New York Truck Voucher Incentive Program.pdf

Implementation Manual

New York Truck Voucher Incentive Program

June 2025

Table of Contents Definitions for New York Truck Voucher Incentive Program ................................................................ ii

1. Overview of New York Truck Voucher Incentive Program

1.1 NYTVIP Funding Tracks

1.2 About the Implementation Manual

1.3 Voucher Publicity

1.4 Program Contacts

1.5 General Program Rules

1.6 Voucher Stacking

1.7 Utility Make Ready Program

1.8 NYTVIP Process at A Glance

1.9 NYTVIP Scrappage Timelines

2. Non-Road Equipment and Equipment Purchaser Eligibility

2.1 Non-Road Equipment Purchaser Eligibility

2.2 Non-Road Equipment Eligibility

3. Non-Road Equipment Incentive Schedule

3.1 Non-Road Equipment Funding Categories by Equipment Type

3.2 Non-Road Equipment Voucher Amounts

3.3 Non-Road Equipment DAC Voucher Bonus

3.4 Non-Road Equipment Voucher Caps

3.5 Non-Road Equipment Funding Caps

4. Non-Road Equipment Scrappage Requirements

4.1 Non-Road Equipment Scrappage Conditions

4.2 Non-Road Equipment Scrappage Requirements

5. Non-Road Equipment Operating Requirements

6. Class 3-8 Zero-Emission Vehicle and Vehicle Purchaser Eligibility

6.1 Class 3-8 ZEV Eligibility

6.2 Class 3-8 ZEV Vehicle Purchaser Eligibility

6.3 Class 3-8 ZEV CaaS and E-Fleet Vehicle Purchaser Eligibility

6.4 Class 3-8 ZEV Special Conditions for Leased Vehicles

7. Class 3-8 Zero-Emission Vehicle Incentive Schedule

7.1 Class 3-8 ZEV Funding Categories by Weight Class

7.2 Class 3-8 ZEV Funding Caps

7.3 New Class 3-8 ZEV Voucher Amounts

7.4 Repowered Class 3-8 ZEV Voucher Amounts

7.5 Class 3-8 ZEV Bonus Overview

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7.6 Class 3-8 ZEV DAC Bonus Eligibility

7.7 Class 3-8 ZEV DAC Bonus Amounts

7.8 Class 3-8 ZEV Small Fleet Bonus Eligibility

7.9 Class 3-8 ZEV Small Fleet Bonus Amounts

7.10 Class 3-8 ZEV Scrappage Bonus Eligibility

7.11 Class 3-8 ZEV Scrappage Bonus Amounts

8. Class 3-8 Zero-Emission Scrappage Requirements

9. Class 3-8 Zero-Emission Vehicle Operating Requirements

10. Transit Bus Purchaser and Vehicle Eligibility

10.1 Transit Bus Purchaser Eligibility

10.2 Transit Bus Vehicle Eligibility

10.3 Transit Bus Incentive Schedule

11. Transit Bus Scrappage Requirements

12. Transit Bus Operating Requirements

13. End-to-End New York Truck Voucher Incentive Program Voucher Process

14. Vehicle/Equipment Eligibility Requirements for Manufacturers

14.1 Vehicle/Equipment Eligibility Process

14.2 Eligibility Application Review and Approval

15. Dealer Eligibility and Approval Process

15.1 Dealer Eligibility

15.2 Dealer Approval Process

16. Voucher Application Process

16.1 Voucher Application Requirements

16.2 NYSERDA Voucher Application Review

16.3 Voucher Approval

17. Voucher Redemption Process

17.1 Voucher Redemption Requirements

17.2 Voucher Denial and Appeal

17.3 Voucher Extension

17.4 Voucher Payment

18. Telematics Reporting Requirements

18.1 Reporting Requirements for Leased Vehicles/Equipment

18.2 Reporting Parameters

Appendix A. Funding Source Rules ii

Definitions for New York Truck Voucher Incentive Program Base Price is the Manufacturer Suggested Retail Price (MSRP) of vehicle/equipment without any optional features or upgrades. Options not covered include diesel fuel fired heaters or upgraded battery packs.

Charging-as-a-Service (CaaS) Provider are third-party companies that provide short-term leases to fleets for zero-emission vehicles, typically on a monthly or per-mile basis, which may include several services such as: software, maintenance, electricity costs, and consulting services. CaaS Providers own the vehicles and charging infrastructure and are responsible for meeting New York Truck Voucher Incentive Program (NYTVIP) reporting requirements on behalf of the vehicle end-user.

Dealer is a vehicle/equipment dealership, original equipment manufacturer (OEM), or repower manufacturer that sells Eligible Vehicles/Equipment directly to a Purchaser. A Dealer may only receive vouchers if it has been prequalified, through the Dealer Salesforce Portal.

Upon successful application, a Dealer will be authorized to redeem vouchers for a specific make and model of Eligible Vehicle/Equipment.

Dealer Salesforce Portal is the online Salesforce system used by NYTVIP that entities use to apply to become a Contractor (Dealer) in the Program.

Disadvantaged Community (DAC) are geographic areas designated by NYSERDA’s DAC Map. For the purposes of NYTVIP, a fleet depot or domicile address is located within a DAC if it is within an area designated by NYSERDA’s DAC Map or within 0.5 miles of a DAC border.

Domicile Address is the location where the vehicle/equipment will be stored, maintained, and/or generally be located, such as a fleet depot. For Class 3-8 Zero-Emission Vehicles, the vehicles also must be registered to the Domicile Address on the NYTVIP application. For Non-Road Equipment, the Domicile Address shall be the Primary Worksite.

EPA DERA Program is the Environmental Protection Agency (EPA) Diesel Emissions Reduction Act (DERA) rules that apply to the Non-Road Equipment portion of NYTVIP. For more information on DERA and to read the program guide, visit https://www.epa.gov/dera/state.

