2026 Funding and Incentives Available to Southern California Truck Fleets

Author: Andrea Pratt – VP, Government & Utility Relations

California’s clean transportation landscape continues to evolve, and 2026 is shaping up to be a pivotal year for fleets ready to move beyond diesel. New and returning incentive programs across the state will make it easier for fleet operators to lower the cost of truck replacements and expand zero-emission operations.

Electrifying a fleet takes more than vehicle purchases—it requires dependable charging, smart route planning, and operational readiness. Greenlane’s high-capacity charging network helps fleets deploy electric trucks faster while avoiding costly infrastructure buildouts. We’re here to be your partner in building long-term, scalable electrification strategies.

From statewide voucher programs like HVIP to regional initiatives through SoCal Edison (SCE) and South Coast Air Quality Management District (SCAQMD), funding access is expanding along the very corridors where Greenlane is building its public charging network.

Below is a recap of seven major programs expected to open or remain active through 2026, each helping fleets offset vehicle costs and accelerate the transition to cleaner freight movement.

1. Carl Moyer Program

The Carl Moyer Program is the longest-running clean transportation funding program in the United States, established to reduce emissions from heavy-duty vehicles through replacement or repower projects. It is administered through California’s network of local air districts and continues to be a major funding driver for zero-emission truck adoption. While historically focused on diesel emission reductions, recent years have expanded eligibility to include full zero-emission replacements, making it a versatile option for both large and small fleets.

The below funding and eligibility guidelines are reflective of 2025. We can expect to see similar guidelines for 2026.

Funding

• Up to $410,000 per Class 8 zero-emission truck
• Funding level depends on project type, fleet size, and cost-effectiveness
• Smaller fleets (≤20 trucks) can receive up to 80% of total vehicle cost
• Larger fleets (21+ trucks) may receive up to 50% of total cost
• Funding distributed through local air quality management districts, with regional flexibility

Eligibility

• Must replace or repower an existing in-use diesel vehicle that meets baseline operational requirements
• Requires scrappage of the replaced truck at a certified dismantler
• Applicant must operate the vehicle primarily within California, typically at least 75% of the time
• Vehicle must have accumulated a minimum annual mileage threshold, verified through telematics or logs
• Compliance with CARB’s truck and bus regulations required

How to Apply
Applications are submitted through local Air Quality Management Districts. Each district publishes its own solicitation schedule and project criteria.

2. Clean Truck and Bus Voucher Incentive Project (HVIP)

The California Air Resources Board’s HVIP program remains the state’s flagship funding mechanism for clean truck purchases. HVIP provides point-of-sale discounts that reduce the upfront cost of eligible medium- and heavy-duty vehicles. The program simplifies access by offering vouchers directly through dealers rather than requiring fleets to apply for reimbursement.

In 2025, funding was prioritized for small fleets and drayage operations as demand quickly outpaced supply. Looking ahead, fleets that plan ahead and coordinate early with approved dealers will have the best chance of securing vouchers when 2026 funding becomes available.

The below funding and eligibility guidelines are reflective of 2025.

Funding

• Up to $330,000 per Class 8 zero-emission truck for small fleets (20 or fewer vehicles, <$15M annual revenue)
• Large fleets (21+ vehicles) may qualify for $120,000–$150,000 per truck
• Stackable with select regional programs such as the Port Plus-Up or SCE Drayage Rebate
• Covers a substantial portion of the total vehicle purchase price, excluding taxes and delivery fees
• Additional incentives may apply for trucks operating in disadvantaged or low-income communities

Eligibility

• Must purchase a battery-electric or hydrogen fuel cell Class 8 truck listed on HVIP’s eligible vehicle catalog
• Vehicle must be domiciled and operated in California for a minimum of three years
• Fleets must remain compliant with CARB Truck Regulation Upload and Compliance Reporting System (TRUCRS) requirements
• Dealers must be HVIP-approved to process vouchers on behalf of fleets
• Additional reporting and data-sharing may be required for fleets operating in disadvantaged communities

How to Apply
Applications are initiated directly through participating dealers at www.californiahvip.org when funding opens. Dealers manage voucher submission, ensuring compliance and tracking requirements are met.

