The California Air Resources Board (CARB) announced the opening of the Innovative Small E-Fleet (ISEF) $25 million set aside within the state’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP).
Launched by the California Air Resources Board, ISEF intends to encourage small fleets to transition to zero-emission trucks. Privately owned and nonprofit trucking fleets of 20 or fewer vehicles with annual revenue of less than $15 million are eligible and will have access to funding that can cover costs related to the purchase and operation of zero-emission trucks (ZETs).
Small fleets and owner-operators have traditionally faced multiple barriers to ZET adoption, such as high up-front costs, limited financing options, and complex planning for charging infrastructure. It is critical to address these challenges for small fleets because most fleets in California operate 20 or fewer trucks.
ISEF incentive funding will allow small fleet owner/operators to utilize flexible financing, lease, rental, and truck-as-a-service options and offset infrastructure/charger costs, insurance, and fuel costs.
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. For example, battery electric and hydrogen fuel cell class 8 drayage trucks are eligible for close to $300,000 per vehicle, drastically reducing upfront costs for California’s port truckers to move to zero emissions.
Niki Okuk, Deputy Director of CALSTART Trucks and Off-Road, said, “ISEF’s goal is to make it easier for smaller fleets to get past the barriers that they frequently face when transitioning from diesel-fueled engines to electric vehicle options.”