Last Mile Freight Program Battery-Electric Vehicle Rebates
The Last Mile Freight Program (LMFP) is a regional initiative led by SCAG and developed through multi-agency collaboration. The focus of the LMFP is to accelerate the transition to zero-emission and near-zero emission freight transportation in Southern California.
Through LMFP Phase 1, SCAG awarded $14.14 million from the Mobile Source Air Pollution Reduction Review Committee to support 21 projects being implemented across the region, deploying zero- and near-zero-emission vehicle technologies. Building on that foundation, SCAG has launched a LMFP Rebate program, funded by the U.S. Environmental Protection Agency as part of the South Coast Air Quality Management District’s INVEST CLEAN initiative. SCAG will award rebates to help last-mile delivery fleet owners and operators purchase or convert Class 4 and 5 battery-electric trucks operating in Los Angeles, Orange, Riverside, and San Bernardino Counties.
Phase 1
SCAG has developed a two-phased approach for the LMFP:
- Phase 1: Focused on the commercial deployment of zero-emission or near-zero emission (ZE/NZE) heavy- and/or medium-duty on-road trucks (including ZE/NZE equipment and supporting infrastructure).
- Phase 2: Expand on Phase 1 projects to deploy operational strategies demonstrated by last mile delivery companies.
A total of $16,751,000 was awarded in Phase 1 of the LMFP through the call for projects and selection process.
- Program Goals
The LMFP aims to:
- Achieve immediate greenhouse gas emission and criteria air pollutant (for NOx and PM2.5) reductions from commercially deployed vehicles and equipment and facilitate supporting infrastructure.
- Inform both industry and the public regarding ZE/NZE vehicles and equipment and supporting infrastructure performance and how this information can be used to scale emission reductions to contribute to regional air quality goals.
- Provide private operators and stakeholders with information on return on investment and cost-effectiveness insights into ZE/NZE vehicles and equipment and infrastructure operations, maintenance, and reliability.
- Create greater transparency regarding the need for public versus private ZE/NZE supporting infrastructure.
- Inform the needs and help address the challenges to significantly scale ZE/NZE vehicles/ equipment and infrastructure in the region.
- Achieve geographic funding diversity and ensure that the LFMP provides economic and environmental benefits across the entire region.
Additionally, the LMFP is guided by a set of core principles as follows:
- Creating transparency as to critical barriers impeding the transformation of the last mile freight market.
- Measuring success for both public and private entities.
- Optimizing where investments can generate the strongest benefits for further growth.
- Achieving air quality reduction targets.
- Award Recipients
SCAG LMFP awarded $16.8 million to fund investments in zero- and near-zero commercial vehicle technologies that reduce emissions during last mile freight operations and support the region’s clean-air goals included in the Connect SoCal Regional Transportation Plan/Sustainable Communities Strategy.
SCAG’s Regional Council and the Mobile Source Air Pollution Reduction Review Committee unanimously approved awarding of the funds in November 2021 and January 2022.
Business Size Project Title & Business Name Project Score Award Funds Cumulative Award Funds Small WattEV HD Battery Electric Truck Deployment: Enabling Equitable Electrification/Watt EV 86 $2,958,990 $2,958,990 Big Good to the Last Dropoff – Sysco's Zero Emission Last Mile Freight Initiative/Sysco Corporation 85 $2,378,019 $5,337,009 Big Accelerating Zero Emissions Last Mile Freight in the South Coast Air Basin/Quality Custom Distribution 84 $4,184,000 $9,521,009 Big Penske Accelerated Electrification of Last Mile Freight Operations/Penske Logistics, LLC 83 $790,786 $10,311,795 Small Expanding Access and Scaling Electrification (EASE) for Small Fleets/Zeem Solutions 79 $2,378,019 $12,689,814 Big New Bern Buena Park Electrification Project/Pepsico 79 $2,609,086 $15,298,900 Small Independent Owner-Operator 68 $70,000 $15,143,900 Small Independent Owner-Operator 67 $77,500 $15,221,400 Small Independent Owner-Operator 66 $77,500 $15,298,900 Small Independent Owner-Operator 66 $387,500 $15,686,400 Small Independent Owner-Operator 65 $77,500 $15,841,400 Small Independent Owner-Operator 64 $70,000 $16,058,900 Small Independent Owner-Operator 64 $70,000 $16,128,900 Small Independent Owner-Operator 63 $62,100 $16,191,000 Small Independent Owner-Operator 62 $70,000 $16,261,000 Small Independent Owner-Operator 62 $70,000 $16,331,000 Small Independent Owner-Operator 62 $70,000 $16,401,000 Small Independent Owner-Operator 62 $70,000 $16,471,000 Small Independent Owner-Operator 61 $70,000 $16,541,000 Small Independent Owner-Operator 61 $70,000 $16,611,000 Small Independent Owner-Operator 60 $70,000 $16,681,000 Small Independent Owner-Operator 60 $70,000 $16,751,000
| Business Size | Project Title & Business Name | Project Score | Award Funds | Cumulative Award Funds |
|---|---|---|---|---|
| Small | WattEV HD Battery Electric Truck Deployment: Enabling Equitable Electrification/Watt EV | 86 | $2,958,990 | $2,958,990 |
