Chapter 15.5Vanpool Financing

Section § 2570

Explanation

This section defines key terms related to vanpool programs. A 'vanpool operator' is anyone who applies and is approved for financial assistance under these rules. A 'vanpool vehicle' refers to a motor vehicle designed to carry between 7 and 15 people, including the driver, primarily for shared rides to work. The 'useful life' of such a vehicle is defined as either reaching 100,000 miles and being four years old or reaching 200,000 miles, regardless of its age.

For purposes of this chapter, the following terms have the meanings given in this section:
(a)CA Streets and Highways Code § 2570(a) “Vanpool operator” means any person who files an application and who is approved for a loan or grant under this chapter.
(b)CA Streets and Highways Code § 2570(b) “Vanpool vehicle” means, notwithstanding any other provision of law, a motor vehicle designed for carrying more than six but less than 16 persons, including the driver, which is maintained and used primarily for the work-related transportation of adults for the purpose of ridesharing.
(c)CA Streets and Highways Code § 2570(c) “Useful life,” with respect to a vanpool vehicle, means either 100,000 miles and four years old or 200,000 miles without regard to age.
vanpool operator vanpool vehicle ridesharing loan approval grant approval work-related transportation useful life vehicle mileage vehicle age requirements transportation grants commuter vehicles shared transportation mileage criteria ridesharing vehicles application for loans
(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2571

Explanation

The Ridesharing Vanpool Revolving Loan and Grant Fund is a special fund created to support vanpool operators by providing them with loans and grants. The money in this fund is managed by a designated department and is always available for this purpose, regardless of specific fiscal year budgets.

The Ridesharing Vanpool Revolving Loan and Grant Fund is hereby created in the State Treasury. The fund shall be administered by the department for purposes of making loans and grants to vanpool operators. Notwithstanding Section 13340 of the Government Code, all money in the fund is continuously appropriated, without regard to fiscal years, to the department to carry out the purposes of this chapter.
Ridesharing Vanpool Fund loans to vanpool operators grants for vanpool operators fund administration Department of Transportation funding continuous appropriation fiscal year independence vanpool support state treasury fund financial assistance for vanpools
(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2572

Explanation

This law states that anyone can apply for a loan from the department to buy a vanpool vehicle to operate as a vanpool operator. The department keeps ownership of the vehicle until the loan is fully paid off. The repayment period cannot be longer than the vehicle's useful life. After the loan is paid in full, ownership of the vehicle is transferred to the vanpool operator.

Any person may submit an application to the department for a loan from the fund to purchase a vanpool vehicle for operation by the person as a vanpool operator. Title to the vehicle shall be retained by the department until the loan is repaid in full. The loan shall be repaid over a period of time not to exceed the vehicle’s useful life. Once the loan is repaid in full, title to the vehicle shall be transferred to the vanpool operator.
vanpool vehicle loan vanpool operator application vehicle title retention loan repayment terms useful life of vehicle title transfer process department ownership purchase vanpool vehicle loan repayment period vehicle loan application vanpool operation loan fund for vanpools
(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2573

Explanation

This law states that when the department makes loans, it must charge an interest rate that helps maintain the fund balance and also covers the department's administrative costs for managing these loans.

The department shall charge a rate of interest for loans made under this chapter reasonably calculated to ultimately keep the fund at a constant level and in addition recover the administrative costs incurred by the department under this chapter.
interest rate loans fund balance administrative costs department charges loan management financial sustainability fund maintenance interest calculation recover costs fund level loan interest department expenses administration fees financial management
(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2574

Explanation

This law establishes that a vanpool grant program will be managed by the department. It specifies that with the funds given to them, the department will provide financial grants to approved vanpool operators to help them buy or lease vehicles for their vanpool services.

The vanpool grant program shall be administered by the department. From funds appropriated to the department for the purpose, the department shall make grants to persons approved as vanpool operators for the purchase or lease of vanpool vehicles.
vanpool grant program vanpool operators purchase or lease vehicles department administration funds appropriation vehicle grants transportation grants approved operators vanpool services financial assistance vehicle leasing vehicle purchasing grant allocation transport support mobility assistance
(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2575

Explanation

This law allows individuals to apply for a grant covering up to 70% of the cost to buy or lease a new vanpool vehicle. If a vanpool operator gets such a grant, they must use the vehicle specifically for vanpooling during its effective lifespan. If they fail to do this, they will lose the grant and must return the vehicle and their investment in it. The department keeps ownership of the vanpool vehicle until it is no longer usable, at which point the ownership is transferred to the operator.

