California Board Expands Off-Road Zero-Emission Equipment Incentive With $125 Million Funding

The California Air Resources Board on July 18 launched the second round of its Clean Off-Road Equipment Voucher Incentive Project, with $125 million in funding, which is over double the amount earmarked for the project when it was launched in 2020. The voucher-based incentive plan motivates consumers to buy or rent zero-emission off-road equipment by reducing the excessive cost of zero-emission products through a point-of-sale rebate.

The project is expected to reduce emissions by promoting clean technology over internal combustion options. The program does not require scrappage of existing internal-combustion engine equipment. Additional funding is available for charging and fueling infrastructure and for equipment installed in underprivileged communities.

This initiative was originally intended to fund freight but has now expanded to include grants for harbor craft, construction, and agriculture as well. Calstart, a nonprofit organization administers the overall program. Launched in February 2020, the initiative closed when its $44.6 million allocation was exhausted in August the same year. However, additional vouchers were funded on a contingency list with $30 million of the fiscal year 2021-22 allocation due to high demand.

The board identified nine funding categories to promote the initiative based on equipment type. Each category is entitled to receive up to 20 percent of total funding during the first six months after the program launch. Qualified participants can avail up to a maximum of $500,000 per voucher. Although off-road equipment with conventional internal combustion engines represent a small percentage of California’s vehicles, transitioning to zero-emission equipment can help reduce the significant amount of emissions from these vehicles.

The California Climate Investments fund has assigned the above-mentioned grant using money from the state’s cap-and-trade program. A minimum of 35 percent of the investments are focused on underprivileged communities and low-income households. California has a goal to have five million zero-emission vehicles on the road by 2030 and 250,000 electric vehicle charging stations by 2025. Further, all new cars and passenger trucks sold in the state must be zero-emission vehicles by 2035.