Fleet is the vehicle/equipment fleet of a commercial enterprise (i.e., not used for individual or personal activities), nonprofit organization (exempt from federal income taxed under Section 501 of the Internal Revenue Code 26 U.S.C. § 501), or public sector entity (excluding federal governmental entities) that domiciles, registers (if applicable), and/or operates Class 3-8 Zero-Emission Vehicles, and/or Non-Road Equipment in New York State.

Fuel Cell Electric Vehicle (FCEV) is an on-road, Class 3-8 gross vehicle weight rating (GVWR), Zero- Emission Vehicle that operates solely by use of a hydrogen fuel cell, or that is powered primarily with a hydrogen fuel cell along with battery packs.

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Gross Vehicle Weight Rating (GVWR) is the maximum operating weight/mass of a vehicle as specified by the manufacturer and described on the original manufacturer Line Setting Ticket/Specification Sheet provided to the vehicle dealer. The following table lists weight classes.

Vehicle Class Gross Vehicle Weight Range (GVWR)

Class 3 10,001 – 14,000 pounds (4,536 – 6,350kg)

Class 4 14,001–16,000 pounds (6,351–7,257 kg)

Class 5 16,001–19,500 pounds (7,258–8,845 kg)

Class 6 19,501–26,000 pounds (8,846–11,793 kg)

Class 7 26,001–33,000 pounds (11,794–14,969 kg)

Class 8 ≥33,001 pounds (≥14,969 kg)

Incremental Cost is the difference in cost between the new Eligible Electric Transit Bus and a comparable new diesel-fueled vehicle that would be purchased to perform the same function.

The Incremental Cost difference is how Transit Bus application voucher amounts are calculated.

Internal Combustion Engine (ICE) is a heat engine in which combustion of a fuel occurs with an oxidizer within the engine itself.

Manufacturer Salesforce Portal is the online Salesforce system used by NYTVIP that OEM’s use to apply to put eligible Vehicles and Equipment on the NYTVIP Eligibility List.

Non-Road Equipment: Equipment designed to perform specific functions that do not carry goods or passengers over the road. To be eligible for this Program, the non-road equipment must be zero- emission (battery electric, fuel cell, or other methods of propulsion that do not produce tail pipe emissions). Non-Road Equipment is limited to transportation refrigeration units (TRUs), construction, material-handling and agricultural equipment, freight switcher locomotives, railcar movers, and air ground support equipment. Non-road equipment is not required to be registered through the NY DMV for on-road use as a condition of funding.

Original Equipment Manufacturer (OEM)/Manufacturer is the company that builds or, at a minimum, assembles the completed drive train and chassis for an Eligible Zero-Emission Vehicle or Non- Road Equipment.

Participating Dismantler is a facility that performs the Scrappage of eligible old diesel vehicle and/or equipment according to NYTVIP guidelines.

Primary Worksite is the location where the Non-Road Equipment is located and/or operating out of (housed) during the five-year operating and reporting period. If the Non-Road Equipment is rotated to multiple work sites during the five-year period, the Primary Work Site will be the address where the equipment is located at time of equipment delivery from the Dealer and deployment. Non-Road Equipment will be monitored via a telematics device.

Program is the New York Truck Voucher Incentive Program (NYTVIP).

Program Website https://www.nyserda.ny.gov/All-Programs/Truck-Voucher-Program iv

Regional Greenhouse Gas Initiative (RGGI) Funding is a cooperative effort of states in the Northeast to cap and reduce carbon emissions from the power sector. For NYTVIP, Class 3-8 ZEV vouchers are funded by RGGI. More information on the initiative is located on the RGGI website:

https://www.rggi.org/.

Replacement Vehicle/Equipment is a new Eligible Vehicle/Equipment that replaces an existing diesel or gasoline vehicle/equipment of similar weight class and vocation, and/or tier.

Repower Manufacturer is the company that upfits ICE vehicles and, at a minimum, converts the powertrain to a battery electric vehicle (BEV) or fuel cell electric vehicle (FCEV) powertrain.

Scrappage (Scrapped or Scrap) is verifiably rendering inoperable an ICE powered vehicle and/or equipment by cutting a three-inch-by-three-inch hole in the engine block and disabling the chassis by cutting the vehicle’s frame rails completely in half. For the complete Scrappage requirements for each funding track, refer to Sections 4, 8, and 11.

Telematics is the technology of sending, receiving, and storing information using telecommunication devices that have been installed in an Eligible Vehicle/Equipment by a Purchaser. NYSERDA reserves the right to require telematics devices at NYSERDA’s expense and will provide service on telematics devices for the duration of the three-year required NYTVIP reporting period.

Operator is the entity that will operate an Eligible Vehicle/Equipment. This may be the Purchaser or an entity under a lease agreement with a Purchaser.

Purchaser is the entity that will directly purchase, own, and operate the vehicle or the leasing company that will lease an Eligible Vehicle to an Operator. NYTVIP does not require the Purchaser to be the same entity as the Operator.

Reporting Requirements are parameters NYSERDA requires Operators to provide for three years following voucher redemption. This is either through a NYSERDA funded telematics device, or a biannual report structured with the required parameters. Refer to Section 18 for full Reporting Requirements.

Voucher Application is the process of the Dealer working with the Purchaser to supply the correct documents and information in the NYSERDA Salesforce Portal to submit a NYTVIP voucher application.

Voucher Application Salesforce Portal is a system utilizing Salesforce software that the Dealer, once approved by the Program, can log into to apply for vouchers, check status of their voucher progress, and upload Program required documents for voucher approval and Voucher Redemption approval.

Voucher Approval Date is the date on which NYSERDA approved a project and sets aside funding.

Voucher Help Center (VHC) is the entity that answers Program questions and processes Voucher Applications before the application is approved by NYSERDA, and at voucher redemption.

The VHC is the primary Program point of contact for OEMs, Dealers, and Fleets. The VHC can be contacted by email: NYTVIP@energycenter.org or via phone: 866-595-7917 (operates 9am – 5pm EST).

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Voucher Redemption is the process of the Dealer supplying information through the NYSERDA Salesforce Portal to complete the voucher process and satisfy all requirements for a payment to be made to the Dealer.

