Sizable Natural Gas Vehicle Incentives Are in the Queue


The California Energy Commission has opened up a new funding opportunity that will offer natural gas vehicle (NGV) incentives at the point of sale through OEMs and their dealers and distributors.

The total funding level for this round of incentives is pegged at $10.8 million, but the commission can increase or decrease this figure based on demand and other criteria. The commission has also specified funding caps for each OEM. The maximum incentive amount that an OEM may reserve for or designate to dealers or distributors is $1.6 million. The maximum total incentive amount that each designated dealer or distributor may receive is $300,000.

The full range of NGVs is eligible for this funding opportunity, at the following levels:

  • Up to 8,500 lbs. GVW, $1,000 per vehicle
  • 8,501 – 16,000 lbs. GVW, $6,000
  • 16,001 – 26,000 lbs. GVW, $11,000
  • 26,001 – 33,000 lbs. GVW, $20,000
  • 33,001 lbs. GVW and higher:Â Â Â $25,000

To be eligible for the incentives, the vehicles need to meet all of the following requirements:

  • Vehicles must be new, on-road natural gas vehicles or school buses
  • Vehicles must meet all 2010 or newer emission requirements of the California Air Resources Board (CARB)
  • Vehicles must be registered and operated on natural gas in California (at least 90% of the time) for at least three years
  • Vehicles must be fully warranted, meaning that all vehicle components – including the natural gas fuel system – are covered exclusively by the OEM or covered under separate warranties by the OEM and the fuel system upfitter that together provide warranty for the complete vehicle
  • Vehicles must have engines prepped for natural gas

The commission will stop accepting applications for these incentives on May 1, 2014. For more information, call (916) 654-4631 or send an email to

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