California Energy Project Unveils Two Set-Aside Funding Programs for Transit and Drayage Fleet Infrastructure

Over $33 million in incentives will be available from EnergIIZE for approximately four weeks beginning on July 27, 2023.

Pasadena, CA: The California Energy Commission’s (CEC’s) Energy Infrastructure Incentives for Zero-Emission Commercial Vehicles (EnergIIZE) Project is excited to announce the opening of two set-aside funding lanes for transit agencies and drayage fleets. Administered by CALSTART and partner Tetra Tech, the EnergIIZE Project will offer $11.4 million total infrastructure incentives for transit agencies and $22.275 million for drayage fleets. Both funding lanes will open for applications beginning at 9 a.m. Pacific Time on July 27, 2023, and close on August 25, 2023, at 5 p.m. Pacific Time.

In 2018, the California Air Resources Board approved a regulation that set a statewide goal for public transit agencies to “gradually transition to 100 percent zero-emission bus fleets by 2040.” Transit agencies are ideal for zero-emission technologies as they operate largely in urban areas where noise and pollution from internal combustion engines are of great concern. Fleets that drive out of central depots can install and access charging infrastructure convenient to their operations.

By helping California transit agencies deploy more zero-emission transit vehicles and their charging infrastructure, the state can make great strides toward meeting its air quality and climate-change goals. Funding has been set aside specifically for the following users that meet the specified requirements:

  • Agencies that are compliant with the California Air Resources Board (CARB) Innovative Clean Transit program.
  • California Native American Tribes, California Tribal Organizations, or Non-Governmental Organizations Serving Tribal entities who own or operate transit.

Drayage Fleets
EnergIIZE set-aside funds will also be available for drayage zero-emission vehicle charging and hydrogen refueling infrastructure to further reach air and climate goals. The offering allows fleets to purchase a drayage vehicle through the California HVIP Drayage Set-Aside and be eligible for infrastructure incentives. The aim is to accelerate the deployment of infrastructure when and where it is needed.

To qualify for Drayage Fleet Set-Aside funds, fleets must be:

  • Requesting vouchers for drayage vehicle incentives through the CARB HVIP program on or after March 30, 2022 with active redeemed or unredeemed status, and have completed all required information on the HVIP voucher request form.
  • Included in the CARB HVIP program’s list of eligible entities for Drayage Truck, as specified in the most recent version of the HVIP Implementation Manual, and performing drayage operations as defined in that manual.

EnergIIZE plans to open Drayage Public Set-Aside funding opportunities later this year. This offering will allow fleets that purchase a drayage vehicle through the California HVIP Drayage Set-Aside program to apply to receive infrastructure incentives for a shared or public electric charging or hydrogen refueling station.

“We are excited to engage with California-based transit agencies and drayage fleets to offer them unique incentive opportunities that can help them reach their target zero-emissions goals and reduce their carbon footprint,” said Alyssa Haerle, CALSTART’s Director, Infrastructure Incentive Administration.

“We are excited to provide fueling infrastructure incentives together with CARB’s vehicle incentives for transit bus and drayage truck zero emission fleets through CALSTART’s EnergIIZE program,” said CEC Commissioner Patty Monahan. “The program is funding both battery electric and hydrogen fuel cell electric technologies, including mixed fuel stations to meet fleet needs. Transitioning transit buses and drayage trucks to zero emission technology is particularly important for communities that are disproportionately exposed to toxic diesel pollution.”

The set-asides are subsets of funding under EnergIIZE specifically designed for transit, drayage, and public school bus vocations. Standard EnergIIZE offers four additional funding lanes for diverse applicants, including EV Jump Start (also accepting applications in July 2023), EV Fast Track, EV Public Charging Station, and Hydrogen. To learn more, see the implementation manual, visit the EnergIIZE website or contact [email protected].

A nonprofit consortium with offices in New York, Michigan, Colorado, California and central Europe and partners world-wide, CALSTART works with 300+ member company and agency innovators to build a prosperous, efficient, and clean high-tech transportation industry. We overcome barriers to modernization and the adoption of clean vehicles. CALSTART is changing transportation for good. 

About EnergIIZE
EnergIIZE Commercial Vehicles is a CEC block grant project that provides infrastructure incentives for public and private fleets, owner/operators, school bus fleets, transit agencies, and public charging sites that plan to deploy battery electric or hydrogen fuel cell vehicle technology.   

About the California Energy Commission
The California Energy Commission is leading the state to a 100 percent clean energy future for all. As the state’s primary energy policy and planning agency, the Energy Commission is committed to reducing energy costs and environmental impacts of energy use while ensuring a safe, resilient, and reliable supply of energy.