Over a Decade of Funding Technology Advancement: A Look at Large Scale Truck and Bus Replacement Investments

The Clean Truck and Bus Voucher project, also known as HVIP, has been a key facilitator in achieving California’s long‑term strategy of transitioning its trucking fleet to zero‑emission vehicles (ZEV). This transformation has been a multiyear process, starting with demonstration and pilot projects and moving to regulations combined with incentives.  

Zero‑emission vehicles and equipment powered by battery‑electric and hydrogen fuel cell technologies are positioned to transform the medium‑ and heavy‑duty commercial vehicle market. However, ZEV technologies have encountered several hurdles to full‑scale deployment and acceptance, including cost, skepticism about capabilities, and product availability. CARB and CALSTART, a network connecting companies and government agencies, are working collaboratively to address these issues with ZEV deployment by concentrating investments strategically and creating pathways for subsequent markets or work applications.   

California’s transition to ZEVs began with school buses and transit buses in the late 2010s, which acted as cornerstones for the development of zero‑emission heavy‑duty vehicles and industries in the California trucking fleet.

California Climate Investments are funding the truck and bus transition at multiple stages. A specific initiative within CARB's Low Carbon Transportation program dedicated to financing demonstration and pilot projects, such as the initial demonstration of an electric school bus, has played a key role in expediting the integration of advanced technologies in California. This effort has driven technological progress towards commercialization. In this first phase, CARB invests in individual vehicles, as well as grants for equipment development to spur the development of zero‑emission truck manufacturers and markets.

These demonstration investments are essential because manufacturing is not standardized early in the development of a new technology or vehicle. As a result, funding is needed to help companies cover the costs of technology development and deployment and support infrastructure installations for each vehicle.  

The second phase of funding comes from HVIP, which provides the bridge between demonstration projects and the development of viable markets for ZEV products. HVIP supports companies in purchasing advanced technologies that are ready to be on the road but have high barriers to widespread adoption. The fleet‑friendly nature of HVIP and ease of use allow it to support fleets with limited resources; last year, CARB approved changes to support more equitable investments and started to focus HVIP on medium and smaller fleets. 

HVIP facilitates the purchase of ZEVs by providing vouchers to offset the extra cost of medium‑ and heavy‑duty trucks and buses. The program has been highly effective and critical, significantly developing the ZEV truck market and adoption in California. HVIP Standard—a subset of the various HVIP incentive programs—provides purchase incentives for various on‑road vehicle types, and specific allocations within HVIP offer targeted support to particular markets like drayage trucks, public transit buses, and public school buses. 

HVIP aims to boost sales by issuing vouchers that help bridge the price gap between advanced technology vehicles and their conventionally fueled counterparts, benefiting buyers and dealers. The program has been successful because of its unique partnerships with dealers to distribute funds at the time of purchase.

“The Dealer Training team has been extremely helpful and prompt in answering questions! I really appreciate the team's support over the past year,” said Melaura Rice, a grant coordinator at Lion Electric, an equipment manufacturer participating in the program. 

The program supports priority populations through community‑driven clean transportation and equitable investments. HVIP has created enhanced voucher incentives (also called “plus‑ups”) to support the deployment of these vehicles in disadvantaged and low‑income communities, California Native American Tribal governments, and small businesses. 

A red electric bus, the San Joaquin RTD Express, waits at a curb while a line of people wearing colorful clothes boards the back.

Annually, HVIP is evaluated and updated through the Low Carbon Transportation Investments and Air Quality Improvement Program Funding Plan. CARB submits a proposed funding plan for each fiscal year, seeking approval from the CARB Board. The plan is developed with input from the public and various stakeholders through multiple hearings. This process ensures that HVIP has evolved to meet the market's needs and CARB's goals concerning ZEV market development. 

These incentives have paved the way for regulations such as the Advanced Clean Truck and Advanced Clean Fleet rules, which will further accelerate the widespread adoption and usage of ZEVs in the medium‑ and heavy‑duty truck sector. As these regulations begin to take effect and HVIP enters its 13th year, HVIP is transitioning from its role as a bridge between demonstrations and market‑readyvehicles, to instead support small business fleets and priority vehicle types. Now, HVIP is focused on supporting the deployment of zero‑emission technologies in communities disproportionally impacted by pollution and increasing support for small and public fleets.