State funding available for clean fleet transition

By Brian Hendershot, Cal Cities Advocate managing editor

The California Air Resources Board has several funding programs to help cities comply with its Advanced Clean Fleets regulation. The rule requires all cities to obtain a 100% zero-emission vehicle fleet — including street sweepers, cement trucks, and other large vehicles — by 2030.

Cal Cities has long supported policies to expand the eligibility criteria for incentives to purchase medium-to-heavy duty vehicles.

Medium- and heavy-duty vehicles

The Clean Truck and Bus Voucher Incentive Project (HVIP) is a point-of-sale voucher program that supports the purchases of zero-emission medium- and heavy-duty on-road vehicles. Cities may stack funding with other incentive programs if they follow the requirements in the implementation manual.

Eligible equipment includes zero-emission buses, vans, utility vehicles, and more, ranging from Class 2b-8. Base funding amounts vary based on vehicle weight class, starting with $7,500 base vouchers for Class 2b vehicles and $120,000 base vouchers for Class 8 vehicles.

HVIP vehicle dealers handle voucher paperwork processing, which reduces the burden for participants. For more information, call 1-888-457-4847 or email info@californiahvip.org.

Small-sized fleets

The Innovative Small E-Fleet Pilot Program (ISEF) supports small fleets of 20 or fewer vehicles (with a gross vehicle weight rating greater than 8,500 pounds) with voucher funding options. This helps reduce the cost of a zero-emissions Class 2b-8 vehicle to the equivalent of operating a conventional internal combustion-powered medium or heavy-duty vehicle. (The Advanced Clean Fleets rule does not apply to fleets of 10 or fewer vehicles until 2027.)

ISEF eligible fleets can request vouchers for innovative solutions to access zero-emission vehicles, such as all-inclusive leases, short-term rentals, peer-to-peer truck sharing, truck-as-a-service programs, and more.

Participating in ISEF is similar to participating in HVIP: Fleet operators work with approved providers to find the solution for their zero-emission vehicle needs.

ISEF is temporarily closed, with an expected re-opening in October 2025. For more information, contact isef@californiahvip.org.

Off-road vehicles and equipment

The Clean Off-Road Equipment Voucher Incentive Project (CORE) is a voucher program for the purchase and lease of zero-emission off-road vehicles and equipment. CORE vouchers are applied at the point of sale. Applicants may stack funding from other incentive programs if they meet the requirements in the implementation manual.

Examples of eligible equipment include loaders, excavators, and mobile power units. Incentive amounts vary by equipment, with vouchers up to $500,000 for construction equipment and $1,000,000 for commercial harbor craft.

In August 2025, funding became available for many zero-emission off-road equipment categories, including large forklifts and cargo handling equipment.

For more information about CORE, call 1-866-919-2673 or email info@californiaCORE.org.

Looking for more funding while planning out your future operations with zero-emissions vehicles, equipment, and infrastructure? Try CARB's Advanced Vehicle Technology and Infrastructure Funding Finder Tool to search for programs.