News

HVIP FY23-24 Implementation Manual Now Available

Manual Includes New Provision for Demonstration Vehicles

Oct. 31, 2024

The Implementation Manual for the Clean Truck and Bus Voucher Incentive Project (HVIP) for Fiscal Year (FY) 2023-24 is now available. The Implementation Manual further explains policy changes that have gone into effect throughout FY23-24, per project FAQs and dealer training materials.

New updates to the manual include:

  • Funds Stacking: The manual includes more information about how state, federal, and local discretionary funding sources can be combined with HVIP. This includes details for fleets that are utilizing both HVIP and the Volkswagen Environmental Mitigation Trust for California (VW).

HVIP has specific requirements for combining or “stacking” funds with other public funding sources. HVIP funds can be stacked with VW for fleets of any size for eligible vehicles in VW’s “Zero-Emission Transit, School, and Shuttle Bus” and “Zero-Emission Class 8 Freight and Drayage Trucks” categories as described here.

This is an update that clarifies guidance regarding stacking based on fleet size. If necessary, the HVIP voucher processing team will adjust existing unredeemed vouchers to ensure VW stacking is reflected correctly and will reach out to affected dealers and purchasers directly about voucher status.

The manual also re-emphasizes the longstanding policy that HVIP will only fund up to 90% of the cost of the vehicle for private entities or 100% for public entities, exclusive of taxes and fees. HVIP funds will be applied after the total funding from other source(s) have been applied to the base vehicle cost (excluding taxes and fees).

  • Demo Provision: Upon case-by-case approval by the California Air Resources Board (CARB), a California-based HVIP manufacturer or dealer may request up to 10 vouchers per year for their own use, including for short-term customer rentals and demonstrations. Instructions for how to participate in this new “demo vehicle” provision are now available in Appendix “I” of the Implementation Manual. Participating fleets must have operations in California, based on domicile address, but vehicle participation in out-of-state trade shows may be permitted. Current or past HVIP purchasers are prohibited from receiving “demo vehicles.”
  • Proof of Business Operations: Effective November 1, 2024, private-entity purchasers must send a copy of the cover page of their most recent State of California or IRS Tax Return, or an IRS transcript showing proof of filing, within 30 days of a new voucher request to [email protected]. This is in addition to the existing requirement to have a valid registration with the Secretary of State.
  • Domicile Agreement Length: A rental / lease agreement of a minimum length of three years must be provided for voucher requests utilizing a domicile address that is not owned by the fleet. For fleets size 20 and smaller, an agreement of less than three years may be considered at CARB’s sole discretion. An updated agreement(s) for the remaining years of the HVIP term length will need to be provided subsequently. Requests to use rental / lease agreements shorter than three years can be submitted for CARB’s review to [email protected].

For information about existing HVIP policies and the new Implementation Manual, email [email protected].

Looking ahead: CARB will conduct a public meeting Thursday, November 21 at 9 a.m., to consider adoption of the FY24-25 Funding Plan for Clean Transportation Incentives, which includes proposed HVIP policy changes. CARB will accept public comment in advance of the meeting.

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