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California Energy Commission to award up to $10.8M in incentives for new natural gas vehicles
28 January 2014
The California Energy Commission is soliciting (PON-13-610) applications for a total of $10.8 million in funding for natural gas vehicle incentives to reduce the purchase price of new on-road natural gas vehicles. The incentives are available on a first-come, first-served basis and at varying levels depending on the gross vehicle weight.
The solicitation is open to original equipment manufacturers (OEMs). For purposes of the solicitation, an OEM is defined as an entity that manufactures and assembles vehicle chassis or engines, and sells under its name or badge complete light-, medium-, or heavy-duty vehicles or school buses. An OEM may reserve incentives directly for eligible vehicles that are sold through its dealers and distributors. Incentives are available through this solicitation only for vehicles meeting all of the following requirements:
Vehicles must be new, on-road natural gas light-, medium-, or heavy-duty vehicles or school buses.
Vehicles must meet all 2010 or newer emission requirements of the California Air Resources Board (ARB).
Vehicles must be registered and operated on natural gas in California (at least 90 percent of the time) for at least 3 years.
Vehicles must be fully warranted. “Fully warranted” means 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. Eligible vehicles must have engines prepped for natural gas.
Transit buses are not eligible for incentives under this solicitation.
The individual incentive amounts by gross vehicle weight (GVW) are as follows:
|GVW (lbs)||Incentive Amount|
|Up to 8,500||$1,000|
|8,501 – 16,000||$6,000|
|16,001 – 26,000||$11,000|
|26,001 – 33,000||$20,000|
|33,001 & greater||$25,000|
The maximum incentive amount that an OEM may reserve or that an OEM may designate cumulatively to dealers or distributors is $1,600,000. The maximum total incentive amount that each individual OEM designated dealer or distributor may receive is $300,000.
A single end-user (i.e., purchaser of the natural gas vehicle receiving an incentive) is eligible for up to a maximum of 10 incentives only under this solicitation. An end-user is defined as any single individual or business entity including all subsidiaries. Once an end-user exceeds this maximum incentive cap, the Energy Commission reserves the right to reject incentive reimbursement requests associated with end-users exceeding the cap.
The Energy Commission strongly encourages that OEMs work through California dealers and distributors.
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