Incentives

It pays to fuel up with Clean Energy
NGV fleet operators have access to increasing numbers of available grants and incentives. Finding, applying for and securing grant and incentive funding can be a challenging and time-consuming process. At Clean Energy, we offer our clients the resources, knowledge and experience of our in-house Grant Specialists. We’ve secured over $50 million in grant funding for clients in recent years. We know how it’s done.

Contact a Clean Energy Grant Specialist today to find out how your fleet could benefit from grant funding.

Learn more about grant and incentive opportunities for
California
Arizona

STATE OF CALIFORNIA (partial listing)

Carl Moyer Memorial Air Quality Standards Attainment (Carl Moyer) Program
This program is funded each year by the State Legislature and is administered by each local Air Quality Management District in California. The purpose of the program is to reduce diesel emissions statewide by providing grants for the incremental cost of cleaner heavy-duty vehicles and equipment such as on-road, off-road and marine engines. Typically, the air districts divide the funds for heavy-duty trucks into various categories such as Class 7,8 trucks (i.e, Tractor Trailers, Refuse), Class 5,6 trucks (i.e, package delivery vehicles) and then other specific categories such as urban buses or school buses. The funds are awarded on a cost effectiveness basis, which means the projects demonstrating a greater reduction of emissions per grant dollars awarded are funded first. In addition, the funds only pay for the incremental cost between a diesel engine and an alternative fuel engine.

AB2766 Program (MSRC)
This program is administered by the Mobile Source Reduction Review Committee (MSRC) of the South Coast Air Quality Management District with its source of funds derived by a $4 surcharge on vehicle registrations. Sixty percent (60%) of the funds are returned to the local air district and forty percent (40%) are returned to the local government based on the number of vehicles registered in the jurisdiction. The funds are to be used for measurable air quality improvements. For example, in the South Coast Air Quality Management District, the Air District offers a $3,000 per vehicle rebate for qualified natural gas vehicles. The rebate is paid to the dealer, therefore, this is an effortless rebate to receive. The rebate is available to both public and private customers, fleets and consumers, and there is, at this time, no limit on the number of vehicles that are eligible for the rebate. Most other air districts in California have similar programs with varying program rules and guidelines.

For local governments that receive AB2766 funds directly, the funds can be used to purchase natural gas vehicles which also qualify for local air district funds as well.

State Energy Program (SEP)
Each year, the US Department of Energy through its Clean Cities Program offers a competitive grant program for alternative fuel vehicles and infrastructure. The goal is to help buy down the cost of alternative fuel vehicles in key market segments such as taxicabs. In addition, to qualify the project must take place within a designated Clean Cities Region.
Congestion Mitigation and Air Quality Improvement Program (CMAQ)
This program is funded by the Federal Government through the Transportation Equity Act for the 21st Century (TEA-21) program. The funds are administered by the local Metropolitan Planning Organization (MPO). In most areas, the MPO is the local Council of Governments for Regional Planning Agency. Depending on the Call for Projects, CMAQ can fund alternative fuel vehicle projects.

Emission Credit Trading
Throughout California, there are stationary sources of emissions such as factories and power plants. As these facilities are built or expanded they must install air quality improvement technology, or they must purchase emission credits. Depending on the air district, it may be possible for the stationary source to purchase credits from mobile sources who have voluntarily converted their fleets to natural gas. The fleets would sell their credits to the stationary sources. The amount paid by the stationary source would depend largely on if there is a surplus of credits or a shortage of credits in the given area.

Vehicle Financing
For especially large fleets that purchase numerous vehicles each year (i.e., 100+) and use a significant volume of fuel (i.e., 50-60+ gallons per day per vehicle), Clean Energy may be able to provide financing for the incremental portion of the vehicle through its fuel price to the customer. Your Clean Energy Account Manager can review this potential opportunity with you.

AN ADDED BONUS — HOV Lane Access
Starting July 1, 2000, any ultra low emission (ULEV) or Super Ultra Low Emission (SULEV) certified alternative fuel vehicle displaying the DMV issued decal can access the State's high occupancy vehicle (HOV) lanes with only one passenger regardless of vehicle ownership. After 2003, the vehicle must be a super ultra low emission (SULEV) alternative fuel vehicle to qualify for HOV lane access. To learn more about this program go to theCalifornia NGV Coalition web page, the California Department of Motor Vehicles, or call Clean Energy @ 888-732-NGVS.

STATE OF ARIZONA

Reduced AFV License Tax
The AFV license tax is based on one percent (1%) of the assessed vehicle value versus sixty percent (60%) for a traditionally powered vehicle.

Sales Tax Exemption
New alternative fuel vehicles and AFV conversion equipment and installation are exempt from the State and local sales tax which varies by county from six to seven percent (6-7%).

Fuel Use Exemption
Alternative fuels are exempt from the $0.18 per gallon fuel use tax.

HOV Lane Access
AFVs are allowed to use the State’s High Occupancy Vehicle (HOV) lanes regardless of the number of occupants. AFVs must display an AFV license plate.

The incentives for the State of Arizona are administered by the Arizona Department of Commerce, Energy Office, (602) 280-1402.