Your Guide to California’s EV Grants Incentives for Fleets
If your fleet is based in California, there’s only one way to reduce the upfront costs of heavy-duty zero-emissions vehicles (ZEVs): Utilizing the state’s various grant and incentive programs. Navigating these programs can be challenging, though, so we assembled a handy guide to help you understand what resources are available, how you can qualify, and any other funding specifics. There are two primary funding resources to get acquainted with. First, the California Volkswagen (VW) Mitigation Trust which has two funding programs with over $120 million combined specifically allocated to transition freight and port drayage trucks to zero-emission alternatives as part of a scrap and replace initiative. Additionally, the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) offers financial incentives, or vouchers, to fleet operators who purchase Class 2b-8 zero-emission vehicles. The process involves working with approved dealers to secure vouchers, which can be redeemed upon vehicle delivery and registration.
The Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP)
HVIP is a first-come first-served, point -of-sale incentive program, launched by the California Air Resources Board, to reduce the incremental cost of zero-emission and near-zero emission commercial vehicles.
Eligibility
HVIP is administered as a point-of-sale voucher program for the purchase of *Class 2b-8 zero-emission vehicles (8,501 - 14,000+ GVWR) with a minimum 35-mile all-electric range.
Only vehicles approved by CARB and listed as eligible vehicle make/models on the HVIP website may receive a voucher.
*Plug-In Hybrid vehicles from 8,501-10,000 lbs GVWR may also be eligible. Plug-in Hybrid vehicles must demonstrate a 30% improvement or greater in fuel economy relative to its baseline and have a minimum 35-mile all-electric range.
Funding
Updates:
On November 1, 2023 HVIP released all remaining FY 22-23 reserve funds to fleets of all sizes, which had previously been reserved for fleets with less than 100 MHD vehicles.
On November 14, 2023 the Port of Los Angeles and Port of Long Beach made an additional $60 million available from their Clean Trucks Fund for HVIP vouchers toward the purchase of zero-emission Class 8 drayage trucks conducting operations at the Ports. Vouchers funded by the Ports are $100,000 per truck for fleets with <10 trucks and $75,000 for fleets with >10 trucks – additional to any other HVIP voucher amounts and enhancements. The HVIP voucher cap per fleet still applies.
Voucher amounts vary based on vehicle weight class, with several plus-up modifiers, as follows:
Voucher Caps
- Fleets may request up to 30 vouchers per calendar year
- For Drayage trucks, fleets may request up to 50 vouchers per calendar year
- Requests which are redeemed within the same year in which they are requested do not count against the cap
Voucher Request and Redemption Process - Dealer Responsibility
The voucher request and redemption process is initiated and executed through a relationship between the vehicle Purchaser and Dealer.
- Purchaser: The purchaser is the fleet that will buy or lease the vehicle(s) and operate the vehicle(s) for at least 3 years.
- Dealer: The Dealer is the vendor of the vehicle, including dealers or manufacturers that sell new medium- and heavy-duty vehicles directly to the Purchaser.
A Purchaser must work with a Dealer to secure an HVIP voucher. Fleets / Purchasers do not apply for HVIP vouchers directly. HVIP-eligible Dealers are responsible for securing HVIP voucher funding through the online Voucher Processing Center. If a Fleet / Purchaser already has a preferred dealer or vehicle in mind, they may connect their dealer with the HVIP team to help them become VIP-eligible and initiate the voucher process.
If the Fleet / Purchaser does not have a preferred dealer or vehicle in mind, they may follow the steps below:
1. A fleet looking to purchase a MDHD zero-emission vehicle through the HVIP voucher program should begin by visiting the HVIP website - https://californiahvip.org/
2. They may browse HVIP Eligible Vehicles and HVIP-eligible Dealers by using the HVIP Vehicle Catalog
3. When the Fleet / Purchaser decides which vehicle they would like to purchase, they should contact an Approved Dealer to acquire their vehicle and the dealer will take it from there to acquire the HVIP voucher.
Voucher Request Process
The Dealer will take care of the voucher request process and submit all required information to the HVIP Voucher Processing Center.
