California's Innovative Small E-Fleet program reopening this month with incentives worth $30M

CARB relaunches funding to support small fleet electrification with up to $420,000 per vehicle in voucher incentives.

Img 4589 Headshot
An illustration of small battery-electric commercial vans parked next to a charger.
An illustration of small battery-electric commercial vans parked next to a charger.
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The California Air Resources Board (CARB) has confirmed it will reopen its Innovative Small E-Fleet (ISEF) Set-Aside program, a component of the Clean Truck and Bus Voucher Incentive Project (HVIP), on October 21 with a total of $30.5 million in available incentives.

HVIP, which provides vouchers for point-of-sale discounts to help fleets and businesses in California purchase zero-emission and hybrid commercial trucks and buses, already officially reopened on September 9 with 171 eligible zero-emission vehicle models and individual vouchers of up to $420,000.

ISEF focuses specifically on small fleets with 20 or fewer vehicles and with less than $15 million in annual revenue. The program's vouchers can be used towards zero-emission vehicle rentals, leases, truck-sharing, and other unspecified "flexible agreements."

CARB has highlighted several changes to ISEF:

  • Enhanced Voucher Levels: New small business voucher amounts take effect on September 22, 2025, for all requests.
  • Purchase Plus: (Available when HVIP is closed) Combine straight purchases with pre-approved additional services. Services must be approved by CARB and the ISEF administrator before submitting requests.
  • Residential Domicile: Small fleets using residential addresses must submit a commercial use letter to [email protected] with their voucher requests.
  • Voucher Limits: Fleets may request up to five ISEF innovative vouchers per funding cycle, while Purchase Plus vouchers are limited to five per fleet (all-time total, not annually).
  • Proof of Business Standing: Small fleet participants are required to be registered with the California Secretary of State for at least one year prior to voucher request. Alternate proof of business standing can be provided on a case-by-case basis, except under the Purchase Plus solution – which will follow HVIP straight purchase requirements.

To begin the application process, fleets must work with a provider listed in the ISEF Provider Directory to access vouchers.

Jay Traugott has covered the automotive and transportation sector for over a decade and now serves as Senior Editor for Clean Trucking. He holds a drifting license and has driven on some of the world's best race tracks, including the Nurburgring and Spa. He lives near Boulder, Colorado and spends his free time snowboarding and backcountry hiking. He can be reached at [email protected].

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Hydrogen Fuel Cell & BEV Survey
The following survey was sent as a link in an email cover message in February 2023 to the newsletter lists for Overdrive and CCJ. After approximately two weeks, a total of 176 owner-operators under their own authority, 113 owner-operators leased or assigned to a carrier and 82 fleet executives and 36 fleet employees from fleets with 10 or more power units had completed and submitted the questionnaire for a total of 407 qualified responses. Cross-tabulations based on respondent type are provided for each question when applicable.
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