California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) FY 22-23

Eligible Participants

• Individual owner-operators
• Small businesses
• Corporate leaders
• School districts
• Municipal fleets

Funding

HVIP remains open for all vehicle types! The table below shows currently available funds:

• As of July 6, 2023, the remaining available funding for FY 21-22 is $62 million. However, once that funding is fully subscribed, HVIP will move to the FY 22-23 funding cycle. 

FY22-23 Zero-Emission Funding Table

FY22-23 Voucher Modifiers

• For vehicles domiciled in a disadvantaged community that are purchased or leased by any public or private small fleet with 10 or fewer trucks or buses, and less than $50 million in annual revenue for private fleets, or for any purchase or lease by a California Native American tribal government. There is no revenue provision for public fleets. 
  
  
• An approved vehicle’s voucher amount is determined by the vehicle’s Base Vehicle Incentive which is associated with the vehicle’s weight class and then multiplied by the appropriate modifiers. A plus-up modifier increases the voucher amount while a discount modifier decreases the voucher amount.  There can be multiple modifiers, but the additions or subtractions do not compound. For example, a full-sized urban bus (class 8, $120,000), sold to a transit agency (15% x $120,000), and domiciled in a qualifying DAC (15% x $120,000) would receive the base voucher amount of $120,000 plus the sum of its modifiers ($18,000 + $18,000), or $150,000.  Dealers must indicate claimed plus-up(s) when requesting a voucher.  Documentation submitted during voucher request and/or redemption will be used to confirm claimed plus-up eligibility and final voucher amount. 

The great thing about HVIP is that there is no vehicle scrappage requirement!  

However, Public School Bus Set-Aside for Small and Medium Air Districts do require scrappage. 

Get in on base vehicle price breaks from $85,000 to $120,0000, depending on the vehicle you purchase. 

1. Always check available funding to confirm participation. 
2. Choose the vehicle that works for you: eligible vehicles can be found in the Vehicle Catalog (https://californiahvip.org/vehiclecatalog/)
   Note: If the vehicle you're looking for is not viewable, it may be pending approval. Continue to monitor the Vehicle Catalog website for updates. 
3. The HVIP website includes a list of eligible trucks and buses, as well as the eligible voucher amount(s) for each vehicle. HVIP-approved dealers have access to the HVIP online Voucher Processing Center (VPC), through which a dealer completes a voucher request with the purchaser’s input and submits at the time a specific vehicle is ordered. A similar structure also applies to vehicles which are ordered directly from a manufacturer who acts as an HVIP dealer. 
4. Find an Approved Dealer Near You: Battle Motors HVIP-approved dealers are Velocity Truck Centers (3 locations in SoCal - LA County and San Diego) and Dobbs-Peterbilt (Sacramento, CA). Please review https://californiahvip.org/dealerlist/ for updates on participating dealers.    
   a. Once you have selected your vehicle(s) and are ready to complete your purchase, the HVIP-approved dealer will help process your HVIP Voucher Application. 
   b. The incentive amount will be included on the PO as an immediate price reduction for you (customer). You'll pay the invoice, which includes applicable dealer fees, sales taxes, and finally discount the applicable voucher amount and submit the voucher request.
5. For more information on voucher modifiers and incentive amounts, check the funding page:  https://californiahvip.org/funding/
6. Once your HVIP Voucher Application is reviewed and conditionally approved, you and the dealer sign Terms and Conditions Forms.
7. You now have a vehicle at a great price, with no need to wait for a rebate.

• Pending Submittal: Dealer enters information into Voucher Processing Center about the request (quantity, purchaser, etc.)   
  
  
• Submitted: After dealer submits, the Grantee’s Administrative (Admin) team conducts preliminary review (approximately 5 business days)   
  
  
• Queued: After initial review, Admin team assigns funding status or assigns request to a contingency list if available. Admin team then begins standard initial review, and dealer will have 10 days to address any issues.   
  
  
• Accepted Pending Signed Forms: Admin team sends Terms and Conditions to dealer and purchaser for review and signature.   
  
  
• Accepted Pending Confirmation: Vouchers are now created and voucher numbers assigned. Dealer provides VIN and other vehicle information.   
  
  
• Approved: Voucher must be updated every 90 days to confirm the anticipated delivery date.  
  
  
• Redemption Processing: Dealer has completed all items on Redemption Checklist. Redemption must occur within 18 months of voucher requests.   
  
  
• Redemption Approved: Grantee’s Accounts Payable mails payment to dealer (approximately 7 business days)  
  
  
• Completed Paid: Dealer has been reimbursed and Purchaser will complete and submit annual survey for 3 years. 

Flexible Zero-Emission Truck Funding for Small Fleets with 20 Trucks and Fewer

Beginning August 30, 2023, privately-owned or non-profit trucking fleets with 20 or fewer trucks and an annual revenue of less than $15 million can access flexible financing options for zero-emission trucks through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) Innovative Small e-Fleet Pilot (ISEF). This funding allows small fleets to request enhanced vouchers for standard purchases or flexible financing, lease, rental, and truck-as-a-service options, and fueling support. Guidelines to participate in ISEF are now available through Appendix F of HVIP’s Fiscal Year 2022-23 Implementation Manual.

Small Fleets Interested in Accessing Zero-Emission Trucks

Staff invite small fleets interested in accessing funding for class 2b-8 zero-emission vehicles to participate in an informational session on ISEF hosted by the project administrator CALSTART. The program will open for voucher requests on August 30, 2023, at 1:00 p.m. Pacific Standard Time on the ISEF Purchaser Webpage. Eligible small fleets may request either a Standard Purchase Voucher, or an Innovative Solution Provider Voucher. Fleets must work with an approved ISEF Provider to apply for an Innovative Solution Provider Voucher to access zero-emission vehicles through a rental, lease, truck-as-a-service, or other agreement. Approved providers will work with eligible dealers to request the voucher on the participating fleet’s behalf. ISEF aims to provide small businesses with flexibility, and thus fleets should explore the different options that will be offered by Providers upon approval.

