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Grant Solicitation for the Off-Road Mobile Agricultural Equipment Trade-Up

The California Air Resources Board (CARB or Board) is pleased to announce its Grant Solicitation for the Off-Road Mobile Agricultural Equipment Trade-Up Pilot Project in the San JoaquinValley (Trade-Up Pilot Project).   The solicitation includes the option for a new Grant Agreement for the 2017-18 fiscal year.Funding of up to $3,000,000 for this project was approved by the Board in October 2016 as part of the Fiscal Year (FY) 2016 17 Funding Plan for Low Carbon Transportation Investments and the Air Quality Improvement Program (AQIP).

The Trade-Up Pilot Project is a sequential and necessary step for CARB to assess the feasibility of a new, multi-step type of equipment incentive intended for owners of high emitting mobile agricultural equipment in the San Joaquin Valley Air Basin that may not qualify for existing voluntary incentive funding, and for which new equipment purchases are not practical.

This competitive solicitation is open to California-based public entities.The Grantee (applicant) may subcontract with public, private or California-based non profit organizations.  The Grant Solicitation and all associated documents may be found on CARB's webpage at:

 https://urldefense.proofpoint.com/v2/url?u=http-3A__www.arb.ca.gov_msprog_aqip_solicitations.htm&d=DQIFAw&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=1MXVGHGOlF2n06-rtzaTXgKs83zNL70e0ViEuv6sA_Q&m=FO6kgFjAYaKbHtLvIigu2cGD4aUFx8993jdWjNaxRiQ&s=PD9BqORQJJjCPfbkk8mcVE4_bqCSXj-e_nxmN8t8FFg&e=

Applications are due to CARB by 5:00 p.m. (PST), Friday, April 21, 2017. CARB will hold an Applicant Teleconference to answer questions regarding this Grant Solicitation on Friday, April 14, 2017.  It will provide an opportunity for potential applicants to ask clarifying questions regarding general application requirements.

The Applicant Teleconference will be held on the following date and time:

Date:                          Friday, April 14, 2017

Time:                         10:00 a.m. to 11:30 a.m. (PST)

*Call-in Number:        1-877-934-7128

*Passcode:                56290

*Note: Call-in numbers and passcodes may change.  Should a change occur, the new call-in number and passcode will be listed on CARB's webpage at:

https://urldefense.proofpoint.com/v2/url?u=http-3A__www.arb.ca.gov_msprog_aqip_meetings.htm&d=DQIFAw&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=1MXVGHGOlF2n06-rtzaTXgKs83zNL70e0ViEuv6sA_Q&m=FO6kgFjAYaKbHtLvIigu2cGD

4aUFx8993jdWjNaxRiQ&s=rBqSQPk2RivKMz5Bba0a6MNOj5O2bJkolC4HFpyrLg4&e=

Potential applicants are encouraged to confirm the call-in number and passcode by visiting the listed website prior to each teleconference. Written questions may be emailed to Ms. Erin Uchida at This email address is being protected from spambots. You need JavaScript enabled to view it. by 5:00 p.m. (PST), Thursday, April 13, 2017.  The questions and answers from the Applicant Teleconference and any questions received via email will be posted on the CARB webpage at 

 https://urldefense.proofpoint.com/v2/url?u=https-3A__www.arb.ca.gov_msprog_aqip_solicitations.htm&d=DQIFAw&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=1MXVGHGOlF2n06-rtzaTXgKs83zNL70e0ViEuv6sA_Q&m=FO6kgFjAYaKbHtLvIigu2cGD4aUFx8993jdWjNaxRiQ&s=4cTczzxpPHh08ZvnPH-iAXGV7OVKbBFs784_zOaKTG0&e

CARB will not respond to questions regarding this solicitation after the Applicant Teleconference has taken place.

The grant solicitation and all associated documents may be found on CARB's webpage at:

https://urldefense.proofpoint.com/v2/url?u=http-3A__www.arb.ca.gov_msprog_aqip_solicitations.htm&d=DQIFAw&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=1MXVGHGOlF2n06-rtzaTXgKs83zNL70e0ViEuv6sA_Q&m=FO6kgFjAYaKbHtLvIigu2cGD4aUFx8993jdWjNaxRiQ&s=PD9BqORQJJjCPfbkk8mcVE4_bqCSXj-e_nxmN8t8FFg&e

For more information about Low Carbon Investments and the Air Quality Improvement Program (AQIP), please visit:

https://urldefense.proofpoint.com/v2/url?u=http-3A__www.arb.ca.gov_msprog_aqip_aqip.htm&d=DQIFAw&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=1MXVGHGOlF2n06-rtzaTXgKs83zNL70e0ViEuv6sA_Q&m=FO6kgFjAYaKbHtLvIigu2cGD4aUFx8993j 

dWjNaxRiQ&s=N97Z4Wi5PD2sShk8v_SuPzEvNo9PLYuJwCkg1Vcd8qM&e=

For more information about the Fiscal Year 2016-17 Funding Plan for the Air Quality Improvement Program and Low Carbon Transportation Greenhouse Gas Reduction Fund Investments, please go to:

  https://urldefense.proofpoint.com/v2/url?u=http-3A__www.arb.ca.gov_msprog_aqip_fundplan_fundplan.htm&d=DQIFAw&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=1MXVGHGOlF2n06-rtzaTXgKs83zNL70e0ViEuv6sA_Q&m=FO6kgFjAYaKbHtLvIigu2cGD4aUFx8993jdWjNaxRiQ&s=gRMe-9cIOLNowHEemqkiFO2p60o2cxbJRh8Eiyp3uc0&e

Forklift Fleet Labeling and Reporting Regulation effective June 30, 2017

Initial reporting is required by June 30, 2017.  Fleets acquired after June 30th have 60 days to report.   

