Zero-Emission UTVs Program

Monterey Bay Air Resources District’s (MBARD) Zero-Emission UTVs (ZEUs) Program is a new grant program intended to encourage and accelerate the use of off-road, zero-emission utility terrain vehicles (UTVs) by providing rebates for the purchase of new zero-emission vehicles. The ZEUs Program provides incentives of 75% of the cost of a new zero-emission UTV up to $13,500.00 to qualified agricultural operations, local public agencies, local government entities, and nonprofit organizations.

The ZEUs program will be separated into two components: agricultural operations and non-agricultural. Replacements for agricultural operations will be administered based on the latest Funding Agricultural Replacement Measures for Emission Reductions (FARMER) program guidelines and non-agricultural replacements for public agencies and nonprofit organizations will be administered based on the latest Carl Moyer Program (CMP) guidelines. MBARD’s recently updated CARB Grant Programs Policies & Procedures Manual will guide the implementation of the ZEUs Program.

General Application Process

1. Applicant submits a complete Application to MBARD via online application. Applications are accepted on a first come, first served basis. Applicants are limited to one application per EIN per program cycle.
2. Once reviewed and approved, Applicant will be contacted to enter into a 3-year Grant Contract with MBARD.
3. Applicant surrenders the baseline vehicle to an MBARD approved dismantler for permanent destruction and recycling.
4. Applicant purchases the replacement (new) zero-emission vehicle from an eligible retailer.
5. Applicant submits a complete Reimbursement Request to MBARD via online form.
6. Once reviewed and approved, MBARD will disburse the rebate typically within 45 days.

Baseline Vehicle Eligibility

To be eligible for the ZEUs Program, a baseline vehicle (vehicle to be replaced) must:

• For agricultural operations, be a tractor with less than 25 (<25) HP, a UTV, or an all-terrain vehicle (ATV) powered by an internal combustion engine;
• For non-agricultural operations, be a UTV powered by an internal combustion engine;
• Be operational; able to start, move, and have all operational parts intact;
• Have been owned and operated by the applicant in California for the previous 24 months; and
• Have an engine model five years prior to the year of application.

Applicant Requirements

To receive funding for the purchase of a new replacement, zero-emission vehicle, Applicants must:

1. Be an agricultural operation with a primary place of business within the counties of Monterey, San Benito, or Santa Cruz with an Employer Identification Number (EIN) or Tax ID that shows proof of California residency or proof of the agricultural operation for which the zero-emission replacement vehicle would be used occurs in California by providing a completed IRS Form W-9 or;
2. Be a local public agency, nonprofit organization, or local government entity within the counties of Monterey, San Benito, or Santa Cruz with an Employer Identification Number (EIN) as confirmed by a completed IRS Form W-9. If a nonprofit organization, the applicant must provide, at MBARD’s request, founding documents and any supporting documents that show the nonprofit is not controlled by any religious sect, church, creed, or sectarian purpose; California Constitution Article XVI Section 5;
3. Submit only one application per EIN or Tax ID per program cycle. Applications are accepted on a first-come, first-served basis;
4. Self-certify that the replacement vehicle would be used exclusively within the counties of Monterey, San Benito, or Santa Cruz;
5. Enter into a three (3)-year contractual agreement with MBARD;
6. Own and operate the replacement vehicle and meet all applicable project requirements for the duration of the contract;
7. Not purchase, make payments toward, and/or take possession of the new zero-emission vehicle prior to receiving a fully executed contract from MBARD;
8. Provide MBARD with the past 24 months of maintenance records and/or service history of the baseline vehicle to be replaced;
9. Surrender the baseline replacement vehicle, as identified in the application, to be permanently destroyed and recycled by an MBARD approved dismantler within thirty (30) days of the fully executed contract date;
10. Surrender all monies generated from the scrapping of the baseline replacement vehicle as property of the MBARD-approved recycling facility;
11. Purchase the new replacement zero-emission vehicle within thirty (30) days of drop-off date of the baseline vehicle for recycling;
12. Submit an online reimbursement request to MBARD within thirty (30) days of receiving the zero-emission vehicle;
13. Not request reimbursement for charging infrastructure as it is not an eligible cost.
14. Not make or allow any modifications to the zero-emission vehicle systems, including motor and other hardware, the addition of auxiliary power sources, or changes to the software calibrations;
15. Commit that any emission reductions generated by the purchased zero-emission vehicle will not be used as marketable emission reduction credits, to offset any emission reduction obligation of any person or entity, or to generate a compliance extension or extra credit for determining regulatory compliance;
16. Be available for follow-up inspection if requested by MBARD, California Air Resources Board (CARB), or CARB’s designee for the purposes of project oversight and accountability;
17. If an agricultural operation, install and maintain an operational hour meter on the new vehicle;
    1. If during the project life, the hour meter fails for any reason, the hour meter must be repaired or replaced as soon as possible at the owner's expense.
18. If an agricultural operation, submit annual reports via an online form to MBARD that include the hours of operation on the zero-emission vehicle and any other pertinent information requested by MBARD for the duration of the project life; and
19. Defend, indemnify, and hold MBARD, its officers, agents, employees and volunteers harmless from any and all losses, costs, damages, fines or expenses (including attorney fees, court costs and expert witness fees) or liability of any kind or character to any person or property arising from, or alleged to arise from, any use of the zero-emission vehicle.

Replacement Zero-Emission Vehicle Eligibility

To be eligible for the ZEUs Program, new replacement zero-emission vehicle models must:

1. For agricultural operations, be a UTV, ATV, or;
2. For non-agricultural operations, be a UTV;
3. Be a new vehicle, as defined in the California Vehicle Code Section 430, meaning a vehicle constructed entirely from new parts that has never been the subject of a retail sale, or registered with the department, or registered with the appropriate agency or authority of any other state, District of Columbia, territory, or possession of the United States, or foreign State, province, or country;
4. Emit zero tailpipe emissions from its onboard source of power (such as all-electric or hydrogen fuel cell vehicles) and may not undergo any modification that would allow propulsion by any other means;
5. Have a towing capacity of 500 lbs. or greater and a total vehicle weight of 700 lbs. or greater;
6. Be covered by a manufacturer warranty of at least one (1) year, including applicable energy storage tanks or battery packs. Prior to approving a project, CARB or MBARD may request that the manufacturer provide copies of representative zero-emission vehicle and battery warranties and a description of the manufacturer’s plans to provide warranty and routine service; and
7. Be a Like-for-Like replacement: the new replacement UTV must serve the same function and perform the same work as the baseline UTV.

Please feel free to contact the MBARD Zero-Emission UTVs Program Team with any questions. Thank you for your interest in the Zero-Emission UTVs Program!