South Coast AQMD, in partnership with the Southern California Association of Governments (SCAG), has launched a new $50 million Last Mile Freight Program as part of the INVEST CLEAN* initiative. This funding, provided through a sub-award from the U.S. Environmental Protection Agency, will support the deployment of Class 4 and Class 5 battery-electric commercial vehicles for lastmile delivery fleets operating across Los Angeles, Orange, Riverside, and San Bernardino counties.

Qualified fleet owners and operators—including last-mile delivery providers, logistics companies, and businessto- business distributors—can receive up to $67,000 per vehicle toward the purchase or conversion of eligible diesel trucks. The program allows for both “cash-for-replacement” (replacing older diesel trucks) and vehicle conversion options.

Applications are currently open through January 30, 2026 (with the possibility of a second round in July 2026 if funds remain). SCAG will give priority to projects that are “implementation-ready,” deliver strong emissions benefits, and ensure equitable geographic distribution across the region.

(Another INVEST CLEAN funding program, the Charging Infrastructure Incentive Program, also has an application deadline of January 30.)

This new Last Mile Freight Program rebate program builds on SCAG’s earlier Phase 1 efforts, which deployed $16.75 million (via Mobile Source Air Pollution Reduction Review Committee) to support 22 zero- and near-zero-emission freight projects. By scaling up clean medium-duty freight operations, this investment strengthens the region’s goods movement network while cutting harmful emissions and advancing air quality goals.

*This project has been funded wholly or in part by the U.S. Environmental Protection Agency under assistance agreement #5E97T15501 to the South Coast Air Quality Management District. The contents of this document do not necessarily reflect the views and policies of U.S. Environmental Protection Agency, nor does U.S. Environmental Protection Agency endorse trade names or recommend the use of commercial products mentioned in this document, as well as any images, video, text, or other content created by generative artificial intelligence tools, nor does any such content necessarily reflect the views and policies of the U.S. Environmental Protection Agency.