Innovative Small E-Fleet Pilot Project
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Current Incentive Amount(s)
What does it fund?
Vouchers for HVIP approved Class 2b through 8 zero-emission vehicles are available. Small fleets and individual owner-operators have the option to request vouchers for innovative solutions such as all-inclusive leases, peer-to-peer truck sharing, truck-as-a-service, and other alternate business models.
ISEF Zero-Emission Vehicle Truck Voucher Amounts
| Truck Class | Small Business Voucher |
|---|---|
| Class 2b | $9,000 |
| Class 3 | $40,000 |
| Class 4-5 | $130,000 |
| Class 6-7 | $160,000 |
| Class 8 | $330,000 |
| Class 8 Fuel Cell | $420,000 |
ISEF Zero-Emission Vehicle Drayage/Refuse Vouchers
| Truck/Bus Class | Small Fleet Drayage/Refuse Voucher |
|---|---|
| Class 4 | $130,000 |
| Class 5 | $130,000 |
| Class 6 | $160,000 |
| Class 7 | $160,000 |
| Class 8 | $330,000 |
| Class 8 Fuel Cell | $420,000 |
For Public Transit Bus Voucher Amounts refer to the HVIP Implementation Manual.
Who is Eligible
Eligible small fleet participants are defined as companies, non-profits, public agencies, or independent owner-operators that own 20 or fewer trucks or buses operating in California and have less than $15 million in annual revenue (non-profits and government fleets are exempt from the revenue cap).
Fleet size is inclusive of vehicles registered with the California Department of Motor Vehicles (DMV), including those listed as planned non-operation and unregistered vehicles, but excludes off-road vehicles, and vehicles registered with the DMV as non-revivable junk or dismantled. Vehicles over 8,500 lbs. GVWR registered outside of California also count towards fleets’ vehicle count.
In situations where the new addition of ISEF funded vehicles would increase the eligible small fleet size to over 20 vehicles, the fleet will still be considered eligible. Unredeemed vouchers in HVIP and ISEF will count against the fleet size limit.
Any vehicles under common ownership or control must be included in the fleet size.
How it’s Administered
Funds are distributed via a third-party contractor who administers ISEF as a set-aside within the Clean Truck and Bus Voucher Program (HVIP). In October 2023, CALSTART was selected as the Grantee to administer HVIP for FY 2022-23 via competitive solicitation with the option of adding the FY 2023-24 and FY 2024-25 funds with an updated grant agreement.
Where and When it’s Offered
ISEF reopened on October 21, 2025, after a temporary closure due to an exhaustion of funds.
Eligible small fleets will work with an ISEF approved provider to submit a voucher request via the ISEF webpage.
Project Funding or Participation Requirements
The policies and requirements for HVIP are in the HVIP Implementation Manual and requirements specific to ISEF are in Appendix F. In instances where policies and requirements differ, those outlined in the appendix supersede those in the HVIP program.
More information can be found at californiahvip.org.
Announcements and Upcoming Activities
After temporarily closing due to high demand and depleted funds, the Innovative Small E-Fleet (ISEF) Pilot Project reopened on October 21, 2025 with $30.7 million in available funding. The amount includes $15 million from the Air Quality Improvement Program that was approved as part of the Fiscal Year 2024-2025 Funding Plan for Clean Transportation Incentives and funding from cancelled voucher requests. An additional $5 million in FY 2025-26 funding was made available in December 2025.
ISEF is reserved exclusively for innovative solutions such as short-term leases, rentals, truck-as-a-service, and other creative business solutions through approved ISEF providers. The current ISEF guidelines are found in Appendix F of HVIP's Fiscal Year 2024-25 Implementation Manual. The Implementation Manual became effective for voucher requests submitted on or after September 22, 2025.