About HVIP

Stay in the know: CARB hosts public engagement opportunities throughout the year for development of the annual Funding Plan for Clean Transportation Incentives, which includes HVIP.  The Plan outlines policies for funds allocated to CARB in the State budget and establishes CARB’s priorities for the funding cycle.

FAQs

Additional details can be found in the FY23-24 Implementation Manual (see californiahvip.org/im).

Last edited 12/2/24

1. When is HVIP open to voucher requests and how much money is available?

Incentive availability for all HVIP funding types is updated regularly at www.californiahvip.org/funding.

2. Where can I find a summary of the policy changes?

The FY23-24 Implementation Manual (IM) has been published on the IM page. Please see the IM for more detail about all information provided in this FAQ. 

3. What are the set-aside funds and how do they work?

Specific funding has been reserved to support the deployment specific to vehicle types. Availability of funds in Standard HVIP and the set-asides can be found on our Funding Page. When set-aside funds are fully requested, HVIP will continue to allow standard voucher requests for these vocations pending funding availability. 

  • Drayage:  Incentives for zero-emission Class 8 tractors performing drayage operations. The $150,000 voucher amount per drayage truck for early adopters extends through December 31, 2025. In order to qualify for the Drayage Truck Set-Aside and increased $150,000 voucher amount (vs. $120,000 base), purchasers must submit a copy of their fleet’s permission to enter a port or railyard to [email protected] within 30 days of the voucher request. Acceptable documentation includes UIIA Authorization, concession agreements, or other forms of drayage operations permissions. Eligible purchases will automatically be funded via the set-aside with no separate request process. 
  • Public Transit: Incentives for zero-emission public transit buses. Requests for public transit buses will automatically be funded via the set-aside with no separate request process.  
  • Public School Bus: Incentives for zero-emission school bus incentives through the Public School Bus Set-Aside and Zero-Emission School Bus and Infrastructure (ZESBI). Voucher amounts are higher than standard HVIP and are not subject to standard HVIP plus-ups. Requests from school districts and other qualifying purchasers are accepted via a separate application process. See more information at californiahvip.org/purchasers/#SchoolBus  and californiahvip.org/zesbi or contact [email protected]. IMPORTANT NOTE: The information in these FAQs does NOT apply to the School Bus Set Aside in many cases; the Set Aside rules are unique.  
  • How do I request money for public school buses if I am NOT eligible for the Public School Bus Set-Aside? Zero-emission school buses are eligible for a 65% voucher modifier, or plus-up, if not included in the set-aside. These voucher amounts are shown in the catalog at californiahvip.org/vehicles. School bus vouchers that are NOT part of the set-aside do NOT require scrappage. 
  • Innovative Small e-Fleets (ISEF):  Incentives for pilot funding for small trucking fleets and independent owner operators. ISEF implements new and innovative mechanisms such as flexible leases, peer-to-peer truck sharing, truck-as-a-service, assistance with infrastructure, and individual owner planning assistance. See more ISEF information at californiahvip.org/isef or contact [email protected]. IMPORTANT NOTE: The information in these FAQs does NOT apply to ISEF in many cases; ISEF rules are unique.  
  • How do I request money for a small truck fleet if I am NOT part of ISEF? Truck purchases are funded via standard HVIP and the drayage set-aside; purchasers should follow the steps at californiahvip.org/purchasers  
4. How does the Advanced Clean Fleet rule interact with HVIP?

HVIP will remain available to fleets purchasing a zero-emission truck or bus prior to compliance deadlines or in excess of regulatory requirements, including:

• Zero-emission drayage truck purchases in existing drayage fleets.

• High-priority and public fleets using the milestones option may access HVIP for any zero-emission vehicles purchased in excess of their milestone requirement. Similarly, state and local agencies not using the milestones option may access HVIP for any vehicles purchased above their requirement. For example, if a fleet on the 50 percent milestone purchases 20 trucks and 15 of those are zero-emission, five will be eligible for HVIP incentives.

• Eligible fleets purchasing zero-emission vehicles prior to a regulatory deadline will be able to access HVIP, even if those vehicles eventually are counted toward regulatory requirements. Eligibility relative to the regulatory deadline will be determined by purchase order date (high-priority and public fleets will be allowed to use a letter of intent or binding resolution in place of a purchase order).

HVIP does not prohibit vehicles receiving incentives from being used for future compliance purposes. In other words, an HVIP-funded vehicle purchased prior to or in excess of regulatory requirements, as explained above, can be used to count toward future requirements where applicable. ACF regulated fleets are required to be on the ZEV milestone option schedule in order to be eligible to request new HVIP vouchers. For more information on ACF and how incentives affect your compliance, please visit https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets.

In April 2023, CARB adopted the Advanced Clean Fleet regulation, a medium and heavy-duty zero-emission fleet regulation with the goal of achieving a zero-emission truck and bus California fleet by 2045 everywhere feasible and significantly earlier for certain market segments such as last mile delivery and drayage applications.

The initial focus is on high-priority fleets with vehicles that are suitable for early electrification, their subhaulers, and entities that hire them. The goal of this effort is to accelerate the number of medium and heavy-duty zero-emission vehicle purchases to achieve a full transition to zero-emission vehicles in California as soon as possible.

The ACF regulation applies to fleets performing drayage operations, those owned by State, local, and federal government agencies, and high priority fleets. High priority fleets are entities that own, operate, or direct at least one vehicle in California, and that have either $50 million or more in gross annual revenues, or that own, operate, or have common ownership or control of a total of 50 or more vehicles (excluding light-duty package delivery vehicles). The regulation affects medium- and heavy-duty on-road vehicles with a GVWR greater than 8,500 pounds, off-road yard tractors, and light-duty mail and package delivery vehicles.

