Funding & Incentives

On behalf of our dedicated stakeholders, we have identified the following federal, state, and local incentive programs that are currently available to assist fleet operators in the deployment of natural gas vehicles and infrastructure development. As the landscape of funding opportunities for these types of projects is ever-changing in California, please contact us at funding@cngvp.org for more information on how to apply for and potentially receive grant awards.

Program Name Funding Agency Total Funding Avaliable Per Vehicle Funding Incentives Application Deadline Additional Details
2025 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant Program Office of the Secretary, U.S. Department of Transportation (DOT) $1.5 billion; set aside is reserved for Highly Rated applications submitted but not selected under FY 2024 solicitation. The remainder will fund newly submitted proposals. Not applicable. January 30, 2025. None
2025 Rural Business Development Grants U.S. Department of Agriculture $37,000,000 No maximum established Complete applications may be submitted in paper or electronic format and must be received by 4:30 p.m. local time on February 28, 2025, in the United States Department of Agriculture (USDA) Rural Development (RD) State Office. Not applicable.
Alternative Fuel Excise Tax Credit Treasury Department, Internal Revenue Service No maximum established. Not applicable. Expires December 31, 2024; Credit will be superseded by the Clean Fuel Production Credit (Sec. 45Z) Not applicable.
Alternative Fuel Vehicle Refueling Property Credit (Sec. 30C) Treasury Department, Internal Revenue Service Not applicable. Not applicable. Credit expires December 31, 2032 Not applicable.
BAAQMD Carl Moyer Memorial Air Quality Standards Attainment Program Year 25 (Carl Moyer Program/Community Health Protection Program/FARMER) Bay Area Air Quality Management District (BAAQMD) $90,000,000 with up to $10,000,000 set aside for agriculture equipment projects and up to $8,000,000 set aside for locomotive projects sponsored by public agencies. Up to 100%. Funding limits vary depending on project, existing equipment, and technology type. Refer to the Carl Moyer guidelines for full details. February 6, 2025 until 5:00 PM PST Yes, the old vehicle/engine/equipment must be destroyed within 60 days of receiving new equipment and before a payment to the grantee is issued for the new vehicle/ engine/ equipment. School buses can be powered by an engine with any engine model year. A transit bus must be powered by an engine with a model year that is 6 or more years of age prior to the current calendar year.
Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program (9003) U.S. Department of Agriculture Pending agency intelligence. Not applicable. Phase 2 applications are due by December 31, 2024 (extended from October 1, 2024). Letters of Intent were previously due September 2, 2024 by 4:30 pm ET. Full applications were due October 1, 2024 by 4:30 pm ET. Not applicable
California VW 2024 Combustion Freight and Marine Projects and Zero Emission Class 8 Freight and Port Drayage Trucks categories California Air Resources Board (CARB), administered by South Coast Air Quality Management District (SCAQMD) $109,300,000 $240,000 The solicitation is first-come, first-served; however, the Project Administrator will prioritize marine and rail projects for the Combustion Freight and Marine category. Scrappage is required. Trucks engine model years 1992 to 2012 that are compliant with current regulations at the time of application are eligible for replacement. For freight switcher locomotives pre-Tier 4 equipment are eligible for replacement. For ferries, tugboats, and towboats pre-Tier 4 equipment are eligible for replacement.
Capital Construction Fund (CCF) Maritime Administration, Department of Transportation Pending agency intelligence 100% tax deferral No due date; ongoing interest-free loan program from the government Pending agency intelligence
Capital Investment Grants Department of Transportation, Federal Transit Administration $23 billion over five (5) fiscal years Not applicable Proposed projects must go through a multi-year, multi-step development process to be considered for funding: https://www.transit.dot.gov/funding/grant-programs/capital-investments/how-apply Not applicable
CARB Supplemental Environmental Projects- 2024 California Air Resources Board Approximately $4 million is made available each year. No maximum established Ongoing program None specified
CCAPCD Carl Moyer Program 2025 Colusa County Air Pollution Control District (CCAPCD) $200,000 Not applicable May 31, 2025 Yes for equipment
Climate Catalyst Revolving Loan Fund Governor’s Office of Planning and Research $250,000,000 Up to $5,000,000 First-come, first-served Not applicable.
