California Laws and Incentives for Aftermarket Conversions

The list below contains summaries of all California laws and incentives related to Aftermarket Conversions.

State Incentives

Alternative Fuel and Vehicle Incentives

The California Energy Commission (CEC) administers the Alternative and Renewable Fuel and Vehicle Technology Program (Program) to provide financial incentives for businesses, vehicle and technology manufacturers, workforce training partners, fleet owners, consumers, and academic institutions with the goal of developing and deploying alternative and renewable fuels and advanced transportation technologies. The CEC must prepare and adopt an annual Investment Plan for the Program to establish funding priorities and opportunities that reflect program goals and to describe how program funding will be used to complement other public and private investments. Funded projects include:

• Commercial alternative fuel vehicle (AFV) demonstrations and deployment;
• Alternative and renewable fuel production;
• Research and development of alternative and renewable fuels and innovative technologies;
• AFV manufacturing;
• Workforce training; and
• Public education, outreach, and promotion.

(Reference Assembly Bills 2405, 2012, and California Code of Regulations, Title 13, Chapter 8.1 and California Health and Safety Code 44270-44274.7)

Emissions Reductions Grants

The Carl Moyer Memorial Air Quality Standards Attainment Program provides incentives to cover the incremental cost of purchasing engines and equipment that are cleaner than required by law. Eligible projects include heavy-duty fleet modernization, light-duty vehicle replacements and retrofits, idle reduction technology, and off-road vehicle and equipment purchases. The Carl Moyer Program provides funds for significant near-term reductions in nitrogen oxide emissions, reactive organic gases, and particulate matter emissions. Funding is available through January 1, 2015. Contact local air districts for more information about grant funding availability and distribution. (Reference California Health and Safety Code 44280, 44229, and 44299))

Heavy-Duty Vehicle Emissions Reduction Grants

The Goods Movement Emission Reduction Program (Program) provides funding for projects that reduce emissions from freight movement in the state, including heavy-duty truck replacement, repower, or retrofit; and truck stop electrification infrastructure development. Contact the Program or local air districts for more information about funding availability and distribution. (Reference California Health and Safety Code 39625-39627.5)

Heavy-Duty Diesel Vehicle Vouchers - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District (SJVAPCD) administers two voucher incentive programs to reduce vehicle emissions from heavy-duty diesel trucks. The Voucher Incentive Program (VIP) provides funding for fleets with ten or fewer trucks to replace or retrofit heavy-duty diesel trucks. The Truck Voucher Program (TVP) provides funding for small businesses to retrofit or replace existing heavy-duty trucks. Qualified businesses must be independently owned and operated, be located in California, have fewer than 100 employees, and have an annual gross income of $14 million or less during the year of their application. Vouchers funded under these programs must achieve emissions reductions beyond those required by law or regulation. Applications for the programs can be obtained and submitted at an SJVAPCD certified dealership or retrofit installer. Applications will be accepted on a continual basis until funding for the program is exhausted. Applicants must be awarded a voucher from the SJVAPCD prior to ordering and/or purchasing the replacement truck or equipment. For more information on program requirements, refer to the SJVAPCD website.

Utility/Private Incentives

Propane Vehicle Rebates - Western Propane Gas Association (WPGA)

The WPGA offers rebates of $1,000 for the purchase of a new propane vehicle or the conversion of an existing vehicle to operate on propane. In addition, WPGA offers rebates for 20% of the purchase or conversion price of a new propane commercial mower, up to $2,500. Rebates are available through August 31, 2013, or when program funds are exhausted. For more information, refer to the WPGA New Propane Vehicle and Commercial Mower Rebate Programs website.

Laws and Regulations

Alternative Fuel and Plug-in Hybrid Electric Vehicle Retrofit Regulations

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)

Alternative Fuel Vehicle Retrofit Emissions Inspection Process

The California Department of Health and Safety may adopt a process by which state designated referees inspect vehicles that present prohibitive inspection circumstances, such as vehicles equipped with alternative fuel retrofit systems. (Reference California Health and Safety Code 44014)