As the commercial transportation industry continues its shift toward electrification, funding programs exist today to ease the transition. For 2025, several key updates to existing initiatives will provide significant opportunities for fleets looking to adopt electric vehicles, but rule changes and funding caps might limit participation. Many organizations have already taken advantage of funding, but it won’t last much past 2025. Here’s a breakdown of the latest developments in infrastructure and vehicle funding, as well as new opportunities for cost savings.
IOU Make-Ready programs (PG&E, SCE, and SDG&E customers)
Investor-Owned Utility (IOU) EV fleet programs offer robust support for medium- and heavy-duty fleet electrification by reducing the cost of installing EV charging infrastructure.
- Background:
- Authorized by the California Public Utilities Commission (CPUC) through 2026, the program is now in its fifth year.
- Significant cost reductions of up to 80% can be achieved for qualifying projects.
- Revolv’s clients, can access additional savings not available to Fortune 1000 companies who are pursuing projects independently.
- Critical timeline:
- Historical trends suggest that funding may not last through 2025 due to rising EV adoption.
- The commercial Make-Ready programs are in funding year 5 of 7 while the consumer program ran out of funds two years before it’s final program year.
- Applications should ideally be completed by mid-2025 to ensure funding, given the 5-6 month approval timeline. Submitting applications early locks in funding while still providing flexibility with an allowable 2 years to complete projects.
EnergIIZE: Additional Make-Ready program administered by CALSTART
For customers across all utility territories (for example, if your electricity provider is a municipal entity), the EnergIIZE program offers complementary funding opportunities, which can be combined, or stacked, with IOU programs to maximize savings.
- Program changes for 2025:
- Consolidation into two streamlined lanes: EV and Hydrogen.
- Simplified project readiness criteria will prioritize shovel-ready projects on a first-come, first-served basis.
- Funding caps are increasing, with individual projects eligible for over $1M in allocations.
- Critical timeline:
- Funding is only budgeted through 2025 before program funds are extinguished.
- Two rounds are expected: early spring (March) and late summer (September).
- Given the total funding ranges between $30M and $50M, there is enough for approximately 14-20 projects.
HVIP: Vouchers for zero-emission trucks and buses
The Clean Truck and Bus Voucher Incentive Project (HVIP) continues to be a critical driver for zero-emission fleet adoption, offering substantial rebates for vehicle purchases. Rebates range from $7,500 to $400,000 per vehicle for Class 2b through Class 8 trucks and buses.
- Program changes for 2025:
- Starting January 1, 2025, eligibility will be limited to fleets with fewer than 50 vehicles, with exemptions for public and non-profit organizations.
- Critical timeline:
- While $72M remains for FY23-24, no new funding has been approved for FY25. A policy change that was issued on November 26 announced that the application window has closed for all entities except small fleets, drayage and those exempted public entities and non-profits.
LCFS: Higher value credits for electrified fleets
The Low Carbon Fuel Standard (LCFS) program is seeing reforms designed to boost credit values.
- Key updates:
- A stricter Carbon Intensity (CI) standard in 2025 will drive higher LCFS credit values.
- Changes to the program, effective April 1, 2025, are already influencing the market, making it an opportune time to participate.
Take action now
The convergence of these funding opportunities makes 2025 a pivotal year for fleet electrification. Businesses should act promptly to secure incentives, as competition for resources is expected to intensify. Programs like IOU Make-Ready and EnergIIZE require early application preparation, while HVIP’s limitations underscore the urgency to capitalize on remaining funds. Many of these programs are first-come or have strict readiness requirements, which Revolv can help navigate. We specialize in guiding businesses through the complexities of these programs, ensuring maximum savings and streamlined project execution. Contact us today to discuss your electrification goals and begin your journey to a cleaner, more sustainable fleet.