Zero-Emission Vehicle (ZEV) is an on-road, Class 3-8 Gross Vehicle Weight Rating (GVWR), zero-emission vehicle that operates solely by use of a battery pack or hydrogen fuel cell.

1. Overview of New York Truck Voucher Incentive Program The New York Truck Voucher Incentive Program (NYTVIP or Program) is a voucher incentive program aimed to accelerate the deployment of medium- and heavy-duty electric trucks, buses, and non-road equipment throughout New York State. By increasing the use of cleaner vehicle technologies, the Program reduces harmful vehicle emissions and lessens New York State’s transportation sector’s dependence on petroleum. In partnership with New York State Department of Environmental Conservation (DEC), the New York State Energy Research and Development Authority (NYSERDA) has redeveloped NYTVIP to include non-road equipment, Class 3-8 Zero-Emission Vehicles (ZEV), and Transit Buses. The goal of the program is to reduce the cost of medium-and heavy-duty electric vehicles and equipment to help Purchasers and lease Operators switch to vehicles and equipment that are better for the environment and often are more cost-effective than equivalent diesel-fueled vehicles and equipment over their lifetime.

1.1 NYTVIP Funding Tracks

NYTVIP has three separate funding tracks, which come from three different sources:

1. Class 3 - 8 ZEVs: Funded through Regional Greenhouse Gas Initiative (RGGI) investment plan.

Refer Section 6 for eligibility.

2. Non-Road Equipment: Electric zero-emission equipment funded through the New York Volkswagen Mitigation Plan – EPA DERA option. This funding source requires scrappage of an existing diesel non-road equipment of similar size and function. Refer to Section 2 for eligibility.

3. Transit Buses: Funded through the New York Volkswagen Settlement funding. This funding source requires the scrappage of a 1992-2009 engine model year (EMY) vehicle of similar weight class. Refer to Section 10 for eligibility.

1.2 About the Implementation Manual

This Implementation Manual outlines the process, requirements, rules, and funding parameters of the Program to provide participants with information on how to participate in NYTVIP. NYSERDA may make changes to the Implementation Manual at any time. Program participants are bound by the version of Implementation Manual in effect at the time they submit a Voucher Application. The most recent Implementation Manual, as well as all required forms and agreements, can be found on the Program Website, as well as in the Salesforce NYSERDA Portal. This Implementation Manual is separated into three sections to ensure applicants understand the different funding tracks and program requirements for Non-Road Equipment, Class 3-8 ZEVs, and Transit Buses.

1.3 Voucher Publicity

All Program participants must collaborate with NYSERDA Corporate Communications, at least 10 business days in advance, to prepare any press release and to plan for any news conference concerning work related to the Program. Program participants must notify the Voucher Help Center (VHC) and NYSERDA Project Managers in advance of any media interview or press event in which work related to this Program, including vehicles/equipment for which the purchase or lease was facilitated using vouchers, is referred to or discussed. Purchasers and Operators must not use NYSERDA’s or New York State Department of Environmental Conservation’s (DEC) corporate name, logo, identity, any affiliation, or any related logo, without prior written consent from NYSERDA.

1.4 Program Contacts

All Program questions can be directed to the Voucher Help Center (VHC):

NYTVIP Voucher Help Center (VHC) 866-595-7917 (operates 9am-5pm EST) NYTVIP@energycenter.org

If you are unable to contact personnel at the VHC, or if there are issues that the VHC cannot resolve, please contact the NYSERDA Project Managers responsible for the Program:

Natalie Tauro Project Manager 1359 Broadway, 19th Floor, New York, NY 10018-7842

(518) 862-1090 ext. 3519 Natalie.Tauro@nyserda.ny.gov

Adam Lomasney Program Manager 1359 Broadway, 19th Floor, New York, NY 10018-7842

(518) 862-1090 ext. 3017 Adam.Lomasney@nyserda.ny.gov

1.5 General Program Rules

Dealers are approved to receive vouchers for a specific make and model of Eligible Vehicle/Equipment through the Program. A Purchaser agrees to buy an Eligible Vehicle/Equipment from a Dealer. The Dealer deducts the value of the voucher from the final sale price of the vehicle/equipment. Vouchers must be applied to the unit price of the vehicle/equipment, they cannot be applied to taxes, extended warranties, or fees (including destination fees). Once the Purchaser has satisfied all Program requirements, the Dealer supplies all required documentation to NYSERDA. NYSERDA reviews and approves the documents, then issues the voucher amount directly to the Dealer.

NYSERDA will not make a voucher payment unless all requirements for Voucher Redemption are met and approved by NYSERDA. Failure to comply with all applicable requirements will result in the rejection of a voucher payment request, which means the Purchaser is responsible to the Dealer for the full (unreduced) vehicle/equipment price. Where the Purchaser fails provide proper documentation to the Dealer for Voucher Redemption, NYSERDA is NOT responsible for the deficit in funding for the vehicle purchase.

1.6 Voucher Stacking

Purchasers may combine or stack NYTVIP funding with other grants or incentives obtained from local, State, or federal sources, except the programs outlined below. In no case may the total funded amount from all funding sources exceed the base cost of the vehicle.

For example, an electric Class 8 tractor trailer is eligible for a base incentive of $200,000. The total price of the tractor trailer is $400,000. If the Purchaser received an EPA Grant for $300,000, NYTVIP would only award a $100,000 voucher to the vehicle, as that covers the entire cost of the Electric Class 8 Tractor Trailer of $400,000.

Funding stackable with NYTVIP includes but is not limited to:

1. Joint Utilities of New York Heavy-Duty Make Ready Pilot

2. Clean Commercial Vehicle Credit (IRC 45W)

3. Most local, State and federal grants/incentives

1. If a Purchaser is unsure if their grants are stackable with NYTVIP Vouchers, please contact NYTVIP@energycenter.org and a NYSERDA Project Manager will review eligibility.

