The California Air Resources Board (CARB) Friday formally requested information for the development of a possible Used Truck Voucher Pilot program, which could serve as a future method to increase the purchase rate of cleaner vehicles and reduce emissions in the state.
In announcing the information request, CARB references its 2022 State Strategy for the State Implementation Plan (SIP), noting incentives will continue to be critical in achieving near- and long-term air quality goals in California. The SIP calls for additional incentives for zero-emission trucks, and CARB states the primary goal of a Used Truck Voucher Pilot would be to accelerate the development of an affordable secondary vehicle market that would provide small fleets with more flexibility.
For this incentive program concept, the CARB staff would collaborate with Zero-Emission Vehicle (ZEV) dealers, lenders, ZEV industry experts, and all interested parts.
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The organization notes California Senate Bill 372 established the Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program to make financial and non-financial tools and support available to the operators of medium- and heavy-duty vehicle fleets to enable a switch to ZEVs. In addition, CARB’s suite of clean air regulations requires a competitive, well-functioning market to ensure success.
"Many small fleet owners traditionally purchase used vehicles rather than new vehicles. Currently, the Clean Truck and Bus Incentive Project (HVIP) only funds new vehicle purchases, and ISEF funds innovative solutions (all-inclusive leases, peer-to-peer truck sharing, truck-as-a-service agreements, etc.). Not funding used vehicle purchases may limit participation from small fleets. With accelerating market growth, the supply of zero-emission vehicles (ZEVs) into the secondary market will expand over the next several years, creating an opportunity for small fleets to adopt ZEVs. Financial assistance targeting second life vehicles would provide critical encouragement and support for fleet owners who may be considering making the switch to a zero-emission vehicle," CARB states.
"A carefully designed pilot would avoid any potential cost escalation of used vehicle prices and ensure sales of quality vehicles, while also providing residual value data. The residual or resale value of a vehicle is a key component in vehicle finance and insurance because it represents the replacement value or potential financial payout in the event of a claim, loan default, or other loss.
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CARB adds "Residual value data for commercial ZEVs is currently very limited, causing residual assumptions to potentially be disproportionally low, which limits or obscures the market. A used truck voucher incentive would expand the knowledge base, help support residual values and ensure a vibrant marketplace."
The organization is accepting information from the transportation industry through Feb. 28, and interested parties can do so on the CARB website.