| Big | Good to the Last Dropoff – Sysco's Zero Emission Last Mile Freight Initiative/Sysco Corporation | 85 | $2,378,019 | $5,337,009 |
| Big | Accelerating Zero Emissions Last Mile Freight in the South Coast Air Basin/Quality Custom Distribution | 84 | $4,184,000 | $9,521,009 |
| Big | Penske Accelerated Electrification of Last Mile Freight Operations/Penske Logistics, LLC | 83 | $790,786 | $10,311,795 |
| Small | Expanding Access and Scaling Electrification (EASE) for Small Fleets/Zeem Solutions | 79 | $2,378,019 | $12,689,814 |
| Big | New Bern Buena Park Electrification Project/Pepsico | 79 | $2,609,086 | $15,298,900 |
| Small | Independent Owner-Operator | 68 | $70,000 | $15,143,900 |
| Small | Independent Owner-Operator | 67 | $77,500 | $15,221,400 |
| Small | Independent Owner-Operator | 66 | $77,500 | $15,298,900 |
| Small | Independent Owner-Operator | 66 | $387,500 | $15,686,400 |
| Small | Independent Owner-Operator | 65 | $77,500 | $15,841,400 |
| Small | Independent Owner-Operator | 64 | $70,000 | $16,058,900 |
| Small | Independent Owner-Operator | 64 | $70,000 | $16,128,900 |
| Small | Independent Owner-Operator | 63 | $62,100 | $16,191,000 |
| Small | Independent Owner-Operator | 62 | $70,000 | $16,261,000 |
| Small | Independent Owner-Operator | 62 | $70,000 | $16,331,000 |
| Small | Independent Owner-Operator | 62 | $70,000 | $16,401,000 |
| Small | Independent Owner-Operator | 62 | $70,000 | $16,471,000 |
| Small | Independent Owner-Operator | 61 | $70,000 | $16,541,000 |
| Small | Independent Owner-Operator | 61 | $70,000 | $16,611,000 |
| Small | Independent Owner-Operator | 60 | $70,000 | $16,681,000 |
| Small | Independent Owner-Operator | 60 | $70,000 | $16,751,000 |
LMFP Battery-Electric Vehicle Rebates
SCAG’s LMFP Rebate Program is now accepting a second round of applications, offering $49.1 million in rebate funding for last-mile freight operators in the Los Angeles – Long Beach – Anaheim and the Riverside – San Bernardino – Ontario metropolitan statistical areas. The application period will remain open until October 5, 2026.
In Round 1 of funding in 2025, SCAG Last Mile Freight Program offered a total of $50 million in rebates for up to $67,000 per vehicle to support the purchase or conversion of Class 4 and Class 5 battery-electric commercial vehicles with domicile vehicle operations in Los Angeles, Orange, Riverside, or San Bernardino counties. The first round of funding closed the application process in January 2026.
Eligibility & Who Should Apply
The Last Mile Freight Program rebates are open to fleet owners and operators of commercial (non-passenger) vehicles engaged in freight operations, including last-mile delivery operators, freight forwarders, other logistics companies, and business-to-business distributors. Public fleets may also be eligible if they can demonstrate that their vehicles are used for last-mile freight activities. Participants have two options for participating in the program.
Vehicle Replacement Option
Applicants may receive rebates for Class 4-8 battery-electric vehicles (BEVs) purchased
Applicants may also receive rebates by providing existing diesel vehicles to a dealership, original equipment manufacturer, or dismantler approved by California Air Resources Board (CARB) or the local air district for replacement with Class 4-8 BEVs.
Vehicle Conversion Option
In addition to new vehicle purchases, the program also offers rebates for the conversion or scrappage of existing Class 4-8 diesel-powered vehicles (with an engine model year of 2010 or newer) or Class 4-6 gasoline-powered vehicles (engine model can be any age) to battery-electric power. Internal combustion engine vehicles can receive a rebate for their conversion, but the original engine must be removed and dismantled by the conversion provider or delivered to a certified dismantler. Vehicle conversion projects must also use standardized conversion kits that are approved by CARB.
All eligible applicants will be considered, but SCAG will give funding preference to projects based on vehicle replacement levels, “shovel-ready” vehicle acquisition plans, projected emissions benefits, and geographic funding balance (please see the Program Announcement document for more information on application selection). Approved applicants may receive the following maximum rebate amounts per battery-electric vehicle, based on vehicle class:
- Class 4: $67,000
- Class 5: $67,000
- Class 6: $75,000
- Class 7: $75,000
- Class 8: $108,000
Application Timeline
- The LMFP Rebate Program application round one closed January 2026.
- Round one awards approved March 2026.
- Application round 2 opened July 30, 2026.
- Application round 2 due Oct. 5, 2026.
Application Resources
CONTACT
For more information about the LMFP, please email LMFP@scag.ca.gov.
This project has been funded wholly or in part by the United States Environmental Protection Agency under assistance agreement #5E97T15501 to South Coast Air Quality Management District. The contents of this document do not necessarily reflect the views and policies of the Environmental Protection Agency, nor does the 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 Environmental Protection Agency.