California Air Resources Board

Federal Incentives

The Federal Consolidated Rail Infrastructure and Safety Improvements (CRISI)

The Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program funds projects that improve the safety, efficiency, and reliability of intercity passenger and freight rail.

Funding Available for Award Under Fiscal Year 2025:  TBD

See the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program page for updateson FY 2025 grants.

State Incentives

Many California state incentives that target emission reductions require that reductions be early, extra, or surplus to reductions already required by regulations or other measures. To ensure maximum grant life and funding amount, it is essential to apply as early as possible.

Carl Moyer Memorial Air Quality Standards Attainment Program

CARB is offering incentives to help upgrade or replace older, dirtier locomotives with cleaner Tier 4 or zero-emission locomotives. CARB incentives awards are often tied to cost-effectiveness, which are the emissions reduced throughout project life.  

For more information, including the 2024 Moyer Program Guidelines Updates, visit the Carl Moyer Program webpage: Carl Moyer Memorial Air Quality Standards Attainment Program | California Air Resources Board.

Funding information:

• To be eligible for the fullest funding possible, applicants must execute a locomotive project grant contract with their Air District prior to CARB Board final approval of the Proposed In-Use Locomotive Regulation
  • Carl Moyer grants executed after CARB Board approval would be subject to a reduced grant life, resulting in a substantially lower grant amount.
• Applicants: Class 1 and Class 2 Line Haul, Class 3, Switcher, and Passenger
• Up to 80% of eligible costs on locomotive replacement, engine repower, locomotive conversion, or locomotive retrofit of Class 1 and Class 2 Line Haul
• Up to 85% of eligible costs on locomotive replacement, engine repower, locomotive conversion, or locomotive retrofit of Class 3, Switcher, and Passenger
• Maximum grant life 15 years
• For infrastructure projects, see Chapter 10 of the 2024 Moyer Program Guidelines regarding applicant eligibility and project types for infrastructure to support zero-emission locomotives.
• Potential project applicants should contact their local air district for the most up-to-date information on funding availability, project eligibility, application procedures, and selection timelines.

Table 1: Air Districts Accepting Locomotive Incentives Applications in the Carl Moyer Program

Prop. 1B Goods Movement Emission Reduction Program

Locomotive grants may be available through:

South Coast Air Quality Management District: Goods Movement Emission Reduction Projects (Proposition 1B Program) (aqmd.gov)

Bay Area Air Quality Management District: Other Equipment (baaqmd.gov)

For more information on the program, visit the Proposition 1B: Goods Movement Emission Reduction Program webpage at: Proposition 1B: Goods Movement Emission Reduction Program | California Air Resources Board. 

Funding information:

• Up to 75% of eligible costs on replacement or retrofit of a freight switch locomotive with at least 75% usage within the state, for upgrades to Tier 4
• Up to 75% of eligible costs on replacement or retrofit of a freight line haul locomotive, adjusted for usage within the state, for upgrades to Tier 4 AB 617 Community Air Protection Grants
• The February 2024 Executive Order G-24-040 includes the adoption of modifications to the Program Guidelines for Year 5 and Year 6 locomotive projects.

Locomotive Incentives granted through the Community Air Projection Program are selected by AB 617 Communities, and are evaluated pursuant to the Carl Moyer Program Guidance, see Carl Moyer Program (above), and visit the Community Air protection webpage at: Community Air Protection Incentives Guidelines | California Air Resources Board

Low Carbon Transportation (LCT) and Air Quality Improvement Program (AQIP) Grants

View the Fiscal Year 2024-25 Funding Plan for Clean Transportation Incentives. Information on public workshops and work group meetings for the Fiscal Year 2024-25 can be found on the Low Carbon Transportation Investments and AQIP Meetings and Workshops webpage: Low Carbon Transportation Investments and AQIP Meetings and Workshops | California Air Resources Board

Visit the LCT/AQIP webpage for periodic updates: Low Carbon Transportation Investments and AQIP Funding Plans | California Air Resources Board

VW Mitigation Trust

Deployed through the SCAQMD.  For more information visit the VW Mitigation Trust webpage: Volkswagen Environmental Mitigation Trust for California | California Air Resources Board (aqmd.gov).

Funding information:

• Applicants: Operators able to demonstrate at least 75% usage within the State
• Up to 25% of eligible costs on locomotive replacement to Tier 4
• Up to 40% of eligible costs on locomotive repower to Tier 4
• Up to 75% of eligible costs on locomotive replacement and repower to zero-emission

Clean Off-Road Equipment Voucher Incentive Project (CORE)

This program funds vouchers to purchase zero-emission off-road equipment, such as freight locomotives and rail car movers.

Funding information:

• Up to $1,000,000 on railcar movers and freight locomotives
• Up to $30,000 on potential infrastructure enhancement

Visit the CORE webpage for more information and updates: Clean Off-Road Equipment Voucher Incentive Project | California Air Resources Board

Transit and Intercity Rail Capital Program (TIRCP)

The California State Transportation Agency (CalSTA) administers projects for the Transit and Intercity Rail Capital Program (TIRCP).  The final guidelines and future calls for projects are available on the CalSTA website.

Funding Available for Award Under Fiscal Year 2025:  TBD

Eligible projects may include, but are not limited to:

• Projects enabling or enhancing shared-use corridors (both multi-operator passenger only corridors as well as passenger-freight corridors)
• Projects related to mitigating the impacts on freight rail services that are caused by growth in passenger rail

See the Transit and Intercity Rail Capital Program page for more information on eligible projects and updates on FY 2025 grants.