About HVIP

HVIP plays a crucial role in the deployment of zero-emission and near-zero-emission technologies. HVIP responds to a key market challenge by making clean vehicles more affordable for fleets through point-of-purchase price reductions.

FAQs for HVIP's Re-Opening

Additional details can be found in the FY21-22 Implementation Manual (see www.californiahvip.org/im).

When will HVIP re-open to voucher requests and how much money is available?

On November 17, 2022, the California Air Resources Board approved the FY22-23 Funding Plan for Clean Transportation Incentives, which includes policy changes and an allocation of over $1.7 billion to be administered by the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP).

HVIP’s Funding Allocation

HVIP Standard: $265 million
Zero-Emission Public Transit Buses: $70 million
Zero-Emission Public School Buses (through the existing Public School Bus Set Aside): $135 million
Zero-Emission Drayage Trucks: $157 million
Innovative Small E-Fleets: $35 million
Local Education Agency School Bus Replacement Grants: $1.125 billion, to be awarded in $225 million increments between FY23-24 and FY27-28.
These funds add to the funding that still remains at www.californiahvip.org/funding. Incentives are still AVAILABLE NOW for all vehicle types.

Once the 2023 opening date is available, it will be posted on the HVIP website.

Where can I find a summary of the policy changes?

The FY22-23 Funding Plan for Clean Transportation Incentives was approved by the CARB Board in November 2022. The HVIP policy changes were summarized in an announcement.

The FY22-23 Implementation Manual (IM) will be available on the IM page once published. Information in this FAQ is contingent upon the IM and subject to change until the IM’s publication.

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

Set amounts of funding have been reserved to support the deployment of zero-emission drayage trucks, public transit buses, public school buses, and support small-fleets and owner operators. Additional information about each of these set-asides for FY22-23 is provided below, as well as any changes to the voucher request process unique to each set-aside.

Note: When the drayage, public transit, and public school bus set-aside funds are fully requested, HVIP will continue to allow standard voucher requests for these vocations pending funding availability.

Drayage: Upon reopening, $146 million for incentives for zero-emission class 8 tractors performing drayage operations. The +25% voucher modifier for drayage truck early adopters extends through December 31, 2023.

Public Transit: $70 million for zero-emission public transit bus incentives. Requests for public transit buses will automatically be placed into the set-aside.

Public School Bus: $135 million for zero-emission school bus incentives through the Public School Bus Set-Aside for Small and Medium Air Districts. Voucher amounts for public school bus fleets and other qualifying purchasers buying zero-emission school buses are anticipated to cover most of the cost of the new school bus. Voucher amounts will be based on school bus types and will not be subject to standard HVIP Plus-ups. Applications from qualifying purchasers will be accepted via a separate application portal in two steps, a Part A application requesting basic eligibility information, and if selected, a Part B application will be administered by the selected vendor and processed by the vendor. Requests from qualifying purchasers located in a small air district AND a disadvantaged community will be prioritized for the first 90 days. See more information at www.californiahvip.org/purchasers or contact [email protected].

Innovative Small e-Fleets: The Innovative Small e-Fleets (ISEF) set-aside provides $35 million of pilot funding for incentives for small trucking fleets and independent owner operators. ISEF will implement 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 www.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 is Drayage defined? 

In order to qualify for the drayage truck set aside and increased $150,000 voucher amount,  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.

What is the status of the Drayage Waitlist?

The FY21-22 Drayage Truck Set-Aside has been fully subscribed. HVIP is currently accepting voucher requests for drayage trucks through Standard HVIP.

What vehicles are eligible for 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.
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 www.californiahvip.org/vehicles. School bus vouchers that are NOT part of the set-aside do NOT require scrappage. 

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. Non-binding agreements are not sufficient to reserve a voucher. POs for non-drayage private-entity purchasers can be no older than 30 days prior to the date that HVIP re-opens

Please note that purchase orders can be dated no earlier than March 30, 2022.

A purchase order or other binding sales agreement that was eligible at the time of the initial opening will remain eligible throughout the project year. 

The Purchase Order must include the purchaser and dealer names, HVIP voucher amount, number of units (if a batch request), model and year of the vehicle, issued date, and the purchaser’s signature. 

Please note that PO requirements are different for school bus requests that are part of the Public School Bus Set-Aside for Small and Medium Air Districts. For example, non-binding Letters of Intent are sufficient for application Part A. See more details in the School Bus section at www.californiahvip.org/purchasers  

What is randomization?

If the dollar value of all requests received for standard HVIP funds during the first 24 hours that HVIP is open is greater than the amount of available funds, funding will be assigned using a randomization process. After the first 24 hours, requests are first come first served. Requests for vehicles domiciled in disadvantaged communities are prioritized in the randomization process. If demand for the drayage and/or transit set-asides exceeds available funds in the first 24 hours, requests will be randomized within each separate vocational cohort.

Will funding be released in “waves”?

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.

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

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

What is a fleet voucher request cap?

