The California Air Resources Board is releasing $19 million for an award-winning hybrid-electric program that led to 650 cleaner delivery vans, beverage trucks and buses in populated neighborhoods in its first year.

The Hybrid Truck and Bus Voucher Incentive Program provides vouchers for up to $40,000 on a first-come, first-served basis to help California fleets purchase fuel-efficient hybrid medium- and heavy-duty vehicles that also significantly reduce smog-forming and greenhouse gas emissions. CARB said at least $2 million of the funds will be set aside for state public fleets to increase the number of hybrid vehicles.

The voucher are redeemed by customers at the time of purchase when visiting participating dealers.

Part of the Air Quality Improvement Program, the hybrid vouchers were established in 2007 by AB 118 to provide funding for advanced technology vehicles and equipment. CARB’s voucher program is implemented by CALSTART, a non-profit organization that works with business, fleets and government to develop and implement clean, efficient transportation solutions.

CARB provided almost $20 million in 2010 to help California fleets purchase more than 650 hybrid trucks and buses. The program’s first year received an award in September 2010 as the country’s top emerging state energy efficiency program from American Council for a Fuel-Efficient Economy as the Hybrid Truck and Bus Voucher Incentive Program was one of 18 top programs from 14 states. CARB said it encourages air districts to contribute to the program to further accelerate the presence of hybrid trucks and buses in their respective districts. The South Coast Air Quality Management District, for example, has contributed $1.4 million to help fleets purchase hybrid trucks and buses in its region that includes Orange County and parts of Los Angeles, Riverside and San Berardino.