Cargo Handling Equipment, Locomotives, Ships at Berth Emissions Capture and Control Systems, and Transport Refrigeration Units Proposition 1B - Goods Movement Emission Reduction Program

The South Coast Air Quality Management District is offering up to $70 million in grant funding under Proposition 1B to accelerate NOₓ and PM reductions from freight‑movement equipment. Eligible participants must own existing diesel‑powered locomotives, cargo‑handling equipment, transport‑refrigeration units, or ship‑at‑berth infrastructure within California’s four trade corridors and commit to replacing or retrofitting them with zero‑emission or higher‑efficiency technologies. Funding covers a percentage of eligible costs (ranging from 42.5 % to 85 % depending on equipment type) with project lives from 5 to 15 years, and requires annual reporting, GPS monitoring for locomotives, and post‑installation inspections before payment. • Eligible categories: locomotives (switcher, medium‑horsepower, line‑haul), yard‑truck & crane conversions, forklift/lift replacements, transport refrigeration unit upgrades, and shore‑power systems for ships. • Funding caps: up to $2.5‑$3.5 million per large project; smaller equipment caps range $150k‑$250k per unit. • Application window: September 8 2026 – November 20 2026 (or until funds are exhausted); submissions via the South Coast AQMD Grant Management System.