March 7, 2024
Mr. Wayne Nastri
Executive Officer
South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, California 91765
wnastri@aqmd.gov
Dear Mr. Nastri:
Thank you for your response to the Fiscal Year (FY) 2021-22 and FY 2022-23 Advanced Technology Demonstration and Pilot Projects Solicitation (Solicitation). The South Coast Air Quality Management District (District) and the project partners submitted a well-crafted proposal that meets the objectives and goals of the Solicitation. This project will convert three ferries currently powered by tier 2 diesel engines to battery electric motors and install
the corresponding infrastructure to facilitate charging of the boats. A workforce development and training component through an apprenticeship program in marine electrification will be administered by Green Yachts, in collaboration with the Canal Alliance and Santa Rosa Junior College. The zero-emission ferries will transport passengers and vehicles between Balboa Island and the Balboa Peninsula in Newport Beach and provide
reduction of greenhouse gas and criteria pollutant emissions in the region.
California Air Resources Board (CARB) is pleased to preliminarily offer a grant award in the amount of $8,297,548 to implement the project with the commitment of $4,676,010 in match contributions. This preliminary award is to the District for its project milestones/tasks as included in the Electrification of Balboa Island Ferries and Installation of Supporting Charging Infrastructure application.
Before the project’s grant agreement can be executed there are a few items that need to be resolved:
- Provide the District letter of commitment in the amount of $250,000.
- Update the table on page 37 of the application titled “Balboa Island Ferry Zero Emission Conversion” to reflect the $250,000 from the District.
- Obtain Clean Off-Road Equipment Voucher Incentive Project (CORE) approval for Balboa Island Ferry in the amount of $2,090,055 or greater.
- Proceed with the California Environmental Quality Act (CEQA) process, providing the State Clearinghouse number and the final CEQA determination.
- Provide updated budget amounts. In Table 3, Project Milestones, Deliverables, and Allocation Disbursements of the application, the ATTDP Disbursement column and Other Funding column totals are both incorrect by $1. The correct total for ATTDP Disbursement is $7,914,396. The correct total for Other Funding is $4,426,010. The incorrect amounts need to be corrected here and throughout the document.
- Provide updated milestone dates and define the Compliance Monitoring and Performance Testing period for the three funded boats.
- Provide milestones, deliverables, and disbursements for the workforce development and training components of the project.
CARB’s grant agreement can be executed between CARB and the District in advance of the District’s execution of a grant agreement with the California Energy Commission. CARB will not reimburse the grantee or project participants for any costs incurred before the execution of the CARB Grant Agreement. However, costs incurred by the District after the issuance of this preliminary award letter and before the execution of the grant agreement
can be counted toward the project’s in-kind match requirement.
If you have any questions or need further clarification, please contact Ms. Gretchen Ratliff, Air Pollution Specialist, by email at Gretchen.Ratliff@arb.ca.gov .
Sincerely,
