Southern California continues to lead the charge in advancing clean, commercial transportation technologies, despite being buffeted by winds of economic uncertainty and global politics. In a region long challenged by some of the nation’s worst air quality — particularly in San Bernardino, Riverside, and Los Angeles Counties — local and regional stakeholders like the California Air Resources Board (CARB) and South Coast Air Quality Management District (South Coast AQMD) remain committed to economic progress, clearer skies, and healthier lungs. Even amid shifting federal priorities, Southern California is doubling down on its efforts to issue incentives to trucking fleets who adopt the latest near-zero and zero-emission technologies.
A Strong Foundation: Incentives at the Core
Southern California boasts the most comprehensive public incentive ecosystem for commercial transportation in the U.S., blending time-tested programs with innovative, one-off opportunities. At the heart of this landscape is the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). The program’s expected return later this year will once again offer point-of-sale vouchers for zero-emission vehicles (ZEVs). Additional funding from the Ports of Los Angeles and Long Beach is anticipated to supplement the program for drayage operators.
Complementing HVIP, the California Energy Commission’s EnergIIZE Commercial Vehicles Project remains open for electric vehicle infrastructure projects, with dedicated funding for transit agencies and drayage fleets. Off-highway operators can still tap into the Volkswagen Mitigation Trust and prepare for the next round of the Clean Off-Road Equipment Voucher Incentive Project (CORE), which will open in August exclusively for small businesses.
While the Carl Moyer Program—administered by the South Coast AQMD—has closed for the year, it is expected to return in early 2026. Typically offering more than $50 million each year, South Coast AQMD’s Carl Moyer Program has historically accepted applications for on-road, off-road, and infrastructure projects and has been heavily oversubscribed. Depending on a project’s timeline, it is possible for a fleet to combine upcoming funding opportunities with the most recent round or the next one.
On the utility side, Southern California Edison (SCE) continues to support electric vehicle infrastructure through its Charge Ready Transport (CRT) program, while Southern California Gas Company (SoCalGas) offers incentives for fleets adopting renewable natural gas (RNG) and hydrogen fuel cell technologies. This fuel-agnostic approach ensures a wide range of fleets can find support tailored to their needs.
A Multi-Million Dollar Moment
The funding landscape is about to get even more dynamic. In the coming months, South Coast AQMD will launch several new programs tied to its Climate Pollution Reduction Grant and Clean Heavy-Duty Vehicle Grant Program awards—together representing hundreds of millions of dollars for on-road, off-road, and infrastructure projects (Table 1).
Additionally, mitigation fees collected under the Warehouse Actions and Investments to Reduce Emissions (WAIRE) Rule are expected to be released as early as September, unlocking millions more in funding. WAIRE requires warehouse operators to complete emission mitigation actions, including making investments in cleaner equipment, to offset environmental impacts. Not taking these actions results in fees.
Altogether, more than $650 million in incentives will be available to fleets this summer. With funding streams from federal, state, and local sources, fleets have a rare opportunity to stack incentives, potentially covering more than 75% of project costs. Those who plan strategically and act swiftly will be well-positioned to reap long-term benefits.
Table 1. Federally Funded Programs to be released this summer
| Program | Expected Open Date | Available Funding |
| Clean Air Rides for Kids (Class 6-7 School Buses) | September 2025 | $24,842,632 |
| Empowering Local Environmental Change Through Replacing Internal Combustion (Class 6-7 Zero Emission Vehicles) | August 2025 | $29,000,000 |
| INVEST CLEAN: Measure 1 – Charging Infrastructure | August 2025 | $178,500,000 |
| INVEST CLEAN: Measure 2 – Battery Electric Freight Vehicles | August 2025 | $28,000,000 |
| INVEST CLEAN: Measure 3 – Battery Electric Cargo Handling Equipment | August 2025 | $20,600,000 |
| Last Mile Freight Program (Class 4 and 5 Zero Emission Vehicles)* | September 2025 | $50,000,000 |
*Administered by the Southern California Association of Governments
Sustaining Momentum and Looking Ahead
The momentum does not stop there. The Ports of Los Angeles and Long Beach recently issued a Cooperative Agreement outlining six new Clean Air Action Plan (CAAP) Plus measures. These initiatives aim to reduce greenhouse gas emissions to 40% below 1990 levels by 2030 and 80% by 2050. The measures include new financing mechanisms that go beyond the existing Clean Truck Fund to include programs like a zero-emission drayage truck utilization incentive and a zero-emission locomotive demonstration program, amongst other efforts.
At the state level, both the California Energy Commission and CARB are poised to implement multi-year funding strategies — pending the outcome of the state’s annual budget process. Meanwhile, a reimagined Clean Fuel Rewards Program, historically focused on light-duty vehicles, is being retooled to support medium- and heavy-duty fleets, with potential funding exceeding $100 million.
While the post-2026 funding landscape remains uncertain, one thing is clear: fleets that act now will be best positioned for successful, incentive-funded deployments over the next few years.
Navigating the Landscape
TRC has mapped the timing and availability of these programs and maintains partnerships with transportation, environmental, and energy agencies across the U.S. and Canada. This insight allows TRC to help fleet managers, technology providers, and fuel suppliers identify and secure the most advantageous funding opportunities. If your organization is ready to advance its sustainability goals, there has never been a better time to leverage public funding to drive both environmental and economic impact.
