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Small Fleet ZE Truck Program (Voucher Incentive Program)

New

Air District funding is available for small fleets to replace existing diesel or alternative fuel heavy-duty trucks with new zero emission trucks.

New 8/11/2026

The application period for the Voucher Incentive Program will open in late Summer 2026.

The latest program updates will be posted to this webpage and shared with subscribers to the grants notification email list. Subscribe to the grants notification email list on the Apply for Funding page.

Program Overview

The Voucher Incentive Program (VIP) offers funding to small fleets to replace existing diesel and alternative fuel trucks with new zero emission trucks. The program is available to fleet owners/operators with fleets of 20 or fewer vehicles

Administered by the Bay Area Air District, the program works through approved dealerships and dismantlers. Participating dealerships submit voucher applications on behalf of applicants, and approved voucher amounts are deducted directly from the truck purchase price. View the list of approved Dealerships and Dismantlers.

Program Features

  • $20 million available
  • First-Come, First-Served Basis
  • No contract required between applicant and Air District
  • Applicants must submit an application, be awarded, and receive an approved Voucher from the Air District prior to starting their projects. 
  • Funding cannot be used for upgrades or vehicle purchases that are already required by an existing regulation, local ordinance, or contract.
  • Existing vehicles and applicants must be in compliance with all Air District and CARB regulations. Applicants applying for funding must document current fleet compliance. Questions about CARB regulations or compliance must be directed to CARB staff at 1-866-6DIESEL (866-634-3735) or 8666DIESEL@arb.ca.gov.
  • Vouchers can be redeemed in the next calendar year (2027) provided there are no substantive changes to the project.
  • Applicants must operate replacement vehicle(s) and report usage to the Air District for three years.

Eligibility Summary

Existing Vehicle Requirements: 

  • Engine must be between MY 2010 to 2020 (diesel or alternative fuel such as CNG or propane)
  • Applicant must be willing to scrap the existing vehicle
  • Limited to fleet sizes of 20 or fewer
  • HHD eligible vehicles must have a manufacturer GVWR of 33,001 lbs. or greater. MHD eligible vehicles must have a manufacturer GVWR of 19,501 through 33,000 lbs. LHD eligible vehicles must have a manufacturer GVWR of 14,001 to 19,500 lbs. Refer to VIP Guidelines, Appendix “O” for applicable funding matrix.
  • Owned by applicant previous 24 months
  • Engine specs must be verifiable through tag; if missing, manufacturer must verify specs
  • Must have operated at least 75% of the time in California and 50% of the time in the Bay Area Air District during each 12-month period for the previous 24 months

Replacement Vehicle Requirements: 

  • Must be purchased from Bay Area Air District-approved VIP Participating Dealership
  • Replacement vehicle must have a motor or powertrain that is certified to the ZE standard
  • Replacement vehicle must be in the same weight class as the existing vehicle (either LHD, MHD or HHD)
  • Replacement vehicle must be registered in California or in the California IRP.
  • Minimum of three year/50,000 mile warranty period for zero-emission powertrain components including the motor, drivetrain, battery or energy storage, and parts and labor

Resources

Beginning fiscal year 2022-2023, in accordance with Assembly Bill (AB) 794 (Carrillo, Chapter 748, Statutes of 2021), a fleet purchaser is required to meet specific labor standards to receive funding for new drayage and short haul trucks under state incentive programs. As defined in AB 794, “'Short-haul trucking service' means movement of goods by truck within a 150-air-mile radius of the normal working reporting location while in service within the state.” If you have experienced or observed a labor standards violation from a fleet purchaser, please submit a labor law complaint.

Workshops and Events 

The Air District hosted informational webinars for applicants to learn more about the program and for dealerships to learn how to become approved and participate in the program. View past webinar resources: 

For applicants: 

For dealerships:

Contact Us

Grants Programs Information Request Line, Mga Estratehikong Insentibo

415.749.4994 grants@baaqmd.gov

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Last Updated: 8/12/2026