California / VW Zero-Emission Freight and Marine Program

California / VW Zero-Emission Freight and Marine Program

California / VW Zero-Emission Freight and Marine Program

Thursday, August 24, 2023 / CALSTART

Up to $20 million funding is now available in California 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. 

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. 


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. 


For more information, check out the announcement on Green Car Congress, or the VW Mitigation Trust Page.