5. How is fleet size defined?

Starting January 1, 2024

Consistent with the Advanced Clean Fleet Regulation, for Standard HVIP and all Set-Asides except for the Public School Bus Set Aside, HVIP’s fleet size definition for voucher requests placed on or after 1/1/24 will be inclusive of the fleet’s vehicles domiciled anywhere globally that are over 8,500 lbs GVWR, including all such vehicles under common ownership or control, as defined in HVIP’s Implementation Manual.

Fleet size is inclusive of vehicles registered with the California Department of Motor Vehicles (DMV) as non-operational, but excluding off-road vehicles, unregistered vehicles, and those registered with the DMV as non-revivable junk or dismantled.

Fleet size is inclusive of existing unredeemed HVIP vouchers, but DOES NOT count the current voucher request; therefore, if a voucher(s) represents the fleet’s first ZEV purchase, a fleet size of “0” should be entered. Before voucher redemption, additional verification of fleet size may be required at CARB’s sole discretion, including site visits.

Clarification on the fleet size definition: If two separate requests are placed in the same 24-hour period, the quantity in the first request is counted when the second request is placed. For example, if a fleet with 18 vehicles requests 8 vouchers, it qualifies as a small fleet because the definition doesn’t count the current request. However, if that fleet then requests 5 more vouchers the next day, it is no longer a small fleet because yesterday’s request counts as existing unredeemed vouchers and counts against the total, resulting in a fleet size of 26 vehicles.

6. What Does Common Ownership or Control Mean?

Ownership or control means being owned by the same person, corporation, partnership, limited liability company, or association. In addition, vehicles managed day to day by the same directors, officers, or managers, or by corporations controlled by the same majority stockholders are considered to be under common control even if their title is held by different business entities. Vehicles owned by different entities but operated by using common or shared resources to manage the day-to-day operations by using the same motor carrier number, displaying the same name or logo, or contractors who represent the same company are considered to be under common ownership or control. Common ownership or control includes relationships where the controlling party has the right to direct or control the vehicle as to the details of when, where, and how work is to be performed or where expenses for operating the vehicle, such as fuel or insurance, are shared. However, if the purchaser is hired as a contractor by a larger fleet the purchaser does not need to count trucks operated by the hiring fleet as part of the purchaser’s fleet size, though the contractor’s vehicles are counted as part of the hiring fleet. At CARB’s sole discretion the contractor may be required to provide additional documentation, including but not limited to, copies of their California Business License, CA # or DOT #, or a copy of their written contract agreement with the hiring fleet. Common ownership or control does not include agreements for individual loads that are competitively bid and issued to the lowest qualifying bid, and such agreements do not need to be counted towards a purchaser’s fleet size.

7. What does a sample voucher amount calculation look like for small fleets?

The +100% base adjustment for public and nonprofit fleets size 20 and smaller, and for private fleets size 20 and smaller with less than $15 million annual revenue, continues to be available in Standard HVIP, the Drayage Truck Set-Aside, and the Public Transit Set-Aside for any HVIP-eligible vehicles. However starting 11/22/24, the doubling is only available for a maximum of 5 vouchers (all-time total, not annually). This limit is not retroactive, meaning that small fleets with existing doubled vouchers before 11/22/24 are permitted up to 5 additional doubled vouchers. Vouchers cannot be doubled in combination with the +65% voucher enhancement for school buses.

Below is a sample example and calculation.

A private small fleet of 14 MHDs wants to purchase a Class 8 drayage truck. The small fleet’s annual revenue is $12M and is domiciled in a disadvantaged community.

Base Voucher Amount (GVWR): $120,000

Base Adjusters: Small Fleet Definition Met : +100%

New Base Amount: $240,000

Modifiers:

  • Disadvantaged Community: +15%
  • Class 8 Drayage Truck Early Adopter: +25%

Final Calculation: 240,000 + (.15*240,000) + (.25*240,000) = $336,000

Final Voucher Amount : $336,000

NOTE: The voucher amount is capped at 90% vehicle cost.

8. Does HVIP cover taxes and fees?

For Standard HVIP and all Set-Asides except for the Public School Bus Set Aside, ZESBI, and ISEF, HVIP can cover up to 90% of the cost of each vehicle for private entities, and up to 100% for public entities, exclusive of taxes, fees, and other non-vehicle costs. See details about the Public School Bus Set Aside, ZESBI, and ISEF at www.californiahvip.org/purchasers.

9. What is HVIP’s Vehicle-to-Grid (V2G) requirement?

Per the FY22-23 Funding Plan for Clean Transportation Incentives, V2G functionality, or bi-directional charging, will be required on all HVIP battery electric school bus vehicle eligibility applications submitted to the California Air Resources Board on or after January 1, 2024. Applications are found in the Manufacturer Resources section at californiahvip.org/sellers. Specifically, all new battery electric school buses must comply with ISO 15118-20 Road Vehicles, vehicle to grid communication interface, Part 20: 2nd generation network layer and application layer requirements. OEMs must self-certify as to this capability on their school bus vehicle eligibility applications. The V2G requirement was initially introduced to the HVIP Vehicle Catalog as a requirement for the Public School Bus Set-Aside in 2022.