Community Facilities Direct Loans and Grants U.S. Department of Agriculture Varies by year; approximately $4 million annually. No maximum established Accepting applications on an on-going basis. Not applicable.
Construction Reserve Fund (CRF) Maritime Administration, Department of Transportation Pending agency intelligence 100% tax deferral No due date; ongoing tax deferral program Pending agency intelligence
EDCAQMD Carl Moyer Grant Program 2023 El Dorado County Air Quality Management District (EDCAQMD) “No real answer.” $300K to $700K. The District also must contribute an approx. 15% match to the allotted funds from the state. UP to 50-80% of vehicle cost First-come, first-served. Scrappage is required.
EDCAQMD Carl Moyer Infrastructure Projects 2023 El Dorado County Air Quality Management District (EDCAQMD) “No real answer.” $300K to $700K. The District also must contribute an approx. 15% match to the allotted funds from the state. Not applicable. First-come, first-served; Competitive. Not applicable.
EKAPCD Carl Moyer Program Eastern Kern Air Pollution Control District (EKAPCD) $1.5 M; (as of 4/10/24, ~$600k; as of 9/17/24, substantial portion remains available); (pooled together with LESBP & MCAP) 80% of vehicle cost for fleets with ten or fewer vehicles; 50% of vehicle cost for larger fleets, except for emergency vehicles. Open on an ongoing basis until funds are expired Yes, scrappage is required.
EKAPCD DMV Grant Program 2025 Eastern Kern County Air Pollution Control District (EKAPCD) $250,000 Not applicable. February 28, 2025 by 5:00 p.m. Not applicable
EKAPCD Lower-Emission School Bus Program (LESBP) – Replacements 2023 Eastern Kern Air Pollution Control District (EKAPCD) Approximately $1,500,000 (as of 4/10/24, $600k; as of 9/17/24, substantial portion remains available) (pooled together with Moyer & MCAP) Diesel to diesel replacement $110,000; Diesel to electric replacements up to $400,000 50-80% of the cost First-come, first-served 1986 or older; CHP safety certification as of 12/31/2005+; 14,000+ GVWR; registered with DMV
EKAPCD ZEV Rebate Program 2024 Eastern Kern County Air Pollution Control District (EKAPCD) $150,000 Up to $4,000, not exceeding 25% of total cost First-come, first served Scrappage not required
Energy Efficiency and Conservation Block Grant Program (EECBG) Department of Energy (DOE) $550,000,000 No specific limitation. Full applications for local governments are due by October 31, 2024 at 5:00 PM EST. Full applications for tribes are due by May 31, 2025 at 5:00 PM EST. Not applicable
EPA Clean School Bus Program (2024 Rebates) Environmental Protection Agency (EPA) $965,000,000 for FY24. The EPA expects to award 60% of funds to prioritized applicants. Up to $325,000 (Bus + Charging Infrastructure) January 9, 2025, by 4pm ET. 2010 or older diesel-powered class 3 – 8 school buses. Applicants requesting a zero-emission school bus that do not have an eligible bus to scrap, may scrap a 2010 or older non-diesel internal combustion engine bus or may scrap, sell, or donate a 2011 or newer internal combustion engine bus.
FY2024 Voluntary Airport Low Emission Program Airport Improvement Program Federal Aviation Administration (FAA) $10,000,000 90% of eligible costs Pre-applications were due annually on November 1st by 5pm for AIP; PFC applications may be submitted at anytime . Equipment being replaced must be relocated to an area that does not have air quality issues (i.e. not a EPA non-attainment or maintenance area) or scrapped.
FY2025 Port Infrastructure Development Program (PIDP) Maritime Administration (MARAD), Department of Transportation (DOT) $450,000,000 Up to 80% of vehicle/equipment costs Applications due April 30, 2025, by 11:59 p.m. EDT None.
