AB 2766 EMAIL LISTS for the latest news and updates.

Since MBARD initiated the AB 2766 grant program 34 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 AB 2766 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 battery charging stations,  multi-use paths, bike lanes, and bicycle infrastructure, chargers, storage, and racks.

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 2025-2026 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 $200,000.

Click the following link to submit an application: AB 2766 Clean Air Management Program FY 2025-2026 Application

2.  CLEAN VEHICLE PROGRAM

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

• Medium and Heavy-Duty Fleets – All replacement vehicles must be 100% battery electric. Leveraging of other funds outside of the AB 2766 program may be used to offset incremental project costs. The incentive amount is up to $200,000.

Click the following link to submit an application: AB 2766 Clean Vehicle Program FY 2025-2026 Application

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.

Guidelines

FY 2025-2026 AB 2766 Guidelines Policies and Procedures for implementing AB 2766 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.

FY2025-2026 Time Table

Helpful Links

Cal Fleet Advisor - Upgrade your fleet to zero-emissions vehicles.

Media

Questions or Comments? Contact:

• Eli Lessman, Air Quality Planner - elessman@mbard.org or (831) 718-8029
• Tyrone Bell, Air Quality Planner - tbell@mbard.org or (831) 718-8023