Funding that cannot be combined with NYTVIP funding:

1. Other grants from NYSERDA

1. Including from the New York Clean Transportation Prize or other competitive solicitations/program opportunity notices (PON’s)

2. Federal Transit Administration Low- or No-Emission Grant Program (Lo-No Grants)

3. Other EPA DERA Program grants

1.7 Utility Make Ready Program

To help offset the cost of charging equipment and associated infrastructure, the Joint Utilities of New York created the EV Make Ready Program. Below are contacts for each Joint Utility to start the evaluation process for Fleet depots to install charging infrastructure. Please note that non-publicly accessible sites must be approved for a voucher incentive program, like NYTVIP, before applying for the EV Make Ready Program.

Utility Email Contact for EV Make Ready Program

Central Hudson EVMakeready@cenhud.com

Con Edison dl-evmhd@coned.com

National Grid NGFleetProgram@nationalgrid.com

New York State Electric and Gas (NYSEG) evprograms@nyseg.com

Rochester Gas and Electric (RG&E) evprograms@rge.com

Orange and Rockland (O&R) ev@oru.com

1.8 NYTVIP Process at A Glance

1. Vehicle/Equipment Eligibility Application –A Manufacturer submits a completed

Vehicle/Equipment Eligibility Application in the NYSERDA Salesforce Portal. Once approved, vehicles/equipment are listed on the NYTVIP Eligibility List on the Program Website.

2. Dealer Approval – A Dealer applies in the Dealer Salesforce Portal to become an approved Contractor with a Salesforce Account. If the Dealer is not the OEM, the Dealer must submit proof of OEM authorization (Vehicle Manufacturer Authorization Form) to sell the vehicle as part of the approval process. Approved Dealers may then market Program incentives to prospective vehicle/equipment Purchasers and submit Voucher Applications to NYSERDA.

3. Voucher Application and Approval – When a Purchaser is ready to buy an Eligible Vehicle/Equipment from an approved Dealer, the Dealer submits a Voucher Application for review and approval by the Voucher Help Center (VHC) and NYSERDA. The final voucher amount is determined at application stage and is reflected in an award letter sent to the Dealer.

4. Vehicle Scrappage (Required for Non-Road and Transit Projects) –Please note that scrappage is only required for two funding tracks: Non-Road Equipment and Transit Buses. For Class 3-8 ZEVs, Vehicle Scrappage is optional but makes a project eligible for a Voucher Bonus (Refer to Section 7.10). The Purchaser must provide the Dealer with all required Scrappage documentation within the timeframes listed in Section 1.9.

5. Voucher Redemption – After the Purchaser takes delivery of the new Eligible Vehicle/Equipment, pays in full for amount not covered by the voucher, and satisfies all NYTVIP requirements, the Dealer completes the Voucher Redemption process in the NYSERDA Salesforce Portal.

6. Voucher Payment – The VHC and NYSERDA review the Voucher Redemption request and associated documents. If corrections are needed, the VHC will work with the Dealer and Purchaser. Once all documentation has been reviewed and approved, NYSERDA will issue the voucher payment to the Dealer (and Purchaser if choosing the Class 3-8 ZEV Scrappage Bonus).

7. Required Reporting - NYSERDA requires the submission of vehicle/equipment use data for the first three to five years of operation as a condition of funding. To collect the data, telematics devices may be installed on all NYTVIP supported vehicles/equipment. Alternatively, Purchaser or Operator can choose to use their own devices. If telematic devices are unavailable or incompatible with the vehicle/equipment, then the Purchaser must track the necessary data and submit it to NYSERDA biannually.

1.9 NYTVIP Scrappage Timelines

NYSERDA will not pay the incentive amount until a vehicle has been successfully dismantled and all final verification documents have been reviewed and approved by NYSERDA. Vehicles must be scrapped within the timelines listed in the chart below. It is the responsibility of the Purchaser to ensure that a vehicle has been scrapped within the below timelines. Vehicles maybe scrapped any time after the date of the Award letter.

For Equipment and Transit Bus Vouchers, which require scrappage, the Dealer must return to the Salesforce Portal to submit the required Scrappage documents. NYSERDA will not pay any amount of the voucher for a specific vehicle or equipment until all of the scrappage documents are uploaded to the Salesforce portal for the scrapped vehicle or equipment tied to that voucher.

For Class 3-8 Vouchers that include the optional scrappage bonus, the Dealer may return to the Salesforce Portal to begin the Voucher Redemption process before scrappage is complete. If scrappage is not complete before Voucher Redemption, NYSERDA will make a payment to the Dealer for the base incentive amount and any Small Fleet or DAC bonus incentives at the time of Voucher Redemption.

NYSERDA will not issue the bonus incentive for scrappage until all scrappage requirements are satisfied.

Note: The Dealer or Purchaser will be able to access the Voucher Application in Salesforce to submit Scrappage redemption documents for as long as the respective funding track Scrap timeline allows.

Applications will be fully closed in the Salesforce portal when the scrappage event has occurred (if required) and all required documentation has been uploaded and approved by the VHC and NYSERDA.

Funding Track Scrap Event Deadline

Transit Buses Up to 21 calendar days after vehicle delivery.

Non-Road Equipment Up to 30 calendar days after equipment delivery

Class 3-8 ZEVs Up to 365 calendar days after vehicle delivery

Special Rules for Class 3-8 ZEVs:

In order to allow Purchasers more time to integrate their new ZEVs into their fleet before scrapping and older one, NYSERDA is allowing a time-window of 365 days to dismantle the vehicle. Should a Purchaser choose to scrap, the bonus incentive will be paid directly to the Purchaser as a reimbursement instead of being discounted off the purchase order.

Dealers may only discount the base incentive, Small Fleet and Disadvantaged Community bonuses (if applicable) from the final purchase order because Purchasers will be reimbursed directly for the Scrappage Bonus.

To be able to receive payment from NYSERDA, Purchasers will have to sign up as Contractors in the NYSERDA Salesforce Portal to register as an entity that can receive voucher payments. Within 30 days of the Scrappage Event and approval of all Scrappage documents, NYSERDA will reimburse the Purchaser the Scrappage Bonus amount.

