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Natural Gas Vehicle Incentives and Grants

Learn about available tax credits, grants and incentives for purchasing new natural gas vehicles (NGVs).

If you're considering buying a natural gas vehicle for your fleet, you may be eligible for tax credits, grants, incentives or other funding opportunities. These opportunities could also help offset the purchase price of new NGVs and help fund the construction of a fueling station. 

What is available on a local level?

South Coast Air Quality Management District

The South Coast Air Quality Management District (SCAQMD) has a jurisdiction that covers most of Los Angeles, Orange, San Bernardino and Riverside Counties. If your operation is based here, these SCAQMD programs may apply to you. Get Details 

The Carl Moyer Program

The SCAQMD Carl Moyer Program provides grants to help replace older heavy-duty diesel engines. Application submissions are usually accepted in the first half of the year. For 2020, the program opened in March and closed August 4, 2020. Email the SoCalGas Clean Transportation team for more information.

Voucher Incentive Program (VIP) & VIP Plus-Up

The SCAQMD VIP is a streamlined approach to reduce emission by replacing old, high-polluting vehicles with newer, lower-emission vehicles. This program is limited to owners/operators with fleets of 10 or fewer vehicles that have been operating at least 75% (mileage-based) in California during the previous twenty four months. Learn More 

There is also a new VIP Plus-Up option exclusively for small fleets (10 or fewer trucks). It offers a maximum of $60K available per truck for replacements meeting 0.20 NOx and up to $125K available for replacements meeting 0.02 NOx level or cleaner. Funding available on first-come, first-served basis until exhausted.

You can also contact one of the SCAQMD VIP dealerships directly as well for more information. 

School Bus Incentives 

San Joaquin Valley Truck Replacement Program

The San Joaquin Valley Truck Replacement Program allows participants to apply to receive up to $100,000 through the San Joaquin Valley Air Pollution Control District to replace old, high-polluting, heavy-duty diesel trucks. Read the details.
There is also funding opportunities for Class 5 & 6 new clean air on-road trucks through an authorized dealership. 

San Joaquin Valley Clean Vehicle Fueling Infrastructure Program

This program is designed to support the development and implementation of fueling infrastructure for natural gas, hydrogen fuel cell, and battery powered zero-emission heavy-duty vehicles. Funding for new stations, expansions to increase load at an existing station and conversion of existing station to offer clean fuels are eligible. Learn More

What is available on a state level?

California Air Resources Board (CARB)

Incentives can help ensure a cleaner California with cleaner cars, trucks, equipment and facilities operating in our neighborhoods. Visit the comprehensive list of Air Pollution Incentives, Grants and Credit Programs1. Learn More

Low Carbon Fuel Standard

The Low Carbon Fuel Standard (LCFS) is a state program established by the California Air Resources Board (CARB) that seeks to reduce the carbon intensity of transportation fuels in the state. Refueling station operators that dispense low carbon fuel, such as natural gas or renewable natural gas, can generate LCFS credits granted by the state of California that can be sold or traded. Read Details 

LCFS Revenue Return Program

In accordance with California Public Utilities Commission Advice Letter 5759, revenue from the sale of LCFS credits generated at utility-owned compressed natural gas vehicle stations is being returned to customers in the form of a rate credit that reduces the pump price at utility stations. The current rate credit can be found by accessing the SoCalGas Schedule G-NGV for stations owned and operated by SoCalGas.

What is available on a federal level?

Alternative Fuel Tax Credit (AFTC)

The Alternative Fuels Tax Credit is a $0.50 fuel credit/payment for the use of natural gas as a transportation fuel extended through December 31, 2021. The advantage is a tax credit in the amount of $0.50 per gallon for fuel. Available for various alternative fuel options.   

First time claimants who are not registered must file Form 637 (Application for Registration) prior to making claims for credits. To file a claim, a person must be a registered alternative fueler. 

Federal Tax Incentives

For the latest information on federal grants and incentives, visit NGVAmerica

For other funding tools, visit the Advanced Vehicle Technology and Infrastructure Funding Finder Tool.

Contact Us

SoCalGas' Clean Transportation group can assist you in identifying sources of funding and applying for funds. Funding sources change regularly, so please email us to request a point of contact. We can review all the latest applicable incentives with you. If appropriate, we can refer you to a qualified grant writing specialist who can further assist you in obtaining funding.

The information contained on this web page is made available solely for informational purposes. Although SoCalGas has used reasonable efforts to assure the accuracy of the information at the time of its inclusion, no express or implied representation is made that it is free from error or suitable for any particular use or purpose. SoCalGas assumes no responsibility for any use thereof by you, and you should discuss decisions related to this subject with your own advisors and experts.

1 The above programs and incentives are funded and administered by the respective entities and air districts. With the exception of the SoCalGas Truck Loan Program, SoCalGas has no responsibility and shall not be liable in connection with the administration, implementation, or funding of these programs and incentives.