The California Air Resources Board (CARB) has approved an additional $34.95 million to incentivize state fleets and owner operators to continue updating their fleets with fully electrified medium- and heavy-duty zero emission commercial vehicles, buses, and related equipment.
It should be noted the money was added to the previously approved 2024-25 Funding Plan for Clean Transportation Incentives a couple of weeks following the re-election of President Trump. California Governor Gavin Newsom has also pledged to retain tax incentives at the state level if Trump carries through on his election promise to rescind the $7,500 federal EV tax credit and any other unspent funds from 2022's Infrastructure Act.
“The funding plan reflects the key steps we need to take to advance our clean air goals, which include continued support of small businesses that may face financial obstacles switching to zero-emission options,” said CARB chair Liane Randolph. “Reducing pollution means ensuring that all Californians have access to the cleanest technology options available.”
At least 60% of this funding is aimed at boosting businesses that require additional financial support. More precise details include:
- $5 million for the Zero-Emission Truck Loan Pilot project to help fleets purchase zero-emission medium- and heavy-duty trucks. The project is offered in partnership with the California Energy Commission, which provides loan support for charging and other zero-emission fueling infrastructure.
- $14.97 million for the Innovative Small e-Fleet Pilot Project, which provides vouchers for medium- and heavy-duty vehicles for small businesses and other organizations with 20 or fewer vehicles.
- $14.97 million for the Clean Off-Road Equipment Project that helps businesses purchase zero-emission off-road equipment such as forklifts and cargo loaders.
Clean Trucking has previously spoken to owner operators in the state who've argued that the financial buy-in for zero-emissions commercial vehicles is more than they can afford or, equally troubling, not worth the financial risk. The trucking industry already faces low profit margins despite California's Advanced Clean Fleets mandate that calls for all work trucks and day cab tractors to be zero-emission by 2039, and sleeper cab tractors and specialty vehicles be zero-emission by 2042.
[Related: CARB lacks sufficient EV truck incentives, frustrated operators claim]
Last week, President-elect Trump nominated Chris Wright to lead the Department of Energy. Wright, CEO and founder of Denver-based Liberty Energy, is a longtime fossil fuel and fracking proponent who has pledged to restore America's energy market dominance.
