The list below contains summaries of all California incentives and laws related to Propane (LPG).
The California Energy Commission (CEC) administers the Alternative and Renewable Fuel and Vehicle Technology Program to increase the use of alternative and renewable fuels and innovative technologies. The CEC must prepare and adopt an annual Investment Plan for the Alternative and Renewable Fuel and Vehicle Technology Program to determine funding priorities and opportunities and will describe how program funding will be used to complement other public and private investments. Grants and loans are available for projects that:
Point of Contact
Peter Ward
Manager, Alternative and Renewable Fuel & Vehicle Technology Program
California Energy Commission
Phone: (916) 654-4639
Fax: (916) 654-4676
pward@energy.state.ca.us
http://www.energy.ca.gov/altfuels/index.html
The Motor Vehicle Registration Fee Program provides funding for projects that reduce air pollution from on- and off-road vehicles. Eligible projects include purchasing AFVs and developing alternative fueling infrastructure. Contact local air districts for more information about available grant funding and distribution from the Motor Vehicle Registration Fee Program. (Reference California Health and Safety Code 44220 (b))
The Lower-Emission School Bus Program provides grant funding for the replacement of older school buses and for the purchase of air pollution control equipment for in-use buses. The California Air Resources Board must verify that the air pollution control devices reduce particulate matter emissions by at least 85% for each retrofitted school bus. Public school districts in California that own their buses are eligible to receive funding. Private school transportation providers that contract with public school districts in California to provide transportation services are also eligible to receive funding for the retrofit of in-use buses. New buses purchased to replace older buses may be fueled with diesel or an alternative fuel, provided that the required emissions standards specified in the current guidelines for the Lower-Emission School Bus Program are met. Funds are also available for replacing on-board natural gas tanks on older school buses and for updating deteriorating natural gas fueling infrastructure. Commercially available hybrid electric school buses may be eligible for partial funding. Contact local air districts for more information about grant funding availability and distribution from the Lower-Emission School Bus Program. (Reference Assembly Bill 462, 2011; Senate Bill 570, 2011; and California Health and Safety Code 41081 and 44099))
Point of Contact
Lisa Jennings
Air Pollution Specialist, Lower-Emission School Bus Program
California Air Resources Board
Phone: (916) 322-6913
Fax: (916) 322-3923
ljenning@arb.ca.gov
http://www.arb.ca.gov/msprog/schoolbus/schoolbus.htm
The South Coast Air Quality Management District (SCAQMD) administers the Air Quality Investment Program (AQIP). The AQIP provides funding to allow employers within SCAQMD's jurisdiction to make annual investments into an administered fund to meet employers' emissions reduction targets. The revenues collected are used to fund alternative mobile source emissions/trip reduction programs, including alternative fuel vehicle projects, on an on-going basis. Programs such as low emission, alternative fuel, or zero emission vehicle procurement, and old vehicle scrapping may be considered for funding. Current requests for proposals and funding opportunities are listed on the AQIP website.
Point of Contact
Shashi Singeetham
Air Quality Specialist
South Coast Air Quality Management District
Phone: (909) 396-3298
Fax: (909) 396-3608
ssingeetham@aqmd.gov
http://www.aqmd.gov/trans/aqip.html
The South Coast Air Quality Management District's Clean Fuels Program provides funding for research, development, demonstration, and deployment projects that are expected to help accelerate the commercialization of advanced low emission transportation technologies. Eligible projects include powertrains and energy storage/conversion devices (e.g., fuel cells and batteries), and implementation of clean fuels (e.g., natural gas, propane, and hydrogen), including the necessary infrastructure. Projects are selected via specific requests for proposals on an as-needed basis or through unsolicited proposals. Approximately $10 million in funding is available annually with expected cost-share from other project partners and stakeholders.
Point of Contact
Dipankar Sarkar
Technology Demonstration Manager
South Coast Air Quality Management District
Phone: (909) 396-2273
Fax: (909) 396-3252
dsarkar@aqmd.gov
http://www.aqmd.gov/tao/Demonstration/index.htm
The San Joaquin Valley Air Pollution Control District administers the Public Benefit Grant Program, which provides funding to cities, counties, special districts (such as water districts and irrigation districts) and public educational institutions for the purchase of new AFVs, including electric, natural gas, and propane vehicles, as well as hybrid electric vehicles; electric vehicle supply equipment and alternative fueling infrastructure projects; and advanced transportation and transit projects. Projects are considered on a first-come, first-serve basis.
