What does it fund?

California Air Resources Board (CARB) partners with the California Pollution Control Financing Authority (CPCFA), part of the State Treasurer’s Office, to provide day to day program administration of the Zero-Emission Truck Loan Pilot Program.

The program operates through a loan-loss reserve system. For each qualified zero-emission medium- or heavy-duty vehicle loan made, CARB contributes 25% of the loan amount into a participating lender’s loan-loss account. In the event of a qualifying loan default, the lender can request reimbursement for the principal loss from CPCFA.

Who is eligible for funds?

The program provides financing opportunities for small businesses that are transitioning to medium- and heavy-duty zero-emission vehicles and is open to qualified small fleets with 20 vehicles or less. Purchases may be new or used and must be for Class 2b through Class 8 zero-emission vehicle(s).

Are there any recent policy changes?

The statewide program builds on the highly successful legacy Truck Loan Program and is designed to provide continuity and consistency for eligible fleets and lenders. The program opened to applications on May 1, 2024.

CARB has closely coordinated with the California Energy Commission (CEC) in the development of a zero-emission infrastructure loan support pilot program to support electric charging and hydrogen fueling needs. The program is administered through CPCFA.

Southern California Edison (SCE) has also contracted with CPCFA to operate a similar loan-loss reserve pilot program for certain fleets located in the SCE service territory that are interested in purchasing new or used zero-emission medium- and heavy-duty vehicles and electric charging infrastructure.

How does this program provide benefits to priority populations?

Staff will monitor pilot participation in disadvantaged communities and low-income communities and solicit input from lenders and borrowers to understand how the program has influenced purchasing behaviors.

With the loan program funds available, lenders are better equipped to provide financing to businesses that need a little extra assistance, and typically offer more favorable terms than the small business would otherwise qualify for.

How do I access funds?

Eligible small fleet vehicle owners may access the program by contacting a participating California Capital Access Program (CalCAP) lender and completing a loan application. The lender then enrolls each qualified loan in the program.

Lenders must submit a Lender Participation form and complete a one-on-one program training session with CPCFA staff prior to enrolling loans. Lenders may use their traditional underwriting standards to establish loan terms, however, the program caps the annual interest rate at 20 percent.

Full details are available on the CPCFA CalCAP Zero-Emission Programs webpage.

Cumulative Outcomes

The program will help staff learn about what small business fleets need to transition to zero-emission vehicles by analyzing project data and evaluating deployment success. Staff will collect data on all loans enrolled in the pilot from CPCFA, including all information provided by prospective borrowers submitted on loan applications, vehicle information, and supporting infrastructure. CARB will work closely with participating lenders through CPCFA to monitor the program.

Funding Sources

• Greenhouse Gas Reduction Fund

Last updated: June 2024