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South Coast Air Quality Management District·California

2024 Volkswagen Environmental Mitigation Trust Program Combustion Freight and Marine Projects and Zero-Emission Class 8 Freight and Port Drayage Trucks Categories Statewide Program Announcement

Rolling / TBD close$50k – $250kGrants Notice
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Description

The VW Environmental Mitigation Trust (VW Program) provides incentive grants to California‑based owners of heavy‑duty freight trucks, marine vessels, locomotives, and zero‑emission Class 8 trucks. Funding is awarded on a first‑come, first‑served basis until the $109.3 M allocation is exhausted, with priority given to marine and rail projects. Eligible applicants must own the equipment, have operated it in‑state ≥ 75 % of the prior 12 months, and must scrap the old equipment before receiving a new, cleaner replacement (or repower for combustion categories). Grants cover up to 25 %–75 % of eligible project costs, with per‑unit caps ranging from $102 k for conventional trucks to $240 k for zero‑emission trucks, and up to $1.62 M for certain marine vessels. Recipients must place the new equipment in service within 12 months and keep it in California for at least three years, submitting annual reports for the contract term. • Funding categories: Combustion Freight & Marine (replacement or repower) and Zero‑Emission Class 8 Trucks (replacement only). • Maximum grant per unit: $102 k (combustion trucks), $60 k (locomotives), up to $1.62 M (marine vessels), $240 k (zero‑emission trucks). • Eligibility requirements include California‑based operation, scrappage of old equipment, compliance with CARB/EPA standards, and no stacking with other NOx‑reduction programs. • Application portal opened March 5, 2024; submissions close automatically when the $109.3 M pool is depleted.

Attached files

Contact

Alicia Martinez

(909) 396‑3165

Key dates

Opened
3/5/2024
Closes
Rolling / TBD
Duration
3 years

Last updated

Details

Type
Grants Notice
Industry
Automotive Manufacturing
NAICS
336120
Solicitation №
PA2024-03

Budget estimate

$50,000 – $250,000

Based on the grant’s per‑unit caps, a vendor supplying a zero‑emission Class 8 truck could earn up to $240,000 per unit, while a conventional truck replacement might generate $102,000. Assuming a modest project of 1–5 units, the total revenue could range from roughly $50,000 for a small single‑unit sale to $250,000 for a larger multi‑unit order. Larger marine vessel grants can exceed $1 million, but those are rarer and typically involve specialized manufacturers.

AI estimate from the solicitation

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