2. Non-Road Equipment and Equipment Purchaser Eligibility

2.1 Non-Road Equipment Purchaser Eligibility

Equipment Purchasers must be a commercial enterprise (i.e., not used for individual or personal activities), nonprofit organization (exempt from federal income taxed under Section 501 of the Internal Revenue Code 26 U.S.C. § 501), or public sector entity (excluding federal governmental entities) that Domiciles, registers (if applicable), and/or operates Non-Road Equipment in New York State.

All Purchasers must sign the Purchaser Participation Agreement as part of the Voucher Application process.

2.2 Non-Road Equipment Eligibility

To qualify for non-road equipment voucher incentives through NYTVIP, equipment must meet the following requirements:

Equipment must be zero-emission – equipment that operates solely by use of a battery pack or hydrogen fuel cell.

Only the following types of equipment are Program eligible:

• Transportable refrigeration units (TRUs)

• Non-road construction and materials handling equipment (e.g., backhoes, industrial forklifts, bulldozers, terminal tractors, ground support equipment, cargo handling equipment)

• Agricultural equipment

• Freight switcher locomotives

• Railcar movers

• Airport ground support equipment Equipment must be new; equipment cannot be previously registered in any state. Used equipment (including equipment used by dealers, OEMs, or other entities or for demonstration purposes) are NOT Program eligible.

Equipment must have a motor rated to at least 50 horsepower or 37 kW.

Equipment motor must have a model year within two years of the Voucher Application calendar year. For example, in calendar year 2025, eligible electric motors are 2023, 2024, 2025, 2026, and 2027.

Equipment must be similar in type and function (vocation) to the equipment being scrapped.

Equipment must not have been fully paid for by the Purchaser (except for a down payment) or have been delivered to the Purchaser prior to the Dealer applying for a voucher.

Equipment must come with a 36-month (three year) manufacturer’s warranty. The warranty must cover the engine or electric motor, drive train, and battery pack.

Equipment must meet all federal and New York State requirements for operation.

3. Non-Road Equipment Incentive Schedule

3.1 Non-Road Equipment Funding Categories by Equipment Type

The funding available for non-road equipment is allocated by equipment type. The total amount available for each type of equipment is below:

Equipment Type Budget

Terminal Tractors $5,000,000

Agriculture and Construction Equipment $4,500,000

Large Forklifts and Cargo Handling Equipment $3,000,000

Rail Car Movers, Freight Locomotives, and Switchers $2,500,000

Airport Ground Support Equipment $2,000,000

Transportable Refrigeration Units (TRUs) $1,000,000

Total Funding $18,000,000

NYSERDA reserves the right to change budget amounts for equipment types.

3.2 Non-Road Equipment Voucher Amounts

All non-road equipment is eligible for vouchers equal to 35% of the per-unit Base Price of the equipment.

Voucher amounts will be calculated upon application submission and receipt of a valid Purchase Order (PO) submitted in the application. Upon review, the VHC/NYSERDA will update the application to reflect the voucher amount.

Program funding may not be used to pay for the purchase or installation of fuel-fired heaters (although these may be installed at Purchaser’s cost).

3.3 Non-Road Equipment DAC Voucher Bonus

Disadvantaged Community (DAC) Bonus: Equipment Purchasers are eligible for an additional incentive of ten percent (10%) of the base equipment cost if the equipment’s Primary Work Site is in a New York State Disadvantaged Community (DAC) or within 0.5 miles of a DAC. Eighty percent (80%) of the equipment’s operation must take place in a DAC or within 0.5 miles of a DAC during the operating and reporting period. The Primary Work Site is allowed to change throughout the course of the project reporting period but must remain in a DAC or within .5 miles of a DAC. The DAC bonus is capped at $100,000 per unit. NYSERDA reserves the right to recoup funding commensurate to the amount of the DAC bonus should NYSERDA learn that the equipment is not operated within a DAC as stated above.

To determine whether a location is within a DAC, applicants should consult the official NYSERDA DAC State-designated map located on NYSERDA’s website.

3.4 Non-Road Equipment Voucher Caps

No Non-Road Equipment voucher may exceed 45% of the per-unit base cost of the equipment. The base cost will be the amount reflected on the purchase order submitted to NYSERDA as part of the NYTVIP Application.

Base Incentive DAC Bonus DAC Bonus Cap

35% of base equipment cost 10% of base equipment cost $100,000 per unit

Example 1: A new high-performance battery electric terminal tractor is quoted to the customer at a per-unit price of $100,000. A dealer submits the final purchase order to NYSERDA, who will provide an incentive of $35,000 (0.35 x $100,000 = $35,000). Additionally, this unit will be domiciled at a warehouse located in a DAC. NYSERDA will then add an additional $10,000 in incentives (0.10 x $100,000 = $10,000). The final voucher amount is now $45,000 ($35,000 + $10,000 = $45,000), which will be deducted from the final sale price to the Purchaser.

Example 2: A new electric reach stacker that will be deployed at a port facility is quoted to a customer at a per-unit price of $1,200,000 and will be domiciled in a DAC. The equipment will qualify for a base voucher of $420,000 (0.35 x $1,200,000) and a DAC bonus of $120,000 (0.10 x $1,200,000). However, because the DAC bonus is capped, NYSERDA will only provide a bonus up to $100,000. Therefore, the final voucher that NYSERDA will provide is $520,000 ($420,000 + $100,000 = $520,000).

3.5 Non-Road Equipment Funding Caps

In order to give the most fleets an opportunity to take advantage of Program funds, NYTVIP has a “cool off” period on the amount of funding that a single Equipment Purchaser can claim in a 12-month period.