10. How does ISEF interact with Standard HVIP?

ISEF funding is now available for eligible small fleet purchases through all HVIP eligible dealers without the need for a Provider application. ISEF can fund purchases with any HVIP eligible dealer and innovative solutions such as short-term leases, rentals, and truck-as-a-service, through a HVIP approved Provider. See more information in the ISEF Appendix and in ISEF FAQs.

11. What are the Labor Attestation requirements (AB794)?

As of January 1, 2023, any voucher request for a tractor, panel-step van, straight truck, refuse truck, or 2b vehicle requires a mandatory attestation by the purchaser/lessee as to compliance with labor laws. (Unless the purchaser is a rental or leasing entity – applicable to ISEF only.) The attestation must be submitted to www.CAZEVLaborLawCompliance.org and will be required to renew annually, until three years after voucher redemption. The attestation includes that the purchaser will retain direct control over the manner and means for performance of any individual using or driving the vehicle. 

12. What is the Refuse Voucher Enhancement?

For the purposes of HVIP, vehicles eligible for the 25% Refuse Voucher Enhancement must: 

  1. Be HVIP-eligible;
  2. Collect garbage as a front load, rear load, side load, or other form of garbage packer truck; and
  3. Not be a roll-off or other form of waste transfer vehicle.

CARB’s 2R Initiative (californiahvip.org/refusereimagined) aims to double the number of zero-emission refuse collection truck sales in California in 2023. As part of 2R, a voucher enhancement of 25% is applied to HVIP-eligible refuse vehicles used for solid waste collection until December 31, 2025. 

13. Are Demo Vehicles or Short-Term Rentals Permitted?

Upon case-by-case approval by the California Air Resources Board (CARB), an HVIP vehicle manufacturer or dealer may request no more than 10 vouchers in any 12-month period for their own use, limited to 1-3 vouchers every 60 days.

This “demo vehicle” provision applies to vehicles the manufacturer produces, vehicles the dealer makes available for sale, demonstration vehicles, and vehicles to be made available for short-term customer use. All vehicles must be HVIP-eligible and the participating dealer/manufacturer must be based in California.

For more information, including how to participate, see Appendix “I” at www.californiahvip.org/im.

14. What are the policies for ePTO?

For ePTO, a new $50,000 incentive level is available starting Nov. 2022 for storage capacity of greater than 25 kWh. Also, ePTO systems will now be allowed to fund up to 65% of the total incremental cost.  

15. Is a binding Purchase Order required for requesting a voucher? How old can a P.O. be?

Yes. A valid signed Purchase Order (or other binding agreement, contract, buyer’s order, or action/resolution by a government entity’s governing body) is required at the time a voucher request is made (see question below). Non-binding agreements are not sufficient to reserve a voucher. An exception is granted to transit vouchers. See the “Is a Letter of Intent permitted in lieu of a purchase order?” for more information.

Starting January 1, 2024

Purchase Orders or other binding sales agreements for private-entity purchasers can be dated no earlier than 90 calendar days before the date the voucher request is submitted. For public-entity purchasers, POs or other binding sales agreements can be no older than March 30, 2023.  

16. Is a Letter of Intent permitted in lieu of a purchase order?

A Letter of Intent (LOI) is permitted for transit agencies in lieu of a purchase order at the point of voucher request submission. The date of signature on the LOI may be no earlier than January 1, 2024. A purchase order (or other binding agreement) will be required within 6 months of submission, otherwise the voucher requests will be cancelled. Check out californiaHVIP.org/TransitBus for additional transit information.

17. How is a Manufacturer Transfer Request handled?

In instances when HVIP is not oversubscribed, a purchaser requesting a manufacturer transfer should reach out to [email protected] requesting cancellation of the original voucher(s), and the new dealer can then request a new voucher(s). In instances when HVIP is oversubscribed and a purchaser is initiating a voucher cancellation due to manufacturer’s production capacity, meaning the vehicle cannot be produced in the 540-day voucher timeline, transferring the vouchers to another manufacturer may be permitted at CARB’s sole discretion.

18. What happens if a vehicle is ready to be delivered but the infrastructure is not ready?

In instances when a vehicle is ready to be delivered and infrastructure preparedness is delayed such that the purchaser is not ready to accept the vehicle, voucher redemption may be permitted in advance of vehicle delivery at CARB’s sole discretion. The dealer will be required to submit a letter to [email protected] signed by the purchaser attesting that the vehicle is ready to be delivered, but the purchaser is requesting that delivery of the vehicle to their business / fleet be delayed while infrastructure is finalized. The letter must include a new anticipated delivery date. The dealer will be required to update HVIP staff every 3 months as to the infrastructure completion status, and the 3-year operating requirement for the vehicle will begin when the vehicle has been delivered to the purchaser.

19. How does the Disadvantaged Community (DAC) voucher modifier (“plus-up”) work?

The DAC incentive is 15% and is available only for vehicles domiciled in a disadvantaged community (DAC) that are purchased or leased by a public or private small fleet with 20 or fewer trucks or buses (10 or fewer pre 11/17/23), and less than $15 million in annual revenue for private fleets (less than $50 million pre 11/17/23). There is no revenue cap for public or nonprofit entities. The increased voucher enhancement is also available for ANY purchase or lease by a California Native American tribal government.  

Effective 7/21/23, HVIP defines DAC eligibility as vehicle domicile address in any of the following areas of the map at https://webmaps.arb.ca.gov/PriorityPopulations/ 

  • Disadvantaged Communities (Yellow area on map legend)   
  • Disadvantaged and Low Income Communities (Green; yellow AND blue area on map legend)
  • Low Income Communities within ½ mile of a Disadvantaged Community (Crosshatched purple area on map legend) and   
  • Low Income Households within ½ mile of a Disadvantaged Community (Crosshatched grey area on map legend)  

Please see our FAQ “How is fleet size defined?” for our fleet size definition.

