California's billion-dollar push to put zero-emission trucks and buses on the road has supported nearly 12,000 vehicles, but a new investigation has found the state also sent millions of dollars to companies facing fraud allegations. In Porterville, the city expanded its fleet and lowered operating costs, according to the newspaper.
The findings come from an investigation by the Los Angeles Times, whose reporters examined California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, known as HVIP. The program carries a $1 billion budget and was designed to expand the zero-emission vehicle market while improving air quality in heavily polluted communities, according to the Times. State officials have credited the subsidy program with helping reduce air pollution and planet-warming gases, but the Times investigation found that claims about the program's benefits rely heavily on assumptions and estimates rather than actual data.
Money Flowed to Companies Already Under Fraud Scrutiny
Among the most striking findings: California disbursed $50 million in HVIP subsidies for over 166 Nikola electric and hydrogen semi-trucks, the program's highest average subsidy per vehicle, despite Nikola's former CEO having been indicted for fraud. Nikola filed for bankruptcy in February 2025 following widespread battery fire recalls, according to the Los Angeles Times. The company's collapse came after years of warning signs that state regulators apparently did not treat as disqualifying.
Nikola was not the only clean-tech firm that kept drawing state money despite legal trouble. Hyzon Motors later settled an SEC civil fraud case in 2023, per the Times report.
Porterville's Fleet and Questions About Vehicle Verification
Porterville's experience illustrates the potential benefits of fleet investment. The city expanded its transportation fleet and lowered operating costs, the newspaper reported.
Court records cited by the Times show California paid nearly $1 million in public funds for vehicles that did not exist at all. The investigation also raised broader concerns about the program's oversight.
GreenPower's Suspension and an Attorney General Investigation
GreenPower Motor Company has become a focal point of the fraud concerns. CARB suspended GreenPower from HVIP in March 2023, and the company sued in Sacramento County Superior Court, the Times reported. The California Attorney General's Office has investigated potential HVIP and False Claims Act violations involving GreenPower. A state appeals court upheld administrative subpoenas against GreenPower in July 2025.
Nonprofit CALSTART is a partner of the California Air Resources Board in HVIP.
A Program With Real Reach, and Recent Controversies
HVIP's scale is substantial. The program has supported nearly 12,000 vehicles, according to CARB's outcomes data.
The program has drawn controversy before. Hoodline previously reported that state regulators faced backlash over a $165M Tesla deal after CARB set aside roughly $165 million in HVIP vouchers for nearly 1,000 Tesla Semis in early 2026, prompting smaller manufacturers to allege state-sponsored market manipulation.
Taken together, the findings point to a tension at the heart of California's clean-air strategy: the urgency of eliminating diesel emissions from the state's most polluted corridors, set against questions about oversight of the voucher system and the use of public money for vehicles that never existed.
