(a)

1. (1) Upon appropriation by the Legislature from the funds made available by paragraph (2) of subdivision (c) of Section 8879.23 of the Government Code, the state board shall allocate funds on a competitive basis for projects that are shown to achieve the greatest emission reductions from each emission source identified in subdivision (c) of Section 39625.1, not otherwise required by law or regulation, from activities related to the movement of freight along California’s trade corridors, commencing at the state’s airports, seaports, and land ports of entry.

2. (2) Projects eligible for funding pursuant to paragraph (1) shall include, but are not limited to, the following:

   1. (A) The replacement, repower, or retrofit of heavy-duty diesel trucks.
   2. (B) The replacement, repower, or retrofit of diesel locomotive engines, with priority given to switching locomotive engines, provided that before any project is authorized for a locomotive engine operated and controlled by a railroad company that has entered into a memorandum of understanding or any other agreement with a state or federal agency, a local air quality management district, or a local air pollution control district, including, but not limited to, the ARB/Railroad Statewide Agreement Particulate Emissions Reductions Program at California Rail Yards, dated June 2005, the state board shall determine that the emission reductions that would be achieved by the locomotive engine are not necessary to satisfy any mandated emission reduction requirement under any such agreement.
   3. (C) The replacement, repower, or retrofit of harbor craft that operates at the state’s seaports.
   4. (D) The provision of on-shore electrical power for ocean freight carriers calling at the state’s seaports to reduce the use of auxiliary and main engine ship power.
   5. (E) Mobile or portable shoreside distributed power generation projects that eliminate the need to use the electricity grid.
   6. (F) The replacement, repower, or retrofit of cargo handling equipment that operates at the state’s seaports and rail yards.
   7. (G) Electrification infrastructure to reduce engine idling and use of internal combustion auxiliary power systems at truck stops, intermodal facilities, distribution centers, and other places where trucks congregate.

(b)

1. (1) The state board shall allocate funds in a manner that gives priority to emission reduction projects that achieve the earliest possible reduction of health risk in communities with the highest health risks from goods movement facilities.

2. (2) In evaluating which projects to fund, the state board shall at a minimum consider all of the following criteria:

   1. (A) The magnitude of the emission reduction.
   2. (B) The public health benefits of the emission reduction.
   3. (C) The cost-effectiveness and sustainability of the emissions reductions.
   4. (D) The severity and magnitude of the emission source’s contributions to emissions.
   5. (E) Regulatory and State Implementation Plan requirements, and the degree of surplus emissions to be reduced.
   6. (F) The reduction in greenhouse gases, consistent with and supportive of emission reduction goals, consistent with existing law.
   7. (G) The extent to which advanced emission reduction technologies are to be used.
   8. (H) The degree to which funds are leveraged from other sources.
   9. (I) The degree to which the project reduces air pollutants or air contaminants in furtherance of achieving state and federal ambient air quality standards and reducing toxic air contaminants.
   10. (J) The total emission reductions a project would achieve over its lifetime per state dollar invested.
   11. (K) Whether an emissions reduction is likely to occur in a location where emissions sources in the area expose individuals and population groups to elevated emissions that result in adverse health effects and contribute to cumulative human exposures to pollution.