20. What are the voucher modifiers?

The voucher modifiers can be found on the Funding Page.

21. What are the voucher adjustments based on fleet size?

Starting Jan. 1, 2023, voucher amounts are modified according to fleet size. Voucher Adjustments based on fleet size can be found on the Funding Page. This includes the small-fleet doubling in effect starting 11/17/23.

California Native American Tribal Governments and 501(c)(3) nonprofits are exempt from the reductions above. Additionally, purchases of fuel cell vehicles are not subject to the reductions. 

Please see our FAQ “How is fleet size defined?” for our fleet size definition.

Starting January 1, 2024, consistent with the Advanced Clean Fleet Regulation, HVIP’s fleet size definition will include ALL vehicles owned directly or under common ownership, including those domiciled or operated outside of California.

22. What is the bulk purchase requirement?

Starting Jan. 1, 2023, a Bulk Purchase requirement is in effect for private fleets with 501 or more vehicles with a GVWR greater than 8,500 lbs under common ownership or control and domiciled in California. Starting January 1, 2024, consistent with the Advanced Clean Fleet Regulation, HVIP’s fleet size definition for new voucher requests placed on or after January 1, 2024 will include ALL vehicles owned directly or under common ownership, including those domiciled or operated outside of California. Also, such fleets can only request vouchers for vehicles domiciled in a Disadvantaged Community (DAC). 

Specifically, the PO must be for at least 30 HVIP eligible vehicles, and the HVIP incentive will be applied only for vehicles purchased above 30. The non-HVIP-funded vehicles in the bulk order do not need to be domiciled in a DAC. The existing fleet voucher request limit of 30 vouchers per fleet per calendar year or 50 vouchers for drayage trucks, public transit fleets, and fleets purchasing refuse vehicles continues to apply, regardless of the size of the bulk order.  If the bulk order is comprised of POs from more than one dealer / OEM, HVIP staff will work with the purchaser to manage the remaining PO(s) for the bulk order. 

Bulk purchases are not required for fuel cell vehicles; they can be purchased in any quantity. Also, 501(c)(3) nonprofits are exempt from the bulk purchase requirement. 

Please see our FAQ “How is fleet size defined?” for our fleet size definition.  

23. How do other funding sources stack with HVIP?

HVIP vouchers may be combined or “stacked” with other eligible public incentives (and other types of discretionary funding), with the provision that HVIP will only fund the remaining cost up to the maximum voucher amount after the other incentives have been applied at their maximum allowable amounts.

Specifically, for privately owned vehicles, the total voucher amount including HVIP Base Vehicle Incentive plus voucher enhancements, plus all other eligible public incentives – or other discretionary public funding such as grants –  may not exceed 90 percent of the total vehicle purchase price (excluding taxes and fees). For publicly owned vehicles, including public school buses, public transit buses, and municipal vehicles, the sum of HVIP and other eligible public funding may not exceed the full vehicle cost excluding taxes and fees.

Local incentives that may be combined with HVIP include programs administered by local air districts or local municipalities that are locally funded. AB 923 funds administered by local air districts may also be combined with HVIP for school buses only. Examples of programs funded by local air districts and not the State that CAN be stacked with HVIP include, but are not limited to, the following:

  • Sacramento Metropolitan AQMD’s Sacramento Emergency Clean Air & Transportation (SECAT) Grant Program
  • South Coast AQMD’s Mobile Source Air Pollution Reduction Review Committee (MSRC) grants
  • Bay Area AQMD’s Mobile Source Incentive Fund and Transportation Fund for Clean Air
  • San Joaquin Valley Air Pollution Control District’s Heavy-Duty Truck Replacement Program
  • San Diego County Air Pollution Control District Zero Emission Truck Pilot Project

Federal incentives may be combined with HVIP vouchers, including funding provided by the Federal Transit Administration (FTA), the Department of Energy (DOE), U.S. Environmental Protection Agency (EPA), and other federal agencies.

Small fleet stacking:

Small fleets of 20 or fewer vehicles can stack with state incentive programs, so long as 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. Programs that can now be stacked with HVIP for small fleets ONLY include but are not limited to:

  • CARB Truck Loan Assistance Program
  • Goods Movement Emission Reduction Program (Prop 1B Program)
  • The Carl Moyer Memorial Air Quality Standards Attainment Program (Moyer): The Moyer Program may be stacked for small fleets scrapping and replacing their heavy-duty trucks through the On-Road Heavy-Duty Voucher Incentive Program AND through Moyer Chapter 4: On-Road Heavy-Duty Vehicles for transit, but not for other vehicle types. The Moyer award must be confirmed before applying for HVIP, because HVIP requires a binding P.O. in order to submit a voucher request, while Moyer does not permit a P.O. to be placed until AFTER the Moyer award is issued.

For fleets with more than 20 vehicles, stacking HVIP with State-funded incentives is prohibited, with the exception of public transit buses and the Clean Mobility Options program as described below.

