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The California Air Resources Board (CARB) adopted a revised funding plan for $363 million in proceeds from the cap-and-trade program that includes putting more clean vehicles in disadvantaged communities. The investments range from supporting increased numbers of zero-emission heavy-duty trucks and buses to rebates for low- and zero-emission passenger vehicles.

The revised plan for fiscal year 2016-17 keeps much of the original funding plan (approved in June 2016) intact while addressing the smaller budget appropriation of $363 million under AB 1613 and additional direction from the legislature.

Key highlights of the revised plan include:

  • $133 million to the Clean Vehicle Rebate Project (CVRP), which offers government and commercial fleets in California up to $5,000 in vehicle rebates for the purchase or lease of new, eligible zero-emission and plug-in hybrid vehicles;
  • $80 million to light-duty vehicle pilot projects, including $3 million for Increased Public Fleet Incentives for CVRP-Eligible Vehicles; and
  • $150 million for a range of heavy-duty vehicle and off-road equipment projects, including advanced technology demonstration projects, and providing zero-emission buses for transit agencies and rural school districts.

The $133 million CVRP allocation, while less than the amount in the earlier board-approved funding plan, is expected to meet demand through the fiscal year.

The $150 million for heavy-duty vehicles and off-road equipment projects includes $18 million for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) as well as funding for large-scale pilot projects that encourage the commercialization of zero-emission trucks and buses. The board also voted to increase the maximum incentive amount for the Low NOx Engine Incentives with Renewable Fuel to $25,000 per truck.