Project Background for the Innovative Small e-Fleet Pilot Program
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Program Goals
The goal of ISEF is to help small fleets and owner-operators overcome the barriers to zero-emission truck adoption, such as high upfront costs, limited financing & insurance options, and complex planning for fueling infrastructure. By dedicating a portion of HVIP funds to small fleets, HVIP can position itself to better understand the specific needs of this traditionally underserved group and support their transition to zero-emission, especially for those subject to the Advanced Clean Fleets regulation. ISEF eligible small fleets can receive increased vouchers for standard purchase vouchers or explore innovative mechanisms such as all-inclusive leases, peer-to-peer truck sharing, truck-as-a-service, assistance with infrastructure, and individual owner planning assistance, as well as other mechanisms. Staff anticipates that the lessons learned from Innovative Small e-Fleets will be used to inform changes to HVIP and CARB’s broader heavy-duty incentive policies as we continue to target smaller fleets.
Guiding Legislation/Policy Drivers
ISEF was established as a set aside within the Clean Truck and Bus Voucher Incentive Project (HVIP) in the 2021-22 Funding Plan to increase support and funding opportunities to small fleets. Senate Bill 372 also directs CARB to explore additionalfinancial and non-financial mechanisms to support the transition to ZEVs. ISEF allows participants to explore innovative methods, beyond a standard purchase to help small fleets and independent owner operators make the transition to zero-emission.
Project Funding/Allocations/History
- FY 2020-21: $25M was originally allocated but was increased by $10M to meet the demand by small fleets.
- FY 2022-23:
- $33M was originally allocated but an additional $50M was allocated from broader HVIP to further fund ISEF vouchers for small fleet purchases.
- ISEF’s $33M of original funding for Fiscal Year 2022-23 will now be reserved exclusively for innovative solutions such as short-term leases, rentals, and truck-as-a-service through approved ISEF providers, with the new additional funding available to fund small fleets’ standard purchase requests.
Funding Breakdown
| Fiscal Year | Funding Allocation | Incentive Funds | Administration | Outreach |
|---|---|---|---|---|
| FY 2021-22 | $35 M | $33.6 M | $1.4 M | $0 |
| FY 2022-23 | $84.65 M | $80.2 M | $4.45 M | $0 |
Recent Project/Policy Changes
A variety of HVIP policy changes will impact ISEF vouchers and can be found on HVIP's ISEF News website.
- The HVIP Fleet Size Voucher Adjustment will not be combined with ISEF.
- Fleets of less than 10 are allowed to stack ISEF with other state incentives.
- Requests from fleets with 10 vehicles or fewer are exempt from the existing manufacturer rolling soft cap limit.
Past Project Info/Reports
None