3. POLA / POLB Port Plus-Up

The Port Plus-Up program, jointly funded by the Ports of Los Angeles and Long Beach, offers supplemental funding to fleets applying for HVIP vouchers for drayage trucks. It’s financed through Clean Truck Fees paid by cargo owners and designed to reduce emissions from port-related freight movement. This “plus-up” adds extra dollars on top of HVIP awards, directly targeting fleets that serve containerized cargo routes through the San Pedro Bay Complex. The goal is to incentivize rapid adoption of zero-emission drayage vehicles that operate daily within port corridors.

The below funding and eligibility guidelines are reflective of 2025. We can expect to see similar guidelines for 2026.

Funding

• Historically, $75,000–$100,000 per truck, depending on fleet size and available funds
• Funding amount varies annually based on container movement volume and clean truck fee revenue
• Intended only for fleets already approved for HVIP funding
• Funding may be combined with the SCE rebate for additional savings

Eligibility

• Applicant must operate registered drayage trucks serving POLA or POLB terminals
• Vehicle must make a minimum of 50 port trips per year and maintain records for verification
• Truck must remain compliant with California’s drayage truck registry and CARB zero-emission requirements
• Fleets must be enrolled in HVIP and designate port operation in their voucher documentation

How to Apply
Applications are processed through the HVIP portal at the time of voucher submission, with automatic cross-verification for Port Plus-Up eligibility.

4. VW Environmental Mitigation Trust Funding

Funded by the Volkswagen emissions settlement, this statewide program provides significant support for fleets scrapping older diesel trucks. It helps offset the higher cost of zero-emission replacements while removing high-emitting vehicles from California’s roads. The program has historically been oversubscribed, reflecting high interest from both public and private fleets.

While the August 2025 round closed quickly with a waitlist, a new allocation could emerge in 2026 depending on remaining settlement balances and state planning decisions.

Funding

• Up to $240,000 per Class 8 truck replacement
• Reimbursement typically covers up to 75% of total cost for private fleets and 100% for public fleets
• Designed to retire 1992–2012 diesel engines, targeting the state’s oldest and dirtiest vehicles
• Funds disbursed on completion of scrappage and delivery verification
• Operates on a first-come, first-served basis

Eligibility

• Trucks must operate at least 75% of the time within California
• Must provide proof of continuous operation for the prior two years
• Only replacement with new zero-emission vehicles (battery-electric or fuel cell) is allowed
• Requires documentation for ownership, mileage, insurance, and registration
• Old vehicle must be scrapped at a CARB-approved dismantler

How to Apply
Program details and updates can be found at californiavwtrust.org, with application materials available once funding reopens.

5. SCAQMD INVEST CLEAN

The South Coast Air Quality Management District’s INVEST CLEAN program is among California’s most aggressive funding options for fleets looking to replace diesel trucks. The program focuses on reducing emissions in regions facing severe air quality challenges — particularly in the Inland Empire and port-adjacent areas. It supports both public and private fleets and provides near-total cost coverage for qualifying projects. The program’s emphasis on scrappage ensures that older diesel vehicles are permanently retired, maximizing regional air quality gains.

The below funding and eligibility guidelines are reflective of 2025. We can expect to see similar guidelines for 2026.

Funding

• Up to $400,000 per Class 8 truck
• Can cover 100% of total project cost, including sales tax, Federal Excise Tax, and delivery fees
• Intended to help fleets replace diesel with fully electric models without out-of-pocket cost
• Funding is prioritized for fleets operating within designated Metropolitan Statistical Areas (Los Angeles, Orange, Riverside, and San Bernardino counties)
• May include additional support for fleets serving disadvantaged or pollution-burdened communities

Eligibility

• Must replace a Class 8 diesel truck with a zero-emission equivalent
• Vehicle being replaced must have accumulated at least 7,000 miles during the 12-months prior to application
• Fleets must demonstrate that at least 75% of annual mileage occurs within the SCAQMD jurisdiction
• Truck must be registered in California and fully operational at the time of scrappage
• Proof of ownership, mileage logs, and insurance history required

How to Apply
Application details and forms are available at aqmd.gov/investclean, and applicants must submit required documentation before approval.

6. SCAQMD Last Mile Freight Program (LMFP)

The South Coast Air Quality Management District (SCAQMD) passed some INVEST CLEAN funds onto Southern California Association of Governments (SCAG) to award Last Mile Freight Program (LMFP) Battery-Electric Vehicle Rebates to help last-mile delivery fleet owners and operators purchase or convert Class 4 and 5 battery-electric trucks.

The below funding and eligibility guidelines are reflective of 2025. We can expect to see similar guidelines for 2026.

