More than 25,000 cleaner burning diesel trucks have been financed over the past 10 years, enabling the state to reach a clean-air milestone.
“California’s aggressive targets for newer and cleaner diesel, natural gas and zero emission vehicles are necessary to protect our communities and the environment,” said California State Treasurer Fiona Ma, who chairs the California Pollution Control Financing Authority (CPCFA) board. “I’m happy to support small business fleet owners in buying cleaner trucks that move goods, support our economy and help our state meet our air quality targets.”
The Capital Access Program (CalCAP) between the CPCFA and the California Air Resources Board (CARB) was created in 1994 and encourages California banks and other financial institutions to make loans to small businesses that have difficulty obtaining financing.
CalCAP also provides for specialty programs targeted toward creating more charging stations for electric vehicles; helping at-risk small businesses comply with the requirements of the federal Americans with Disabilities Act; assisting small businesses and property owners with financing the costs to seismically retrofit existing buildings and homes; and retrofitting polluting diesel trucks.
The program has helped to remove 145 tons per year of particulate matter from the air.
Millions of dollars in loans have helped small fleets and owner-operators get the financing they need to upgrade to trucks that not only are much cleaner than their older counterparts, but also save them money at the pump.
“Exposure to diesel exhaust is a known health risk that can lead to numerous health problems and premature death,” CARB Executive Officer Richard W. Corey said. “This program not only reduces air pollution in low-income neighborhoods with poor air quality, it is also helping California meet its air quality goals so we can all breathe easier.”
The program supports private lenders by giving them an incentive to offer owner-operators truck loans with more favorable terms and interest rates than they otherwise might get.
So far in 2019, CalCAP has enrolled 4,410 loans to California small business owners purchasing 4,257 trucks.
Beginning in 2020, the Department of Motor Vehicles cannot register any vehicle that does not meet the requirements of the Truck and Bus Regulation.
Additionally, State Senate Bill 210, which was signed by Governor Gavin Newsom in September, created the Truck Emission Check Fund and implements a Heavy-Duty Vehicle Inspection and Maintenance Program, requiring a legal owner or registered owner of a heavy-duty vehicle to maintain a certificate of compliance with the vehicle.
The bill prohibits the operation of a heavy-duty vehicle in a manner resulting in the escape of visible smoke, except during active regeneration.
For more information about the CalCAP program, including a list of participating lenders, visit http://www.treasurer.ca.gov/cpcfa/calcap/.
