Innovative Small E-Fleet Pilot Project
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What does it fund?
Vouchers for HVIP approved Class 2b through 8 zero-emission vehicles are eligible. Small fleets and individual owner-operators have the option to request vouchers for innovative solutions such as all-inclusive leases, peer-to-peer truck sharing, truck-as-a-service, and other alternate business models.
What are the possible incentive amounts?
ISEF Zero-Emission Vehicle Truck Voucher Amounts
| Truck Class | Small Business Voucher |
|---|---|
| Class 2b | $9,000 |
| Class 3 | $40,000 |
| Class 4-5 | $130,000 |
| Class 6-7 | $160,000 |
| Class 8 | $330,000 |
| Class 8 Fuel Cell | $420,000 |
ISEF Zero-Emission Vehicle Drayage/Refuse Vouchers
| Truck/Bus Class | Small Fleet Drayage/Refuse Voucher |
|---|---|
| Class 4 | $130,000 |
| Class 5 | $130,000 |
| Class 6 | $160,000 |
| Class 7 | $160,000 |
| Class 8 | $330,000 |
| Class 8 Fuel Cell | $420,000 |
For Public Transit Bus Voucher Amounts refer to the HVIP Implementation Manual (https://californiahvip.org/im/).
Who is eligible for funds?
Eligible small fleet participants are defined as companies, non-profits, public agencies, or independent owner-operators that own 20 or fewer trucks or buses operating in California and that have less than $15 million in annual revenue (non-profits and government fleets are exempt from the revenue cap).
Fleet size is inclusive of vehicles registered with the California Department of Motor Vehicles (DMV), including those listed as planned non-operation and unregistered vehicles, but excludes off-road vehicles, and vehicles registered with the DMV as non-revivable junk or dismantled. Vehicles over 8,500 lbs. GVWR registered outside of California also count towards fleets’ vehicle count.
In situations where the new addition of ISEF funded vehicles would increase the eligible small fleet size to over 20 vehicles, the fleet will still be considered eligible. Unredeemed vouchers in HVIP and ISEF will count against the fleet size limit.
Any vehicles under common ownership or control must be included in the fleet size
Are there recent policy changes?
In November 2024, the California Air Resources Board (CARB) approved the Fiscal Year (FY) 2024-25 Funding Plan for Clean Transportation Incentives (https://ww2.arb.ca.gov/our-work/programs/low-carbon-transportation-incentives-and-air-quality-improvement-program/funding). A variety of HVIP policy changes will impact Innovative Small E-Fleet (ISEF) vouchers and can be found at the webpage on HVIP FY 24-25 Funding and Policy Changes (https://californiahvip.org/im/). Key updates for ISEF include:
- New Voucher Amounts: Effective September 22, 2025, the small business voucher amounts in ISEF align with the new voucher amounts in Standard HVIP.
How do I access funds?
Vouchers are requested by working with a participating dealership and provider and the incentives are applied at point-of-sale for the purchase of eligible vehicles. More information is available on the ISEF webpage (https://californiahvip.org/purchasers/#isef).
Funding Sources
- Greenhouse Gas Reduction Fund
- Air Quality Improvement Program
- Air Pollution Control Fund