CNG tag
Clean, affordable and abundant energy to meet the growing demand.

Buy-down Incentives for Natural Gas and Propane Vehicles

Program Description: This program, funded by AB118, provides grants reduce the initial price of natural gas and propane vehicles to public and private fleets and individual consumers. Funding is provided to original equipment manufacturers, who may designate vehicle dealers and distributors to apply on their behalf. Incentives are passed on to the vehicle operator at the point of sale.

Applicable Equipment: Natural gas vehicles excluding school and transit buses, and propane vehicles excluding transit buses.

Area Available: California

Funding Agency: California Energy Commission

Funding Available: Total program funding is $14.54M. The CEC may increase funding up to $30M. Of the initial $14.54M, $10.19M is designated for natural gas vehicles, excluding schools and transit buses, although this amount may change based on demand. Natural gas vehicle funding levels are:
GVW (lbs.)
Natural Gas Vehicle Incentives / Propane Vehicle Incentives
Up to 8,500: $3,000 /$3,000
8,501 - 14,000: $8,000/ $6,000
14,001 - 26,000 $20,000 / $10,000
26,001 and greater: $32,000 / N/A

Any one OEM may reserve up to $575k per reservation for vehicles up to 16,000 lbs GVW, and up to $1.3M per reservation for vehicles greater than 16,000 lbs GVW. For OEMS designating dealers or distributors, the sum of the reservation amounts for all dealers or distributors cannot exceed the limit for the OEM.

Incentives through this PON may be used in conjunction with other purchase incentives.

Application Opening Date: April 13, 2011

Application Deadline: Continuous until April 1, 2013 at 4pm or until all available funds have been exhausted, whichever occurs first.

Single Opportunity or periodic? Periodic.

Application Process: Incentive reservations are on a first-come, first-served basis. OEMs or designated dealer/distributor must complete the Buy-Down Incentive Reservation Form included in the PON and complete other forms. Requests will be approved at an Energy Commission business meeting. Applicants may only apply for funds for vehicles they believe they can sell within 120 days; the reservation will expire 120 days from the date of approval or when all incentives are paid, whichever coes first.

References and Contact Info: PON-10-604. Posted on-line at For more information, contact:

Jennifer Masterson California Energy Commission Grants and Loans Office 1516 Ninth Street, MS-1 Sacramento, CA 95814 Telephone: (916) 654-4606.

Disclaimer: All content provided on this website is for informational purposes only. The author will not be liable for any errors or omissions in this information nor for the availability of this information. The author will not be liable for any losses, injuries, or damages from the display or use of this information.