South Coast AQMD Offers New Funding for Combustion Freight and Marine Projects

January 21, 2020

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California recently received $423 million from the Volkswagen (VW) Environmental Mitigation Trust to reduce nitrogen oxide (NOx) emissions—a major contributor to unhealthy air quality throughout the state. A portion of this funding–$60 million–is going toward the Combustion Freight and Marine program, administered by South Coast Air Quality Management District (South Coast AQMD) in an effort to target emissions from this goods movement sector. Last month, the agency began accepting applications for the first round of $30 million of funding which closes March 4th by 1 p.m. PST.

Funding is available for private entities and government owned and operated fleets to replace or repower older diesel-fueled vehicles and vessels that operate in California, including Class 7 and 8 freight trucks, freight switcher locomotives, ferries, tugboats, and towboats. Replacement or repowered trucks must be certified at or below the optional low NOx standard of 0.02 g/bhp-hr., switcher locomotives can be replaced or repowered with Tier 4 engines, and vessel repowers must be Tier 4 or hybrid with Tier 4 equivalent NOx emissions.

South Coast AQMD is hosting a one-hour webinar on February 4 at 11 a.m. to provide a comprehensive overview of the newly available funding and application process.

South Coast AQMD plans to maximize NOx reductions by funding the most cost-effective, lowest emission engine projects. Projects throughout the state are eligible to receive funding, with at least 50% of the funds expected to benefit disadvantaged and low-income communities who are disproportionately affected by exposure to diesel emissions.

Webinar for Interested Applicants

On February 4th at 11 a.m. PST, South Coast AQMD is hosting a one-hour complimentary webinar that will provide a comprehensive overview of the available funding, application process, and evaluation criteria to help interested participants build a competitive application.

Interested parties can register for the webinar at

Application Materials and Requirements

The application forms can be accessed on South Coast AQMD’s VW Funding website ( The website also includes a Frequently Asked Questions section that details materials that must be submitted alongside the application (e.g., photos), as well as scrappage requirements for existing vehicles.