FY24-25 Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation (PROTECT) Discretionary Program Federal Highway Administration (DOT) Up to $576 million for FY 24-25; $876 million across two application periods, FY 24-25 and FY 26. Not applicable Applications due February 24th, 2025 11:59pm Not applicable
Innovative Clean Energy Solicitation U.S. Department of Energy $4.5 billion Not applicable September 30, 2026 by 5pm ET None
Public Works and Economic Adjustment Assistance Programs U.S. Department of Commerce Economic Development Administration Approx. $217,000,000 No maximum established; vehicle funding must be in concert with infrastructure and/or workforce development. First-come, first-served Not applicable
Renewable Fuel Standard Program (RFS) and Renewable Identification Numbers (RINs) Environmental Protection Agency (EPA) No maximum is established Not applicable Open on a rolling basis; renewable identification numbers (RINs) may be carried forward to the next compliance year (March 31st deadline). None
San Joaquin – Public Benefit Grants Program – New Alternative Fuel Vehicle Purchase San Joaquin Valley Air Pollution Control District $5,000,000 for FY 24/25 $20,000 First-come, first-served. None
San Pedro Bay Ports Technology Advancement Program Ports of Los Angeles and Long Beach $3 million ($1.5 million from each Port annually) Up to 50% of costs Concept papers are being considered on a first-come, first-served basis. Some applicants will be invited to submit full applications. Not applicable.
SCAPCD Community Air Protection (CAP) Program 2023 Siskiyou County Air Pollution Control District (SCAPCD) Pending agency intelligence. (Previously $120,420.14) Pending agency intelligence. Ongoing Required for replacement projects.
SCAQMD Clean Fuels Program-Unsolicited Proposals South Coast Air Quality Management District Approximately $8 million in funds is available annually. Up to 40-45% of project costs First-come, first-served None
SCAQMD Proposition 1B – 2024 Goods Movement Emission Reduction Program South Coast Air Quality Management District $50 million Not applicable Program has been extended till South Coast AQMD fully obligates remaining Prop 1B funds. Yes, scrap the old diesel engine/locomotive or ban old engine/locomotive from California operation (replacements and retrofits involving engine replacement).
SJVAPCD Truck Replacement Program San Joaquin Valley Air Pollution Control District Over $14,000,000 for FY 24/25. Still sufficient funding available as of 9/18/24. 80% of vehicle costs for fleets of 10 or less; 50% for fleets of more than 10. First-come, first-served Yes, scrappage of vehicle with engine model year that is 6 or more years of age prior to the current calendar year. For 2024, engine model years 2010-2018 are eligible.
SLO County APCD Clean Air Incentive: Community Air Protection (CAP) Alt Fuel Infrastructure Grant Program 2023 San Luis Obispo Air Pollution Control District (SLOAPCD) $796,000 ($760,000 as of 1/25/24) Not applicable First-come, first-served until funding expires. Not applicable
Solid Waste Infrastructure for Recycling (SWIFR) Grant Program – Tribes and Intertribal Consortia 2024 Environmental Protection Agency (EPA) $275,000,000 from FY22-FY26; $20,000,000 available for FY24. The EPA anticipates awarding approximately 20 assistance agreements, with at least one award per EPA Region. Up to 100% of costs March 14, 2025, by 11:59pm EST. Awards are anticipated to be selected September 2025 and distributed March 2026. Not applicable.
Sustainable Aviation Fuel Credit (Sec. 40B) Treasury Department, Internal Revenue Service Not applicable. Not applicable. SAF credit is effective for certain fuel mixtures containing sustainable aviation fuel sold or used after December 31, 2022, and prior to January 1, 2025. Not applicable.
Transportation Infrastructure Finance and Innovation Act Build Bureau, U.S. Department of Transportation (DOT) $1.25 billion over four (4) years. Up to $75 billion in lending capacity Under development Accepted on a rolling basis None
Unsolicited Department of Energy Proposal Department of Energy (DOE) and National Energy Technology Laboratory (NETL) No maximum established Not applicable Open on an ongoing basis Not applicable
VCAPCD Clean Air Fund 2024 Ventura County Air Pollution Control District (VCAPCD) $100,000 Pending agency intelligence First-come, first-served. Pending agency intelligence
VCAPCD School Bus CNG Tank Replacement Incentive Program Ventura County Air Pollution Control District (VCAPCD) $2 million – $6 million Not applicable First-come, first-served. Not applicable