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California announces $40 million incentive program for clean off-road freight equipment

6 August 2019

The California Air Resources Board announced a new $40 million program designed to accelerate the purchase and use of zero-emission off-road freight technologies. The “Clean Off-Road Equipment Voucher Incentive Project” (CORE) will feature a voucher process for buyers to receive funding that will offset the higher costs of zero-emission equipment including terminal tractors, transport refrigeration units, cargo-handling equipment and more.

Under the CORE program a business owner could receive $180,000 to cover the difference between a zero-emission tractor and one that is powered by diesel. The program also encourages deployment of cleaner technology in disadvantaged communities by providing up to 10% higher incentives for zero-emission equipment that will be used in these areas. Awards can’t exceed $500,000 per piece of equipment.

CORE is based on California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which is helping to commercialize clean on-road technologies by transit agencies throughout the state. From its inception in 2009, more than $447 million has been allocated to HVIP. The investment will bring the total number of ultra-clean trucks and buses operating on California’s roadways to more than 7,000 over the next two years.

CALSTART, a national nonprofit consortium, administers HVIP, and was awarded the contract to administer the CORE program. Both programs are funded by California Climate Investments, the statewide initiative funded by California’s greenhouse gas Cap-and-Trade program.

CORE targets commercialized zero-emission products, including:

To obtain CORE discounts, business owners will work with CORE-approved dealers to choose the appropriate equipment. Buyers will receive the discount at the point of sale. The dealer then submits a CORE voucher request form on behalf of the buyer and is reimbursed once all required paperwork is provided and the new zero-emission equipment is delivered to the buyer. CORE funding is expected to be available before the end of the year.

Source: CARB