CA AB363

Creates a new On-Road Heavy-Duty Vehicle Incentive Program (VIP2) within the existing Carl Moyer Memorial Air Quality Standards Attainment Program, requiring the State Air Resources Board to develop grant criteria and guidelines upon legislative appropriation.

Requires VIP2 incentives to be deployed in disadvantaged communities as identified by the California Environmental Protection Agency and in low-income communities as defined in Section 39713.

Allows VIP2 participation by existing engines or vehicles of any model year registered with the Department of Motor Vehicles, including vehicles currently excluded from the existing program such as solid waste collection vehicles, municipal vehicles, drayage trucks, and transit vehicles.

Permits replacement of existing engines with new lower-emission engines and allows out-of-state registered vehicles to participate if they operated at least 75 percent of the time in California during the previous 24 months.

Removes fleet size restrictions, allowing any size fleet to participate in VIP2, though the State Air Resources Board may limit the number of vouchers per fleet per year.