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California Pollution Control Financing Authority

General Information for CalCAP Zero-Emission Heavy-Duty Programs

CalCAP ZEHDV, CalCAP ZEHDI, and CalCAP ZETBIF Program Descriptions

  • CalCAP programs provide risk management tools to participating financial institutions (PFIs) to encourage them to make loans to small businesses, which otherwise may struggle to access capital.
  • CalCAP Zero-Emission Heavy-Duty (CalCAP ZEHD) includes three pilot programs which complement each other to support loans to smaller fleets and owner-operators for zero-emission vehicles and infrastructure.
    • CalCAP Zero-Emission Heavy-Duty Vehicles (CalCAP ZEHDV) is a state-wide pilot for zero-emission heavy-duty and medium-duty vehicles.
    • CalCAP Zero-Emission Heavy-Duty Infrastructure is a state-wide pilot for zero-emission heavy-duty and medium-duty infrastructure.
    • CalCAP Zero-Emission Truck, Bus and Infrastructure Financing (CalCAP ZETBIF) is a utility-service-area pilot for zero-emission heavy-duty and medium-duty vehicles and infrastructure.
  • Each of these programs provides a risk management tool to a participating financial institution (PFI) after:
    • a small business borrower (SBB) has applied to a PFI;
    • the PFI has underwritten the loan(s) and determined a risk management tool will be useful, and that the loan(s) fit the eligibility criteria for CalCAP ZEHDV and/or CalCAP ZEDHI and/or CalCAP ZETBIF; and
    • the PFI has disbursed the loan(s) to the SBB.
  • A contribution for each loan is added to the loan loss reserve account(s) assigned to the PFI for each program after:
    • the loan(s) are disbursed by the PFI;
    • the PFI has applied for enrollment in CalCAP ZEHDV and/or CalCAP ZEDHI and/or CalCAP ZETBIF; and
    • enrollment(s) have been approved.
  • Each accumulated loan loss reserve account is available to pay up to 100% of the PFI’s claim for a loan enrolled in the matching program, during the term of enrollment, in the case of default. If no claim for an enrolled loan is made prior to the expiration of enrollment, the contribution remains in the loan loss reserve account (subject to independent contributor requirements).
  • Contribution Amounts
    • In these programs, all contributions are made by the programs. Lenders and borrowers do not make a contribution.
      • CalCAP ZEHDV: 25%
      • CalCAP ZEHDI: 25%
      • CalCAP ZETBIF: 25%

Eligibility for Enrollment of Loans in CalCAP ZEHDV, CalCAP ZEHDI, and CalCAP ZETBIF

A participating financial institution (PFI) can enroll loans made to a business borrower.

CalCAP ZEHDV (CARB) CalCAP ZEHDI (CEC) CalCAP ZETBIF (SCE)
Eligible Loan/Lease Purpose and Terms
  • Term loan or TRAC lease for ZE vehicles and trailers
  • Interest rate cap: 20%
  • Term loan for ZE infrastructure
  • Interest rate cap: 20%
  • Term loan or TRAC lease for ZE battery-electric vehicles and infrastructure
  • Interest rate cap: 20%
Bundling with Grants and Other Incentives Borrower may use incentives from CARB  and others Borrower may use incentives from CEC and others Borrower may use incentives from SCE and others
Eligible Geographic Area All of California All of California Located in or operating in a rural or disadvantaged community (DAC) within the Southern California Edison service area
Fleet Size and Other Business Parameters
  • Fleet size: maxiumum of 20 on-road vehicles which are over 8,500 lbs. GVWR
  • 100 employees maximum
  • Average annual revenue (last 3 years): $10M maximum
  • Exemption for non-profit organizations: may have more than 20 vehicles
  • Fleet size: maximum of 20 on-road vehicles which are over 8,500 lbs. GVWR
  • 500 employees maximum
  • Exemption for non-profit organizations and public agencies: may have more than 20 vehicles
  • Any fleet size
  • Current Southern California Edison customer
  • Fortune 1,000 List businesses are excluded
Vehicle & Trailer Eligibility
  • New or used ZE powertrain
  • MDHD vehicle, over 8,500 lbs. GVWR
  • Vehicle must be registered with CA DMV
  • Trailer eligible ONLY when purchased with eligible vehicle
 Not applicable
  • New or used battery-electric powertrain
  • MDHD vehicle, over 8,500 lbs. GVWR
  • Trailer NOT eligible
Infrastructure Eligibility Not Applicable
  • Maximum of 20 electric charging ports and/or hydrogen nozzles to support ZE MDHD vehicles registered with CA DMV
  • Supply equipment, electric panel or grid improvements, materials and supplies, required signage, hardware and software
  • Installation labor
  • Electric vehicle charging station equipment
  • Installation costs NOT eligible
List of Eligible Infrastructure Equipment Not Applicable See list of ZEHDI eligible charging equipment See list of ZETBIF eligible charging equipment
Warranty and/or Maintenance Plan Eligibility Warranty and/or maintenance plan ONLY when purchased with an eligible vehicle
  • Warranty and/or maintenance plan ONLY when purchased with eligible equipment
  • Excludes warranty exceeding 3 years
 Warranty ONLY when purchased with an eligible vehicle and/or equipment

ZE = zero-emission
TRAC = terminal rental adjustment clause
MDHD = medium-duty heavy-duty
GVWR = gross vehicle weight rating
CA DMV = CA Department of Motor Vehicles