Project Background for Clean Off-Road Equipment Vouchers
Contact
Project Goals
The Clean Off-Road Equipment Voucher Incentive Project (CORE) is designed to accelerate the adoption of zero-emission off-road equipment by providing financial incentives to purchasers. Through a streamlined voucher process, CORE helps offset the higher upfront costs of cleaner technologies, making them more accessible and cost-effective for purchasers and lessees. Modeled after the Clean Truck and Bus Voucher Incentive Project (HVIP), which supports clean trucks and buses, CORE focuses on reducing emissions in industries that rely on off-road equipment, contributing to improved air quality and environmental benefits across the state.
Guiding Legislation/Policy Drivers
In 2012, the legislature passed, and Governor Brown signed into law three bills - Assembly Bill (AB) 1532 (Pérez, Chapter 807, 2012), Senate Bill (SB) 535 (De León, Chapter 830), and SB 1018 (Budget and Fiscal Review Committee, Chapter 39, 2012) that established the Greenhouse Gas Reduction Fund (GGRF) to receive auction proceeds from California’s Cap-And-Trade Program and to provide the framework for how the auction proceeds will be administered to further the purposes of AB 32 (Nunez, Chapter 488, Statutes of 2006).
In 2017, Governor Brown signed AB 134 (Committee on Budget, Chapter 14, Statutes of 2017), appropriating up to $140 million from the GGRF for advanced freight equipment demonstrations and pilot commercial deployments. Following legislative action, each fiscal year (FY) CARB staff submits a proposed Funding Plan to the Board for approval that serves as the blueprint for expending GGRF, General Fund, and Air Quality Improvement Program (AQIP) funds appropriated to CARB in the State budget. More specifically, the plan establishes CARB’s priorities for the funding cycle, describes the programs CARB intends to fund, and sets funding targets for each project/program. Of the $140 million appropriated, the FY 2017-18 Funding Plan for Clean Transportation Incentives, approved by CARB in December 2017, allocated $40 million to launch CORE.
In FY 2018-19, CORE received an additional $4.6 million from GGRF pursuant to SB 856 (Committee on Budget and Fiscal Review, Chapter 30, Statutes of 2018).
Governor Newsom reinforced the State’s commitment to zero-emission transportation in Executive Order N-79-20, which calls for 100 percent zero-emission off-road vehicle and equipment operations by 2035, where feasible. Supporting this goal, the FY 2021-22 Funding Plan allocated $194.45 million to CORE, including $108.5 million from the Low Carbon Transportation Incentives program and $86.5 million from the Air Pollution Control Fund.
Additionally, $30 million was appropriated through SB 170 (Skinner, Chapter 240, Statutes of 2021) specifically to support the purchase of zero-emission small off-road equipment used in professional landscaping service by small businesses and sole proprietors.
The FY 2022-23 Funding Plan continued this momentum by allocating $273 million from the Low Carbon Transportation Incentives program to the CORE. To prevent market disruption and assist with market recovery, $77 million of that allocation was reserved for funding vouchers on a contingency list. This was consistent with contingency provisions outlined in the FY 2020-21 Funding Plan, which authorized the CARB Executive Officer to allocate limited funds to avoid interruptions in voucher and rebate programs. Separately, the Air Quality Improvement Program (AQIP), created under AB 118 (Nunez, Chapter 750, Statutes of 2007), continues to provide critical support for clean transportation initiatives. AB 8 (Perea, Chapter 401, Statutes of 2013) reauthorized the fees funding AQIP through 2023, and AB 126 (Reyes, Chapter 254, Statutes of 2023) extended those fees through 2035. AB 126 also directed CARB to prioritize zero-emission technologies, heavy-duty projects, and benefits in nonattainment areas, particularly those with extreme designations. In line with this directive, in November 2023, the Board approved $14.3 million in AQIP funding for CORE. In FY 2024-25, the California Legislature appropriated $34.94 million from the Air Quality Improvement Fund to the Air Quality Improvement Program (AQIP) through the Budget Act of 2024 (Assembly Bill 107, Gabriel, Chapter 22, Statutes of 2024), as amended by Senate Bill 108 (Wiener, Chapter 35, Statutes of 2024). Of the $34.94 million, the Board allocated $14.97 million for CORE in November 2024.
Project Funding/Allocations/History
- FY 2017-18--2018-19: $44 million
- FY 2021-22: $195 million
- FY 2022-23: $273 million
- FY 2023-24: $14.3 million
- FY 2024-25: $14.97 million
Funding Breakdown
| Fiscal Year | Funding Allocation | Incentive Funds | Administration | Outreach |
|---|---|---|---|---|
| FY 2017-18--2018-19 | $44 M | $41 M | $2.4 M | $600 K |
| FY 2021-22 | $195 M | $176 M | $2.45 M | $1 M |
| FY 2022-23 | $273 M | $185 M | $0 | $0 |
| FY 2023-24 | $14.3 M | $13.3 M | $1.0 M | $600 K |
| FY 2024-25 | $14.97 M | $13.9 M | $1.0 M | TBD |
Recent Project/Policy Changes
During the Board Meeting on November 21, 2024, CARB adopted changes to CORE to direct funding to small businesses and public agencies; graduate eligibility of mature zero-emission off-road terminal tractors used at freight facilities to scrap-and-replace funding programs; increase voucher amounts for the largest forklifts with a lift capacity of 54,001 pounds and greater; and streamline the equipment eligibility application process.