California Earmarks $83 Million in Alt-Fuel Funding for Small Fleets

The California Air Resources Board's Innovative Small E-Fleet (ISEF) voucher incentive set-aside will offer $83 million this year. The funds are earmarked for to assist small, heavy-duty truck fleets transition to cleaner vehicles using alternative fuels and powertrains.

The funding assistance program is part of the state’s Clean Truck and Bus Voucher Incentive program (HVIP) and opened for voucher requests on Aug. 30.

An Additional $50 Million in Funding

The ISEF voucher program gives a boost to small fleets that may otherwise have challenges accessing incentive funding, CARB said. The program also provides an opportunity for the agency to gather data about the needs of small fleets to better understand how to support the transition toward zero-emissions technology.

CARB added $50 million to the program this year. Privately owned trucking companies and nonprofits, including independent owner-operators, with 20 or fewer vehicles with a gross vehicle weight rating (GVWR) greater than 8,500 lbs. and less than $15 million in annual revenue are eligible. (Nonprofits are exempt from the revenue cap.)

These fleets can access funding to help cover costs related to the purchase and operation of zero-emission trucks.

Fleets must work with an approved provider to apply for vouchers. These providers will work with eligible equipment dealers to request vouchers on the individual fleet’s behalf.

“Ensuring a clean air future means that no one can be left behind, and the ISEF program is an example of the assistance that CARB is providing to ensure that fleets big and small understand how to do their part to achieve California’s zero-emissions goals, and have the support needed to be successful,” said CARB Executive Officer Steven Cliff. “Every new zero-emissions truck on the road means cleaner air and healthier communities.”

Flexible Funding Options

Eligible participants may request funding vouchers toward the purchase of a new zero-emission truck or for an innovative solution, which includes offerings not traditionally allowed in government-funded programs — flexible financing, fuel-included leases, rentals, and truck-as-a-service options to help offset costs such as charging or other fueling infrastructure, insurance and alternative fuel costs.

ISEF is administered by Calstart, a national clean-transportation nonprofit organization.

“I am so grateful for the ISEF program. As a startup company, it was a game-changer to have the support from this program to help me buy my first two battery-electric semis and make the transition to cleaner vehicle technology,” said Sharmin Watson, owner of Avant Garde Auto Logistics. “We made history as the first fleet of Class 8 all-electric semis to haul finished vehicles in the United States. I appreciate all the help from the Calstart team; they have been easy to work with throughout the process.”