Project Background for Clean Off-Road Equipment Vouchers
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Project Background
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 fleets. 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, AB 134 (Committee on Budget, Chapter 254) appropriated $140 million from the GGRF for demonstrating and deploying advanced technology in freight equipment. Of that appropriation, $40 million was allocated to this project, the Clean Off-Road Equipment Voucher Incentive Project (CORE), by the Fiscal Year (FY) 2017-18 Funding Plan for Clean Transportation Incentives (FY 2017-18 Funding Plan), approved by the California Air Resources Board (CARB) on December 14, 2017. Since that time, CORE has been allocated an additional $4.6 million from FY 2018-19 GGRF funding appropriated pursuant to SB 856 (Committee on Budget and Fiscal Review, Chapter 30 Statues of, 2018). In addition, FY 2021-22 Funding Plan allocated $194.45 million to CORE. This includes $108.5 million via Low Carbon Transportation, $86.5 million via the Air Pollution Control Fund, which includes $30 million appropriated in SB 170 (Skinner, Chapter 240, Statues of 2021) to provide incentives for professional landscaping services in California operated by small businesses or sole proprietor to purchase zero-emission small off-road equipment. FY 2022-23 Funding Plan allocated $273 million to CORE via Low Carbon Transportation. FY 2023-24 Funding plan allocated $14.3 million to CORE via Air Quality Improvement Program (AQIP). And most recently, the FY 2024-25 Funding Plan allocated $14.97 million to CORE via Air Quality Improvement Program (AQIP).
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 the CORE program 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.