The state of California has opened applications for a new incentive program designed to encourage the adoption of electric medium- and heavy-duty trucks, with more than $1 billion in funding expected through 2030.
California Governor Gavin Newsom announced the launch of the California Clean Fuel Reward (CCFR), a rebate initiative backed by the state’s Low Carbon Fuel Standard (LCFS).
Applications for the programme will open on June 26, with $250 million allocated for the first year.
The CCFR applies to newly purchased or leased battery-electric Class 2b through Class 8 commercial vehicles. According to programme details, hybrid vehicles, hydrogen fuel-cell vehicles, used vehicles and electric motorcycles are not eligible.
The initiative is expected to become the largest utility-administered electric truck rebate programme in the United States, with incentives ranging from $7,500 to $120,000 depending on vehicle category.
Class 2b vehicles weighing between 8,501 and 10,000 pounds will qualify for rebates of $7,500, while Class 3-4 and Class 5 trucks will be eligible for incentives of $15,000 and $60,000 respectively.
The rebates will be available through authorised retailers for both public and private fleet operators purchasing electric commercial vehicles, including delivery vans, box trucks, electric semitrailers and drayage trucks.
State officials said the programme is intended to support California’s position in the global zero-emission commercial vehicle sector while reducing air pollution linked to diesel freight transportation, particularly in areas surrounding ports and logistics centres.
“While Trump surrenders America’s auto industry to China, California is choosing a different path — one that cements our global leadership in clean technologies that will define the future of transportation,” Newsom said.
“California will never stop fighting for good-paying American jobs, economic prosperity, and a more secure future for our workers and families,” he added.
California Air Resources Board Chair Lauren Sanchez said the programme would help lower the upfront cost of electric trucks for fleet operators.
“By returning revenue from the Low Carbon Fuel Standard directly to truck buyers at purchase, we’re making zero-emission trucks the better choice for fleets and delivering cleaner air along freight corridors where it’s needed most,” Sanchez said.
Utility provider Southern California Edison is among the programme’s participating partners.
Funmi Williamson, the company’s senior vice president and chief customer officer, described the initiative as “a historic step forward in fleet electrification,” adding that reduced upfront costs could help accelerate adoption of zero-emission commercial vehicles.
The CCFR will complement California’s existing Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which state officials said has already delivered more than $1 billion in support for over 11,600 clean commercial vehicles statewide.
The HVIP programme also includes support for vehicles such as the Tesla Semi.
According to California state figures, zero-emission vehicles represented nearly 23% of new medium- and heavy-duty vehicle sales in the state during 2024.