Given the State of California’s ambitious zero emission vehicle (ZEV) and climate goals, fleets need to prepare for ZEV transition now! A key tool for fleets to utilize when making this transition is through the Hybrid and Zero and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which provides point of sale vouchers to make these vehicles more affordable. In most cases there is no scrappage requirement which separates HVIP from similar voucher programs in other states. In addition, dealers have been taught the HVIP process, reducing the administrative burden. HVIP is a first come first serve program, so the sooner fleets get in, the better for them.
First and foremost, fleets need to know the available funding. California updated their funds for the 2022-2023 fiscal year. The below table illustrates what remains as of publication:
|FY21-22 Funding Remaining
|Total FY22-23 Funding – Available NOW unless otherwise indicated
|Public School Bus Set-Aside
|FY21/22 Public School Bus Set-Aside is fully subscribed. School bus funding is also available in Standard HVIP.
|$117M: See Purchasers page for updates about the timeline for opening of this set-aside for FY22-23.
|FY 21/22 drayage truck set-aside is fully subscribed. Drayage truck funding is also available in Standard HVIP.
|Innovative Small e-Fleet
|FY21/22 ISEF is closed for voucher requests. Small fleets can be funded through Standard HVIP.
|$33M: See the Purchasers page for updates about opening of this set-aside for FY22-23.
|Local Education Agency School Bus Replacement Grants
|Funds to be available in FY23-24
Now, what makes HVIP particularly user friendly is the vehicle catalog which allows fleets to easily search, by truck type, the options available to them at the incentive amount. For example, if a fleet is in the market for a tractor, they can choose from 12 different models with incentive amounts of either $120,000 or $240,000. Straight trucks have 32 options to choose from with incentives of $60,000, $85,000, or $120,000. The catalog also connects the buyer with the seller as fleets are directed to the approved dealers once they pick the truck that is best for them.
It is important to note that each purchaser is limited to 30 vouchers per calendar year (except for drayage which is limited to 50). Another great benefit of HVIP, especially as it relates to programs run in other states, is that the incentive amount is immediately included in the purchase order, automatically reducing the invoice to the fleet. It is the dealers responsibility to submit the voucher request.
HVIP makes it incredibly easy for fleet owners and managers to browse through options and try to figure out how incorporating a ZEV or 2 into operations may work, and the lack of scrappage requirement and instant rebate eliminate timely and costly burdens that sag down other voucher programs. If nothing else a through exploration of HVIP now will make the 2024 equipment purchasing process much smoothed as the ZEV regulations start to hit.
For more information on HVIP and to browse the catalog please click here.