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
Advanced Technology Vehicles Manufacturing Loan Program U.S. Department of Energy $3 billion Not applicable September 30, 2028 by 5pm ET None
Alternative Fuel Excise Tax Credit Treasury Department, Internal Revenue Service No maximum established Not applicable. Expires December 31, 2024 None
Alternative Fuel Vehicle Refueling Property Credit (Sec. 30C) Treasury Department, Internal Revenue Service Not applicable Not applicable Expires in December 31, 2032 None
AVAQMD Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program) Antelope Valley Air Quality Management District $700,000 annually 80% of vehicle costs for fleets of 10 or less; 50% for fleets of more than 10. Open on an ongoing basis Yes, vehicle model year 2010 – 2017 engine must be scrapped for onroad projects.
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 FCFS 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. Not applicable Ongoing program None specified
CCAPCD Carl Moyer Program 2024 Colusa County Air Pollution Control District (CCAPCD) $200,000 Not applicable May 31, 2024 Yes for equipment
Clean Fuel Production Credit (Sec. 45Z) Treasury Department, Internal Revenue Service Not specified Not applicable Credit will expire December 31, 2027 Not applicable
Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program Federal Railroad Administration (FRA), Department of Transportation (DOT) $2,478,391,050 Up to 80% of costs May 28, 2024 by 11:59 pm ET 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
EKAPCD Carl Moyer Program Eastern Kern Air Pollution Control District (EKAPCD) $1.5 M; (as of 4/10/24, ~$600k); (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 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) (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
Environmental and Climate Justice Community Change Grants Program Environmental Protection Agency (EPA) $2 billion for Track I and II. $1.96 billion for approximately 150 Track I awards and $40 million for approximately 20 Track II awards. No maximum established First-come, first-served through November 21, 2024, by 11:59pm ET. Initial awards to be announced March 2024. Scrappage not required.
FY 25-26 Multimodal Project Discretionary Grant Opportunity Office of the Secretary, U.S. Department of Transportation (DOT) $5.1 billion; 40% target for underserved, disadvantaged, and overburdened communities Up to 80% of project costs May 6, 2024 at 11:59pm Eastern None
FY2024 Voluntary Airport Low Emission Program Airport Improvement Program Federal Aviation Administration (FAA) $10,000,000 90% of eligible costs Pre-applications are 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.
Innovative Clean Energy Solicitation U.S. Department of Energy $4.5 billion Not applicable September 30, 2026 by 5pm ET None
Innovative Finance and Asset Concessions Grant Program Build America Better Bureau – DOT $57,720,000 Not applicable May 10, 2024, by 11:59 p.m. EST None
Intercity Bus Security Grant Program Federal Emergency Management Agency 1,800,000 Not applicable June 24, 2024 at 5 p.m. ET None
Low or No Emission Grant Program (LoNo) and Grants for Buses and Bus Facilities Federal Transit Administration (FTA), Department of Transportation (DOT) $1.4 billion for both programs 85% of net project costs if purpose for leasing/acquiring transit buses (including clean fuel or alternative fuel vehicles) is to comply/maintain compliance with Clean Air Act (CAA) or Americans with Disabilities Act (ADA) of 1990 April 25, 2024 by 11:59 pm ET For replacement requests, applicants must provide information on the age, condition, and performance of the vehicles to be replaced or age and condition of the asset to be rehabilitated or replaced relative to its minimum useful life.
Passenger Ferry Grant Program and Ferry Service for Rural Communities Program Federal Transit Administration (DOT) Anticipated $200-300 million Up to 85% of projects costs June 17, 2024 No scrappage requirement.
PCAPCD Clean Air Grant (CAG) Program – Alternative Fueling 2024 Placer County Air Pollution Control District (PCAPCD) Pending agency intelligence. Not applicable May 31, 2024, at 5:00pm PT Not applicable
PCAPCD Clean Air Grant (CAG) Program – Heavy-Duty Diesel & Equipment Off-Road Projects 2024 Placer County Air Pollution Control District (PCAPCD) Pending agency intelligence. Not applicable May 31, 2024, at 5:00pm PT Destroy the existing equipment and engine within 60 days of receipt of the existing equipment in accordance with the program guidelines.  
PCAPCD Clean Air Grant (CAG) Program – Heavy-Duty Diesel & Equipment On Road 2024 Placer County Air Pollution Control District (PCAPCD) Pending agency intelligence. Up to 50%-80% of the vehicle cost. May 31, 2024, at 5:00pm PT Vehicles replaced by a grant from this program must be destroyed. The baseline vehicle chassis for school buses must be 10 years old or newer. The vehicle being removed from service shall be delivered to a District-approved Dismantler within 60 calendar days of receiving the new replacement vehicle by the dealership where the replacement vehicle was purchased.
Port Infrastructure Development Program (PIDP) Maritime Administration (MARAD), Department of Transportation (DOT) $450,000,000 Up to 80% of vehicle/equipment costs April 30, 2024 by 11:59 p.m. EDT None
Prevailing Wage and Apprenticeship Initial Guidance Under Section 45(b)(6)(B)(ii) and Other Substantially Similar Provisions Treasury Department, Internal Revenue Service Not specified Not applicable December 31, 2024 Not applicable
Qualified Commercial Clean Vehicles Credit (Sec. 45W) Treasury Department, Internal Revenue Service Not applicable Credit amount is the lesser of (a) 15% of the vehicle’s basis (i.e. its cost to the purchaser) or 30% for vehicles without internal combustion engines, or (b) the amount the purchase price exceeds the price of a comparable internal combustion vehicle. Vehicles placed in service after 1/1/2023 and acquired before 1/1/2033. None
Renewable Fuel Standard Program (RFS) and Renewable Identification Numbers (RINs) Environmental Protection Agency (EPA) No maximum is established Not applicable 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 $8,000,000 $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.
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 July 9, 2024 1 p.m. PST, or when South Coast AQMD fully obligates remaining Prop 1B funds, whichever comes first. 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 No maximum established, but funding is added throughout the year 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
SMAQMD 2024 Community Air Quality Grant Solicitation: Off-Road Sacramento Metropolitan Air Quality Management District (SMAQMD) $3,400,000 Up to 80% of eligible costs. Funding limits vary depending on project and technology type. All projects are subject to cost-effectiveness calculations. Open, first come first served Yes, scrappage is required for off-road equipment projects. Additional requirements exist based on project type.
Transit Security Grant Program Federal Emergency Management Agency $83.7 million Not applicable June 24, 2024 at 5 p.m. ET None
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 Carl Moyer, FARMER, AB 617 Community Air Protection Incentive Program 2024 Ventura County Air Pollution Control District (VCAPCD) $4,000,000 Up to 100% of eligible costs (maximum grant amounts are $400,000) for public zero-emission school buses June 21, 2024 at 5:00 PM Yes, scrappage requirements are on a 6-year rolling average. The existing vehicle engine Model Year must be 2010-2017 and must be taken to a qualified dismantler within 60 calendar days of the delivery of the replacement unit.