Program Announcement
#PA2026-02
Measure 2.1 - Battery Electric Freight Vehicle
Deployment Incentive Program
Accepting Applications: August 15, 2025, at 12 PM PT
Submission Deadline: November 28, 2025, at 12 PM PT
PA2026-02
INTRODUCTION
In July 2024, US EPA awarded funds to the South Coast Air Quality Management District
(South Coast AQMD) to implement INVEST CLEAN in Los Angeles-Long Beach-Anaheim and
Riverside-San Bernardino-Ontario Metropolitan Statistical Areas (MSAs). The two MSAs
include the following four counties: Los Angeles, Orange, Riverside, and San Bernardino.
INVEST CLEAN targets the limiting factors and challenges to the electrification transformation
of the Southern California goods movement corridor.
The purpose of this Program Announcement (PA) is to solicit project applications for INVEST
CLEAN – Measure 2.1: Battery Electric Freight Vehicle Deployment Incentive Program. This
Program will provide funding rebates for the transition of goods movement operations to
advanced technologies and reduce emissions by replacing heavy-duty Class 8 diesel freight
delivery vehicles with Class 8 trucks that are powered by battery-electric technology.
SECTION 1 – PROGRAM OVERVIEW
The total rebate funding for Measure 2.1: Battery Electric Freight Vehicle Deployment Incentive
Program is approximately $28,000,000 from the INVEST CLEAN funds awarded to the South
Coast AQMD. All applications will be evaluated based on the requirements set forth in this PA,
which align with the INVEST CLEAN workplan and the Terms and Conditions of the grant
awarded to INVEST CLEAN.
WHO:
WHAT:
HOW:
WHEN:
Applicants may be public or private entities currently operating a Class 8 vehicle
for goods movement. Eligible applicants are asset-owners/operators.
Incentives under this PA are rebate-based and limited to the replacement of
diesel-fueled Class 8 trucks with Class 8 trucks powered by battery-electric
technology. Only Class 8 (GVWR 33,001 pounds or higher) goods movement
trucks are eligible for this rebate. An equivalent baseline truck that will be
scrapped must be diesel-fueled.
Applications must be submitted online through South Coast AQMD's Grant
Management System (GMS), which can be found at:
http://www.aqmd.gov/investclean
Applications can be submitted starting August 15, 2025, at 12 PM PT and the
application period closes on November 28, 2025 at 12 PM PT or until program
funds are exhausted.
Item
Issue PA2026-02
Applications Open
Date
August 1, 2025
August 15, 2025, at 12 PM PT
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PA2026-02
Deadline to Submit Application
Agreement Execution
Performance and usage tracking
November 28, 2025, at 12 PM PT or until
funds are expended (whichever comes earlier)
January 2026 through August 2027
Commencing after Deployment
ALL APPLICATIONS MUST BE RECEIVED VIA SOUTH COAST AQMD’S
ONLINE GRANT MANAGEMENT SYSTEM (GMS)
1.1 - GENERAL PROGRAM INFORMATION
Incentive funding under this PA is rebate-based. Only diesel Class 8 goods movement trucks are
eligible for a rebate under this Program. South Coast AQMD staff will evaluate all applications
submitted online as they are received until the application deadline, or until all funds are
exhausted, whichever date occurs first.
Eligible Participant
• The applicant must provide proof of compliance with applicable fleet/truck regulations
during the application process.
• If awarded, the applicant must enter into a written Agreement with South Coast AQMD
as a condition of receiving rebate funds. See SECTION IV – PROJECT AGREEMENT
• The applicant must agree to adhere to all applicable Terms and Conditions. See
SECTION VI – LEGAL UPDATES AND DEFINITIONS
Eligible Existing Vehicle
• The existing vehicle must be diesel-powered.
• The existing vehicle must be domiciled and have operated at least 75% within either one
or both MSAs for the prior 12 months from application submittal. The MSA regions are
shown in the dotted areas on the map below in Figure 1, which include the four counties:
Los Angeles, Orange, Riverside, and San Bernardino.
• The existing vehicle must have operated a minimum of 7,000 miles during the 12 months
prior to application.
Eligible Replacement Vehicle
• The replacement vehicle must be brand new and battery-electric powered.
• The replacement vehicle must not be powered by hydrogen or any fossil fuels.
• The replacement vehicle must not be a retrofit, repower, or conversion.
• The replacement vehicle must be deployed no later than February 2028.
• The replacement vehicle must operate at least 75% within one or both of the MSAs for a
minimum of 5 years after vehicle deployment.
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Figure 1: Area inside dotted line represents the two MSAs qualified territories
1.2 - ELIGIBLE FUNDING AMOUNT
Each eligible Class 8 truck project will receive a rebate amount up to $400,000.
While Program grants can be combined with other non-federal grants and incentives, in no case may the
total grant/rebate funds be greater than 100% of a project’s total cost, as explained in Section 1.3 below.
1.3 - PROJECT COST
All project costs must be clearly indicated in the application. Applicants must provide an itemized
dealership or manufacturer quote for the replacement vehicle. Sales tax, Federal Excise Tax (FET), and
delivery fees are eligible costs under the INVEST CLEAN program. Please note that any combined
incentive funds with this opportunity cannot exceed the cost of the replacement truck.
1.4 – PROGRAM WORKFLOW
The flowchart in Figure 2 depicts the evaluation process of a typical replacement project, while
Table 1 below provides a detailed explanation of each step. Projects will begin with an online
application, followed by a project evaluation conducted by South Coast AQMD staff. This will
be followed by the execution of Agreements, project implementation, invoicing and
reimbursement, and required reporting.
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Figure 2: Lifecycle for Battery Electric Class 8 Vehicle Replacement Projects
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This is the opportunity summary page. It provides an overview of this opportunity and a preview of the attached documentation.