The California Air Resources Board (CARB) approved a $34.94-million incentives funding plan that will continue support ongoing efforts to increase access to medium- and heavy-duty zero-emission trucks, buses, and equipment, with a focus on small businesses.

The 2025 Funding Plan for Clean Transportation Incentives increases funding for small businesses that want to modernize their fleets with cleaner vehicles, including assistance for rentals, leases and truck loans. The funding plan allocates existing legislative funds toward incentive projects that support the state’s air quality and climate goals, including for marine vessels, emerging technologies and zero-emission off-road equipment, such as freight, construction and agricultural equipment.

The approved plan also maintains a commitment to address environmental inequities and provides a boost to businesses that need the most support, with at least 60% of funding focused on bolstering equitable outcomes.

Highlights include:

• $5 million for the Zero-Emission Truck Loan Pilot project to help fleets purchase zero-emission medium- and heavy-duty trucks. The project is offered in partnership with the California Energy Commission, which provides loan support for charging and other zero-emission fueling infrastructure.

• $14.97 million for the Innovative Small e-Fleet Pilot Project, which provides vouchers for medium- and heavy-duty vehicles for small businesses and other organizations with 20 or fewer vehicles.

• $14.97 million for the Clean Off-Road Equipment Project that helps businesses purchase zero-emission off-road equipment such as forklifts and cargo loaders.