Project Information

Bid Title

Cargo Handling Equipment and Transport Refrigeration Units Proposition 1B - Goods Movement Emission Reduction Program Solicitation Opens October 28, 2025

Issuing Agency

South Coast Air Quality Management District

Location

California

Published Date

Oct 3, 2025

Closing Date

Jan 28, 2026

Government Level

State & Local

Status

Closed

Ref. #

PA2026-05

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Project Description

Bid Number	Title	Bidder's Conference	Closing Date	Contact Person	Document
PA2026-05	Cargo Handling Equipment and Transport Refrigeration Units Proposition 1B - Goods Movement Emission Reduction Program Solicitation Opens October 28, 2025	None	1/28/2026 01:00 PM	Justin Joe (909) 396-2054 Krystle Martinez (909) 396-3021	PA2026-05

Attachment Preview

South Coast AQMD Program Announcement For

Cargo Handling Equipment and Transport Refrigeration Unit Projects

Proposition 1B - Goods Movement Emission Reduction Program

PA2026-05

The South Coast Air Quality Management District (South Coast AQMD) is pleased to announce the

availability of funds from the Proposition 1B - Goods Movement Emission Reduction Program (hereafter

“Program”). The Program is administered by a partnership between the California Air Resources Board

(CARB) and local agencies to quickly reduce air pollution emissions and health risk from freight

movement along California’s trade corridors. Projects funded under this Program must achieve early or

extra emission reductions not otherwise required by law or regulation. Approximately $50 million in

Program funding is expected to be available to South Coast AQMD for owners of Cargo Handling

Equipment and Transport Refrigeration Units (TRUs) used in freight movement to upgrade to cleaner

technologies. Funding is also available for the infrastructure needed for zero-emission TRUs and certain

Cargo Handling Equipment.

WHO:

Owners/operators of the following, located within the four California trade corridors,

may apply for funding through this solicitation:

1. Existing diesel-powered rubber-tired gantry (RTG) crane,

2. Existing diesel yard truck,

3. Existing diesel-powered lift (forklift, side handler, top pick, or reach stacker)

4. Existing diesel TRUs (refrigeration unit only).

WHAT:

Project options available as part of this solicitation:

Equipment Options:

1. RTG Crane Conversion/Replacement

2. Yard Truck Conversion to zero-emission

3. Yard Truck Replacement – Electric or Fuel Cell

4. Forklift Replacement – Electric or Fuel Cell

5. Lift Replacement – Electric or Fuel Cell

6. Transport Refrigeration Unit (TRU) Conversion/

Replacement to zero-emission

Infrastructure:

1. Battery Charger (Eligible only if applying for Battery Electric Yard Truck or Equipment)

2. TRU Power Plug Installation

3. Cryogenic Refrigeration Fueling Infrastructure at Distribution Center

Equipment specifications for each of these project options can be found in Appendix E, and F of the 2015

Program Guidelines at:

Prop 1B Goods Movement 2015 Program Guidelines for Implementation

HOW:

Applications must be submitted through South Coast AQMD’s Grant Management

System (GMS), which can be found at: http://www.aqmd.gov/prop1b.

PA2026-05

WHEN:

Schedule:

Applications can be submitted starting October 28, 2025, at 12 PM PT and will be

accepted until January 28, 2026, at 1 PM PT or until program funds are encumbered.

Issue Program Announcement

Solicitation Opens

Application Deadline

Agreement Execution

Expenditure Deadline

October 3, 2025

October 28, 2025

January 28, 2026

Starting February 2026

April 2027

SUMMARY

The purpose of this Program Announcement (PA) is to provide funding for projects under the

State’s Proposition 1B – Goods Movement Emission Reduction Program to reduce diesel

emissions from freight transportation. This PA will include projects of the following equipment

types:

• RTG cranes

• Yard trucks

• Lifts (forklifts, side handler, top pick, or reach stacker)

• Transport Refrigeration Units (Refrigeration unit only)

And the supporting infrastructure:

• Battery Charger (Eligible only if applying for Battery Electric Yard Truck or Equipment)

• TRU electric charging stations

• TRU cryogenic refrigeration fueling stations in conjunction with TRU replacement

I. BACKGROUND

The diesel engines in trucks, locomotives, ships, harbor craft, and cargo handling equipment are major

contributors to the State’s air pollution challenges. These sources account for nearly half of the

statewide particulate matter (PM) emissions. Diesel PM is both a toxic air contaminant and a

contributor to black carbon, a powerful short-lived climate pollutant. Near-source exposure to emissions

of this particular matter is associated with health risks, especially near distribution centers, railyards,

and seaports, many of which impact disadvantaged communities. Emissions from freight transport also

account for over one-third of the statewide nitrogen oxides (NOx) that form fine particles.