Each fleet purchaser is limited to a “cap” of 30 voucher requests per calendar year, except for drayage fleets which are limited to 50 voucher requests per calendar year. Starting in 2022, 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.

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) 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]. 

Will Class 2b vehicles be funded by HVIP? Is there an incentive amount for these trucks?

Class 2b vehicles designed exclusively for commercial use can be funded by HVIP. The incentive amounts can be in the funding tables.

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 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.  

The online Voucher Processing Center steps have changed. A mandatory training guide and video will be released to dealers in advance of HVIP’s re-opening.  

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.   

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.

What is the Manufacturer Authorization Letter?

Dealers can use any form of a letter from 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 (www.californiahvip.org/vehiclecatalog). Manufacturers who are also acting as dealers are exempt from submitting this letter.  

How does randomization affect set-aside funds?

If standard HVIP funds are still available but drayage or public transit set-asides are oversubscribed then additional drayage or transit requests will be funded from standard HVIP funds. The set-asides will only be randomized if standard HVIP is oversubscribed as well, and only within their own vocational cohorts. See the Implementation Manual for more details.  

How long does a manufacturer have to wait before resubmitting a manufacturer soft cap exceedance?

A manufacturer who receives a cap exceedance approval or denial may re-submit for reevaluation by CARB after no fewer than 90 calendar days. 

Does fleet size include non-functional and non-registered vehicles?

Yes, when determining fleet size, non-functional and non-registered vehicles must be included.

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.

FAQs for ISEF Set-Aside

What is an ISEF Provider?

ISEF providers include companies involved in the sale, rental, financing, and fueling of zero-emission commercial trucks and are hereafter referred to as “Providers.” Providers develop an offering proposal designed to offer small fleets monthly or per-mile costs for zero-emission trucks that are equivalent to comparable combustionvehicle operating costs. The proposal may take the form of a purchase, lease, rental, financing, or other service agreement. 

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

Yes, a dealer can be a Provider. To become an eligible Provider a dealer must fill out the Provider Application. 

Do these vouchers count against the overall manufacture cap?

Yes, ISEF vouchers count against the overall manufacture cap. 

What is considered an “Eligible Small Fleet”?

“Eligible Small Fleets” include California-based, privately owned trucking companies, independent owner-operators, and non-profits with fewer than 20 trucks and an annual revenue of less than $15 million.   

What are the eligible costs that the voucher can cover?

Vouchers for the ISEF set-aside may cover costs related to the purchase and operation of the eligible vehicle, including charger costs, insurance, and fuel costs (if included in Provider Eligibility Application).  

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

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

What happens in the case of oversubscription?

No Provider may receive more than 15 percent of total ISEF set-aside voucher funding within the first six months after the program launches on August 31, 2022. CARB will continue to evaluate needs in the funding categories after the first six months and may continue limits if warranted. Once the funding for a particular Provider has reached its cap, new voucher requests for that Provider 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. 

What vehicles are eligible for ISEF?

For ISEF, eligible vehicles are Class 3-8 and are included in the HVIP catalog at https://californiahvip.org/vehiclecatalog/ . 

Do you need to scrap a truck to participate?

No, there is no scrappage requirement for ISEF. 

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. 

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. 

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/. 

Other FAQs

What is a TIN and CA#?

A TIN is a Taxpayer identification number, used by the Internal Revenue Service. 

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

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

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.

What is the "rolling"/"soft" manufacturer cap?

The manufacturer rolling “soft” cap allows each manufacturer to hold up to 100 unredeemed vouchers at a time across all of the manufacturer’s HVIP-eligible product line and approved Dealers. 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.  

The cap does not prevent vouchers from being requested for a manufacturer’s technologies; rather it triggers the requirement for a case by case review process by CARB in order for those additional vouchers to be accepted. 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.

Vouchers exceeding 100 will remain in the Voucher Processing Center and retain their place in line (by order received) during case by case review, however they will not be accepted until and unless approved by CARB. 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.  

Starting January 1, 2023, 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.

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. 

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]
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.  

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

No, they are not eligible. 

Where can I learn about state laws and other incentives related to alternative fuels and advanced vehicles?

Visit the Alternative Fuels Data Center for more information on California’s and other states’ laws and incentives.

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, and repairs. 

What is NOT an acceptable vehicle domicile location?

Residential addresses are not allowed to be used as a vehicle domicile location unless specifically 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 CA, and is in a DAC (if DAC plus-up is provided).   

If 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.   

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. 

Who should I contact for more information? 

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

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.

News & Events

Funding Updates

HVIP FY22-23 Policy Changes and Funding (11/18/22)


Over $1.7 billion in incentives approved to support zero-emission trucks and buses. On November 17, 2022, the California Air Resources (…)


HVIP FY22-23 Implementation Work Group (2/8/2023)


The California Air Resources Board (CARB) invites you to a workgroup on implementation of fiscal year (FY) 2022-2023 policy for (…)

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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