(a)CA Streets and Highways Code § 2575(a) Any person may submit an application to the department for a grant of not more than 70 percent of the cost to purchase or lease a new vanpool vehicle or vehicles.
(b)CA Streets and Highways Code § 2575(b) A vanpool operator who receives a purchase grant shall operate the vanpool vehicle as a vanpool for the useful life of the vehicle. The vanpool operator’s failure to do so shall result in a forfeiture of the grant, the return of the vanpool vehicle to the department, and forfeiture of the operator’s contribution toward the purchase price of the vehicle.
(c)CA Streets and Highways Code § 2575(c) Title to the vanpool vehicle shall be retained by the department until the expiration of the vehicle’s useful life. Once the vanpool vehicle’s useful life has been reached, title to the vehicle shall be transferred to the vanpool operator.
vanpool vehicle grant vehicle lease purchase grant vanpool operator obligations useful life of vehicle grant forfeiture vehicle title transfer department ownership vanpooling requirements vehicle return funding application operator contribution forfeiture transportation grants vanpool program vehicle purchase assistance
(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2576

Explanation

This law states that if a vanpool operator gets a vehicle through a lease grant, they must keep using it as a vanpool for the entire lease period. If they don't, they lose all their rights to the vehicle, must return it, and lose any money they contributed toward leasing it.

A vanpool operator who receives a lease grant shall operate the vanpool vehicle as a vanpool for the duration of the lease. The vanpool operator’s failure to do so shall result in a forfeiture of all rights under the lease, the return of the vanpool vehicle to the lessor, and forfeiture of the operator’s contribution toward the lease of the vehicle.
vanpool operator lease grant vanpool vehicle lease duration forfeiture of rights vehicle return lessor operator's contribution lease compliance vanpool operation requirements vehicle lease agreement non-compliance consequences vanpool usage obligation lease terms enforcement vanpool leasing
(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2577

Explanation

Any money that the department collects under this chapter must go into the Ridesharing Vanpool Revolving Loan and Grant Fund.

All money received by the department under this chapter shall be deposited in the Ridesharing Vanpool Revolving Loan and Grant Fund.
Ridesharing Vanpool Revolving Loan Grant Fund transportation funding department deposits money allocation fund management rideshare program vehicle sharing financial management public transport initiatives department revenue funding allocation
(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2578

Explanation

This law outlines the California Department of Transportation's guidelines for providing loans, purchasing, and leasing vanpool vehicles. It gives priority to vanpools on routes without alternative public transit, new vanpool vehicles, operators with successful experiences, and those replacing older vehicles with high mileage. All recipients need to meet specific safety and insurance requirements. The guidelines specify restrictions on non-work use and the maximum loan coverage for a vanpool vehicle's cost. The standard governmental rule-making procedures don't apply to these guidelines.

(a)CA Streets and Highways Code § 2578(a) The department shall adopt guidelines for the making of loans and for the purchase and lease of vanpool vehicles. The guidelines shall, in the case of loans, include, but not be limited to, a procedure to evaluate the vanpool operator’s ability to repay the loan in a timely fashion, as well as the need for the vanpool vehicle and other criteria for selecting applicants. The department shall assign priority in the following descending order:
(1)CA Streets and Highways Code § 2578(a)(1) Vanpools operating on routes with no alternative public transportation.
(2)CA Streets and Highways Code § 2578(a)(2) Vanpool operators applying for loans or grants for new vanpool vehicles.
(3)CA Streets and Highways Code § 2578(a)(3) Applicants having previous successful experience as vanpool operators.
(4)CA Streets and Highways Code § 2578(a)(4) Vanpool operators applying for loans or grants for replacement vanpool vehicles. For purposes of this paragraph, the vanpool vehicle to be replaced shall be at least four years old or have operated 250,000 or more miles, or both.
(b)CA Streets and Highways Code § 2578(b) Concurrently with the award of each loan or grant, the department shall require each applicant to comply with subdivision (h) of Section 12804 of the Vehicle Code and Section 34509 of the Vehicle Code, and the insurance coverage requirements of the department. The guidelines shall also set forth the limitations on the nonwork-trip use of the vanpool vehicle, the maximum percentage of the cost of a vanpool vehicle which may be covered by a loan or grant under this chapter, and other requirements determined to be necessary by the department.
(c)CA Streets and Highways Code § 2578(c) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the adoption of the guidelines.
vanpool vehicle loans vanpool vehicle purchase vanpool vehicle lease priority criteria public transportation alternatives vanpool operator evaluation replacement vanpool vehicles vehicle age and mileage safety compliance insurance coverage requirements nonwork-trip limitations loan coverage percentage
(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2579

Explanation
If you operate a vanpool and receive a grant from this specific California chapter, you can't also claim a state income tax deduction or credit for vanpooling.
A vanpool operator is not eligible for any California income tax deduction or credit applicable to vanpooling with respect to the amount of any grant under this chapter.
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(Added by Stats. 1989, Ch. 799, Sec. 2. Effective September 26, 1989.)

