California’s Clean Off-Road Equipment Voucher Program

California’s Clean Off-Road Equipment Voucher Incentive Program (CORE) is introduced to accelerate the adoption of zero-emission construction machinery. With over $182 million in funding available for the fiscal year 2022-2023, the program offers cash rebates to qualified contractors for the purchase of environmentally friendly equipment. But, as the state implements stricter regulations, including the mandate for zero-emission trucks, the adequacy of the program’s rewards and the challenges faced by businesses come into question.

Expanding Funding and Incentives

CORE, managed by CALSTART, provides first-come, first-served point-of-sale cash rebates for zero-emission off-road vehicles. The program offers doubled incentives for vehicles located in underserved areas and small companies. Voucher amounts are determined based on the cost difference between zero-emission alternatives and conventional equipment, offsetting the increased expense of green solutions. The program focuses on promoting new technologies that are not yet widely adopted in the market.

Qualifying Equipment and Manufacturers

The CORE website provides a list of construction machinery eligible for incentives. The rebates range from $34,000 for skid steers to $500,000 for cranes. Certified manufacturers include Volvo CE, Bobcat, First Green Industries, JCB, and Liebherr, among others. To qualify for the voucher program, the equipment must be used and stored in California for at least three years, and buyers must submit regular activity reports during this period.

Examining the Rewards

While CORE offers substantial funding for zero-emission construction equipment, concerns have been raised regarding the adequacy of the incentives. Detractors argue that the subsidies may not sufficiently assist businesses in meeting the stringent requirements imposed by the California Air Resources Board (CARB). As the state mandates zero-emission trucks by 2035, businesses face a lot of challenges in transitioning their fleets and complying with the evolving regulations.

Mandates and Regulations

The Biden administration granted permission for California to become the first government worldwide to mandate zero-emission trucks. The Advanced Clean Fleets rule, approved by CARB, requires businesses with 50 or more trucks to start transitioning to zero-emission vehicles by 2024, with hopes for a complete phase-out of emissions-producing trucks by 2045. CARB is also developing a new regulation to cover the 1.2 million trucks in fleets with fewer than 50 vehicles.

Impact on the Construction Industry

The implementation of stricter regulations, including the In-Use Off-Road Diesel regulations, will have a significant impact on the construction industry. Starting in January 2024, fleets will be prohibited from adding vehicles with Tier 3 engines, and Tier 4 intermediate engines will face similar restrictions. The regulations also require fleets to reduce emissions through engine retirements, replacements, or retrofits. It should be noted though that business associations like the Construction Industry Air Quality Coalition and AGC oppose the regulations due to concerns about implementation difficulties, economic constraints, and the availability of emission reduction technologies.

Balancing Emissions Reduction and Industry Challenges

California’s Clean Off-Road Equipment Voucher Program aims to lower emissions and promote the adoption of zero-emission technology in the construction industry. While the rewards offered through CORE are substantial, challenges persist as businesses navigate evolving regulations and the transition to zero-emission vehicles. Balancing emissions reduction goals with the practical considerations of businesses is of great importance to ensure the program’s success and the sustainable growth of the industry.