In 2006, the California Air Resources Board (ARB) adopted, and later amended in 2010 and 2016, new regulations to reduce emissions from existing fleets operating large spark-ingnited (LSI) engine powered equipment. Only forklifts, floor scrubbers and sweepers, airport ground support equipment (GSE), and industrial tow tractors with LSI engines of 25 horsepower (19 kilowatt) or greater, and greater than 1.0 liter displacement, including electric equipment are subject to the regulation.  

What are the reporting and labeling requirements?

  • Report all equipment subject to a Fleet Average Emission Level (FAEL) beginning June 30, 2017 and until June 30, 2023;
  • Label of each piece of equipment subject to a FAEL beginning June 30, 2017 and until June 30, 2023; and
  • Maintain records until June 30, 2023

Equipment is reported into DOORS. DOORS is an on-line reporting system that has been used for many years by fleets that own and operate diesel off - road equipment.

ARB has expanded DOORS to include a portal for LSI equipment which may be accessed at:

https://ssl.arb.ca.gov/ssldoors/doors_reporting/doors_login.html

If fleets are unable to access the on-line reporting tool, they should contact ARB by phone at 1-877-59-DOORS (1-877-593-6677), or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..


A list of label vendors is available at:

www.arb.ca.gov/msprog/ordiesel/labelvendors.htm .

Click here for more information.   

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THERE COULD BE OTHERS OUT THERE!!!!! Two individuals have been charged for allegedly tricking small trucking companies into paying them for

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KERN DIESEL FUEL CONTAINING UP TO 10 PERCENT RENEWABLE DIESEL

Pursuant to the Federal EPAs Renewable Fuel Standard (RFS2) and the Low Carbon Fuel Standard (LCFS) provisions of Californias AB32, effective on or after November 1, 2017, all CARB No. 2 Diesel Fuel sold at Kern's Bakersfield refinery rack may contain up to 10  percent renewable diesel. Kern's CARB No.2 Diesel Fuel will continue to meet ASTM D-975 specifications. Unlike biodiesel, renewable diesel is considered a drop in fuel that can be blended with conventional CARB diesel and used with existing infrastructure and diesel engines. Furthermore, renewable diesel is not subject to Alternative Diesel Fuel (ADF) reporting and recordkeeping requirements because it meets the definition for CARB diesel.

The FTCs Fuel Rating Rule refers to renewable diesel as biomass-based diesel and requires retailers to label their dispensers of biomass-based diesel blends at and above five percent. For your convenience, Kern will provide these orange labels to all customers who require them.

For more information about renewable diesel, please refer to ARBs website:

https://www.arb.ca.gov/fuels/diesel/altdiesel/07312013_RDjointstatement.pdf

For more information about labeling requirements, please refer to the FTC's Fuel Rating Rule: https://ecfr.io/Title-16/pt16.1.306#se16.1.306_112

and

The California Department of Food & Agriculture, Division of Measurement Standards regulations regarding fuels and lubricants:

https://www.cdfa.ca.gov/dms/programs/publications/BPC/Chapter_14_FuelsandLubricants_13400-13630-REV2017.pdf.

Thank you for your business, as well as your attention to and understanding regarding the above.

Please contact Steve Preheim or Philip Vejarano at 661.845.0761 if you have any questions.

New Tax Rates and Storage Tax Requirement

New Tax Rates and Storage Tax Requirement
for Motor Vehicle and Diesel Fuels

Effective November 1, 2017

The Governor signed Senate Bill (SB) 1 (Stats. 2017, Ch. 5), The Road Repair and Accountability Act of 2017, which increases the excise tax rates on motor vehicle fuel (MVF) and diesel fuel, and the sales and use tax rate on retail sales of diesel fuel effective November 1, 2017. In addition to the fuel tax rate increase, retailers, wholesalers, and suppliers who hold in inventory tax paid MVF or diesel fuel on November 1, 2017, at 12:01 a.m., will need to file a storage tax return and pay a storage tax. The storage tax return and payment is due no later than January 1, 2018.

