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Freight funding

Now Open for Application: Zero-Emission Freight and Marine Statewide Grant Funding in California

Apply for Funding for the Following Equipment: Heavy-Duty Forklifts, Port Cargo Handling Equipment, Aircraft Ground Support Equipment, Marine Vessel Repower, and Shore Power for Unregulated Ocean-going Vessels

Up to $20 million funding is now available Statewide through the VW Zero-Emission Freight and Marine (ZEFM) program. Applications are being accepted and reviewed on a first-come, first-served basis until funding is exhausted.

Get started with your application today!

This VW ZEFM solicitation incorporates the modifications to the California’s Beneficiary Mitigation Plan that were recently approved by the California Air Resources Board and has the following new features:

  • Allows stacking with Clean Off-Road Equipment Voucher Incentive Project (CORE) and other state programs that don’t claim NOx emissions reductions.
  • Removed static funding caps for all project categories, including the funding cap for Airport Ground Support Equipment.
  • Includes a higher cost-effectiveness threshold (increased from $280,000 to $466,000 per ton of NOx reduced) that will be used as the primary factor in determining maximum funding.
  • Requires CARB’s pre-approval for projects with proposed award over $1M.

Funding is available for the following project categories:

  • Heavy-lift forklifts (8,000 lb. lift capacity or greater)scrap and replace
  • Airport ground support equipment scrap and replace
  • Port cargo handling equipment (including terminal tractors) scrap and replace
  • Ferries, tugboats, towboats repower, and
  • Shore power system installation for ocean-going vessels not required or not yet required to use shore power while at berth.

Is your equipment eligible? Review the program guidance for eligibility, requirements, and application support.

Interested in updates about funding for zero-emission equipment in these categories? Sign up for email announcements.

Recorded webinars will be available online to discuss program requirements and the application and awarding process. Notifications will be posted on the program website and sent out to the program emailing list once the webinars are scheduled.


This program is funded through the California VW Mitigation Trust, a program that provides $423 million to mitigate the excess nitrogen oxide (NOx) emissions caused by illegal use of emissions testing defeat devices in VW diesel vehicles. The California VW Mitigation Trust’s funding advances low-emission vehicle and equipment deployment and accelerates the zero-emission transformation of transportation systems. More than 75 percent of the funds from this funding category are expected to benefit disadvantaged or low-income communities. For more information on the California VW Mitigation Trust program, visit the program website.


The Bay Area Air Quality Management District serves as the statewide administrator for the funding for this project category in partnership with CARB. If you have any questions regarding the open solicitation, please visit the VW Zero-Emission Freight and Marine project website, email California VWTrust@baaqmd.gov, or call 1-844-9VW-FUND (1-844-989-3863).