Transit stacking:

Transit buses operated by or on behalf of a city or county government; a transportation district / transit district; or a public agency, including paratransit and microtransit services, may stack State-funded incentives with HVIP regardless of fleet size, with the provision that HVIP will only fund the remaining cost up to the maximum voucher amount after the other incentives have been applied at their maximum allowable amounts. Examples of State programs that can stack for transit:

  • Transit and Intercity Rail Capital Program (TIRCP)
  • Low Carbon Transit Operations Program (LCTOP) For school/shuttle bus VW funds, administered by SJVAPCD, the VW award must be confirmed before applying for HVIP, because HVIP requires a binding P.O. in order to submit a voucher request, while VW does not permit a P.O. to be placed until AFTER the VW award is issued.
  • Zero-Emission Class 8 VW funds are administered by SCAQMD. This category includes trucks with a GVWR greater than 33,000 lbs (Freight Trucks, Drayage Trucks, Refuse)

Other stacking:

  • The Volkswagen Environmental Mitigation Trust (VW) may be stacked with HVIP 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. VW has a scrap requirement, requiring applicants to scrap a 2012 or older model year engine.
  • HVIP may fund or co-fund vehicles that are part of CARB’s Clean Mobility Options (CMO) program, at CARB’s sole discretion. Please contact [email protected] for more information. HVIP’s contribution will not exceed the total of the voucher amount for each eligible vehicle.

Prohibited from stacking:

State-funded incentive programs that MAY NOT be combined with HVIP for any vehicle types include:

  • Low Carbon Transportation Investments, except for CMO as indicated above

For stacking requirements for ISEF and ZESBI, see Appendices F and G respectively, at www.californiahvip.org/im.

24. What is an annual fleet voucher request cap?

Each fleet purchaser is limited to a “cap” of 30 voucher requests per calendar year, except for drayage fleets (and starting in 2024, public transit fleets and fleets purchasing refuse vehicles), which are limited to 50 voucher requests per calendar year. Starting in 2023, any redeemed vouchers that were requested in the same year (representing delivered vehicles) will be exempt from the voucher cap. For example, if a fleet requests 30 vouchers in April, and redeems 10 in September, they are eligible to request 10 more before the end of the calendar year. Vehicles under common ownership or control that share a common TIN or CA # are considered part of a single fleet, even if they are part of different subsidiaries, divisions, or other organizational structures of a company or government agency. 

25. If my fleet reaches the 30-voucher cap, when can I apply for new vouchers?

If a fleet already has 30 vouchers (50 for drayage and, starting in 2024, for refuse and public transit) submitted in a given calendar year that reach the status of “Accepted” or higher in the HVIP Voucher Processing Center, any additional voucher requests for that fleet will be rejected and the dealer and fleet will be notified. The fleet can request new vouchers in the next calendar year. An exception to this is if a purchaser redeems a portion of their requested vouchers within the same calendar year as the vouchers were requested; the number of vouchers that was redeemed can be requested again before the end of the calendar year without counting towards the cap. 

In instances where a public government entity has a binding sales agreement in place for more than 30 vehicles, that agreement can be used in two different calendar years (to obtain vouchers for 30 vehicles in the first calendar year and up to 30 more in the second calendar year). However, reserving vouchers in year one does not guarantee vouchers in year two; vouchers are first-come, first-served as funds are available.  

If a purchaser is affiliated with vouchers that had been “Accepted” but subsequently cancelled, and wants to exceed the cap for this reason, please contact [email protected].  

26. Has the process for requesting vouchers changed?

The Standard HVIP voucher request and redemption process has not changed substantially from previous years. Dealers are responsible for taking the necessary training to become HVIP Approved Dealers and request vouchers on behalf of the customer. Purchasers receive the full incentive amount discounted from the sale at the point of purchase. Once the vehicle has been delivered, customer pays, and the voucher is redeemed, the HVIP Approved Dealer then receives a check from CALSTART for the full voucher amount.   

27. How does the VPC handle duplicate voucher requests?

Duplicate voucher requests are two or more voucher requests for the same purchaser, vehicle, and domicile location submitted by the same dealership. If two duplicate batches of different quantities are submitted, the smaller batch will be cancelled.   

28. Can leasing entities request an HVIP voucher as a purchaser?

No. Dealerships, manufacturers, and leasing entities are prohibited from requesting a voucher as a purchaser. The purchaser must be the lessee and operator of the vehicle, not the lessor. Consequently, invoices must be issued to the purchaser (lessee), not the leasing entity. 

The exception is ISEF; see www.californiahvip/purchasers/ for more information.

29. What is an OEM “Soft” Cap? Has it changed since last year?

The manufacturer rolling “soft” cap allows each manufacturer to hold up to 100 unredeemed vouchers at a time across all the manufacturer’s HVIP-eligible product line, which includes the parent company and its subsidiaries/brands unless vehicles from the separate brands are produced at separate manufacturing sites. As of 11/17/23, requests for purchasers that are considered a small fleet* do not count toward the 100-voucher cap. As a manufacturer redeems vouchers, more vouchers will become available for vehicles from that manufacturer. Under the “soft” cap, manufacturers can be granted additional vouchers beyond the cap on a case-by-case basis. OEMs who 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 are exempt from the cap.  

The cap does not prevent vouchers from being requested from a manufcturer’s technologies. Vouchers exceeding 100 will remain in the Voucher Processing Center and retain their place in line (by order received) to be reviewed on a case-by-case basis, however they will not advance to the status of Accepted Pending Confirmation in the Voucher Processing Center until and unless approved by CARB. To request case by case approval to exceed the cap, manufacturers should contact [email protected]. The evaluation includes documentation from the manufacturer regarding their build progress and delivery plan for unredeemed vouchers as well as past delivery performance. If CARB sets a new voucher cap for an OEM that is greater than 100, vouchers exceeding that new cap will likewise be reviewed on a case-by-case basis.