Tax rates – motor vehicle fuel, diesel fuel, and sales and use tax
The excise tax rate for MVF will increase from $0.297 to $0.417 per gallon (an increase of $0.12 per gallon), the excise tax rate for diesel fuel will increase from $0.16 to $0.36 per gallon (an increase of $0.20 per gallon), and the additional statewide sales and use tax rate imposed on retail sales of diesel fuel will increase from 1.75 percent to 5.75 percent (an increase of 4.00 percent). The tax rates are as follows:

Excise Tax Rates Per Gallon
Type of Fuel Through October 31, 2017 Effective November 1, 2017
Gasoline (Motor vehicle fuel) 29.7 cents ($0.297) 41.7 cents ($0.417)
Aircraft jet fuel1 2 cents ($0.02) 2 cents ($0.02)
Diesel fuel 16 cents ($0.16) 36 cents ($0.36)
Aviation Gasoline1 18 cents ($0.18) 18 cents ($0.18)

1 Excise taxes on aircraft jet fuel and aviation gasoline are not subject to SB 1 rate increase.

Sales and Use Tax Rates
Type of Fuel Prepayment
per Gallon Through
October 31, 2017
Prepayment
per Gallon Effective November 1, 2017
Sales and Use Tax Rates Through October 31, 2017* Sales and Use Tax Rates Effective November 1, 2017*
Gasoline1 (Motor vehicle fuel) 5 cents ($0.05) 5 cents ($0.05) 2.25% 2.25%
Aircraft jet fuel1 8.5 cents ($0.085) 8.5 cents ($0.085) 7.25% 7.25%
Diesel fuel 18 cents ($0.18) 25 cents ($0.25) 9.00% 13.00%
Aviation Gasoline1 Not Applicable Not Applicable Not Applicable Not Applicable

* You must add district taxes where applicable. District tax rates for your area are available on our website at www.cdtfa.ca.gov.
1 SB 1 only increases the sales and use tax rate on retail sales of diesel fuel.

Storage tax requirement – retailers, wholesalers, and suppliers
The storage tax will be due on a per-gallon basis on MVF and diesel fuel that has not been subject to the tax increase. Retailers, wholesalers, and suppliers will be required to file a return and pay the storage tax by January 1, 2018. We will provide additional information about filing the storage tax return in a future notice.

Partial exemption from the sales and use tax rate – diesel fuel sales
There are two types of partial exemptions from the sales and use tax on diesel sales. Below are the sales and use tax rates on diesel fuel sold under an exemption certificate for qualified farming activities and food processing, and for other off-highway uses, including exempt bus operations. These partially exempt rates are not impacted by the SB 1 rate increases:

Type of Activity Partial Sales and Use Tax Rate on Diesel Fuel1 Exempt From Sales and Use Tax Regulation
Qualified Farming Activities and Food Processing 2.25% The State General Fund portion of the sales and use tax rate (10.75%) Regulation 1533.2,
Diesel Fuel Used in Farming Activities or
Food Processing
Off-Highway, including Exempt Bus Operations 7.25% The additional state sales and use tax imposed under RTC 6051.8 and 6201.8 Regulation 1598, Motor Vehicle and Aircraft Fuels

1You must add district taxes where applicable. District tax rates for your area are available on our website at www.cdtfa.ca.gov.

Mid-period sales and use tax rate increase
Fuel retailers will be reporting sales of diesel fuel at two different rates for the fourth quarter 2017. Diesel fuel sales from November 1 through December 31 will be subject to an additional 4 percent tax. Our online filing system will be updated to reflect these changes so that users may allocate sales to the proper periods and report sales at the correct rate.

Reminder – sales tax included diesel fuel prices
In general, the retail sales price of diesel fuel includes sales tax, as well as federal and state excise taxes. Therefore, it is important that you remember to apply the correct sales and use tax rate when calculating the tax collected on sales of diesel fuel sold at retail on or after
November 1, 2017, and when computing and reporting the sales tax included deduction. Additionally, it is important that you remember that the 36 cents per gallon diesel fuel tax (state) is excluded from the gross receipts subject to sales tax. A tax-included price for diesel fuel is computed as follows. Please note, applicable district tax rate(s) would be added in addition to the sales tax rate:

Price per gallon of diesel fuel before state and federal taxes $2.574
Federal excise tax +0.244
Amount subject to sales tax 2.818
Sales tax [$2.818 x 13.0%] 0.366
State diesel fuel excise tax +0.360
Tax-included selling price $3.544

Sales of fuel to Native American Indian retailers on an Indian reservation
As a general reminder, MVF and diesel fuel sold to Native American Indian retailers on an Indian reservation are subject to the state excise tax (MVF tax or diesel fuel tax) and the requirement to collect prepaid sales tax. Current law does not provide an exemption for collecting prepaid sales tax on sales of fuel to an Indian retailer on an Indian reservation. Although sales tax may not apply to retail sales of fuel by Indian retailers, the Indian retailer is generally required to collect use tax on sales of fuel to non-Indians and Indians not residing on a reservation.

For more information
If you have additional questions regarding this notice, you may call our Customer Service Center at 1-800-400-7115 (TTY:711). Customer service representatives are available weekdays from 8:00 a.m. to 5:00 p.m. (Pacific time), except state holidays. For additional resources, please see the Tax Guide for Gas Station Operators on our website at www.cdtfa.ca.gov. You may also view current and previous rates on our website.