California ARB seeking Grantee to administer pilot project for enabling disadvantaged communities to purchase advanced tech vehicles
The California Air Resources Board (ARB or Board) is soliciting Grantee(s) to administer the Light-Duty Financing Assistance Pilot Project in Disadvantaged Communities. Funding of up to $1.5 million for this project is provided by Low Carbon Transportation Investments, which is funded from the Greenhouse Gas Reduction Fund.
The Financing Assistance Pilot Project is one project in the Fiscal Year 2014-15 Air Quality Improvement Program and Low Carbon Transportation Greenhouse Gas Reduction Fund Investments.
The purpose of the Financing Assistance Pilot Project is to provide financial assistance opportunities to enable lower income consumers residing in designated disadvantaged communities the ability to purchase or lease advanced technology vehicles which will result in immediate greenhouse gas and criteria pollutant emissions benefits.
In addition, this will enable consumers in those communities the ability to become more comfortable and familiar with advanced technologies vehicles.
Examples of financial project types or programs:
Loan loss reserve account at a lending institution issuing loans: a specific account at a lending institution in which funds are reserved (set aside) to cover loan losses. The lender is liable for any defaults on loans that it enrolls, but all or a portion of those losses are reimbursable through a loan loss reserve account, which is funded through a percentage of the initial loan amount of each enrolled advanced technology vehicle loan.
Price buy-down through a non-profit organization program already lending to lower income consumers, where the consumer is purchasing an advanced technology vehicle instead of a conventional gasoline vehicle. Price buy-down would offset the difference in additional costs the lower income consumer selecting an advanced technology vehicle would incur instead of a conventional gas vehicle. The price buy-down would also keep the loan amount at what the non-profit organization program typically lends.
Direct consumer loans where an existing program is already lending to lower income consumers in disadvantaged communities to loan funds for the purchase or lease of advanced technology vehicles.
Other financing enhancements or models such as interest rate buy-down, or other financial mechanisms that will facilitate a lower income consumer to purchase or lease an advanced technology vehicle.
The solicitation is open to federal, state or local government entities, non-profit organizations, and organizations or companies with expertise implementing financial assistance programs.