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
2024 Nationally Significant Federal Lands and Tribal Projects Program Department of Transportation Federal Highway Administration (FHWA) and U.S. Department of Transportation (DOT) Up to $47.74 million – 50% for Federal lands and 50% for Tribal lands. Not applicable. October 16, 2024, at 11:59pm EST Not applicable.
2024 Strengthening Mobility and Revolutionizing Transportation (SMART) Grants – Stage Two Office of the Assistant Secretary for Research and Technology (OST-R), U.S. Department of Transportation (DOT ) $100 million for FY 2024; $50 million for current round, Stage 2. Up to 100% of costs August 14, 2024 at 5:00 PM ET None.
2024 Tribal and Territory Grants Diesel Emissions Reduction Act (DERA) Program U.S. Environmental Protection Agency (EPA) $9 million is available for FY2024. Approximately $8 million (12-18 grants) will be available to tribes and $1 million (3-5 grants) will be available to territories. Up to 100% of costs December 6, 2024, by 11:59pm ET. Awards are slated for May to June 2025. If a 2010 engine model year (EMY) or newer highway vehicle is replaced, the 2010 EMY or newer vehicle may be retained or sold if the 2010 EMY or newer vehicle will replace a pre-2009 EMY vehicle, and the pre-2009 EMY vehicle will be scrapped. It is preferred that the scrapped unit currently operates within the same project location(s) as the 2010 EMY or newer vehicle currently operates, however alternative scenarios will be considered.
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 December 31, 2032 Not applicable.
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.
BCAQMD Community Air Protection (CAP) Incentives RFP 2024 Butte County Air Quality Management District (BCAQMD) $921,000 Up to 100% August 9, 2024 by 4:30pm PT Scrappage is required for replacement projects.
Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program (9003) U.S. Department of Agriculture Pending agency intelligence. Not applicable. Letters of Intent are due September 2, 2024 by 4:30 pm ET. Full applications are due October1, 2024 by 4:30 pm ET. Application deadlines are 4:30 p.m. Eastern Daylight Time (EDT) on October 1 and April 1 of each year. Not applicable
Business & Industry Loan Guarantees U.S. Department of Agriculture Over $1,000,000,000 No maximum established First come, first served 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. Not applicable Ongoing program None specified
Charging and Fueling Infrastructure Program (FY24/FY25) Federal Highway Administration (DOT) $1.321 billion; $800 million set-aside for CFI Round 2; $521 million set-aside for reconsidered FY22/23 applications. $100 million set-aside for NEVI 10 funds. Not applicable August 28, 2024 at 11:59 PM EST for new Round 2 applications; Non-awarded Round 1 applicant requests for reconsideration due July 1, 2024 at 11:59 PM EST 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
Dairy Digester Research and Development Program (DDRDP) – 2024 California Department of Food and Agriculture (CDFA) $8,000,000 October 18, 2024 by 5pm PT N/A
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. No award selections have been made as of 6/26/2024. Scrappage not required.
Funding Opportunity Announcement “WASTE: Waste Analysis and Strategies for Transportation End-uses” US Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) $17.5 Million Not applicable Full application deadline is 5:00 pm ET, on August 14, 2024. Not applicable
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.
ICAPCD Carl Moyer Program 2024 Imperial County Air Pollution Control District (ICAPCD) Will not disclose. Not applicable August 30, 2024 at 5:00 pm PT Scrappage is required
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
Qualified Commercial Clean Vehicle 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. 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 $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 Program has been extended till August 20, 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.
SMAQMD Community Air Quality Grant (2024) Carl Moyer/FARMER/CAP Sacramento Metropolitan Air Quality Management District (SMAQMD) $13,100,000 from Carl Moyer ($10 million), FARMER ($1.1 million), and DMV Surcharges ($2 million). Up to $410,000. Funds are awarded based on cost-effectiveness up to $33,000 per ton of weighted emission reductions for base and $200,000 for NZE and $500,000 for ZE. Funding limits vary depending on project and technology type. Fleets with 10 or fewer ve First-come, first-served Yes, scrappage is required within 60 days after the replacement equipment is delivered. Eligible EMYs for Class 4-8 are 2010-2018 (excluding school buses) or any engine for non-diesel engines in the baseline vehicle for on-road vehicles.
Tehama County APCD Carl Moyer & FARMER Program 2024 Tehama County Air Pollution Control District (TEHCOAPCD) $1,000,000 Not applicable October 31, 2024 All equipment being replaced must be rendered unusable. Within 30 days of taking possession of the new equipment, the old equipment is required to be destroyed and/or dismantled. At a minimum, the Carl Moyer Guidelines require at least a 3”x3” irregularly shaped hole in the engine block which either incorporates the oil flange, or has a line cut that connects the hole in the block to the oil flange. FARMER guidelines require that ALL ATV/UTV projects be taken to a certified salvage yard for destruction.
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