If a batch request causes the cap to be exceeded, the quantity of voucher requests in the batch that are below the cap can proceed while the quantity that are above the cap will require case by case review.

* As of 11/17/2023, small fleets are defined as public fleets with 20 or fewer medium- and heavy-duty (MHD) vehicles or private fleets with 20 or fewer MHD vehicles and less than $15 million in annual revenue. 

The existing Manufacturer Rolling Soft Cap will continue until new Performance Review parameters are determined; a public Workgroup is anticipated in early 2024.

30. What is the Manufacturer Authorization Letter?

Dealers can use any form of a letter from their affiliated OEMs, even a pdf’d email correspondence with the manufacturer stating that the specific dealership is authorized to sell specific vehicles from the HVIP catalog (californiahvip.org/vehiclecatalog). Manufacturers who are also acting as dealers are exempt from submitting this letter

31. If an OEM has vehicle models with the same incentive amount but two different weight classes, can the vehicle sizes be swapped on a voucher?

No. Once a voucher request is submitted, along with the purchase order or other binding sales agreement representing a real vehicle order cannot be changed. Dealers may cancel the existing voucher and submit a new voucher request with the correct vehicle information if funds are available. 

32. Can I see the status of my vouchers and what documents are missing and/or expiring?

Yes, there is help for you in the Voucher Processing Center under “Dashboard”. While navigating to the Dashboard, you will see the following six components to help you with your voucher statuses, documentation needed, and those that may be expiring.

  • Dealer: Voucher Request by Status – This will give a snapshot of the voucher requests you currently have by status; this will allow you to see what stage those voucher requests are in.
  • Dealer: Vouchers by Status – This will give a snapshot of the vouchers you currently have by status; this will allow you to see what stage those vouchers are in.
  • Dealer: Vouchers in Pending Delivery – This component will show the number of vouchers that are currently pending delivery.
  • Dealer Vouchers: Expiration Date – This component will show you which vouchers are nearing expiration; it will allow you keep an eye on approaching dates.
  • Voucher Docs with Voucher Requests – This component will report which voucher docs are missing on the voucher requests. It will show you if you have any paperwork missing to proceed with the voucher.
  • Voucher Docs with Vouchers – This component will report which voucher docs are missing on the vouchers. It will show you if you have any paperwork missing to proceed with the voucher.
33. Is there somewhere I can check the amounts of a voucher to see an example of how much the voucher will be?

Yes, while navigating to the Resources page on the Voucher Processing Center, you will find the HVIP Incentive Calculator. There is also an HVIP Incentive Calculator on the public facing site as well. Please keep in mind that the HVIP Incentive Calculator was intended to estimate the voucher and give you a way to test out the voucher amount based on fleet size as well as the voucher modifiers.

34. How can I tell what the status of my voucher means? Are there different statuses for the Voucher Request versus a Voucher?

Here is a brief synopsis of each status a voucher request will go through.

This first set of statuses are the Voucher Request Statuses:

Pending Submittal: This is the step where the dealer and purchaser gather information together and put the voucher request. The time period for this status is dependent on the dealer and purchaser. This is the stage where the quantity requested and the PO is uploaded.

Submitted: This is the step where the dealer has gathered all information, filled out the voucher request, and completed the steps they need in order to submit the voucher to the Voucher Processing team.

Funding Reserved: This step is called Funding Reserved; that means that Tetra Tech uses this step to verify what the final voucher amount will equal. Dealers will have 10 days to address any issues.

Accepted Pending Signed Forms: In this status, the purchaser will receive and complete any additional required information via the Purchaser Form and also receive the Terms and Conditions from Tetra Tech for both the dealer and purchaser to sign.

Vouchers Created: This is the status where the dealer will then be able to see the voucher IDs from step “Accepted Pending Confirmation”. The request is completed and the Terms and Conditions and Purchaser Form have been received from the dealer and purchaser.

This second set of statuses are the Voucher Statuses:

Request in Process: This status is not visible to the dealers, this is a placeholder for the vouchers, there are no actions needed by the dealer or Tetra Tech.

Accepted Pending Confirmation: In this status, the dealer must add all the VINs and requested vehicle information in the “Key Fields” section. Tetra Tech will then check for TRUCRS compliance, review the VINs, and confirm the model year of each vehicle and match it to the VPC Vehicle Catalog.

Pending Delivery: This is an important step for the dealer, they must update the vouchers every 90 days to re-confirm the anticipated delivery date. Dealers will add photos of the VIN Tag and VECI Label.

Redemption Processing: This step will be the point that the dealer starts working on the Redemption Form. If the redemption process is going to take longer than expected, an extension can be requested if the redemption process will take longer than 18 months.

Redemption Approved: CALSTART’s Accounts Payable team mails the payment to the dealer; this process will take approximately 7 days.

Completed Paid: The check information has been added to the voucher record and the dealer has been reimbursed.

35. Are Fleets Excluded Based on Fleet Size?

Private fleets size 50 and larger, based on the fleet size definition found in the FY23-24 Implementation Manual, and in FAQ #5, will be ineligible to request new voucher requests starting 1/1/25. This change does not affect existing vouchers requested before 1/1/25. Public entities, California Native American Tribal governments, and nonprofit organizations with 501(c)(3) status will not be subject to the fleet size limit. Additionally, entities purchasing new-to-market technologies, such as fuel cell vehicles, will not be subject to the fleet size limits until the technology has achieved a higher degree of market penetration, meaning fleets of any size can continue to purchase fuel cell vehicles through HVIP. Fuel cell vehicle purchasers are not subject to HVIP’s large fleet bulk purchase requirements or base voucher amount reductions based on fleet size.