1. A signed Purchase Order (PO) is required at the time a voucher request is made. The PO provided by the dealer must represent a real vehicle order that is ready to be placed
2. The dealer will work with the Fleet / Purchaser to collect all necessary information, including PO, upon submitting a voucher request. This information will include
a. HVIP voucher amount
b. Number of units
c. Model name and year
d. Expected date of vehicle delivery
e. Vehicle domicile location address
f. Purchaser’s Truck and Bus Regulation (TRUCRS) ID
g. If a TRUCRS ID is unavailable, a signed letter from the fleet purchaser stating that they are not subject to TRUCRS must be submitted
h. Taxpayer Identification Numbers (TIM or California Carrier Identification Number (CA#)
3. Additional information or confirmation may be requested
4. After the Dealer submits all required information, both the Dealer and Purchaser will receive notification that the voucher is accepted
Voucher Redemption
HVIP vouchers may only be redeemed upon vehicle delivery, final payment by the Purchaser (less the voucher amount), and registration of the vehicle at the DMV.
The Dealer will take care of the voucher redemption process and submit all required information to the HVIP Voucher Processing Center. This must be done within 60 calendar days of receipt of payment from the Purchaser.
1. Vouchers must be redeemed within 90 days of the date of voucher request
a. A voucher may be renewed at three-month intervals for up to 540 calendar. days from the date of voucher request
2. A copy of the final signed completed invoice (including taxes)
3. A copy of temporary DMV registration or DMV registration for the purchased vehicle(s) must confirm delivery and purchase specifications
4. A copy or photo of the VIN tag listing the GVWR
5. The vehicle must have no more than 3,500 miles at time of vehicle inspection
6. Financial documentation identifying the method and date of final payment from the Purchaser to the Dealer
7. Digital inspection photos showing that the vehicle is ready to be placed into service
8. Delivery Bill of Lading to the purchaser
a. Origin and destination address (destination must match domicile address)
b. Dated driver signatures
c. Full VIN and carrier company information
9. Purchaser Labor Laws Compliance Attestation (AB 794)
Key Links
California VW Mitigation Trust Zero-Emission Class 8 Freight and Port Drayage Trucks Category
The VW Mitigation Trust was established as part of the settlement agreements with VW for their use of illegal defeat devices in certain diesel vehicles. The Consent Decree requires VW to pay $2.7 billion into an Environmental Mitigation Trust, of which California received $423 million. The California Air Resources Board (CARB) distributes this money to fund statewide environmental mitigation actions, which includes incentive funding for zero-emission vehicles. Funding for Class 7 and Class 8 zero-emission vehicles is available through two project categories.
1. Zero-Emission Class 8 Freight and Port Drayage Trucks Category
The California VW Mitigation Trust has allocated a total of approximately $90 million to fund zero-emission Class 8 freight and port drayage trucks. This funding is being made available through several installments, with the first installment making $27 million available in 2020. Funds from the first installment remain and a second installment is currently being developed.
The Zero-Emission Class 8 Freight and Port Drayage Trucks Category is a scrap and replace program.
Eligibility
Private and public entities that own and operate vehicles.
Funding is available to replace the following vehicles with zero-emission technologies:
Class 8 only
- Freight trucks (including Drayage trucks)
- Waste Haulers
- Dump Trucks
- Concrete Mixers
Basic Requirements
- Proof of 12-months ownership
- Operate old and new vehicle at least 75% of the time within California
- Existing non-ZEV must be scrapped
- New vehicle must be ZEV
- New vehicle must be certified or verified by CARB
- Must submit annual usage reports for the term of the contract
Funding and Eligibility
Fund stacking with other CARB programs (HVIP, Carl Moyer, etc.) is not allowed.
Key Links
2. Combustion Freight and Marine Projects Category
The California VW Mitigation Trust has allocated approximately $60 million to fund the replacement and/ repower of combustion freight and marine vehicles and equipment with zero-emission alternatives. This funding is being made available in installments over the course of several years. The first installment, announced in 2021 made $30 million available. Roughly $26 million remains available as of October 2023.
Zero-emission Class 7 and 8 Drayage, and Dump Trucks, Waste Haulers, and Concrete Mixers must be scrapped and replaced.
Eligibility
Private and public entities that own and operate vehicles.
Scrap and Replace:
- Class 7 and 8 Freight, Drayage, Dump Truck, Waste Hauler, Concrete Mixer
- Freight Switcher Locomotives
Repower:
- Ferries
- Tugboats
- Towboats
Basic Requirements
- Proof of 12-months ownership
- Operate old and new vehicle at least 75% of the time within California
- Existing non-ZEV must be scrapped
- New vehicle must be ZEV
- New vehicle must be certified or verified by CARB
- Must submit annual usage reports for the term of the contract
- 20,000 minimum annual mileage (for non-waste haulers)
Class 7 & 8 Funding and Eligibility
Fund stacking with other CARB programs (HVIP, Carl Moyer, etc.) is not allowed.
Key Links