California Air Resources Board

What Does it Fund?

The program helps small businesses that want to buy zero-emission commercial vehicles by making it easier to get affordable loans. It does this through a loan-loss reserve system, which helps lower the risk for lenders. When a participating lender gives a loan, the California Air Resources Board (CARB) puts money into a reserve account managed by a trustee. If a qualifying loan is not paid back, the lender can use their reserve to cover the losses. Because this reserve reduces risk, lenders are more willing to approve a loan for fleets that need additional support. Lenders may also offer better loan terms than the business might otherwise receive.

Southern California Edison also funds a similar program for eligible fleets in its service area that are purchasing zero-emission vehicles or charging equipment. The California Energy Commission provides a related program focused on charging and hydrogen fueling infrastructure. These programs are administered through the California Pollution Control Financing Authority (CPCFA).

Current Incentive Amount(s)

The program does not give money directly to fleets. Instead, it helps lower costs by reducing risk for lenders, which can make it easier for fleets to find a loan and get lower interest rates. For every qualified loan for a zero-emission medium- or heavy-duty vehicle, CARB provides 25% of the loan amount into the lender’s loan-loss reserve account.

Fleets are encouraged to use other available incentive programs to reduce upfront vehicle costs before applying for a loan. Fleets can learn more about available incentives on CARB’s ZEV TruckStop.

Who is Eligible

Fleet eligibility:

• Small fleets with 20 vehicles or less (non-profits are exempt from the cap).
• Average annual revenue under $10 million.
• No more than 100 employees.

Vehicle eligibility:

• Vehicles must be Class 2b through Class 8 and zero-emission, such as battery-electric or fuel-cell.
• Vehicles may be new or used.
• Loans can include warranties and/or maintenance plans when purchased with the vehicle.

How it’s Administered 

CARB partners with the CPCFA, part of the California State Treasurer’s Office, to participate in the California Capital Access Program (CalCAP). CARB covers all program costs. 

CalCAP provides day-to-day program administration.

Where and When it’s Offered 

The program launched in 2024 and is funded, open and available statewide.

Eligible small-fleet vehicle owners may access the program by contacting a participating CalCAP approved lender and completing a loan application. The lender then enrolls each qualified loan in the program. 

Fleets are also able to work with their truck dealers to coordinate financing through a participating lender.

Lenders may participate by submitting a Participation Form and completing a one-on-one program training session with CPCFA prior to enrolling loans. Lenders may use their traditional underwriting standards to establish loan terms, however, the program caps the maximum annual interest rate at 20% (participating loans are typically well under the cap).

Project Funding

The program currently has $13.98 million available.