Project Background for Clean Truck & Bus Vouchers (HVIP)
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 2022/23:
Change to Fleet Size Limits:
- Delay effective date of fleet size limits to January 1, 2024.
- Adjust voucher amounts based on fleet size.
- Require bulk vehicle purchases for fleets with more than 500 vehicles.
- Reserve 70 percent of HVIP standard and drayage set-aside funding for private fleets with 100 vehicles or fewer and all public fleets.
Flexibility for Small Fleets to Stack Incentives:
Incentives for some technologies in HVIP may be “stacked” or combined with other local and federal incentives to further support fleet purchases decisions.
Modifications to Manufacturer Rolling Soft Cap:
The rolling soft cap was modified to improve funding accessibility for small fleets and reduce administrative burden on manufacturers that have consistently delivered vehicles in a timely fashion.
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.
Enhancements for Drayage and Refuse Trucks:
Extended the 25 percent voucher enhancement for zero-emission drayage trucks.
Adjustments for ePTO Systems:
Adjusted the voucher structure for ePTOs to better accommodate their use in heavier applications and their use on zero-emission trucks.
Vehicle-to-Grid (V2G) Functionality:
HVIP continues to push for advanced technologies that support California’s climate and energy resiliency goals and introduced a new requirement for V2G functionality, or bi-directional charging, on all battery electric school buses purchased with HVIP vouchers.
Compliance with Labor Standards:
All fleets requesting HVIP vouchers must be in compliance with applicable labor standards.