The California Air Resources Board approved a nearly $35 million incentives funding plan to support ongoing efforts to increase access to medium- and heavy-duty zero-emission trucks, buses, and equipment, with a focus on small businesses.

The 2024-25 Funding Plan for Clean Transportation Incentives increases funding for small businesses that want to modernize their fleets with cleaner vehicles, including assistance for rentals, leases and truck loans. 

“The funding plan reflects the key steps we need to take to advance our clean air goals, which include continued support of small businesses that may face financial obstacles switching to zero-emission options,” said CARB Chair Liane Randolph. 

CARB said an extensive outreach process helped it determine priorities.

Zero-Emission Truck Loan Pilot Project

CARB's revised incentives program provides $5 million for the Zero-Emission Truck Loan Pilot project to help fleets purchase zero-emission medium- and heavy-duty trucks. 

The project is offered in partnership with the California Energy Commission, which provides loan support for charging and other zero-emission fueling infrastructure.

The Zero-Emission Truck Loan Pilot builds on the legacy Truck Loan Program and is designed to provide continuity and consistency for eligible fleets and lenders. The program is open to qualified small trucking fleets with 20 or fewer vehicles purchasing new or used Class 2b through Class 8 zero-emission vehicles. 

For each qualified zero-emission medium or heavy-duty vehicle loan made, CARB contributes 25% of the loan amount into a participating lender’s loan-loss account that is held by a trustee. 

Innovative Small eFleet Pilot Project

CARB approved $14.97 million for the Innovative Small e-Fleet Pilot Project, which provides vouchers for medium- and heavy-duty vehicles for small businesses and other organizations with 20 or fewer vehicles.

Eligible small fleet participants are defined as companies, non-profits, or independent owner-operators that own 20 or fewer trucks or buses operating in California and have less than $15 million in annual revenue (non-profits and government fleets are exempt from the revenue cap). 

Public agencies that operate 20 or fewer trucks or buses also qualify. Public agencies and non-profits are not restricted by a revenue limit.

In situations where the new addition of ISEF funded vehicles would increase the eligible small fleet size to over 20 vehicles, the fleet will still be considered eligible. Unredeemed vouchers in HVIP and ISEF will count against the fleet size limit.