A single Equipment Purchaser, operating as one business entity, cannot be awarded more than $2 million of total Program funding in a 365-day period (based on the Award Letter Date, which the Equipment Purchaser will receive from their NYTVIP Dealer). However, a Dealer may submit new applications on behalf of an Equipment Purchaser sooner if all previous non-road equipment NYTVIP voucher applications are marked closed in the Salesforce portal. The Dealer, NYSERDA, and the VHC can convey statuses of Equipment Purchaser’s applications.

For example, if an Equipment Purchaser receives a NYTVIP application Award Letter in September 2025, they can receive approval for up to $2,000,000 through September 2026. However, if all equipment for every existing application is delivered to the Equipment Purchaser before the 12-month period is up, then they may apply for up to an additional $2,000,000 in vouchers. This date will be tracked in Salesforce with application submission and close out dates, which the Equipment Dealer will be able to view in the Salesforce Portal. For Equipment Purchasers, the Award Letter date issued at NYTVIP Application Approval will begin the Funding Cap timeline.

4. Non-Road Equipment Scrappage Requirements

4.1 Non-Road Equipment Scrappage Conditions

Scrappage is a requirement of the Voucher Redemption process for all Non-Road Equipment projects.

The overall goal of the scrappage requirement is to eliminate older equipment that emits pollution and carbon into the air. The scrappage process is one-for-one-scrap, meaning that for every new piece of equipment purchased through NYTVIP, and an equivalent diesel-powered model, must be dismantled.

Equipment Purchasers must scrap an older piece of equipment for each new piece of equipment purchased. The scrapped equipment must be similar in type and function (vocation) to the equipment being purchased. There are no requirements regarding the emissions tier, model year, or weight class of the equipment being scrapped, but it must be older than the equipment being purchased and run on a diesel internal combustion engine (ICE).

If the new equipment has 40% more horsepower than the equipment being scrapped, then the Voucher Application will require NYSERDA, DEC, and EPA approval. If the new equipment has more than 40% more horsepower than the scrapped equipment, then the Equipment Purchaser will be required to pay the additional costs associated with the higher horsepower equipment. This upgrade must be a line item on the Purchase Order with a separate dollar amount, which will not be covered in the NYTVIP 35% base voucher amount.

The scrapped equipment must be fully operational. Operational equipment must be able to start, move, and have all necessary parts to be operational at time of scrappage. Scrappage must be performed by a Participating Vehicle Dismantler within 30 calendar days (one month) of delivery of the new equipment. A current list of Participating Equipment Dismantlers is available on the Program Website.

Failure to dismantle an eligible vehicle or fully comply with all Scrappage requirements listed below shall result in revocation of the voucher. When a voucher is revoked, NYSERDA will not pay any portion of the Voucher amount to the Dealer. The Equipment Purchaser will be responsible to the Dealer for the full purchase price of the equipment.

Scrappage for Non-Road Equipment can occur any time after approval of a NYTVIP Voucher Application, up to 30 calendar days (1 month) after new Electric Non-Road Equipment is delivered to the Equipment Purchaser.

4.2 Non-Road Equipment Scrappage Requirements

1. Equipment must meet the operational guidelines above.

2. Equipment must be owned and operated by the Equipment Purchaser at the time of Voucher

Application and for the previous two years.

3. For Agricultural Pumps: Eligible scrappage pumps must have been operated at least 250 hours a year for the prior two years.

4. For Locomotive: Eligible scrappage locomotive and marine equipment must have been operated at least 1,000 hours a year for the prior two years.

5. For All Other Non-Road Equipment: Eligible scrappage equipment must have been operated at least 500 hours a year for the prior two years.

6. Equipment must be scrapped within 30 calendar days (one month) of being replaced at a participating Equipment Dismantler.

7. When Non-Road Equipment cannot be scrapped at a conventional Participating Dismantler, Equipment Purchasers must complete the bottom section of the Alternative Scrappage Plan, using the template provided by NYSERDA. The Alternative Scrappage Plan will be submitted to NYSERDA, DEC, and EPA for approval to ensure equipment is scrapped in an acceptable manner.

It is recommended that an Equipment Purchaser representative attend the Scrappage event to ensure it is properly documented and that all required before and after photos are taken to avoid delay or denial of voucher payment.

Scrappage Event Requirements:

1. The Equipment must arrive at the participating scrappage dismantler in working condition.

Do not remove anything from the equipment except for personal items.

2. Cut a three-inch-by-three-inch hole in the engine block (the part of the engine containing the cylinders).

3. Disable the chassis by cutting through the frame/frame rails on each side at a point located between the front and rear axles.

4. The types of photos required before and after the Scrappage Event for each piece of equipment is listed here:

5. Before Scrappage Event (photos need to be minimum image size of 1200 x 1800 pixels or 4 x 6 inches):

1. Side profile of the equipment prior to scrappage

2. Front of equipment prior to scrappage

3. VIN tag or equipment serial number

4. Engine label (showing serial number, engine family number, and engine model year)

5. Engine block prior to three-inch hole

6. After Scrappage Event:

1. Engine block after cutting three-inch hole.

2. Cut frame/chassis rails after scrappaging.

Failure to comply with Scrappage requirements may result in the rejection of future voucher applications.

During the Scrappage process, before any crushing or shredding, equipment must be decommissioned, meaning the potential environmental contaminants including, but not limited to, fluids, batteries, refrigerants, mercury switches and airbags, have been drained and/or properly removed.

Both the approved Participating Equipment Dismantler and the vehicle owner will be required to sign and submit certifications that the Scrappage was performed in accordance with Program rules.

The Equipment Purchaser shall acknowledge that they may be responsible to the Dealer for the value of the voucher if they fail to complete the Scrappage requirement within 30 calendar days (1 month) of Zero-Emission Equipment delivery.

5. Non-Road Equipment Operating Requirements

1. Any new zero-emission non-road vehicles and equipment funded under this Program must be maintained and remain in use for a minimum of five (5) years based on the in-service start date. During this time, subject non-road equipment must be operated by the Equipment Purchaser/Operator as listed in the application. The Equipment Purchaser/Operator must demonstrate compliance with the five-year in-service requirement through required reporting.

