California Air Resources Board

Learn Why and How the State Plans to Transition Medium- and Heavy-Duty Vehicles to this New Technology and What the Zero-Emission Vehicle Market Looks Like Today

Why is California pushing the transition to zero-emission trucks?

While medium-duty and heavy-duty vehicles make up only 6 percent of the vehicles registered with the California DMV, they account for over 20 percent of the greenhouse gas (GHG) emissions and almost 50 percent of emissions from oxides of nitrogen (NOx). By transitioning to zero-emission technologies for our commercial fleets, California will significantly lower cancer-causing pollutants and reduce emissions to help stabilize the climate, which is a benefit to all communities. Many Californians live, work, play and attend schools adjacent to the ports, railyards, distribution centers, and freight corridors and experience the heaviest truck traffic. Zero-emission transportation will benefit all Californians and most importantly, the communities who are most burdened by air pollution and air toxics.

A comprehensive statewide strategy is taking place to reduce emissions from transportation to protect public health and meet climate goals, including economy-wide carbon neutrality by 2045. California is working towards achieving the Governor’s Executive Order N-79-20, which aims to reach a 100 percent zero-emission drayage truck and off-road equipment population by 2035 and 100 percent zero-emission medium- and heavy-duty vehicle population by 2045, where feasible. Additional emission reductions from all freight sources, including trucks, are also essential to meeting air quality standards that will be put forth by the 2022 State Implementation Plan (SIP) Strategy.

Resources on transportation electrification goals:

States that have Adopted California's Vehicle Regulations
Governor’s Executive Order B-55-18 to Achieve Carbon Neutrality (PDF)
Governor’s Executive Order N-79-20 (PDF)
2022 State Strategy for the State Implementation Plan
Multi-State Medium- and Heavy-Duty Zero-Emission Vehicle Action Plan

How can fleet owners afford to own and operate zero-emission vehicles?

Zero-emission vehicles have higher upfront costs but have lower operating costs than conventional vehicles. Today, the total cost of ownership in California is similar to ownership of conventional vehicles for certain duty cycles, without grants or rebates. As technology continues to improve, the total cost of ownership is expected to become even more favorable. Incentives are currently available to offset a majority of, or all of, the higher vehicle purchase costs and the early infrastructure costs to help fleets begin transitioning to zero-emission vehicles today.

Both the federal government and the State of California are currently offering incentives for purchasing zero-emission vehicles. The Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) offers point-of-sale discounts to drive the commercial technology transformation and a new push is in motion to prioritize smaller fleets. A pilot project within HVIP, called Innovative Small E-fleets, is exploring ways to better support zero-emission trucks purchased by small fleets and independent owner-operators. Some ideas include innovative mechanisms such as flexible leases, truck as a service, assistance with infrastructure, individual owner planning assistance and more.

The California Public Utilities Commission (CPUC) and the State’s investor-owned electric utilities (IOUs) are working towards accelerating widespread transportation electrification by ensuring that BEV charging electric rates remain affordable compared to conventional fuels. This also includes individual incentive programs that are available to assist customers with infrastructure buildouts.

The California Energy Commission has recently rolled out the first incentive project for zero-emission truck and bus infrastructure. The $50 million-dollar multi-year EnergIIZE program will offer incentive funds for the infrastructure needs of the companies and public agencies that plan to use zero-emission vehicles.

Learn more about the costs of zero-emission vehicles using the following resources:

Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project
ZEV Total Cost of Ownership Calculator (Excel Download)
EnergIIZE Commercial Vehicle Project

What does the zero-emission vehicle market look like today?

All major vehicle manufacturers have upcoming medium- and heavy-duty ZEV plans and all but one have ZEV models in development with plans to launch them commercially by 2024. Today, there are over 100 Class 2b-8 commercial ZEV models available in North America from multiple manufacturers in every vehicle weight class category. Like heavy-duty combustion vehicles, many of these vehicles are manufactured as incomplete cab-and-chassis vehicles that can be equipped with a variety of body types to perform various functions. According to CALSTART’s Zero-Emission Technology Inventory (ZETI) Analytics, there will be 594 ZEV truck and bus models available internationally by the end 2022. This shows that the ZEV market is rapidly expanding internationally, and that these same drivetrains or configurations could be made available in California with minimal additional engineering.

Also, several states are following California’s lead and will be adopting zero-emission regulations. Nineteen jurisdictions have signed a Multi-State Zero Emission Medium- and Heavy-Duty Vehicle Memorandum of Understanding to work together to foster a self-sustaining market for zero-emission medium- and heavy-duty vehicles through the existing Multi-State ZEV Task Force, which will serve as a forum for state coordination, collaboration and information sharing on market enabling actions, research, and technology developments. The signatories include California, Colorado, Connecticut, the District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, Virginia, Nevada, and Quebec.

The California Air Resources Board (CARB) has developed several zero-emission regulatory requirements and incentive programs in recent years. The Innovative Clean Transit regulation requires a phase in of zero-emission bus purchases, ultimately resulting in 100 percent zero-emission fleets by all public transit agencies by 2040. CARB has also set new zero-emission powertrain standards and certification processes that will reduce variability in the quality and reliability of heavy-duty electric and fuel cell electric vehicles. CARB also recently passed a first-in-the-world rule – the Advanced Clean Trucks regulation (ACT) – which requires truck manufacturers to increase sales of diesel trucks and vans to electric zero-emission trucks beginning in 2024. This adopted regulation will help ensure that manufacturers offer affordable zero-emission choices to fleets, while also delivering on accelerated air quality benefits to the communities that need it the most. Six additional states have also adopted California’s Advanced Clean Trucks regulation, mandating the phase in of zero-emission truck sales in their states. These states include Oregon, Washington, New York, Massachusetts, and New Jersey. With many states on the path to follow California’s lead on zero-emission transportation CARB staff expect the economies of scale will drive down the price of zero-emission vehicles and infrastructure.

Market Availability Resources:

CALSTART's Zero-Emission Technology Inventory Tool
SDG&E EV Availability Guide
HVIP Vehicle Catalog
U.S. DOE Alternative Fuel Vehicle Database

How will California set up the infrastructure needed for this zero-emission transition?

CARB, California Governor’s Office of Business and Economic Development (Go-Biz), the California Energy Commission (CEC) and other agencies and utilities in the state are working closely to ensure this transition is a success. Investments and strategic planning are happening throughout the state. The CEC is the primary agency tasked with supporting infrastructure and has begun developing the first incentive project for zero-emission truck and bus infrastructure. The $50 million-dollar multi-year EnergIIZE project will benefit communities most impacted by transportation-related pollution by meeting essential infrastructure needs of companies and public agencies committed to replacing old, polluting equipment with clean battery-electric and hydrogen options. The California Public Utilities Commission (CPUC) and the state’s six investor-owned electric utilities (IOUs) are working towards accelerating widespread transportation electrification and ensuring that electric rates make electric vehicle charging cheaper than fueling with gasoline or diesel. Also, the Low Carbon Fuel Standard (LCFS) program creates incentives and a potential funding stream for electric charging infrastructure via a market-based system of tradable credits for clean fuel production.

Infrastructure Resources:

Plug-in Electric Vehicle Charging Station Progress
Hydrogen Fueling Station Progress
PG&E’s EV Fleet Electrification Page
SCE Charge Ready Transport Program
SDG&E Power Your Drive for Fleets Program