California Air Resources Board

Low Carbon Transportation Incentives (LCTI) and the Air Quality Improvement Program (AQIP) provide mobile source incentives to reduce greenhouse gas, criteria pollutant, and toxic air contaminant emissions through the deployment of advanced technology and clean transportation in the light-duty and heavy-duty sectors. LCTI and AQIP are just two of the incentive funding programs in CARB's larger portfolio of clean transportation investments. These are complemented by other CARB, State agency and local air district programs, as well as actions taken by local government entities. Each year, the legislature appropriates funds to CARB for these incentives to reduce emissions and support advanced technology demonstrations and deployments. The AQIP Guidelines and annual Funding Plans guide CARB's implementation of these incentives.

Program Background

The AQIP was established by the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (AB 118, Statutes of 2007, Chapter 750). AQIP is a mobile source incentive program that focuses on reducing criteria pollutant and diesel particulate emissions with concurrent greenhouse gas (GHG) reductions. CARB investments started under AQIP provide the foundation for the Low Carbon Transportation Investments that typically now make up the vast majority of CARB’s Clean Transportation Incentives.

In 2013, the LCTI program was established as part of the California Climate Investments, a statewide program that puts billions of Cap-and-Invest (formerly known as Cap-and-Trade) dollars to work reducing greenhouse gas emissions, strengthening the economy and improving public health and the environment, particularly in disadvantaged communities. CARB’s LCTI program, supported by Cap-and-Invest auction proceeds, is designed to accelerate the transition to advanced technology low carbon freight and passenger transportation with a priority on providing health and economic benefits to California’s most disadvantaged communities.

AQIP and LCTI, known together as Clean Transportation Incentives, are just one part of CARB’s larger portfolio of incentive programs that complement regulatory programs to reduce emissions and increase access to clean transportation. Each incentive program comes with its own statutory requirements, emission reduction goals, and eligible projects making the portfolio diverse and far-reaching. Together, these projects address multiple public health, air quality, climate change, and economic goals, including:

• Turning over the legacy fleet to achieve cost-effective, near-term emission reductions in support of State Implementation Plans, air toxics, and community air protection goals.
• Accelerating the introduction and deployment of zero-emission technologies to meet California’s longer-term air quality, carbon neutrality, and climate change goals.
• Improving access to and affordability of clean transportation and mobility options for low-income households and investing in the low-income and disadvantaged communities most impacted by pollution.
• Supporting the adoption of more sustainable transportation modes to reduce GHG emissions.
• Supporting the adoption of more sustainable transportation modes to reduce vehicle miles traveled (VMT) and GHG emissions to support sustainable communities.
• Expanding the supply chain for advanced technology components, the number of manufacturers choosing California as a home for manufacturing and leveraging private investment to support the commercial viability of advanced technology.
• Supporting economic growth and continuing the momentum California has built towards becoming a hub for the manufacture and deployment of clean technologies and associated high-quality jobs.

Progress, Outcomes and Results

LCTI and AQIP funding appropriated to CARB by the Legislature has been used to fund: zero-emission and plug-in hybrid passenger vehicles through traditional and innovative car ownership projects; clean mobility investments to increase access to alternative modes of transportation for priority populations; deployment incentives for clean trucks and buses utilizing zero-emission technologies; and advanced technology demonstration projects for freight trucks and equipment.

To date, 85% of CARB’s LCTI from the Greenhouse Gas Reduction Fund have supported projects benefiting priority populations*, exceeding the commitments made in past Funding Plans.

Outreach and Engagement

To increase awareness of and solicit engagement and input related to CARB’s Clean Transportation Incentives, CARB has developed a suite of outreach and engagement strategies, resources, and opportunities. As outlined in CARB’s Senate Bill (SB) 350 Barriers Report, a key barrier to low-income residents’ access to zero-emission and near zero-emission transportation and mobility options is understanding the transportation needs of low-income residents and disadvantaged communities, and residents’ awareness of clean transportation and mobility options. Recommendations to address this barrier include:

• Develop a comprehensive outreach plan and community-based materials for engaging with low-income residents and disadvantaged communities across the State; and,
• Expand and better coordinate education, outreach, and exposure for clean transportation and mobility options (including incentive programs), and to improve accessibility of information and streamline outreach efforts.