To date, CARB has granted approximately $486 million in Prop 1B funds to the South Coast AQMD to

reduce emissions from the goods movement sector, including the replacement of heavy-duty diesel

trucks, locomotives, cargo handling equipment, and shore power installation for ships at berth. The vast

majority of this equipment is currently operational, providing significant emission reduction benefits to

the region. Due to the cancellation of several projects, a new solicitation is needed for the remaining

funds.

Page 2 of 11

PA2026-05

This solicitation is intended to obtain “surplus” emission reductions of NOx and PM from goods

movement equipment operating in California trade corridors. It provides financial incentives to

equipment owners to replace in-use equipment with cleaner-than-required engine and equipment

technologies that will achieve emission reductions that are real, surplus, and quantifiable. It also allows

equipment owners to achieve early emissions reductions before they are required by applicable rules,

regulations or enforceable agreements. The Program supplements existing regulations and may be

combined with Federal or Local funding programs to cut diesel emissions.

II. DEFINITIONS

a. Cryogenic Refrigeration An “alternative technology” that eliminates TRU diesel engine

operation (and emissions) while at a facility. These systems commonly utilize either liquid

nitrogen or CO2.

b. Forklift An off-road industrial truck used to hoist and transport materials by means of steel fork(s)

under the load.

c. “Goods” Defined as having the same meaning in Commercial Code section 2105, which

essentially requires that: A. The goods must be movable. B. The goods being moved must be part

of a transaction that involves a contract for the sale of the goods. C. Rental equipment does not

qualify as “Goods”.

d. Lift Includes top pick, side handler, reach stacker, or forklift.

e. Reach Stacker An off-road truck-like cargo container handler that uses an overhead telescopic

boom that can reach across two or more stacks of cargo containers and lift the containers from the

top.

f. Rubber-Tired Gantry Crane or RTG Crane An off-road overhead cargo container crane with

the lifting mechanism mounted on a crossbeam supported on vertical legs which run on rubber

tires. RTG cranes do not include gantry cranes that operate on steel wheels and rails.

g. Side Handler or Side Pick An off-road truck-like cargo container handler that uses an overhead

telescopic boom to lift empty or loaded cargo containers by grabbing either two top corners on the

longest side of a container, both arms of one side of a container, or both top and bottom sides of a

container.

h. Transport Refrigeration Unit (TRU) Refrigeration systems designed to control the environment

of temperature sensitive products that are transported in refrigerated trailers. TRUs may be capable

of both cooling and heating.

i. Top Handler or Top Pick An off-road truck-like cargo container handler that uses an overhead

telescopic boom to lift empty or loaded cargo containers by grabbing the top of the containers.

j. Yard Truck An off-road mobile utility vehicle used to carry cargo containers with or without

chassis; also known as utility tractor rig (UTR), yard tractor, yard goat, yard hostler, yard hustler,

or prime mover.

III. OWNERSHIP REQUIREMENTS

Applications shall be signed and submitted by the current legal owner of the existing equipment that

will be upgraded or replaced. For infrastructure projects, if there is no existing equipment, the

application must be signed and submitted by the future owner of the Program-funded equipment.

Page 3 of 11

PA2026-05

Non-owner applications are not eligible for funding. Third party applications are not allowed.

Individuals or companies that operate the existing equipment under a lease agreement with the

equipment owner are prohibited from applying for bond funding.

Ownership of the existing equipment shall not change from the time an equipment project application

is submitted through receiving Program funding.

IV. FUNDING REQUIREMENTS

The funding tables reflect updated incentive amounts from the Proposition 1B Goods Movement

Program Executive Order G-25-093.

