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.

Heavy-Duty Zero Emission Vehicle (ZEV) Grant - 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 truck stop electrification infrastructure development and heavy-duty truck replacement, repower, or retrofit. 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, 2025. 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 and Replacement 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 and purchase a replacement vehicle that meets emission fuel economy and model year requirements. Applicants must provide proof of a failed smog test and may retire up to two vehicles 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 $1,200 toward emissions-related repairs for vehicles remaining in service that cannot pass the biennial smog check inspection. For more information, additional eligibility requirements, eligible replacement vehicles, 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 (CARB) 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, CARB 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 California Health and Safety Code 44258.4)

Voluntary Vehicle Retirement Incentives - San Joaquin Valley and South Coast

The San Joaquin Valley Air Pollution Control District (SJVAPCD) and the South Coast Air Quality Management District (AQMD) administer Enhanced Fleet Modernization Program (EFMP) Pilot Retire and Replace programs, 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 battery-electric vehicles (EVs). 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. All eligible applicants must have a household income that is at or below 400% of the FPL.

Residents living in qualified disadvantaged communities may be eligible for higher incentive amounts and, for residents replacing their vehicles with a PHEV or EV, a rebate of up to $2,000 for the purchase of electric vehicle supply equipment. Residents of South Coast AQMD may also be eligible to receive a rebate of $7,500 for alternative transportation mobility options. For more information, including eligible vehicles and applicable requirements, see the California Air Resources Board EFMP, SJVAPCD Drive Clean, and South Coast AQMD Replace Your Ride websites. (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 $30 per month for 36 months. 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.

Air Quality Improvement Program Funding - San Luis Obispo County

The San Luis Obispo County Air Pollution Control District (SLOAPCD) administers the Clean Air Fund, to provide grants for qualified air quality improvement projects located in San Luis Obispo County. SLOAPCD funds projects to significantly reduce emissions impacts or support innovative air pollution reduction technologies, including the purchase of alternative fuel school buses or alternative fuel infrastructure development. For more information, see the SLOAPCD Clean Air Incentives website.

Emission Reduction Strategy for Medium- and Heavy-Duty Vehicles

The California Air Resources Board (CARB) published the 2020 Mobile Source Strategy (Strategy), and must update the Strategy every five years. The Strategy must include a comprehensive strategy to bring the state into compliance with federal ambient air quality standards and reduce motor vehicle greenhouse gas emissions from medium- and heavy-duty vehicles. CARB must consult and coordinate with related state agencies and stakeholders. The Strategy must also recommend goals for reducing emissions from medium duty and heavy-duty vehicles by 2030 and 2050. (Reference California Health and Safety Code 43024.2)

Electric Vehicle (EV) Grid Integration Requirements

By December 31, 2020, the California Public Utilities Commission (PUC) must establish strategies and metrics to maximize the use of EV grid integration for a ten-year plan. The PUC must also consider how to limit cost increases for all ratepayers. EV grid integration refers to any action that optimizes when or how a EV is charged. Electrical corporations and community choice aggregators serving more than 700 gigawatt-hours of annual electrical demand, must provide the PUC with information relating to EV integration strategies. Additional terms and conditions apply. (Reference California Public Utilities Code 740.16)

Heavy-Duty Vehicle Emissions Inspection Program Regulations

The California Air Resources Board (CARB), California Bureau of Automotive Repair, and relevant state agencies must develop and implement a pilot Heavy-Duty Inspection and Maintenance Program for heavy-duty diesel trucks. CARB must establish test procedures for vehicle emissions control technologies. Additional terms and conditions apply. Zero-emission vehicles are exempt from program requirements. (Reference California Health and Safety Code 44150 to 44152)

Vehicle Replacement Program - Bay Area

The Bay Area Air Quality Management District’s (BAAQMD) Buy Back Program offers Bay Area residents $1,200 to turn in their operable, registered 1997 or older vehicle for scrapping. Vehicles must meet vehicle eligibility requirements and pass a vehicle eligibility inspection. For more information, see the BAAQMD Vehicle Buy Back Program website.

Electric Forklift Rebate - Alameda Municipal Power (AMP)

AMP offers commercial customers a rebate of $2,000 for the purchase of a new, all-electric Class 1 or Class 2 forklift, up to a maximum of three forklifts per site. For more information, including eligibility requirements, see the AMP Electric Vehicles website.

Agricultural Equipment Electrification Grant - Central Coast Community Energy (CCCE)

CCCE offers grants to replace heavy-duty agricultural vehicles with all-electric equipment. Costumers are eligible for incentives up to 70 to 100% of the total project cost, up to $30,000. Funding is available on a first-come, first-served basis. For more information, see the CCCE Ag Electrification Program website.

Off-Road Equipment Emission Regulations

The California Air Resources Board (CARB) must implement strategies to eliminate emissions from off-road equipment in California by 2035. By July 1, 2022, CARB must adopt regulations prohibiting engine exhaust and evaporative emissions from new, small off-road engines. CARB must also identify and make available funding for commercial rebates or similar incentive funding as part of any updates to existing applicable funding.

All-Electric Vehicle (EV) and EV Charging Station Rebates - CCCE

Central Coast Community Energy (CCCE) offers rebates of up to $4,000 to residential, commercial, and public agency customers for the purchase of new or used EVs or electric motorcycles. CCCE also offers a rebate of up to $10,000 for Level 2 EV charging stations installed at homes or workplaces. For more information, see the CCCE Electrify Your Ride website.