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Blue Sky Grant Program

The Blue Sky Program solicititation is now closed. The Blue Sky Program will be launching again August 2024.  Eligible projects 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. 

Background Information On 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.

Information on 2023/2024 Program

The Distict will be holding a public workshop on the Blue Sky Grant Program on at 10 AM on Friday September 22, 2023. The District will be hosting the meeting in-person at the District office with an option to attend the meeting virtually or by telephone through Zoom. Please find a copy of the public workshop presentation:


Public Workshop Presentation


Public Workshop Recording:

Passcode: K6Y=@MtU


The Request for Proposals will be open August 23, 2023 to October 16, 2023.  Proposals are due by 5:00 pm on Monday October 16, 2022.  Proposals should be mailed or hand delivered by the deadline to:

Feather River Air Quality Management District

541 Washington Avenue

Yuba City, Ca  95991

The District has $120,000 available in AB 2766 funding and $276,000 available in AB 923 funding.

All projects must be approved by the District Board and have a fully signed and executed contract.

Applications and RFP: 

RFP Blue Sky ProgramAB 2766 Application (Fillable)AB 2766 Application (Printable)AB 923 Application (Fillable)AB923 Application (Printable)

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 Peter Angelonides at or (530) 324-6964.