Project Background for Clean Truck & Bus Vouchers (HVIP)

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Program Goals

HVIP continues to accelerate market transformation by incentivizing the purchase of zero-emission heavy-duty trucks and buses for California fleets. HVIP is the cornerstone of advanced technology heavy-duty incentives, providing funding since 2010 to support the long-term transition to ZEVs in the heavy-duty market, as well as supporting investments in other emerging technologies to achieve substantial GHG reductions and help meet health-based ambient air quality standards. Investments made through HVIP provide both broad purchase incentives for fleets, and more targeted measures to address air quality needs in California’s priority populations. Voucher incentives complement other programs in CARB’s heavy-duty funding portfolio by providing a streamlined application process without requiring the scrappage of an existing vehicle.  

Guiding Legislation/Policy Drivers

HVIP is a unique project in the CARB portfolio that supports on-road advanced technologies with high adoption barriers, providing the bridge between demonstrations and pilots to the scrap and replace programs. The fleet friendly nature of HVIP and ease of use also makes it an ideal incentive program to support fleets with limited resources, and last year CARB approved changes to support more equitable investments and begin to focus HVIP on medium and smaller fleets.  

HVIP also plays an important role in preparing the market for regulations by increasing market adoption and decreasing vehicle costs prior to regulatory deadlines such as those for the Innovative Clean Transit and Advanced Clean Trucks regulations.  

HVIP will continue to support the statutory requirements of SB 1204, SB 1403, and AB 2285 by prioritizing funds for early commercial clean heavy-duty vehicles. The proposed HVIP funding policies will ensure that at least 20 percent of Low Carbon Transportation truck funding supports early commercial deployment of zero- and near zero-emission heavy-duty truck and bus technology.  

HVIP guiding principles were approved in the FY 2020-21 Funding Plan and modified in the FY 2021-22 Funding Plan. They are designed to not be strictly interpreted, but rather reflect values that would be factored into decision making. HVIP’s guiding principles are as follows:  

  • Accelerate market transformation for the cleanest advanced technologies.
  • Support the goals laid out in CARB’s Long-Term Heavy-Duty Investment Strategy.
  • Drive purchase decisions.
  • Maintain simplicity and a fleet-friendly process.
  • Support CARB regulatory programs.
  • Avoid market disruptions caused by unpredictable funding availability.
  • Graduate established technologies.
  • Support more equitable investments.

These guiding principles will be carried forward into each subsequent Funding Plan and modified as needed.

Recent Project Policy Changes

As demand for HVIP has increased dramatically in recent years, staff continues to adapt and consider policy changes to amplify the impacts of funding and support more equitable investments. Below are the changes made to HVIP during FY 2023/24: 

Voucher Amount Modifications:

HVIP voucher amounts were modified to ensure they are set to an appropriate level to impact purchase decisions and takes into account any changes in technology costs.

Updated Fleet Size definition:

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 in the HVIP 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-receivable junk or dismantled.

 

PO Age:

Starting 1/1/24, 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.

 

Voucher Enhancements for Refuse and Drayage:

The existing +25% Early Adopter voucher enhancements for Refuse and Drayage, described at CaliforniaHVIP.org/funding, are extended to 12/31/24.

 

Manufacturer Rolling Soft Cap:

The existing Manufacturer Rolling Soft Cap will continue until new Performance Review parameters are determined.