FAQs for ISEF Set-Aside

1. What is ISEF?

ISEF is a set-aside within the Clean Truck and Bus Voucher Incentive Project (HVIP), designed to support small fleets and individual owner-operators making the transition to zero-emission vehicles. Through ISEF, small fleets have the option to request vouchers for all-inclusive leases, peer-to-peer truck sharing, truck-as-a-service, and other alternative business models.

2. How does ISEF interact with Standard HVIP?

ISEF is solely dedicated to innovative offerings for private or public companies, non-profits, and independent owner-operators with 20 or fewer vehicles operating in California with less than $15 million in annual revenue. Fleets may request ISEF funds for short-term leases, rentals, and truck-as-a-service through approved ISEF providers.

As of November 17, 2023, all regular truck purchases formerly made through ISEF will now be funded through Standard HVIP.

See more information in the ISEF Appendix and in the ISEF FAQs.

3. What is an ISEF Provider?

ISEF providers are third-party companies offering fleets flexible options that are usually not allowed in Standard HVIP. These flexible options may take the form of a short-term lease, rental, truck-as-a-service, or other service agreement. Providers work with Dealers on behalf of small fleets. Providers do not have access to the Voucher Processing Center but are primarily the main contact for small fleets. Providers are required to complete an eligibility application prior to requesting ISEF vouchers.

4. Can a dealer be a provider, and do they still need to do the Provider Application?

Yes; a dealer can also be a Provider, and they are still required to complete an eligibility application detailing their intended offerings.

5. Do these vouchers count against the overall manufacture cap?

Yes, ISEF vouchers count against the overall manufacture cap. 

6. What is considered an “Eligible Small Fleet?"

Under ISEF, Eligible Small Fleets are California entities,* including independent owner-operators, private or public agencies with 20 or fewer vehicles and less than $15 million in annual revenue.**

*For fleets that operate under different names but are controlled by related companies, please refer to the common control definition in the HVIP Implementation Manual.

**Non-profits are exempt from the revenue cap.

7. What are the eligible costs that the voucher can cover?

Voucher funds may only be used for vehicle costs. The maximum funding available per voucher is capped at 90% of a commercial medium- or heavy-duty truck or bus’ purchase price. “Vehicle purchase price” does not include taxes, registration, delivery fees, service agreements, extended warranties, or other items when determining the maximum voucher amount.

8. Are there any ineligible costs that the voucher does not cover?

Vouchers for the ISEF set-aside cannot be applied to taxes, registration, infrastructure installation, or infrastructure make-ready costs.

9. What happens in the case of oversubscription?

No single manufacturer may reserve more than 30 percent of total ISEF set-aside voucher funding within the first 30 days after the launch date. CARB will continue to evaluate needs in the funding categories after the first 30 days and may continue limits if warranted. Once funding for a given manufacturer has reached its cap, new voucher requests will be placed on a contingency list until the cap is lifted. CARB reserves the right to set additional criteria for, modify, or eliminate any contingency lists.

10. What vehicles are eligible for ISEF?

All Class 2b-8 vehicles included in the HVIP catalog are eligible for ISEF. As of January 1, 2024, buses can be requested through ISEF as well. Certain types of buses, including activity buses and youth buses, those utilized by daycares, retirement centers and similar organizations, are eligible. School buses that transport pupils at or below a 12th grade level to school or school activities and meet the definition of “school bus” in California Vehicle Code Section 545(a) are not eligible. For a full vehicle catalog, visit https://californiahvip.org/vehiclecatalog/.

11. Do you need to scrap a truck to participate?

No, there is no scrappage requirement for ISEF. 

12. What if my company is new and has no financial history or revenue or this will be our first truck? Can we still participate?

Yes, ISEF is open to new companies but information from standard business setup will be needed to complete voucher requests. 

13. What is truck-as-a-service?

Truck-as-a-service (TAAS) allows customers to lease battery-electric trucks at a per-mile or per-route rate and can include vehicles, costs of charging infrastructure, installation, and maintenance. 

14. What other funding opportunities exist to help me purchase a cleaner truck?

Other available funding opportunities can be found in the Funding Finder Tool at https://fundingfindertool.org/. 

15. What is the Provider Cap?

Providers may request up to 30 vehicle vouchers in the first 90 days after ISEF opens on June 3, 2024. After 90 days, the cap will be lifted, and additional requests can be made.

16. Does ISEF require small fleets to have a CA# or DOT#?

Yes; all HVIP funding lanes, including ISEF, require a DOT and a CA number. Small fleets may not have needed these before, but if acquiring a vehicle over 10,000 GVWR, these are required. For additional help and information on how to obtain these numbers please contact [email protected].

17. As a Provider, what kind of reporting will I be subjected to?

Providers must submit all regular telematic reports and surveys for at least three years, in accordance with the HVIP Implementation Manual (IM).

In addition, when an approved provider solution allows for frequent fleet turnover, such as a short-term rental, Providers must submit a report every six months disclosing the fleet and service use of ISEF-assisted vehicles. This is in lieu of requiring pre-approval of all domicile address changes as outlined in the HVIP IM.

Providers must track users to reasonably ensure that funded vehicles are with small fleet operators at least 200 days per year.

18. Who is exempt from revenue provisions?

Public and non-profit fleets are exempt from any revenue provisions.

Other FAQs

1. What is a TIN and CA#?

A TIN is a Taxpayer Identification Number, used by the Internal Revenue Service.  

