The California Energy Commission's (CEC's) Zero-Emission Heavy-Duty Infrastructure Loan Pilot Project is a pilot project designed to provide financing opportunities for both heavy-duty zero-emission vehicles and charging and/or hydrogen refueling infrastructure. The CEC has partnered with the California Air Resources Board's (CARB's) Zero-Emission Heavy-Duty Vehicle Loan Program to build on the existing successful relationship with the California Pollution Control Financing Authority (CPCFA) in implementing zero-emission truck and infrastructure loan assistance programs through their California Capital Access Program (CalCAP). This loan pilot project will allow the CEC, CARB, CPCFA, and lenders to learn from borrowers of small business fleets what is needed to make a successful transition to zero-emission and what additional areas of support are required. The project launched on May 1, 2024.
What does the infrastructure loan pilot project fund?
The CEC's Zero-Emission Heavy-Duty Infrastructure Loan Pilot Project, funded by a $5 million contribution, is administered by CPCFA, who provides the day-to-day program administration and outreach of the Zero-Emission Heavy-Duty Infrastructure Loan Pilot Project.
The program operates through a loan-loss reserve system. For each qualified zero-emission medium- or heavy-duty vehicle infrastructure loan made, the CEC contributes 20% of the loan amount into a participating lender’s loan-loss account. In the event of a qualifying loan default, the lender can request reimbursement for the principal loss from CPCFA.
Who is eligible for funds?
The CEC's Zero-Emission Heavy-Duty Infrastructure Loan Pilot Project provides financing opportunities for small businesses that are transitioning to medium- and heavy-duty zero-emission vehicles and are in need of charging and refueling infrastructure to support vehicle deployment. The program is open to qualified small fleets with up to 20 vehicles, >8,500 lb GVWR, and up to 500 employees. Purchases must be for new charging and/or hydrogen refueling stations to serve Class 2b through Class 8 zero-emission medium-duty and heavy-duty vehicles.
Complementary loan pilot programs:
The CEC has closely coordinated with CARB in the development of the Zero-Emission Truck Loan Pilot Program to support new and used zero-emission medium- or heavy-duty vehicles. The program is also administered through CPCFA.
Southern California Edison (SCE) has also contracted with CPCFA to operate a similar loan-loss reserve pilot program for certain fleets located in the SCE service territory that are interested in purchasing new or used, zero-emission, medium- and heavy-duty vehicles and electric charging infrastructure.
How do I access funding?
Eligible small fleet vehicle owners may access the Zero-Emission Heavy-Duty Infrastructure Loan Pilot Project and complementary programs by contacting a participating CalCAP lender and completing a loan application. The lender then enrolls each qualified loan in the program.
Lenders must submit a Lender Participation form and complete a one-on-one program training session with CPCFA staff prior to enrolling loans. Lenders may use their traditional underwriting standards to establish loan terms, however the program caps the annual interest rate at 20 percent.
Full details of the loan pilot programs are available on the CPCFA CalCAP Zero-Emission Programs webpage.
Project Eligibility:
- Maximum eligible fleet size: twenty (20) vehicles
- Maximum eligible fleet size exemption: non-profit organizations and public agencies, may have more than 20 vehicles, however they must satisfy all other requirements of the CalCAP and projects.
- Maximum number of charging ports or hydrogen nozzles to be installed: twenty (20) charging ports, twenty (20) hydrogen nozzles, or twenty (20) total of both.
- Eligible equipment costs: Eligible acquisitions with loan proceeds include the following. Acquisitions not listed may be eligible on a case-by-case basis with prior CEC approval:
- New electric charging and/or hydrogen fueling equipment capable of supporting zero-emission MDHD vehicles and/or equipment, including taxes and shipping;
- Acquisition of supply equipment, electric panel or grid improvements (if not paid for by the relevant electric utility), materials and supplies (including conduit and construction materials), required signage, and hardware and software necessary for fully operational charging stations;
- Labor to install fully operational charging stations or hydrogen stations; and
- Equipment Warranty, with the purchase of eligible infrastructure equipment, not to include extended warranties (those exceeding three (3) years)
- Refinances: Refinancing of existing loans to be enrolled in the program may be considered if for zero-emission vehicle infrastructure installation.
Electric Vehicle Charging Infrastructure Requirements:
For Electric Charging Infrastructure: Borrower certifies that the minimum technical requirements for electric vehicle chargers being acquired are met:
- EV chargers shall utilize charging connectors and charging interfaces that are compatible for use with MDHD vehicles sold by multiple original automotive equipment manufacturers for widespread use across California and North America. Such interfaces shall include SAE International (SAE) J1772/CCS1 and SAE J3105;
- EV chargers use an Open Charge Point Protocol (OCPP) 1.6 or newer compliance for purposes of network interoperability (visit Open Charge Alliance for more information).
- EV chargers must be International Organization for Standardization (ISO) 15118 ready. EV chargers with a SAE J1772/CCS1 or SAE J3400/NACS connector must be ISO 15118 ready. An ISO 15118 ready charger is capable of, at minimum, all the following:
- powerline carrier based communications as specified in ISO 15118-3;
- secure management and storage of keys and certificates;
- Transport Layer Security (TLS) version 1.2, with additional support for TLS 1.3 or subsequent versions recommended to prepare for ISO 15118-20;
- receiving remote updates to activate or enable ISO 15118 use cases;
- connecting to a backend network; and
- selecting the appropriate communication protocol requested by the vehicle.
- If applicable, bidirectional EV chargers must be ISO 15118-20 ready. An ISO 15118-20 ready charger includes all the capabilities of an ISO 15118 ready charger (defined above), and additionally supports TLS 1.3 and receiving remote updates to activate or enable ISO 15118-20 use cases.
Hydrogen Infrastructure Requirements:
Hydrogen Infrastructure: Borrower certifies that the minimum technical requirements for hydrogen fueling equipment projects are met:
- Must conform to the most recent version of one or more of the following fueling protocols or an equivalently accepted industry standard:
- J2601 – 1 Category D (greater than 10 kg tank sizes).
- J2601 – 2 HD fueling.
- J2601 – 4 Ambient Temperature fueling.
- J2601 – 5 MC Method for HD fueling.
- JPEC-S 0003 Japanese Bus fueling protocol.
- J2600.
Note: Fast fills, (up to 7.2kg/min) require a different nozzle with a different standard (ISO 27268:2012) and are permitted for MDHD vehicles only. - The open retail hydrogen fueling station shall conform to the most recent version of SAE International J2799 (station communications), verified through the most recent version of Canadian Standards Association (CSA) Hydrogen Gas Vehicle (HGV) 4.3. or an equivalently accepted industry standard Compressed Gas Association (CGA) G-5.3, Commodity Specification for Hydrogen.
- The National Fire Protection Association (NFPA) 2, Hydrogen Technologies Code, NFPA 55, and NFPA 2 Checklist (2016).
- SAE Hardware and Software, where required and as necessary.
- California Building Code, Part 2, Title 24.
- California Electrical Code, Part 3, Title 24.
- California Energy Code, Part 6, Title 24.
- California Fire Code. Part 9, Title 24.
- The dispenser has been certified to sell hydrogen by the kilogram (pursuant to CCR Title 4, Division 9, Chapter 1).
- The station is connected to the Station Operational Status System, maintained by the Hydrogen Fuel Cell Partnership.
- Surface Streets Hydrogen Fueling Station Signage per National Institute of Standards and Technology (NIST) Handbook 130 and Caltrans Manual on Uniform Traffic Control Devices, section 21.03