Date: July 19, 2023
Time: 3:00 p.m. – 5:00 p.m. Pacific
Location: Zoom

Dealers and Companies Interested in Participating as a Provider or Dealer
Staff invite dealers, their financing partners, leasing and rental companies, or truck-as-a-service providers to participate in a public webinar hosted by the project administrator CALSTART. Attendees will hear an overview of the ISEF program and updates to the guidelines. Innovative Solution Voucher Providers must complete a Provider Eligibility Application to request vouchers on behalf of their customers. Provider Eligibility Applications will be accepted on an ongoing basis, but Providers should submit by August 15 to ensure their offering is approved prior to voucher requests opening on August 30, 2023.

Date: July 11, 2023
Time: 11:00 a.m. – 1:00 p.m. Pacific
Location: Zoom

To participate in these webinars please register before the webinar start time. After registering, you will receive a confirmation email with information to join the webinar either through a computer, digital device or via conference line. Each meeting link in the confirmation email is unique so please do not share it with others. Every person that wishes to participate needs to register separately and use the unique link sent to them to access the webinar. Please note that there is no in-person attendance option for this webinar. This webinar will be recorded and will be emailed to attendees via email. The recording will also be available one week after the meeting date on CALSTART’s YouTube channel.

Background
The goal of the ISEF set-aside is to implement innovative solutions to assist small fleets in making the transition to zero-emission trucks, including, but not limited to, flexible leases, short-term rentals, truck-as-a-service, assistance with infrastructure, individual owner planning assistance, increased available funding, and other mechanisms. Barriers to zero-emission truck adoption, such as high upfront costs, limited financing & insurance options, and complex planning for fueling infrastructure present an even greater challenge to small fleets and owner-operators. By dedicating a portion of HVIP funds to small fleets, HVIP can position itself to better understand the specific needs of this traditionally underserved group and support their transition to zero-emission, especially for those subject to the Advanced Clean Fleets regulation.

The FY 2022-23 Funding Plan, approved by the Board on November 17, 2022, allocated $1.7 billion to HVIP, of which $35 million will be allocated to ISEF.

For more information about the FY 2022-23 Funding Plan, please visit the Funding Plan Website. HVIP and ISEF are both part of California Climate Investments, a statewide initiative that puts cap-and-trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment – particularly in disadvantaged communities with the greater economic and environmental challenges.

Contact
If you have questions regarding the program or webinar, please contact the ISEF team at isef@californiahvip.org.

The Funding Plan outlines the following adopted policy changes for HVIP:   

• Effective Nov. 18, 2022 
  • As part of CARB’s Refuse Reimagined initiative, a voucher enhancement of 25% is applied to HVIP eligible refuse vehicles used for solid waste collection starting November 18, 2022. This increased incentive amount is available until Dec. 31, 2023.  
  • The existing Drayage Truck Early Adopter 25% voucher enhancement is also extended until Dec. 31, 2023.  
  • ePTO: new $50,000 incentive level for storage capacity of greater than 25 kilowatt hours. Also, ePTO systems will now be allowed to fund up to 65% of the total incremental cost. 

• Effective Jan. 1., 2023  
  • Flexibility for small fleets to stack incentives: Fleets with 10 vehicles or fewer can stack HVIP with other state incentive programs, if the other program allows stacking, each incentive program is not paying for the same incremental cost, and the non-HVIP incentive program is not required to generate greenhouse gas emission reductions.    
  • Modifications to the manufacturer rolling soft cap: Requests from fleets with 10 vehicles or fewer are exempt from the existing manufacturer rolling soft cap limit. Also, manufacturers are exempt from the cap if they maintain an average voucher redemption rate of at least 50 vouchers over a 6-month period or 100 vouchers over a 12-month period starting January 1, 2023.  
  • Compliance with labor standards: Fleets purchasing drayage and short-haul trucks will be required to directly attest that they are in compliance with state labor laws, that they will remain in compliance with labor laws for up to at least three years or the duration of the incentive agreement, and that they will retain direct control over the manner and means for performance of any individual using or driving the vehicle.    
  • Reserve for medium and small private fleets and public fleets: Initially, 70% of FY22-23 HVIP standard and drayage set-aside funding will be reserved for private fleets with 100 vehicles or fewer and all public fleets. If more than $100 million remains in the reserve on July 1, 2023, HVIP will release 30% of the remaining funding to private fleets with more than 100 vehicles. If funding remains in the reserve on November 1, 2023, HVIP will open all remaining HVIP standard funding and drayage set-aside funding to private fleets with more than 100 vehicles. The reserve only applies to the FY22-23 allocation– any remaining FY21-22 funds will be available for fleets of all sizes. 
  • Bulk vehicle purchase requirement for fleets with more than 500 vehicles: * Private fleets with more than 500 medium- and heavy-duty vehicles will only be allowed to access HVIP funding if they demonstrate that they are purchasing ZEVs in bulk. These fleets must present a purchase order for at least 30 HVIP eligible vehicles, and the HVIP incentive will be applied only for vehicles purchased above 30. The existing fleet voucher request limit of 30 voucher per fleet per year (50 vouchers for drayage trucks) continues to apply, regardless of the size of the bulk order. HVIP funding for fleets with more than 500 vehicles may only be applied to vehicles domiciled in disadvantaged communities. Bulk purchases are not required for fuel cell vehicles until they achieve greater market penetration.  
  • Voucher amount adjustments based on fleet size:*