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 March 2022 Re-Opening: Procedures and Changes Since Last Year

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?

HVIP funds for Fiscal Year (FY) 21-22 are anticipated to be available for new voucher requests starting Wednesday, March 30, 2022, with $196.6 million available for standard HVIP voucher requests, in addition to the following set-aside funds:

  1. $65.6 million for public transit buses
  2. $122 million for the Public School Bus Set-Aside for Small and Medium Air Districts
  3. Approximately $46 million for class 8 tractors performing drayage operations

Additionally, in late spring the Innovative Small E-Fleets program will open with $23.4 million to pilot new funding approaches for incentives for small trucking fleets and independent owner operators

Please note that HVIP is allocated a total of $569.5 million for FY21-22. The remaining available funding to be released in March accounts for $60 million of early action funds that were already released in “wave 3” of HVIP funding in 2021,  voucher requests on the existing drayage waitlist, and administrative funding.

 

Where can I find a summary of the policy changes?

The FY21-22 Funding Plan for Clean Transportation Incentives was approved by the CARB Board in November 2021. The HVIP policy changes were summarized in an announcement.  

The FY21-22 Implementation Manual (IM) is published at the IM page. Please see the IM for more detail about all information provided in this FAQ. 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 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, $46 million for incentives for zero-emission class 8 tractors performing drayage operations. The $150,000 base voucher amount for drayage truck early adopters extends through December 31, 2022.

Public Transit: $65.6 million for zero-emission public transit bus incentives. Requests for public transit buses will automatically be placed into the set-aside.

Public School Bus: $122 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 and range between $350,000 and $400,000. 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 will be accepted staring March 30 from qualifying purchasers in any small or medium air district, however requests for 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 $25 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/purchasers or contact [email protected]. IMPORTANT NOTE: The information in these FAQs does NOT apply to ISEF in many cases; ISEF rules are unique. ISEF is anticipated to open in early summer, not on March 30. 

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 Funding Plan for Clean Transportation Incentives set aside $75 million in funds for class 8 tractors performing drayage operations, and to date $24 million has already been requested via a waitlist that started in fall 2021. Starting March 30, these requests will be funded first, and are not subject to randomization. No additional submissions will be accepted for the drayage waitlist after 10 a.m. Pacific on Monday, March 7. Starting when HVIP opens on March 30, requests for drayage vehicles will follow the standard voucher request process via the online Voucher Processing Center. Drayage requests on the waitlist will be subject to the FY21-22 Implementation Manual including the fleet voucher request cap.

 

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. If HVIP re-opens on March 30, 2022, POs for private non-drayage entities can be no older than Feb. 28, 2022.  

POs for public entities can be no older than January 1, 2022. In recognition of the complexity of procurements made by public entities, case-by-case exceptions for purchase orders older than January 1, 2022, can be requested via [email protected] for consideration at CARB’s sole discretion. Drayage requests follow the timeline for public entities.   

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”?

Funding will not be released in waves in 2022, however a minimum of $25 million of standard HVIP funds (exclusive of set-asides) will be reserved for fleets of 10 or fewer trucks and buses until the third quarter of 2022. After October 1, 2022, any remaining funding from the $25 million reserve will be available to fleets of any size. 

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

The previous 10% DAC plus up is no longer available for newly requested vouchers. The new 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.

Other FAQs Related to Re-Opening

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.  

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. 

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.

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.

News & Events

News

HVIP ZEPCert Requirement and Other Updates

05/24/2022

All vehicles eligible for HVIP are required to be certified at the vehicle level. Zero-Emission Powertrain Certification (ZEPCert) will be (…)

Event

Zero-Emission Truck Showcase + Ride and Drive (6/8/2022)

06/08/2022

CARB and CALSTART are hosting their first Zero-Emission Truck Showcase + Ride and Drive on June 8 at the Auto (…)

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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