California Air Resources Board

Who is Eligible 

The Zero-Emission Truck Loan Pilot builds on the highly successful legacy Truck Loan Program and is designed to provide continuity and consistency for eligible fleets and lenders. The program operates through a loan-loss reserve system and is open to qualified small trucking fleets with 20 or fewer vehicles purchasing new or used Class 2b through Class 8 zero-emission vehicles. 

How it’s Administered 

CARB partners with the California Pollution Control Financing Authority (CPCFA), part of the State Treasurer’s Office, to participate in their California Capital Access Program (CalCAP) as an Independent Contributor. CalCAP provides day to day program administration. 

For each qualified zero-emission medium or heavy-duty vehicle loan made, CARB contributes 25% of the loan amount into a participating lender’s loan-loss account that is held by a trustee. In the event of a qualifying loan default, the lender can request reimbursement for the principal loss from CPCFA, and the amount is deducted from the lender’s account. 

With these funds available, lenders are better equipped to provide financing to businesses that need a little extra assistance, and typically offer more favorable terms than the business would qualify for otherwise.

Where and When it’s Offered 

The program launched May 1, 2024 and is offered statewide. An introductory slideshow and webinar for all interested and participating lenders is available on the CalCAP Events page.

Project Funding or Participation Requirements  

The CARB Fiscal Year 2022-2023 Funding Plan allocated $5 million for the initial pilot.  

Eligible small fleet vehicle owners may access the program by contacting a participating CalCAP lender and completing a loan application. The lender then enrolls each qualified loan with CPCFA. Truckers are also able to work with their preferred truck dealers to coordinate financing through a participating lender. Fleets are encouraged to utilize available incentives programs, such as the HVIP Innovative Small e-Fleet Program, to reduce upfront vehicle costs. 

To participate, lenders must submit a Lender Participation form and complete a one-on-one program training session with CPCFA staff prior to enrolling loans. Lenders may use their traditional underwriting standards to establish loan terms, however, the program caps the annual interest rate at 20 percent.