County air district outlines 2025 marine vessel grant window, eligibility and priorities

Santa Barbara County Air Pollution Control District staff briefed the Harbor Commission on July 2025 about the agency’s 2025 clean-air grants for marine vessels and urged vessel owners to apply early in the open application window.

Mike McKay, the district’s marine-project lead, told the commission the program supports commercial diesel-powered vessels that operate at least 50% of the time in coastal waters of Santa Barbara, San Luis Obispo and Ventura counties, and that the grants are designed to help owners comply with an existing state commercial-harbor-craft regulation.

McKay said the program opens next Monday and will accept applications for a 40-day window; he said the application period closes Sept. 5. Applications received during the window are reviewed and ranked after the window closes rather than being awarded on a first-come, first-served basis.

He described eligibility and priorities: commercial vessels with diesel engines are the primary focus; priority is given to projects that deliver larger total emission reductions and better cost-effectiveness, and the district also focuses outreach on low‑income and disadvantaged community areas in Santa Barbara County. McKay said the district has given more than $4 million to marine projects over prior years and noted that, in the last five years, the district received 34 marine-project applications, extended 25 grant offers and had 12 acceptances; 13 offers were declined, often because the owner could not justify the remaining out‑of‑pocket cost.

Commissioners sought practical guidance. Commissioner Stedman asked why longer project lives generate larger grants; McKay explained that the grant program ties award amounts to lifetime emission reductions: a longer funded project life multiplies the tons of emissions reduced and raises the allowable grant amount. McKay offered examples: a retrofit or engine replacement project that netted around $57,000 in grant support for a vessel that carried a roughly $140,000 total replacement cost, and said the program has made offers near $80,000 that have been declined because owners chose retirement or withdrawal.

On outreach and equity, McKay said the harbor is in a locally designated low-income community and that marine projects are prioritized because the state regulation imposes compliance dates on affected vessels. He encouraged owners to contact him directly for help with applications and to use the district’s outreach materials; he also said the district has an outreach list of more than 1,100 contacts and is experimenting with in-person outreach venues.

McKay said the total grant pool for 2025 is about $3 million, though historical annual funding has varied — the district has had as much as $4 million in previous years. He noted the district cannot reliably predict funding levels beyond each fiscal year and that applicants should apply when the window is open.

The commission asked staff to post district materials and the compliance-timeframe chart in the waterfront office and to direct vessel owners to the district for specific technical help.