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Low Carbon Transportation Investments and Air Quality Improvement Program

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What does it fund?

Financial incentives are provided to retire older, more polluting vehicles and replace them with newer and cleaner, hybrid, plug-in hybrid, or zero-emission vehicles, or alternative mobility options.  Buyers of plug-in hybrid and battery electric vehicles are also eligible for home charger incentives or prepaid charge cards if home charger installation is not an option.

Who is eligible for funds?

California residents who have lower-incomes and live within or near a disadvantaged community of the San Joaquin Valley, South Coast, Bay Area, Sacramento, and San Diego air districts.

Are there recent policy changes?

The program will expand to a needs-based statewide program in 2023 and will continue to maintain income eligibility requirements. More information can be found in the Fiscal Year 2022-23 Funding Plan. Access the link on that webpage titled "Proposed Fiscal Year 2022-23 Funding Plan for Clean Transportation Incentives without Appendices."

How does this program provide benefits to priority populations?

A tiered incentive structure provides maximum incentives to the lowest income participants purchasing or leasing the cleanest technology vehicles that reside within and near priority populations. This reduces health risks and transportation costs, and provides greater, more reliable mobility and increased access to clean transportation to priority populations.

How do I access funds?

Apply to air districts that implement the program on a first-come, first-served basis, or at Access Clean California (may not be available for all participating air districts).

Cumulative Outcomes as of November 2022

  • $436 million allocated
  • $105 million implemented
  • $84.3 million benefitting priority populations
  • 13,000 vehicles implemented
  • 98,700 MTCO2e GHG reductions
  • 104 tons of NOₓ reductions
  • 17.4 tons of ROG/HC reductions
  • 4.17 tons of PM reductions

Funding Sources

  • Air Quality Improvement Fund
  • Greenhouse Gas Reduction Fund
  • Volkswagen Settlement Fund

Last updated: February 2023