The San Joaquin Valley Air Pollution Control District administers the REMOVE II program, which provides incentives for the purchase of low emission passenger vehicles, light-duty trucks, small buses, and trucks with gross vehicle weight ratings of 14,000 pounds or less. The purpose of REMOVE II is to encourage the early introduction of low emission vehicles in the San Joaquin Valley. Funding in the amount of $1,000 to $3,000 is available per vehicle according to the emissions certification level and size of the vehicle. Vehicles must be powered by alternative fuel or electric or hybrid electric engines/motors. REMOVE II also includes an Alternative Fuel Vehicle (AFV) Mechanic Training Component that provides incentives to educate personnel on the mechanics, operation safety, and maintenance of AFVs, fueling stations, and tools involved in the implementation of alternative fuel technologies.
The WPGA offers rebates for the purchase of a new propane vehicle or the conversion of an existing vehicle to operate on propane. Rebates are available until August 31, 2012, or when program funds are exhausted. For more information, refer to the WPGA New Propane Vehicle and Commercial Mower Rebate Programs website.
Farmers Insurance provides a discount of up to 10% on all major insurance coverage for HEV and AFV owners. To qualify, the automobile must be designed to use a dedicated alternative fuel as defined in the Energy Policy Act of 1992, or a HEV. A complete Vehicle Identification Number is required to validate vehicle eligibility.
The California Department of Transportation (Caltrans) must update the California Transportation Plan (Plan) by December 31, 2015, and every five years thereafter. The Plan must address how the state will achieve maximum feasible emissions reductions, taking into consideration the use of alternative fuels, new vehicle technology, and tailpipe emissions reductions. Caltrans must prepare and submit an interim report to the California Transportation Commission and to the Senate and Assembly committees related to transportation, environmental quality, natural resources, and local government by December 31, 2012. Caltrans must consult and coordinate with related state agencies, air quality management districts, public transit operators, and regional transportation planning agencies. Caltrans must also provide an opportunity for general public input. Caltrans must submit a final draft of the Plan to the legislature and governor. (Reference California Government Code 65071-65073)
California's LEV II exhaust emissions standards apply to Model Year (MY) 2004 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles meeting specified exhaust standards. The LEV II standards represent the maximum exhaust emissions for LEVs, Ultra Low Emission Vehicles, and Super Ultra Low Emission Vehicles, including flexible fuel, bi-fuel, and dual-fuel vehicles when operating on an alternative fuel. New MY 2009 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles must meet specified fleet average greenhouse gas (GHG) exhaust emissions requirements. Each manufacturer must comply with these fleet average GHG requirements, which are based on California Air Resources Board calculations. Bi-fuel, flexible fuel, dual-fuel, and grid-connected hybrid electric vehicles may be eligible for an alternative compliance method. Manufacturers may earn credits for fleet average GHG values lower than the fleet average GHG requirement applicable to MY 2012.
As of October 2011, the California Air Resources Board is considering changes to the regulations, referred to as LEV III, which would control smog-causing pollutants and GHG emissions and include efforts to accelerate the production and use of plug-in hybrid electric and zero emission vehicles in the state. See the LEV III Program website for more information.
(Reference California Code of Regulations Title 13, Section 1961-1961.1)
Converting a vehicle to operate on an alternative fuel in lieu of the original gasoline or diesel fuel is prohibited unless the California Air Resources Board (ARB) has evaluated and certified the retrofit system. ARB will issue certification to the manufacturer of the system in the form of an Executive Order once the manufacturer demonstrates compliance with the emissions, warranty, and durability requirements. A manufacturer is defined as a person or company who manufactures or assembles an alternative fuel retrofit system for sale in California; this definition does not include individuals wishing to convert vehicles for personal use. Individuals interested in converting their vehicles to operate on an alternative fuel must ensure that the alternative fuel retrofit systems used for their vehicles have been ARB certified. For more information, see the ARB Alternative Fuel Retrofit System website.
A hybrid electric vehicle that is Model Year 2000 or newer and is a passenger car, light-duty truck, or medium-duty vehicle may be converted to incorporate off-vehicle charging capability if the manufacturer demonstrates compliance with emissions, warranty, and durability requirements. ARB issues certification to the manufacturer and the vehicle must meet California emissions standards for the model year of the original vehicle.
(Reference California Code of Regulations Title 13, Section 2030-2032, and California Vehicle Code 27156)
The excise tax imposed on compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG or propane) used to operate a vehicle can be paid through an annual flat rate sticker tax based on the following vehicle weights:
| Unladen Weight | Fee |
|---|---|
| All passenger cars and other vehicles 4,000 pounds (lbs.) or less | $36 |
| More than 4,000 lbs. but less than 8,001 lbs. | $72 |
| More than 8,000 lbs. but less than 12,001 lbs. | $120 |
| 12,001 lbs. or more | $168 |
Alternatively, owners and operators may pay an excise tax on CNG of $0.07 per 100 cubic feet measured at standard pressure and temperature, $0.06 per gallon of LNG, and $0.06 per gallon of propane. The excise tax on ethanol and methanol fuel blends containing up to 15% gasoline or diesel fuel is half of the current tax on gasoline and diesel.
