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With HVIP vouchers, California fleets can buy new electric trucks for less than new Tier 4 diesels; funding queue for next year filling fast

Heavy-duty electric truck builder Orange EV announced that fleets in California can purchase a new T-Series pure electric terminal truck for less than the cost of a new Tier 4 diesel truck. With three new approvals, all of Orange EV’s on-road truck configurations are now eligible for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), a streamlined incentive program enabling large point-of-sale discounts.

The California Air Resources Board (ARB), in partnership with CALSTART, launched the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) in 2009 to accelerate the purchase of cleaner, more efficient trucks and buses in California. HVIP provides incentives for zero-emission and hybrid trucks and buses and low NOx natural gas engines. To date, HVIP has helped deploy 2,400 vehicles, accelerating the growth of the nation’s early market of zero-emission and hybrid trucks by 30%.

Public, private and federal fleets can utilize HVIP’s pre-approved voucher amounts to save up to $140,000 per truck, paying as little as $104,950 for a new standard duty (80 kWh) T-Series emission-free terminal truck (aka hostler, spotter, yard truck). The T-Series remains the only commercially deployed 100% electric class 8 vehicle.

It doesn’t get easier. California’s HVIP program guarantees hefty discounts off the purchase price, enabling fleets to purchase electric trucks with the same funds earmarked for diesels, and then operate for significantly less saving up to 90% net in fuel, and more in a broad range of other areas. Fleets also avoid the headache of operating and maintaining Tier 4 diesel engines while greatly improving air quality on-site and in neighboring communities. The T-series is the truck of choice for California drivers who have repeatedly affirmed that Orange EV trucks do the job while being cooler, smoother, quieter and cleaner than diesels.

—Mike Saxton, Orange EV chief commercial officer

More than 60% of Orange EV’s fleets have re-ordered. One such firm, Nolan Logistics, serves major third-party logistics (3PL) and large consumer-brand distribution centers and is aggressively deploying Orange EV’s electric terminal trucks.

HVIP aims to accelerate the purchase of cleaner, more efficient trucks and buses in California by simplifying the incentive process and removing uncertainty. Fleet owners secure discounts through an approved vendor or dealer (such as Orange EV, also the OEM) who handles the voucher request process start to finish.

Requests are a few pages long and can be approved within days. Once approved, discounts are applied at purchase allowing fleet owners to pay the truck cost less incentive amount. The vendor bears the risk of collecting—Orange EV receives voucher funds after trucks have been delivered. HVIP does not require the destruction of an existing truck or engine. Similar point-of-sale discount programs exist in other major metropolitan service areas around the country including Chicago and the state of New York.

However, funding for HVIP is currently exhausted; funding is appropriated for HVIP each year in the State Budget. For FY 2016-17, funding has not yet been appropriated for this project.

Saxton said that voucher requests submitted now are getting in line for the next round of funding due in February. When funding is available, the vouchers will be processed in order.

We understand as of last week the line formed already represented $10 of that next $13 million. There’s real urgency to submit voucher requests to get in line and secure funds in this next funding round.

—Mike Saxton

Comments

James McLaughlin

80 kWh for a class 8 tractor seems rather small, even if these are low speed operations.

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