Section § 2580

Explanation

The Department of Transportation in California can lend money to state agencies so they can buy vehicles for vanpooling, specifically for state employees. These vehicles should be low-emission or use alternative fuels like electricity or natural gas, meeting the state's emission standards.

Guidelines will be set for what vehicles can be bought and where they can be used. Agencies need to apply for these loans and, if approved, they must handle the vehicle's maintenance, comply with laws, and manage rideshare programs. They must also charge employees using the vanpool enough fees to cover loan repayments and upkeep.

Funds for these loans come from the state budget, and agencies must keep records to show their vanpool programs pay for themselves.

(a)CA Streets and Highways Code § 2580(a) The Department of Transportation may make loans to other state agencies for the purpose of purchasing vanpool vehicles, as defined by subdivision (b) of Section 2570, for state employee vanpooling. The purchased vehicles, to the extent practicable, shall be either “low-emission vehicles,” as defined by Section 39037.05 of the Health and Safety Code, or “alternative fuel vehicles,” which are either of the following:
(1)CA Streets and Highways Code § 2580(a)(1) An original equipment manufactured vehicle capable of operating on a nonpetroleum-based alternative fuel such as electricity, ethanol, hydrogen, liquefied petroleum gas, methanol, or natural gas and that has demonstrated to the satisfaction of the State Air Resources Board the ability to meet applicable California emission standards.
(2)CA Streets and Highways Code § 2580(a)(2) A vehicle that has been converted to use a nonpetroleum-based alternative fuel such as electricity, ethanol, hydrogen, liquefied petroleum gas, methanol, or natural gas through the installation of an alternative fuel retrofit system that has been certified by the State Air Resources Board.
(b)CA Streets and Highways Code § 2580(b) The department shall establish criteria and adopt guidelines for making the loans and for the purchase of vanpool vehicles, including, but not limited to, requirements on the type of vehicles authorized for purchase, areas within the state eligible for the vehicles’ operation, types of routes for the vehicles’ operation, and agencies which are authorized to participate in the program. State agencies may submit loan applications to the department for approval. State agencies receiving loans and purchasing vehicles pursuant to this section shall be responsible for all of the following:
(1)CA Streets and Highways Code § 2580(b)(1) Operational responsibilities for the vehicles, including, but not limited to, vehicle maintenance and repair.
(2)CA Streets and Highways Code § 2580(b)(2) Administration of departmental rideshare programs, including, but not limited to, ridership development and retention.
(3)CA Streets and Highways Code § 2580(b)(3) Compliance with applicable state and federal laws and regulations, including driver and vehicle certification, licenses, and vehicle registration.
(4)CA Streets and Highways Code § 2580(b)(4) Retaining title to vanpool vehicles purchased.
(5)CA Streets and Highways Code § 2580(b)(5) Repayment of the loan for the purchase of the vanpool vehicle.
(c)CA Streets and Highways Code § 2580(c) An agency which receives a loan for the purchase of a vanpool vehicle pursuant to this section shall charge each employee participating in the vanpooling program a monthly fee in an amount determined by the agency. Proceeds of the fees shall be sufficient to fully reimburse the agency for repayment of the loan and for the operational cost of the vanpool vehicle. The operational cost includes, at a minimum, fuel, maintenance, and repairs. The agency shall maintain records to demonstrate that the vanpooling program which it operates is self-supporting.
(d)CA Streets and Highways Code § 2580(d) Funds for loans for purposes of this section shall be provided in the annual Budget Act.
vanpool vehicles state employee vanpooling low-emission vehicles alternative fuel vehicles Department of Transportation loans ridematching programs vehicle maintenance requirements emission standards compliance alternative fuel retrofit loan application guidelines monthly fee for vanpooling self-supporting vanpool programs fuel and maintenance costs Budget Act funding vehicle operational costs
(Added by Stats. 1992, Ch. 830, Sec. 1. Effective January 1, 1993.)