LMFP Frequently Asked Questions

What is the Last Mile Freight Program Rebate Program (INVEST CLEAN Measure 2.2)?

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.

Who is eligible to apply?

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.

What types of replacement vehicles are eligible? 

• New battery-electric vehicles (Classes 4-8).
• Conversion of existing diesel (Classes 4-8) or gasoline (Classes 4-6) vehicles to battery-electric.

Which vehicles are eligible for replacement or conversion?

Applicants must identify existing diesel (Class 4–8) or gasoline (Class 4–6) vehicles for scrappage or conversion. 

Requirements include: 

• Diesel vehicles must be model year 2010 or newer.
• Gasoline vehicles may be any age.
• Minimum 5,000 miles of use in the past 12 months.
• Proof of registration, insurance, and operation in eligible counties.  

How much funding is available?

Approximately $49,129,000 in rebate funding is available for the reopening. Funding will be awarded until fully subscribed. 

Maximum rebate amounts vary by vehicle class: 

• Class 4: $67,000
• Class 5: $67,000
• Class 6: $75,000
• Class 7: $75,000
• Class 8: $108,000  

Can I purchase a used diesel or gasoline vehicle with the intent to meet the “Vehicle Replacement” requirement? 

Purchase of an older vehicle to be replaced through the program may be considered, but the purchase must occur 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 for at least 75% of its usage, totaling a minimum of 5,000 miles within the 12 months prior to application submission.

What qualifies as a “last-mile freight” use case? 

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 – things with an economic value (e.g., parcels, groceries, manufactured products, raw materials, etc.) from a distribution hub, warehouse, or storage site to an end customer/consumer. This typically excludes services, waste, or personal-use trips unless those directly relate to the commercial distribution of products. Note that the examples above are general and determinations of eligibility will be made on a case by case basis.

Can municipal or public fleets apply?

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. 

Can I stack this rebate with other funding sources? 

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. Applicants are also advised to check each funding source’s restrictions as some sources may not be combined with each other. 

Can I finance my new vehicle and still qualify for the rebate? 

Yes. Applicants may use any financing method to acquire eligible vehicles, including direct purchase or financed purchase agreements. If financing, applicants should make a down payment in at least the anticipated rebate amount. Applicants must provide a copy of their signed financed purchase agreement to SCAG in order to receive their rebate(s).

Can I lease my new vehicle to an outside third-party and still qualify for the rebate?

Situations in which 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. 

When and how can I apply?

Applications will be accepted online starting in July 2026. 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, and projected emissions benefits. Funding preference will be given to higher-tier projects to maximize regional air quality outcomes and can deploy earlier.   

What documentation is required to apply? 

Please refer to the Online Application Checklist for more details. Applicants must provide:

• Vehicle information (existing and proposed).
• Vendor quotes (within 90 days).
• Proof of business location.
• Operational use description.
• Existing vehicle documentation (VIN, photos, registration, etc.).
• Odometer/mileage documentation.

What are the charging infrastructure requirements?

Applicants must demonstrate that charging will be available at the time of vehicle delivery. Infrastructure should be existing, under construction, or planned for construction. All applicants must provide details concerning: 

• Site location and operator/facility owner.
• Charger type and capacity.
• Timeline for readiness.

What happens after I’m approved?

All approved applicants must do the following:

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

How long will it take to receive my rebate funds? 

Rebate payments are issued after vehicle delivery, and all required documentation has been reviewed and approved by SCAG. Once an application is fully verified, SCAG will endeavor to complete the review process within approximately 60 days. South Coast Air Quality Management District (AQMD) will require a review period following SCAG’s process. Actual processing time may vary depending on SCAG and South Coast AQMD review processes, completeness of the submitted materials, and cadence of project schedules. 

Can I drop my existing replacement vehicle off at a dealership to take care of scrappage? 

Yes. Applicants may work with dealerships or original equipment manufacturers 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 Department of Motor Vehicle 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.

Can I use rebates for taxes, licensing, or other fees? 

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. 

How often do I need to report data once my new battery electric vehicle (BEV) has been delivered and is in operation, and for how long? 

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, maintenance activities, or other agreed-upon documentation. Participants should also support a South Coast AQMD-designated entity in collecting vehicle usage data and other parameters for independent third- party validation. 

What is the 51% replacement requirement? 

Each eligible applicant must propose replacement or conversion for at least 51% of the total BEVs requested. 

For example: 

• If applying for 10 BEVs → at least six must be tied to replacement/conversion. Replacement vehicles shall not exceed the class of the scrapped internal combustion vehicle; however, an existing vehicle may be replaced by one or more battery-electric vehicles of a lower vehicle class, provided that all other program requirements are met.
• Applications below this threshold are not eligible to move forward. 

This requirement ensures the program delivers meaningful emissions reductions.

Is there a limitation on the number of rebates that can be obtained by an applicant? 

There is no fixed cap on the number of vehicles per applicant, but funding is discretionary and will be awarded based on program priorities and available budget. 

What happens if funding runs out?

The program will close once: 

• All available funding is awarded (total of $49,129,000) or
• The application period ends (final cutoff in June 2027). 

Applications will not be accepted after funding is exhausted.

If my project is selected, can I use the U.S. Environmental Protection Agency’s (U.S. EPA) logo for outreach, promotion, or other purposes? 

If an applicant is selected for funding, please visit the U.S. EPA website for guidance on using the U.S. EPA logo. Note that the use of the U.S. EPA logo requires permission. 

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.