$25 million CARB funding incentivizes small e-fleet projects

The Innovative Small E-Fleet (ISEF) project provides $25 million in incentive funding to encourage the transition of small fleets to zero-emissions trucks. Shown is the charging port on the Volvo VNR Electric. (Photo: Volvo Trucks)

The California Air Resources Board (CARB) announced it has opened the Innovative Small E-Fleet (ISEF) project, a $25 million set-aside within the state’s Hybrid and Zero-emission Truck and Bus Voucher Incentive Project (HVIP). Administered by CalStart, the ISEF pilot provides incentive funding to encourage small fleets, which make up the majority of fleets in the state, to implement a range of innovative solutions to enable the transition to zero-emissions trucks (ZETs).

According to CARB, small fleets and owner-operators have traditionally faced multiple barriers to ZET adoption, such as high upfront costs, limited financing options and complex planning for charging infrastructure. ISEF incentive funding will enable these companies to utilize flexible financing, lease, rental and truck-as-a-service options, as well as offset infrastructure/charger costs, insurance and fuel costs.

Through the program, any privately owned and nonprofit trucking fleet with 20 or fewer vehicles and annual revenue of less than $15 million is eligible and will have access to ISEF funding that can be used to cover costs related to the purchase and operation of ZETs. Small fleets will work with a CARB- and HVIP administrator-approved provider to identify an offering that meets their needs. The provider then works with eligible equipment dealers to request vouchers on the individual fleet’s behalf. Providers can include dealers and their financing partners, leasing and rental companies or truck-as-a-service providers

The funding incentives can be substantial. For example, according to CARB, battery-electric and hydrogen fuel cell Class 8 drayage trucks are eligible for close to $300,000 per vehicle.

“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,” said Niki Okuk, deputy director of CALSTART Trucks and Off Road. “There are quite a few options in terms of equipment, financing and planning assistance that fleets can take advantage of in pursuing adoption of electric vehicles. The key first step is showing them they have a resource to help them take advantage of those options.”