The California Highway Patrol requires in-state motor carriers to acquire a California Carrier Identification Number (CA #) in order to obtain a Motor Carrier Permit.  

Both TIN and CA # are required upon voucher request submission.  

2. For the purposes of HVIP, what is a "purchaser"?

The Purchaser is the fleet that will purchase or lease the eligible vehicle and operate the vehicle for at least three years. Vehicles under common ownership or control that share a common TIN or CA # are considered part of a single fleet. A purchaser is not a manufacturer, dealership, or leasing company that enters into any agreement with another party to operate the vehicle. The purchaser listed on the voucher request cannot change after the voucher request is submitted. 

3. Does the manufacturer cap apply to vouchers currently in the Voucher Processing Center?

Yes. Any vouchers currently unredeemed in the Voucher Processing Center for currently eligible technologies count toward the 100-voucher total. 

4. How will I know if a manufacturer's soft cap is reached?
  • If you are a purchaser,  you are encouraged to inquire about a manufacturer’s voucher status from your HVIP-approved dealer. 
  • If you are a dealer,  you are responsible for communicating with the manufacturers. Please contact your affiliated manufacturer(s) for an update on their voucher status when planning sales. Totals can also be viewed in the Voucher Processing Center.  
  • If you are a manufacturer who does not also participate in HVIP as a dealer and therefore you don’t have access to the Voucher Processing Center, you can request a summary at any time from [email protected]. You will also receive the same information via email quarterly.
5. I have unredeemed vouchers. What happens to those vouchers when HVIP opens for new voucher requests?

Unredeemed vouchers currently in the Voucher Processing Center will not be lost/cancelled/voided due to HVIP’s reopening. Current vouchers have secured funds attached to them.  

6. Are pickup trucks, recreational vehicles, or house cars eligible for HVIP?

No, they are not eligible. 

7. Is there a requirement for eligible vehicles to have at least one California-based service facility affiliated with the vehicle manufacturer?

Yes, the service facility must be affiliated with the vehicle manufacturer, located in California, and able to provide vehicle service, warranty service, dealer training, and repairs. 

8. What is NOT an acceptable vehicle domicile location?

Residential addresses are not allowed to be used as a vehicle domicile locationunlessspecifically approved by CARB. To seek approval, please contact [email protected] to provide a letter of explanation. Additionally, school bus domicile locations not affiliated with the purchasing school district are prohibited. The Voucher Processing Center team will also verify that the domicile address is affiliated with the purchaser, is in California, and is in a DAC (if DAC plus-up is provided).   The domicile addresses must have the parking and charging-infrastructure capacity for the number of HVIP-funded vehicles that share the same domicile address. Verification may be requested by CARB or it’s designee. 

9. If a prospective purchaser, CALSTART, Tetra Tech, or CARB requests voucher-related information from me, how long do I have to respond?

Vehicle dealers must provide all the requested voucher redemption-related information within 10 business days of the written request for this information.   

10. What about Infrastructure?

For commercial fleets interested in infrastructure incentives, please visit www.energiize.org to learn more. EnergIIZE provides incentives for zero-emission vehicle infrastructure equipment for medium- and heavy-duty battery electric and fuel cell vehicles in California. 

11. I am a non-profit, are there any additional forms needed to be a purchaser?

Yes, any purchaser who is a non-profit, will be required to submit a Form 990 at the point of the voucher request. 

12. As a purchaser, am I required to be in compliance with TRUCR 365 days after a voucher is requested?

Yes, you must be compliant with TRUCR, 365 days after the voucher is requested or the voucher will be cancelled. 

13. Who should I contact for more information? 

See californiahvip.org/contact for specific contact information. We’re here to help and will make sure you get to the right spot.

Streamlined
Price Reductions

With an HVIP voucher, industry-leading vehicles can be as affordable as their traditional fossil-fueled counterparts, enabling purchasers of all sizes to deploy advanced technologies that are cleaner, quieter, and in line with state regulations.

Launched by the California Air Resources Board in 2009, HVIP is the earliest model in the U.S. to demonstrate the function, flexibility, and effectiveness of first-come first-served incentives that reduce the incremental cost of commercial vehicles. HVIP is administered by CALSTART, a national clean transportation nonprofit consortium, on behalf of CARB.

California Climate Investments

HVIP is part of California Climate Investments, a statewide initiative that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities.

HVIP News & Events

News
Policy Changes for FY24-25 and Closure of Standard HVIP

November 26, 2024 The Clean Truck and Bus Voucher Incentive Project (known as HVIP) is no longer accepting requests for Standard funds. Requests can still be submitted for the Drayage…

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…

Past event
Zero-Emissions Showcase + Ride & Drive: Pomona (11/13/2024)

The California Air Resources Board (CARB) and CALSTART are hosting a Zero-Emissions Showcase + Ride & Drive featuring medium- and heavy-duty trucks (Class 2b-8), heavy-duty off-road equipment, school and transit…

Past event
Public Meeting to Consider Approval of the Proposed FY 2024-25 Funding Plan for Clean Transportation Incentives (11/21/2024)

The California Air Resources Board (CARB or Board) will conduct a public meeting at the date and time noted below to consider approval of the Fiscal Year (FY) 2024-25 Proposed…

“The Dealer Training Guide, Implementation Manual and VPC Training Video do a great job in providing all the information needed ... Thanks for the attention to detail in preparing this for us!”
Bill Bruss
Sales Manager - National Accounts Houston Freighliner, Inc.

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