(Reference California Revenue and Taxation Code 8651-8651.8)
The California Department of General Services (DGS) is responsible for maintaining specifications and standards for passenger cars and light-duty trucks that are purchased or leased for state office, agency, and department use. These specifications include minimum vehicle emissions standards and encourage the purchase or lease of fuel-efficient and alternative fuel vehicles (AFVs). On an annual basis, DGS must compile information including, but not limited to, the number of AFVs and hybrid electric vehicles acquired, the locations of the alternative fuel pumps available for those vehicles, and the total amount of alternative fuels used.
Vehicles the state owns or leases that are capable of operating on alternative fuel must operate on that fuel unless the alternative fuel is not available. Additionally, the California State and Consumer Services Agency, in consultation with DGS and other appropriate state agencies, must develop, implement, and submit to the California Legislature and governor a plan to increase the state fleet's use of alternative fuels, synthetic lubricants, and fuel-efficient vehicles. This must be done by reducing or displacing the fleet's consumption of petroleum products by 10% by January 1, 2012, and 20% by January 1, 2020, as compared to the 2003 consumption level. DGS must also take steps to transfer vehicles between agencies and departments to ensure that the most fuel-efficient vehicles are used and to eliminate the least fuel-efficient vehicles from the state's motor vehicle fleet. DGS must submit annual progress reports to the California Department of Finance, related legislative committees, and the general public via the DGS website.
(Reference Executive Order S-14-09, 2009, and California Public Resources Code 25722.5, 25722.6, and 25722.8)
The California Energy Commission must prepare and submit an Integrated Energy Policy Report (IEPR) to the governor on a biannual basis. The IEPR provides an overview of major energy trends and issues facing the state, including those related to transportation fuels, technologies, and infrastructure. The IEPR also examines potential effects of alternative fuels use, vehicle efficiency improvements, and shifts in transportation modes on public health and safety, the economy, resources, the environment, and energy security. The IEPR's primary purpose is to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the state's economy, and protect public health and safety. (Reference California Public Resources Code 25302)
Through its Mobile Sources Program, the California Air Resources Board has developed programs and policies to reduce emissions from on-road heavy-duty diesel vehicles through the installation of verified diesel emission control strategies (VDECS) and vehicle replacements.
An on-road heavy-duty diesel vehicle rule requires the retrofit and replacement of nearly all privately owned vehicles operated in California with a gross vehicle weight rating (GVWR) greater than 14,000 pounds. School buses owned by private and public entities and federal government owned vehicles are also included in the scope of the rule. The requirements phase in the installation of VDECS on certain heavier in-use vehicles beginning January 1, 2012, and require the replacement of older vehicles starting January 1, 2015. By January 1, 2023, nearly all vehicles must have engines certified to the 2010 engine standard or equivalent. A drayage/port truck rule regulates heavy-duty diesel-fueled vehicles that transport cargo to and from California's ports and intermodal rail facilities. The rule requires that certain drayage trucks be equipped with VDECS and that all applicable vehicles have engines certified to the 2007 emissions standards by January 1, 2014. A public transit agency fleet rule regulates public transit fleets and sets emissions reduction standards for new transit vehicles. A solid waste collection vehicle rule regulates solid waste collection vehicles with a gross vehicle weight rating of 14,000 pounds or more that operate on diesel fuel, have 1960 through 2006 engine models, and collect waste for a fee. The fleet rule for public agencies and utilities requires fleets to install VDECS on vehicles or purchase vehicles that run on alternative fuels or use advanced technologies to achieve emissions requirements by specified implementation dates.
A summary of Requirements for Diesel Truck and Equipment Owners can be found in the Multi-Rule Summary Fact Sheet. (Reference California Code of Regulations Title 13, 2021-2027)
Point of Contact
Diesel Hotline
California Air Resources Board
Phone: (866) 6DIESEL (634-3735)
8666diesel@arb.ca.gov
http://www.arb.ca.gov/cc/hdghg/hdghg.htm
The South Coast Air Quality Management District (SCAQMD) requires government fleets and private contractors under contract with public entities to purchase lower emission and alternative fuel vehicles. The rule applies to transit bus, school bus, refuse hauler, and other vehicle fleets of at least 15 vehicles that operate in Los Angeles, San Bernardino, Riverside, and Orange counties. (Reference SCAQMD Rules 1186.1 and 1191-1196)
Point of Contact
Fleet Rule Implementation Hotline
South Coast Air Quality Management District
Phone: (909) 396-3044
fleetrules@aqmd.gov
http://www.aqmd.gov/tao/FleetRules