LMFP Frequently Asked Questions

The Last Mile Freight Program (LMFP) Rebate Program provides financial incentives to support the purchase and deployment of Class 4 and Class 5 battery-electric commercial vehicles. The program is open to eligible fleets operating in the Los Angeles – Long Beach – Anaheim and Riverside – San Bernardino – Ontario Metropolitan Statistical Areas (MSAs). This area encompasses all of Los Angeles, Orange, Riverside, and San Bernardino counties.

Fleet owners and operators involved in last-mile freight (e.g., business-to-business distributors, last-mile delivery companies, material or equipment transport).

Only fleets using vehicles for last mile freight-related purposes may apply. Passenger-only use cases are not eligible.

The LMFP Rebate Program application checklist includes a recommended vetting process to use for original equipment manufacturers (OEMs) and dealership to ensure that all battery-electric Class 4 and 5 vehicles purchased are positioned to achieve milestone delivery time frames and to meet fleet and customer performance expectations.

Each approved vehicle is eligible for up to $67,000 in rebate funding. Funding is issued after vehicle delivery and documentation verification. 

Purchase of a vehicle to be used for replacement may be considered but needs to have occurred prior to application submittal. However, strict adherence to the online application checklist is required and the vehicle must have been domiciled and operated within the two MSAs. 

Applicants must describe how the vehicle will be used for transporting goods or materials. Eligible examples include: 

• Parcel or retail delivery.
• Distribution of construction, repair, or event equipment.
• Fleet operations moving supplies, tools, or infrastructure components. 

Generally, the use-case should involve transporting commercially traded goods—objects with economic value (e.g., parcels, groceries, manufactured products, raw materials, etc.)—from a distribution hub, warehouse, or storage site to an end customer or consumer. This typically excludes services, waste, or personal-use trips unless those directly relate to the commercial distribution of products. 

Yes. Public agencies may apply but will only be considered if they provide last-mile freight-related services or deliveries. All applicants must describe how vehicles will be used for eligible last-mile freight activities, such as transporting materials, supplies, or tools needed to support essential services. 

You may use state or local funding sources (e.g., HVIP, Carl Moyer, SCE Recharge Commercial Vehicle Rebate) in combination with LMFP rebates. However, stacking federal funding (i.e., using more than one federal source for the same vehicle) is not allowed. 

Yes. Applicants may use any lawful financing method to acquire eligible vehicles, including direct purchase or financed purchase agreements. Applicants must provide a copy of their signed financed purchase agreement to SCAG to receive their rebate(s).

Leasing is eligible if the applicant owns the vehicle, acts as the lessor (i.e., leases their vehicle to a third party), and takes full responsibility for meeting all program requirements, including vehicle scrappage, reporting, and minimum usage commitments. Applicants must disclose their leasing arrangement as part of the application and provide a copy of the signed lease agreement to SCAG. Lease structures that do not give the applicant clear operational control of the vehicle are not eligible. 

Applications will be accepted online beginning October 31, 2025. A portal link will be provided at program launch. All eligible applicants will be considered, but SCAG will use a tiered system to rank projects based on vehicle replacement levels, “shovel-ready” vehicle acquisition plans, projected emissions benefits, and geographic funding balance. Funding preference will be given to higher-tier projects to maximize regional air quality outcomes.   

Please refer to the Online Application Checklist for more details. At a high level, applicants must provide: 

• General fleet and vehicle details (vehicle identification numbers, gross vehicle weight rating, usage records).
• Vendor quotes and specifications for the new electric vehicle.
• Proof of domicile in an eligible county.
• Operational use case summary. 

Detailed documentation of the existing diesel vehicles for replacement, including photos, title, and 12-month history of registration, insurance, and use.

•  Enter into a memorandum of understanding agreement with SCAG.
• Purchase and take delivery of the new battery-electric vehicle(s).
• Submit the required documentation.
• Ensure any replaced vehicles are properly dismantled by a CARB-approved dismantler.
• Submit an invoice to SCAG with proof of payment, co-funding (if applicable), and required certifications.
• South Coast Air Quality Management District (AQMD) reviews and approves rebate payment.
• Receive your rebate funds. 

Rebate payments are issued after vehicle delivery, and all required documentation have been reviewed and approved by SCAG. Once an application is fully verified, SCAG will endeavor to complete the review process within approximately 45 days. South Coast AQMD will require a review period following SCAG’s process.  Actual processing time can vary depending on SCAG and South Coast AQMD review processes, completeness of the submitted materials, and cadence of project schedules. 

Yes. Applicants may work with dealerships or OEMs that have arrangements with certified dismantlers to handle the retirement process. However, applicants are still responsible for ensuring that the proper documentation is submitted to SCAG. This includes DMV forms, photo evidence, or dismantler certificates. Even if the dealership manages the physical retirement, the applicant must provide SCAG with the required documentation as part of their rebate claim.

Yes. The rebate may be applied to sales tax, license, title, and other standard point-of-sale fees associated with purchasing or converting an eligible vehicle. However, the rebate does not cover unrelated costs such as infrastructure installation, vehicle maintenance, or non-standard equipment. 

Participants must provide operational data every six months for a period of five years (60 months) after vehicle delivery. Data reporting may include telematics, mileage logs, or other agreed-upon documentation.

Once selected, applicants can expect to enter into an agreement with SCAG within approximately 30-60 days, depending on how quickly required documents are submitted and finalized. 

The four-month delivery requirement ensures timely deployment of zero-emission vehicles so that air quality benefits are realized quickly. The two-month extension provides additional flexibility if unforeseen delays occur but still keeps the program on track to meet federal funding deadlines and reporting commitments. Applicants unable to meet this delivery requirement will be at risk of MOU termination and will not receive financial reimbursement, including having all of their rebates rescinded.  

SCAG will continue to evaluate applications based on the tiered priority system. While the program aims for at least 51 percent of funded vehicles to replace existing diesel trucks, if this threshold is not met, SCAG may still award rebates to otherwise eligible projects to ensure program funds are deployed effectively. This may involve a higher priority toward applications including Cash for Replacement elements.  

No. Vehicles intended for replacement must already be in your fleet at the time of application.  

There is no fixed cap on the number of vehicles per applicant, but funding is discretionary and will be awarded based on program priorities, geographic balance, and available budget. Large applications may be subject to partial awards to ensure that funding is distributed fairly across the region. Upon an executed MOU, all subrecipients must meet the four-month delivery requirement or their rebates will be rescinded.  

If an applicant is selected for funding, any use of the U.S. Environmental Protection Agency (U.S. EPA) logo in outreach or reports must not be prominently displayed to imply that the applicant’s activities are being conducted by the U.S. EPA. More information is available at the U.S. EPA website. 

If selected for funding, the applicant must retain all records related to the award for at least three years following submission of the final financial report. SCAG, South Coast AQMD, U.S. EPA, or their authorized representatives reserve the right to access these records, to perform audits, execute site visits, or for any other official use. This right of access also includes timely and reasonable access to the applicant or recipient’s personnel for the purpose of interviewing and having discussions related to such documents or the federal award in general. This right of access shall continue as long as the records are retained.