2. Replacement non-road equipment sold or retired before the minimum in-service requirement (i.e., 60 months) are subject to prorated reimbursement penalty (i.e., 1.667% per month for a 60-month in-service period). For example, a new non-road equipment sold or retired after 30 months of a 60-month in-service requirement would have 30 months remaining; the early sale/retirement penalty would represent 50% (i.e., 30/60) of the original incentive amount.

This early sale/retirement penalty must be reimbursed to NYSERDA within 60 days of the sale of the vehicle.

3. Subject to DEC approval, non-road equipment rendered inoperable by damage may be exempt from the five-year minimum in-service requirements. NYSERDA will report any affected equipment to DEC for review and include usage and maintenance of the damaged equipment in reporting.

6. Class 3-8 Zero-Emission Vehicle and Vehicle Purchaser Eligibility

6.1 Class 3-8 ZEV Eligibility

A wide variety of vehicles are eligible for the Class 3-8 ZEV funding track, including: straight trucks, tractors, step vans, shuttle buses, refuse trucks and other medium or heavy-duty vehicles. All vehicles must be greater than a Class 3 (per EPA truck classifications) and weigh 10,001 pounds or greater.

Note: School buses are ineligible for this Program. School Bus Purchasers must apply to the New York School Bus Incentive Program (NYSBIP). Please visit the NYSBIP Website and Implementation Manual for information on School Bus funding.

Note: Transit buses are ineligible for this funding track. Transit bus Purchasers must apply to the NYTVIP Transit Bus Funding Track. Refer to Section 10 for Transit eligibility.

Vehicles eligible for funding through the Class 3-8 track of NYTVIP must meet the following eligibility criteria:

The vehicle must be a Class 3-8 Zero-Emission BEV or FCEV.

Vehicles must be new or repowered.

Repower vehicles models do not need to be new, but the powertrain must be new and the same model year as the Voucher Application year. This will be checked at Voucher Application submission. Refer to Section 7.4 for Repower Voucher Amounts.

New vehicles, including the vehicle chassis and powertrain, cannot be previously registered in any state. Used vehicles (including vehicles used by dealers, OEMs, or other entities or for demonstration purposes) are NOT eligible.

New ZEVs funded under this Program must have a model year within two years of the Voucher Application calendar year. For example, in calendar year 2025, eligible model years are 2023, 2024, 2025, 2026, and 2027.

Vehicles cannot be fully paid for by the Purchaser (a vehicle down payment is permissible) or have been delivered to the Purchaser prior to the Dealer applying for a voucher.

6.2 Class 3-8 ZEV Vehicle Purchaser Eligibility

Vehicle Purchasers must be a commercial enterprise (i.e., not used for individual or personal activities), nonprofit organization (exempt from federal income taxed under Section 501 of the Internal Revenue Code 26 U.S.C. § 501), or public sector entity (excluding federal governmental entities) that Domiciles, registers (if applicable), and/or operates the vehicle in New York State for at least 80% of the time.

Transit Authorities are not eligible to apply for this Funding Track. Vehicle Purchasers may also be a vehicle leasing company, check details below.

All Purchasers must sign the Purchaser Participation Agreement as part of the Voucher Application process.

6.3 Class 3-8 ZEV CaaS and E-Fleet Vehicle Purchaser Eligibility Charging-as-a-Service (CaaS) Providers are eligible and can apply for NYTVIP funding as long as the vehicles meet all program eligibility requirements and the CaaS/E-Fleet company can uphold the reporting and operating requirements for the three (3) year reporting period to NYSERDA. The CaaS or E-Fleet company on the NYTVIP application will be considered the Vehicle Purchaser.

Where the vehicle will be leased to a third party for at least three (3) years, the Lessee (the Operator) will act as the NYTVIP Vehicle Purchaser. The incentive passed through the CaaS/E-Fleet company. This application option is solely for short term (three years or less) rentals and leases.

CaaS and E-Fleet Requirements:

1. Must report vehicles to NYSERDA for entire three-year reporting period.

2. Cannot increase cost of services due to NYTVIP incentive(s).

3. Must submit Short Term Rental/Lease Agreement showing the cost of services being decreased due to NYTVIP incentive at Voucher Redemption.

4. Vehicles purchased through CaaS Providers must be registered, domiciled, and operated at least 80% of vehicle miles or operating hours in New York State.

5. Must have a valid EIN for at least the last calendar year.

6.4 Class 3-8 ZEV Special Conditions for Leased Vehicles

Vehicles purchased by a leasing or rental company with a known entity that will be leasing or renting the vehicle (the Operator) are eligible Vehicles Purchasers under the Program. A leasing or rental company cannot request a voucher to purchase a demonstration vehicle with the intention of finding a prospective Fleet to lease the vehicle. The leasing or rental must be for at least three (3) years from the Voucher Approval Date.

The Vehicle Purchaser is the leasing or rental company, and the Vehicle Operator is the Lessee.

Where a Purchaser intent to lease the vehicle to a third-party Operator for the three-year operating period, the Operator will be included in the Voucher Application. The Voucher Application must also contain a lease (signed by both the Purchaser and the Operator). The lease may be conditional, so long as the only contingent condition is approval of NYTVIP Voucher Application. The lease must include the Vehicle Operator Addendum available on the Program Website. The lease must be fully executed within one month (30 calendar days) of voucher approval. The Purchaser must disclose the full voucher amount and voucher terms to the Operator in the lease, which must reflect the full extent of capital cost reduction from the applicable voucher amount.

The Purchaser, whether acting as the Operator or a Lessor, must sign the Vehicle Purchaser Participation Agreement. As part of the Voucher Redemption process, the Dealer must submit a copy of the vehicle purchase agreement between the Dealer and the leasing company.

NYSERDA will review lease agreements to confirm appropriate disclosures are made regarding the voucher amount received and other Program requirements. Purchasers must provide NYSERDA with all requested lease and pricing information related to any vehicle purchased with a Program voucher (including lease agreements) within 10 days of a written request from the VHC for such information.

