Zero-Emission Freight and Marine Projects

This program aims to maximize reductions of oxides of nitrogen (NOx) by providing incentive funding for qualifying zero-emission off-road marine and freight equipment.

The information below summarizes the minimum requirements from the Beneficiary Mitigation Plan (BMP) that was approved by the California Air Resources Board (CARB) on May 25, 2018. 

Additional requirements and scoring criteria will be announced with the release of the solicitation package, which is currently under development, and anticipated to be released in Q2 2020.

Funding availability and timeframe

The first installment of $35 million is anticipated to be released in Q2 2020. The second installment is expected to be released approximately two years after the first installment.

Eligible projects

Funding can be used to:

Basic project requirements

Scrapping: For replacement projects, the old vehicle or equipment must be scrapped (destroyed).  For the repower of ferries, tugboats, or towboats, the old engine must be scrapped or destroyed.

Certification: The new vehicle or equipment, engine, or motive power system must be certified, verified, or otherwise approved by the U.S. EPA or CARB for operation in California.

Ownership and reporting: Vehicle or equipment owners are expected to operate all funded new equipment throughout its intended useful life and must report annually on operations for at least three years.

Geographic location:  All vehicles and equipment must be domiciled in and operate in the State of California for the duration of its project life. Projects that benefit disadvantaged or low-income communities may be prioritized for award.

Eligible applicants and award limits

Both public agencies and private businesses that own and operate eligible vehicles or equipment may apply.

Applicants may request grant funding for each piece of equipment or vehicle, subject to the following limits:

Project Type Maximum Funding
Replace Airport GSE Incremental Cost
Replace Heavy-lift Forklift $175,000
Replace Port Cargo Handling Equipment
Repower Ferry, Tugboat, or Towboat $2,500,000
Install Shore Power Systems

In addition, the following limits apply:

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