Search Federal and State Laws and Incentives

Air Quality Improvement Program Funding - Ventura County

The Ventura County Air Pollution Control District (VCAPCD) administers the Clean Air Fund, which provides grants for qualified air quality improvement projects located in Ventura County. The Clean Air Fund Advisory Committee is interested in projects that will have significant emissions reduction impacts or support innovative air pollution reduction technologies. For more information, see the VCAPCD Clean Air Fund website.

Vehicle Emissions Reduction Grants - Sacramento

The Sacramento Emergency Clean Air and Transportation (SECAT) Program provides grants to offset the costs of zero emission heavy-duty vehicles that reduce on-road emissions within the counties of El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba in California. Eligible projects include the purchase of battery electric or hydrogen fuel cell trucks, buses, and shuttles. Other advanced technology implementation projects may also qualify. For more information, including current funding opportunities, see the SECAT website. (Reference California Health and Safety Code 44299.50-44299.55)

Emissions Reductions Grants

The Carl Moyer Memorial Air Quality Standards Attainment Program (Program) provides incentives to cover the incremental cost of purchasing engines and equipment that are cleaner than required by law. Eligible projects include heavy-duty fleet modernization, light-duty vehicle replacements and retrofits, idle reduction technology, off-road vehicle and equipment purchases, and alternative fuel and electric vehicle infrastructure projects. The Program provides funds for significant near-term reductions in nitrogen oxide emissions, reactive organic gases, and particulate matter emissions. Funding is available until January 1, 2024. The California Air Resources Board, in consultation with local air districts, must convene working groups to evaluate the Program's policies and goals.

(Reference California Health and Safety Code 44275-44299.2)

Heavy-Duty Vehicle Emissions Reduction Grants

The Goods Movement Emission Reduction Program (Program) provides funding for projects that reduce emissions from freight movement in the state, including heavy-duty truck replacement, repower, or retrofit; and truck stop electrification infrastructure development. For more information about funding application opportunities, see the Program website. (Reference California Health and Safety Code 39625-39627.5)

Advanced Transportation Tax Exclusion

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) provides a sales and use tax exclusion for qualified manufacturers of advanced transportation products, components, or systems that reduce pollution and energy use and promote economic development. Incentives are available until December 31, 2020. For more information, including application materials, see the CAEATFA Sales and Use Tax Exclusion Program website. (Reference California Public Resources Code 26000-26017)

Alternative Fuel Vehicle Retrofit Emissions Inspection Process

The California Department of Health and Safety may adopt a process by which state designated referees inspect vehicles that present prohibitive inspection circumstances, such as vehicles equipped with alternative fuel retrofit systems. (Reference California Health and Safety Code 44014)

Voluntary Vehicle Retirement Incentives

Through the California Bureau of Automotive Repair's (Bureau) Consumer Assistance Program (CAP), the owner of a personal motor vehicle may receive $1,000 to retire the vehicle early from operation. Applicants must provide proof of a failed smog test and may only retire one vehicle annually. Low-income eligible applicants may receive $1,500 to retire the vehicle and must provide proof of a completed smog test, pass or fail. An eligible vehicle must be registered in the state without substantial lapse for at least two years prior to retirement. The owner must retire the vehicle at a dismantler under contract with the Bureau. The Bureau also offers financial assistance of up to $500 toward emissions-related repairs for vehicles remaining in service that cannot pass the biennial smog check inspection. For more information, additional eligibility requirements and, application materials, see the CAP website. (Reference California Health and Safety Code 44062.3 and 44125)

Zero Emission Vehicle (ZEV) Initiative

The California Air Resources Board's (ARB) Charge Ahead California Initiative was established to help place into service at least 1 million ZEVs and near-zero emission vehicles in California by January 1, 2023. In consultation with the State Energy Resources Conservation and Development Commission, ARB prepared a funding plan that includes a market and technology assessment, assessments of existing zero and near-zero emission funding programs, and programs that increase access to disadvantaged, low-income, and moderate-income communities and consumers. Potential programs under the initiative include those involving innovative financing, car sharing, charging infrastructure in multi-unit dwellings located in disadvantaged communities, public transit, and agricultural vanpool programs. The funding plan must be updated at least every three years through January 1, 2023. (Reference Assembly Bill 2006, 2018, and California Health and Safety Code 44258.4)

Vehicle Miles Traveled Tax Feasibility Study Committee

The California Transportation Commission (Commission) and the California Transportation Agency (Agency) formed a Road Usage Charge (RUC) Technical Advisory Committee (Committee) to study RUC alternatives to the gas tax and assess the potential for mileage-based revenue collection. Based on the recommendations of the Committee, the Agency implemented a pilot program to identify and evaluate issues related to potential implementation of an RUC program. The Agency submitted a final report of its findings to the California State Legislature on December 1, 2017. For more information, see the Agency's Road Charge Pilot Program website. (Reference California Vehicle Code 3090-3093)

Voluntary Vehicle Retirement Incentives - San Joaquin Valley and South Coast

The San Joaquin Valley Air Pollution Control District and the South Coast Air Quality Management District administer the Enhanced Fleet Modernization Program (EFMP) Pilot Retire and Replace program, providing incentives to replace a vehicle eligible for retirement with a more fuel-efficient vehicle. Used vehicles must be no more than eight years old and applicants must live in the San Joaquin Valley or South Coast air basins. Eligible replacement vehicles must meet a minimum fuel economy average by model year or average at least 35 miles per gallon (mpg). Alternative fuel vehicles are also eligible, including plug-in hybrid electric vehicles (PHEV) and zero emission vehicles (ZEVs). Funding for alternative transportation mobility options, such as public transportation or car sharing, is also available in lieu of purchasing another vehicle. The incentive amounts vary by income level as compared to the Federal Poverty Level (FPL) and replacement vehicle type.

Residents living in disadvantaged communities may be eligible for higher incentive amounts. For more information, including eligible vehicles and applicable requirements, see the California Air Resources Board EFMP website. (Reference California Health and Safety Code 44062.3 and 44125)

Vehicle Emissions Reduction Incentives - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District (SJVAPCD) administers the Vanpool Voucher Incentive Program (VVIP), which provides funding for residents to participate in vanpools and reduce or replace single occupant vehicle commutes in the San Joaquin Valley. Residents may receive up to $360 per year. Vanpool agencies interested in participating in the program must submit an application to SJVAPCD and sign a contract to become a VVIP partner. For more information, see the SJVAPCD VVIP website.