Funding

• Up to $67,000 per zero-emission Class 4 or 5 truck
• Can cover 100% of total project cost, including sales tax, Federal Excise Tax, and delivery fees
• Intended to help fleets replace diesel with fully electric models without little to no out-of-pocket cost
• Funding is prioritized for fleets operating within designated Metropolitan Statistical Areas (Los Angeles, Orange, Riverside, and San Bernardino counties)
• Applications will be grouped into three tiers, based on program priorities, such as existing vehicle mileage, readiness for deployment, and location across the region.

Eligibility

• Each existing Class 4, 5 or 6 vehicle must be diesel powered and have an engine model year 2010 or newer.
• Vehicle being replaced must have accumulated at least 5,000 miles during the 12-months prior to application
• Awardees must operate the vehicle a minimum of 5,000 miles per year within the MSAs for a minimum of 60 months from delivery date
• Proof of ownership, mileage logs, and insurance history are required to apply
• Program-funded vehicles may not be used to claim regulatory compliance extensions or credits

How to Apply
Application details and forms are available at scag.ca.gov/last-mile-freight-program-battery-electric-vehicle-rebates, applicants must submit required documentation before approval.

7. SCE Drayage Truck Rebate & ReCharge Commercial Vehicle Rebate

The Southern California Edison (SCE) Drayage Truck Rebate and ReCharge Commercial Vehicle Rebate help offset the cost of transitioning diesel and gasoline-powered trucks to zero-emission models across SCE’s service territory. Unlike many incentive programs, both operate year-round rather than on fixed grant cycles — making them accessible to fleets whenever they’re ready to electrify.

The Drayage Truck Rebate focuses on heavy-duty Class 7–8 trucks serving the Ports of Los Angeles, Long Beach, and other regional freight corridors, while the ReCharge Commercial Vehicle Rebate supports medium-duty fleets (Classes 4–6) in general commercial operations, including delivery, logistics, and service vehicles. Both programs are designed to complement larger state incentives such as HVIP, helping fleets layer multiple funding sources to significantly reduce total cost of ownership.

The below funding and eligibility guidelines are reflective of 2025. We can expect to see similar guidelines for 2026.

Drayage Truck Rebate Funding

• $150,000 rebate per Class 8 battery-electric drayage truck
• Approximately $111 million total funding available in 2025
• Can be combined with HVIP or other grants for greater cost coverage
• Funds are distributed on a first-come, first-served basis, and rebates are issued after proof of purchase

Drayage Truck Rebate Eligibility

• Must operate within SCE’s service territory and have an active commercial electric account
• Must be used for port, drayage, or regional haul operations
• Eligible fleets must not be part of the Fortune 1000 list of companies
• Only new, zero-emission trucks purchased or leased after program approval qualify

ReCharge Commercial Vehicle Rebate Funding

• Designed for medium-duty electric trucks (Class 4–6), including both new EV purchases and ICE-to-EV conversions
• Rebate amount varies by battery size and vehicle-to-grid (V2G) capability, scaling up for vehicles with larger battery capacity or bidirectional charging support
• Provides direct rebates at the point of sale through participating retailers
• Can be stacked with other incentive programs, including HVIP and local air district grants, to maximize savings
• Intended to reduce upfront costs for commercial, municipal, and small business fleets adopting zero-emission vehicles
• Funding available on a rolling basis while program allocations last

ReCharge Commercial Vehicle Rebate Eligibility

• Eligible vehicle classes include Class 4 (14,001–16,000 lbs), Class 5 (16,001–19,500 lbs), and Class 6 (19,501–26,000 lbs)
• Available for new battery-electric vehicles or approved conversions of existing internal-combustion vehicles
• Vehicle must operate primarily within SCE’s electric service territory

How to Apply
Applications for both programs can be submitted through SCE’s Clean Transportation portal at commercialevrebates.sce.com/consumer, requiring proof of purchase, VIN, and evidence of operation within Edison territory. Participating dealers and retailers handle most of the application processing on behalf of fleets to streamline approvals and rebate disbursement.

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Greenlane helps fleets in their electrification transition

Going electric takes more than new trucks—it takes infrastructure. Greenlane’s public charging network helps fleets deploy faster and operate with confidence across Southern California.

If your company is in need of charging infrastructure to pair with an incentive program, we’re here to help. Reach out to us to get the conversation started.