Eligible Equipment

Existing diesel engine rubber-

tired gantry crane

Table 1: Cargo Handling Equipment

Equipment Upgrade

Convert or replace with a zero-

emission powered system

Proposed Program

Funding

Partial funding of up to 50

percent of eligible costs

Project

Life

15 Years

Existing diesel-powered yard Conversion or Replace with a zero- Partial funding of up to 80 5 years

truck

emission yard truck

percent of eligible costs

Battery Charger or Hydrogen

fueling station

Installation of a battery or

hydrogen fueling station when

equipment owner replaces or

converts existing yard tractors

Partial funding up to 50

percent of eligible costs

5 years

Forklift

Lift capacity 3,000 lbs to

12,000 lbs

Forklift

Lift capacity of 3,000 lbs to

12,000 lbs

Lift*

Lift capacity greater than

12,000 lbs

Lift*

Lift capacity greater than

12,000 lbs

Replace an existing diesel forklift

with a Class 1 electric powered

forklift including battery and

charger

Replace an existing diesel forklift

with a Class 1 fuel cell powered

forklift

Replace an existing diesel forklift

with a Class 1 electric Lift

including battery and CEC

Compliant charger

Replace an existing diesel forklift

with a Class 1 fuel cell lift

*Lift includes top pick, side handler, reach stacker, or forklift

Partial funding up to 50

percent of eligible costs

Partial funding up to 50

percent of eligible costs

Partial funding up to 50

percent of eligible costs

Partial funding up to 50

percent of eligible costs

5 Years

5 Years

5 Years

Project Type

TRU Replacement1

Table 2: Transport Refrigeration Units (TRUs)

Project Description

Maximum Funding

Amounts

Replace existing diesel TRU with zero emission 80% of eligible costs

TRU (e.g. all-electric or fuel cell). Eligible costs or $100,000,

whichever is lower

Project

Life

5 Years or

10,000

hours

Page 4 of 11

PA2026-05

include the transport refrigerator and an electric

power plug

Replace 5 existing TRUs with 5 zero emission

cryogenic transport refrigerators

TRU Power Plug

Installation

Cryogenic

Refrigeration

Fueling

Infrastructure at

Freight Facilities

Insulated trailer

and Electric Plug

Install electric power plugs that are compatible

with electrically powered TRUs (e.g. all-

electric, hybrid electric, or electric standby-

equipped TRUs) at loading docks or a freight

facility

Install infrastructure and equipment for

cryogenic refrigeration fueling station at a

freight facility

For the purchase of an insulated trailer and one

electric plug

1TRU replacement projects do not include the replacement of vehicles.

80% of eligible costs

or $100,000 for 5

units, whichever is

lower

50% of eligible costs

or $3,000 (per plug)

whichever is lower

50% of eligible costs

or $100,000,

whichever is lower

50% of eligible costs

or $40,000,

whichever is lower

5 Years or

10,000

hours

5 Years

5 Years

5 Years

V. ELIGIBILITY AND GENRAL REQUIRMENTS

Project eligibility will be based on the Program Guidelines and Executive Orders which can be found at:

https://ww2.arb.ca.gov/prop-1b-program.

General Requirements for All Cargo Handling Equipment Projects

Selected applicants must sign a contract with South Coast AQMD including project milestones and

completion deadlines and commit to the following:

• Certify that there are no outstanding CARB violations or non-compliance with CARB regulations

associated with the equipment or the owner.

• Agree to equipment inspections.

• Comply with record-keeping, reporting, and Program review or fiscal audit requirements.

• Properly maintain upgraded equipment in good operating condition and according to manufacturer’s

recommendations.

• Demonstrate proof of equipment warranty and insurance on upgraded equipment that covers the

replacement of the equipment.

Program Requirements for RTG Crane Projects:

• Commit to 15 years of 100% California operation in a port, or intermodal railyard, or freight facility

service in the four trade corridors.

• Be permitted to keep the existing diesel engine installed and operational for a limited number of hours

each year and do the following at their own expense: (1) install an hour meter on the existing diesel

engine and (2) provide activity reports when requested by the local agency or CARB, in a format

defined by CARB staff.

• Commit to a maximum limit of diesel engine usage to 30 hours annually based on a rolling 3-year

average.

Page 5 of 11

Commodity Codes

• NAICS 238220Plumbing, Heating, and Air-Conditioning Contractors
• NAICS 811310Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

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