FRAQMD is now accepting Proposals for the Blue Sky Program. Eligible projects for the Blue Sky Program include those that will reduce air pollution from motor vehicles or support the District’s planning, monitoring, or enforcement programs, school bus retrofit and replacements projects, and technical studies necessary to implement the California Clean Air Act.

 The District has approximately $110,000 available as grant funding for AB 2766 eligible projects and $400,000 for AB 923 eligible projects in the Blue Sky Program.

Proposals for this year's program are due by 5:00 PM, Friday October 16, 2026.  The FRAQMD Board of Directors will be selecting projects during the December 7, 2026 meeting.

Please visit our Request for Proposals page for the solicitation timeline, available funding, projects types, and applications.

The District will hold a public workshop on the Blue Sky and CAP Program at 10:00 AM on September 22, 2026 at the District office.  The workshop recording is available here now that the presentation has been completed. Please visit the public workshop page for more info.

Background Information On the Blue Sky Program

The District receives a portion of the annual vehicle registration fees ($4) from the Department of Motor Vehicles through legislation authorized under Assembly Bill 2766 (Sher, 1990). The AB 2766 program provides incentive funding for projects that reduce onroad and offroad motor vehicle pollutant emissions (mainly oxides of nitrogen (NOx) and to a lesser extent particulate matter (PM10). 

Examples of successful projects may include:

• Awarding the difference in cost of replacing (repowering) an old dirty diesel engine with a new zero emission or alternative fueled engine.
• Projects that reduce vehicle trips and vehicle miles traveled (VMT) such as bicycle lanes, vanpools, shuttles and transit buses and associated infrastructure.
• New alternative fueled vehicles including natural gas powered school buses, street sweepers, and transit buses.
• Educational programs designed to educate the general public about mobile source emission reduction strategies.
• Liquefied and compressed natural gas or electric vehicle infrastructure projects.

Funding may also be allocated for District related programs, including land use and transportation planning, monitoring, enforcement, and technical studies necessary for implementation of the California Clean Air Act.

Section 44225 of the Health and Safety Code (AB 923), amended in 2004, authorized the District to increase the motor vehicle registration fee to $6 per vehicle.  The District Board of Directors approved the fee increase in December 2005.  The fee increase provides funding for specific project types, which include:

• New purchase of school bus pursuant to the Lower Emission School Bus Guidelines developed by the Air Resources Board.
• Natural gas fuel tank replacements.
• Refueling infrastructure maintenance.
• Voluntary Accelerated Vehicle Retirement Program.

Resources for Blue Sky Applications

AB 2766

Air Resources Board 1998 Criteria and Guidelines for the Use of Motor Vehicle Registration Fees: The Guidelines document contains the Criteria and Guidelines for the AB 2766 program.  Appendix A contains examples of successful projects. Appendix B contains motor vehicle registration fee statutes. 

• IMPORTANT: Use the "load factors" found in the "Carl Moyer Program Guidelines" below, when performing calculations (or contact the District for assistance). The Moyer load factors are more current.

Methodologies found in the CARB Carl Moyer Program Guidelines may also be used for cost-effectiveness evaluations.

AB 923

AB 923 projects should utilize the Lower Emission School Bus Program Guidelines or the Carl Moyer Program Guidelines.

For more information please contact the District at grants@fraqmd.org or (530) 634-7659 ext 209.