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AB2766 Motor Vehicle Emission Reduction Grants

California Assembly Bill 2766 (AB2766), signed into law in 1990, permits MBARD to allocate a $4.00 per vehicle registration surcharge fee towards grant projects that reduce motor vehicle emissions such as roundabouts, adaptive traffic signal control systems, medium to heavy-duty vehicle electrification and light-duty zero emission vehicle incentives. Funds may also be used for related planning, monitoring, enforcement, and technical studies pursuant to the California Clean Air Act. Funds are available to public and private agencies as well as residents (see EVIP) in Monterey, San Benito and Santa Cruz Counties.

ATTENTION: A list of eligible AB2766 projects for FY2024-25 will be posted below. The specific grant amounts being offered will be announced once our Board of Directors has approved them during the upcoming October 16, 2024 MBARD Board of Directors Meeting. Also, please subscribe to the AB2766 EMAIL LISTS for the latest news and updates.


Since MBARD initiated the AB2766 grant program 34 years ago, the MBARD Board of Directors has authorized $40.4 million to over 613 projects in Monterey, San Benito, and Santa Cruz Counties. The following are current AB2766 motor vehicle emissions reduction programs: Clean Air Management Program, Clean Vehicle Program, and the Electric Vehicle Incentive Program.


These projects are identified as fixed assets for which travel activity data is available to calculate the expected reductions in motor vehicle emissions. Typical projects include roundabout construction, adaptive traffic signal control system installation, and new transit (apply for CVP below if replacing a vehicle).

Projects in this category are scored based on calculated emissions reduced. Applicants must submit travel activity data for the project as indicated in the application attachment, FY 2024-25 Activity Data Spreadsheet. A quantifiable cost-effectiveness (C/E) score for these projects is used to rank projects. C/E is expressed in dollars per ton of pollutant reduced in conjunction with the project’s total annual emission reduction in tons. Maximum funding per project will be $200,000.

Application: AB2766 Clean Air Management Program

AB2766 - Activity Data Spreadsheet.xlsx


Incentivizes public agencies to replace internal combustion engine pool and fleet vehicles with zero-emission, battery-electric vehicles.

  • Light-Duty Vehicles – Recipients must replace an existing public agency fleet vehicle with a new battery-electric vehicle. Projects will not be ranked by C/E or total annual emission reduction, but instead will be awarded on the availability of program funds per individual county allocation. The incentive amount is $20,000.
  • Medium and Heavy-Duty Fleets – All replacement vehicles must be 100% battery electric. Leveraging of other funds outside of the AB2766 program may be used to offset incremental project costs. The incentive amount is up to $200,000.

Application: AB2766 Clean Vehicle Program


Incentivizes residents within Monterey, San Benito, and Santa Cruz Counties to purchase or lease plug-in hybrid, battery-electric, or hydrogen fuel cell vehicles. Go to the Electric Vehicle Incentive Program webpage for additional details and to apply.



FY25 AB2766 Guidelines Policies and Procedures for implementing AB2766 programs.

Carl Moyer Program (CMP) Guidelines - Provides the basis for evaluating applications.

Congestion Mitigation and Air Quality Improvement (CMAQ) Program - Methodology used to analyze emissions reductions and the cost-effectiveness of air quality projects.


FY24-25 Time Table

Staff posts announcement and application packet to District website.May 01, 2024
All applications due no later than 5:00 pm.August 2, 2024
Staff completes scoring and ranking of eligible applications. List of projects posted on MBARD websiteSeptember 30, 2024
Grant award recommendations presented and announced at October 2024 Board meeting.October 16, 2024




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