HVIP funds going fast, but funding for small fleets remain

On March 30, the California Air Resources Board (CARB) reopened $430 million worth of zero emission vehicle (ZEV) funding through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). More than $500 million will be available throughout the year.

These $150,000 vouchers offset the costs for fleets that purchase Class 8 drayage trucks, as well as public transit or school buses. Fleets can claim up to 30 per year, and these vouchers are intended to cover the incremental costs over diesel vehicles. They are first come, first serve.

And the money is going fast. Within 24 hours, CARB reported $272 million, or 63% of the total, was requested. The $75 million set-aside specifically for zero-emission drayage trucks has already been claimed, though as of April 20, small fleets can still draw from a pool of $28 million: $12 million in general funding for fleets of any size, and an additional $16 million (leftover from an initial $25 million) specifically set aside for small fleets, or those with 10 or fewer vehicles (GVWR greater than 8,500 lbs.) A valid signed Purchase Order (or other binding agreement) is required at the time a voucher request is made for standard HVIP funds and the drayage and transit set-asides.

The innovative small e fleet set-aside is new for 2022, and the voucher can offset costs for planning, charging, and asset financing. These include:

• flexible leases
• peer to peer truck sharing
• truck as a service
• assistance with infrastructure
• individual owner planning assistance
• and more

“The small fleet set aside will really endeavor to try to overcome some of the barriers that small fleets face when they try to apply for grants and incentives,” said Niki Okuk, fleet engagement & community outreach program manager at CALSTART. “So we're trying to provide a lot more technical assistance and background services to help them move towards that transition.”

Okuk noted that 75% of California’s fleets fall under the small category, and unlike larger fleets, don’t have staff working full-time on finding grants and incentives to adopt ZEVs.

“That puts them at a great disadvantage, and we have to meet them halfway with additional resources,” Okuk asserted.

There will also be $25 million for innovative small e-fleets released later on.

“You can apply that funding to things outside of just the vehicle, so we're offering additional funding to help with some of that planning, charging, and for financing,” Okuk said.

Infrastructure funding fast track

Planning and installing charging (and in the near future hydrogen fueling) infrastructure will be just as critical to the success of fleets deploying ZEVs. That’s where EnergIIZE (Energy Infrastructure Incentives for Zero- Emission) Commercial Vehicles comes in. The $15 million incentive project funded through the California Energy Commission and implemented by CALSTART will assist medium- and heavy-duty fleets in accelerating these plans.

ENERGIIZE is the first of its kind that caters directly to answering questions about charging infrastructure. There are four different funding lanes, each that address a different facet of the complex task of affording and operating ZEVs, and provide assistance to fleets, technology providers, and vendors.

“We have taken a very important equity approach to this program, in a sense that we have tailored our funding lanes to accommodate the specific needs of industry,” said Alycia Gilde, CALSTART VP of clean fuels and infrastructure.

as we learn more about how these funds will be administered through California, with the recent $5 billion plan through the administration, certainly, we're going to be looking at ways on how we can complement energize with that.

The lanes include:

EV Fast Track

This wave of funding began at the end of Q1 will address the immediate needs of fleets in “desperate need of infrastructure incentives,” Gilde said.

This includes HVIP recipients who had to cover the costs of taxes, financing, and infrastructure, along with fleets who have commitments to EVs. Proof of ownership and registration in California, or an EV purchase order is required.

Recipients can use the program to offset Level 2 and DC fast-charge electric vehicle supply equipment, associated electrical components such as wiring and switch gears, as well as charge management software.

Projects cap at $500,000, though commercial fleets can take advantage of the other lanes for a total of $750,000.

EV Jump Start

These projects cap at $750,000 for EV projects and $3 million for hydrogen projects.

“We've provided the ability to provide additional technical assistance and to help them with their application process,” Gilde noted. “[Fleets] may not be eligible for their first round of funding, but our job is to make sure that they're ready to go for the next funding wave.”

Through the Infrastructure Readiness Center, fleets can find resources and tools to assist with planning, funding, total costs of ownership, and calculating carbon reduction.

EV Public Charging

Expect competition for this one targeted to public charging station developers, as applications are scored on project readiness, cost effectiveness, and community benefit. This funding would cover fast chargers, (but not Level 2), along with transformers, meter mains and circuit breakers, and more.

Hydrogen

There are only five hydrogen fueling stations that can serve heavy-duty fuel cell electric vehicles in California, and for these long-range ZEVs to move, let alone thrive, that needs to change.  This competitive funding lane aims to aid the transportation industry in doing just that.

The projects can garner up to $2 million, and must be able to serve medium- and heavy duty hydrogen FCEVs. These refueling station must also be able to dispense 350 or 700 bar and be certified to ASME, ASTM, and NFPA standards.

The funding will cover half of the eligible equipment and software costs, and can be used for compressors, pumps, pipes, hoses, storage, on-site production, and chillers.

For details on how to receive any of these funding opportunities, interested fleets should visit EnergIIZE.org.