In 2018, CARB developed the SB 350 Outreach Strategic Roadmap, which identifies strategies that support objectives to streamline outreach and improve community engagement to priority populations. Since this time and to implement the strategies outlined in the Roadmap, CARB has initiated the following outreach and engagement activities:

• Access Clean California - In response to priority recommendation five of the SB 350 Barriers Report, Access Clean California (originally called the One-Stop-Shop Pilot Project) was developed in 2018. Access Clean California takes a multi-dimensional approach to outreach with the ultimate goal of streamlining access to, and coordinating outreach for, the State’s clean transportation and clean energy consumer-based equity projects. Access Clean California helps families in underserved communities learn about and apply for incentives.
• Annual Clean Transportation Funding Plan Engagement - A wide variety of outreach and engagement opportunities to more equitably develop the annual Clean Transportation Incentives Funding Plan.
• Clean Transportation Regional Outreach Coordinators - Dedicated staff assigned to specific regions within the State to coordinate and conduct outreach on mobile source incentives and regulatory efforts. Anyone interested in coordinating outreach to a community should request a consultation with their region’s liaison.
• Collaboration and Networking Forums - CARB and its administrative partners have created several collaboration and networking forums related to clean mobility and equity incentives.
  • Clean Transportation Equity Incentives Symposium
  • Clean Mobility Forum
  • Clean Mobility Equity Alliance
  • Zero-Emission School Bus Forum
• Community Tours - Understanding the unique challenges and needs of California’s priority populations is critical to designing and operating effective incentive programs. CARB has initiated a series of tours of various communities to learn about specific challenges, engage with local residents, and gather information to better shape incentive programs.
• Cal Fleet Advisor - Cal Fleet Advisor is a free technical assistance and advisory program that has supported over 1,000 medium- and heavy- duty fleets in California. With Cal Fleet Advisor, dedicated advisors provide industry-specific insights, answer questions, offer resources and referrals, and provide technical support to help fleets obtain zero-emissions vehicles.
• Drive Forward - A new initiative reaffirming California’s leadership in clean air and climate policy and charting the next phase of the State’s light-, medium-, and heavy-duty vehicle programs.
• One-Stop Truck Events - A series of free, informational events across California focused on medium- and heavy-duty vehicles. These events provide an opportunity for fleet owners, operators, and communities to listen to presentations, participate in one-on-one discussions and meet CARB regulatory experts and incentive program staff on topics related to medium- and heavy-duty vehicles including regulatory requirements, incentive funding, and zero-emission vehicles. 
• Zero-Emission Ride and Drive Events - Free zero-emission truck and off-road equipment showcases and ride & drive events across the state. Past ride & drive events have featured over 70 zero-emission Class 2b-8 trucks, buses, vans, and off-road equipment. The events allow fleet owners, operators, and community members to become familiar with various zero-emission technologies, talk to dealers, manufacturers and service providers, and learn more about incentive opportunities. 
• Zero-Emission Vehicle (ZEV) Equity Task Force - Brings together leaders in zero-emission transportation such as environmental justice advocates, automakers, state government, and other key organizations to develop strategies to expand communities’ access to ZEVs and zero-emission mobility.

Workforce Training and Development

Maximizing economic opportunities and benefits for low-income residents from investments in clean transportation and mobility options by expanding workforce training and development was one of the key recommendations outlined in CARB’s SB 350 Barriers Report. As a result, CARB has initiated several workforce training and development activities related to its Clean Transportation Incentives. More information on these activities can be found through the Expand Workforce Training and Development webpage.

*California Climate Investments 2025 Annual Report, Table ES‑1, 2024 Cumulative Statistics