Policy Changes for FY24-25 and Closure of Standard HVIP

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 Truck Set-Aside, the Transit Set-Aside, and the Innovative Small E-Fleets (ISEF) project for fleets that qualify.

HVIP has funded more than 14,000 clean-technology vehicles, providing $1.5 billion to public and private fleets since 2010. In 2024 alone, 81% of all HVIP vouchers supported public agencies and small businesses.

The Public School Bus Set-Aside closed at the end of 2023, funding from the Ports of Los Angeles and Long Beach Drayage closed in October 2024,and the Zero Emission School Bus and Infrastructure (ZESBI) project closed November 22. Available incentives are updated regularly at www.californiahvip.org/funding.

On November 21, the California Air Resources Board (CARB) approved the Fiscal Year (FY) 2024-2025  Funding Plan for Clean Transportation Incentives, which includes HVIP policy changes and a $14.97 million allocation for ISEF.

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

Effective November 22, 2024:

Base voucher amount doubling 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 (when the program is open), 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.

Voucher amounts for truck conversions: For vouchers requested on or after 11/22/24, incentive amounts for truck conversions have been increased to 75% of a standard new truck voucher from 50% of a new truck voucher. These changes are reflected at www.californiahvip.org/vehiclecatalog.

Effective January 1, 2025:

Fleet size exclusion: Private fleets size 50 and larger, based on the fleet size definition found in the FY23-24 Implementation Manual, and in FAQ #5 at www.californiahvip.org/about, will be ineligible to place 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. Consistent with the FY23-24 Implementation Manual, fuel cell vehicle purchasers are not subject to HVIP’s large fleet bulk purchase requirements or base voucher amount reductions based on fleet size.

Other:

The existing +25% Early Adopter voucher enhancements for Refuse and Drayage, as described at www.californiahvip.org/funding, are extended to 12/31/25.

• In 2025, CARB will explore a pilot voucher process for Class 2b vehicles. Fleet applicants would apply for a voucher certificate that they could take to any HVIP-approved dealer.
• In 2025, CARB will continue to analyze truck pricing data and will work with stakeholders to explore the potential benefits of Manufacturer’s Suggested Retail Price (MSRP) caps for HVIP-funded vehicles.
• Within ISEF, CARB will explore a Used Truck Voucher Pilot concept to incentivize the secondary market and provide residual value data, which is a key component in the finance and insurance of vehicles.

More information will be provided about upcoming CARB public engagement opportunities.

For information about existing HVIP policies, please contact [email protected]. For information about ISEF, please contact [email protected].