The Operator and the Purchaser are both responsible for ensuring annual usage reports are accurate and submitted to NYSERDA as required in the Vehicle Purchaser Participation Agreement and the Vehicle Operator Addendum.

7. Class 3-8 Zero-Emission Vehicle Incentive Schedule

7.1 Class 3-8 ZEV Funding Categories by Weight Class

The funding available for Class 3-8 ZEVs is allocated by weight classes. The total amount available for each group is:

Vehicle Weight Class Category Budget

Classes 3, 4 $15,000,000

Classes 5, 6, 7 $10,000,000

Class 8 $10,000,000

Total $35,000,000

7.2 Class 3-8 ZEV Funding Caps

In order to give the most amount of purchasers an opportunity to take advantage of Program funds, NYTVIP has a “cool off” period on the amount of funding that a single Purchaser can claim in a 12-month period. A single Purchaser, operating as one business entity, cannot be awarded more than $2 million of total Program funding in a 365-day period (based on the Award Letter Date, which the Purchaser will receive from their NYTVIP Dealer). However, a Dealer may submit new applications on behalf of a Purchaser sooner if all previous Class 3-8 ZEV NYTVIP voucher applications are marked closed in the Salesforce portal. The Dealer, NYSERDA, and the VHC can convey statuses of vehicle Purchaser’s applications.

For example, if a vehicle Purchaser receives a NYTVIP Approval Letter on September 1st, 2025, that means the Purchaser can request up to $2,000,000 through September 1, 2026. This date will be tracked in Salesforce with application submission dates for Dealers.

7.3 New Class 3-8 ZEV Voucher Amounts

Vehicle Weight Class Base Incentive DAC Bonus Small Fleet Bonus Scrap Bonus Per Vehicle Cap

3 $50,000 $15,000 $10,000 $10,000 $85,000 4 $85,000 $25,000 $17,000 $17,000 $144,000 5 $100,000 $30,000 $20,000 $20,000 $170,000 6 $150,000 $45,000 $30,000 $30,000 $255,000 7 $185,000 $55,000 $37,000 $37,000 $314,000 8 $200,000 $60,000 $40,000 $40,000 $340,000

8 (FCEV)* $285,000 $60,000 $40,000 $40,000 $425,000

* To encourage early market adoption of hydrogen fuel cell vehicles (FCEV), Class 8 FCEVs are eligible for an increase of $85,000 compared to Class 8 base incentive.

7.4 Repowered Class 3-8 ZEV Voucher Amounts

Repowered Vehicle

Weight Class Base Incentive DAC Bonus Small Fleet Bonus Scrap Bonus

Per Repowered Vehicle Cap

3 $37,000 $11,000 $7,000 $7,000 $62,000 4 $64,000 $19,000 $12,000 $12,000 $107,000 5 $75,000 $22,000 $15,000 $15,000 $127,000 6 $112,000 $33,000 $22,000 $22,000 $189,000 7 $138,000 $41,000 $27,000 $27,000 $233,000 8 $150,000 $45,000 $30,000 $30,000 $255,000

7.5 Class 3-8 ZEV Bonus Overview

NYTVIP offers increased vouchers, bonus incentives, to Class 3-8 ZEV Purchasers depending on the vehicle’s Domicile Address, size of the Purchaser’s vehicle fleet, and whether the Purchaser scraps an older diesel/gasoline vehicle. Specific eligibility criteria for each bonus incentive are listed below.

Bonuses incentives are issued on a per-vehicle basis, meaning that vehicles that will reside at the same Domicile Address would both be eligible for bonus incentives tied to address. Bonus incentive eligibility will be reviewed at the time of application. Prior to issuing the Award Letter, the Dealer will be notified if NYSERDA determines that a specific vehicle and/or project application is ineligible for bonus incentives.

NOTE: DAC Bonus and Small Fleet bonus are issued to the Dealer with the base voucher upon completion of the Voucher Redemption process. Scrappage Bonus is paid directly to the Purchaser upon submission of all scrappage related documents.

7.6 Class 3-8 ZEV DAC Bonus Eligibility

If a vehicle purchased through the Program will have a Domicile Address located within a DAC or within

0.5 miles of a DAC border, the Purchaser is eligible for the DAC bonus. DAC locations can be determined using the NYSERDA DAC Map. The amount of the DAC bonus varies by vehicle weight class, with heavier vehicles receiving a larger bonus.

7.7 Class 3-8 ZEV DAC Bonus Amounts

Vehicle Weight Class DAC Bonus

3 $15,000 4 $25,000 5 $30,000 6 $45,000 7 $55,000 8 $60,000

8 (FCEV)* $60,000

7.8 Class 3-8 ZEV Small Fleet Bonus Eligibility

NYTVIP acknowledges that higher upfront costs for ZEVs vehicles are a barrier to their adoption, therefore the Program provides additional incentives to help address this challenge for small fleets.

Vehicle Purchasers with 100 or less active commercial vehicles qualify for the Small Fleet Bonus.

To qualify, a Purchaser must have its own Tax/Employer Identification Number (TIN or EIN).

To determine fleet size, NYSERDA will utilize the SAFER database, hosted on the United States Department of Transportation, Federal Motor Carrier Safety Administration (FMCSA) Safety website. Size will be determined based on the amount of Class 3 and above power units registered in the SAFER database.

7.9 Class 3-8 ZEV Small Fleet Bonus Amounts

Vehicle Weight Class Small Fleet Bonus

3 $10,000 4 $17,000 5 $20,000 6 $30,000 7 $37,000 8 $40,000

8 (FCEV)* $40,000

7.10 Class 3-8 ZEV Scrappage Bonus Eligibility

To be eligible for the Class 3-8 ZEV Scrappage Bonus, the Purchaser must scrap a vehicle in conjunction with their vehicle purchase. The scrapped vehicle must:

Have a similar vocation as the vehicle purchased through the Program.

Be powered by a diesel or gasoline engine.

Have an engine that is vehicle model year 2015 or older.

Be the same weight class or up to two weight classes larger…