Regionally, organizations such as East Bay Community Energy are offering technical assistance to fleets, as well as loans of up to $3 million to support truck electrification.
Trucking companies will get some much-needed help from the federal Inflation Reduction Act (IRA), which includes funding opportunities for the transition to zero-emission fleets. States are following suit. California has established a truck and bus rebate voucher program while other states, including Michigan and Tennessee, have grant programs in place.
Freight trucks, critical to the U.S. economy, threaten public health and the environment. Semi-trucks are by far the biggest polluters, according to cleantechnica.com. Accounting for 10 percent of trucks on the road, they are responsible for about half of all truck emissions.
The new IRA will create additional federal funding opportunities for trucks and charging stations. That includes a $40,000 tax credit for electric cargo trucks and a 30-percent credit for chargers.
Federal Relief
The landmark law could double or triple the market for battery-electric trucks to as high as 38 percent of the fleet by 2030, claims cleantechnica.
Another $7.5 billion for chargers was included in last year's Infrastructure Investment and Jobs Act.
"The IRA's incentives for heavy-duty electric trucks could not come at a better time," according to research organization RMI. "The United States has more than four million heavy-duty trucks that travel over 150 billion miles and create over 260 million tons of greenhouse gas emissions [GHG] per year."
The primary purpose of these incentives is to encourage buying and using zero- and low-emission vehicles, said the North American Council for Freight Efficiency (NACFE).
Trucking companies considering capital investments in electric vehicle technology have to wonder if subsidies will disappear before their fleet build-out is complete.
NACFE believes that with growth in subsidies combined with the slow adoption rate of commercial electric vehicles subsidies may be around for the foreseeable future
With the IRA in place, the industry can decarbonize, potentially reducing its GHG emissions by 59 percent in 2035, nearly double what would happen without the IRA, said RMI.
With the IRA tax credit, owning an electric truck is actually cheaper than owning a diesel one in most use cases, finds the research firm. In fact, urban and regional electric trucks will become cost-superior to diesel ones as soon as 2023.
Trucks can travel 100,000 miles per year, and electrification creates significant fuel savings.
"Even many long-haul trucks that are the hardest to electrify could be transformed," said RMI.
Zero-emissions trucks are already market-tested and viable for many uses. NACFE has proven that trucks with routes less than 200 miles a day can be electrified now.
Adoption hinges on vehicle economics improving and available depot and on-route charging extending the truck's range.
Boom Prediction
RMI analyzed the economics behind the electric vehicle adoption and how that affects fleet-wide transition.
"Once zero-emissions trucks become cheaper than their diesel counterparts, adoption follows based predominately on vehicle and infrastructure availability."
The IRA will drive down the total cost of electric truck ownership approximately five years sooner than without the law. This stands for trucks traveling locally from 50 to 100 miles a day, regionally 100 to 250 miles per day round trip and long-haul trucks that travel 250 or more miles between cities, recharging enroute.
A fleet's purchase decision can be based on environmental commitments, fueling access, financial resources and operating requirements.
"But for most fleets, cost is the driving concern," said RMI. "Once electric trucks make the most economic sense for fleets, they increasingly adopt them."
The IRA jumpstarts a virtuous cycle by bringing about cost parity a lot sooner. Truck owners can start adding charging to their depots and look for e-trucks that meet their operational needs.
In turn, manufacturers of both vehicles and chargers can bring new and better products to market. This, then, will further improve electric truck costs and operational viability, driving even more adoption, believes RMI.
The firm projects the IRA will result in even greater electric truck sales.
"By 2030, more than 60 percent of new truck sales could be electric, depending on supply chain issues," predicts the company.
At State Level
To facilitate the conversion for trucking companies, California has instituted a Hybrid and Zero-Emission Truck and Bus Vouncher Incentive Projects. The program has given out $700 million in rebates for approximately 6,000 zero-emission trucks.
Regionally, organizations such as East Bay Community Energy are offering technical assistance to fleets, as well as loans of up to $3 million to support truck electrification.
"Our organization previously helped fund a program to expand EV charging in Alameda County with the state Energy Commission," said cleantechnica.
Further, utilizing the power market for charging, truck operators can generate maximum credits under California's Low Carbon Fuel Standard and earn extra incentives to cut emissions.
The state of Michigan has established a grant program through the Department of Environment, Great Lakes and Energy (EGLE).
"This is an exciting milestone into a future of innovation, cleaner air and reduced GHGs," said Debra Swartz, fuel transformation specialist in EGLE's materials management division.
The program allocates $30 million over three years to help replace qualifying diesel engines, vehicles, vessels and equipment.
The program emphasizes areas where air quality is a particular concern: designated nonattainment and maintenance areas for the National Ambient Air Quality Standards, urban counties, high asthma burden areas, and Environmental Justice Areas, according to the state.
Taking advantage of the program is transportation company CMAC. The company will invest in an electric truck to haul auto parts within Wayne, Oakland and Macomb counties, all of which are priority areas.
"We really felt that this made sense for us in more ways than one," said Scott Christie, CMAC president. "We believe we are well prepared to move down this road with our partners involved."
He said servicing the automotive companies has given the contractor a firsthand look at the progress and movement in the electric arena. CMAC will scrap the diesel truck being replaced, maximizing the impact of the emissions offset.
The state reports that the replacement should reduce GHGs of nitrogen oxide (NOx) by nearly one metric ton and carbon dioxide equivalent (CO2e) by nearly 597 metric tons over the vehicle lifespan.
In Tennessee, the Department of Environment and Conservation (TDEC) has awarded 24 organizations more than $9 million in grants to replace medium and large freight trucks. Under the Medium Truck Grant Program, awardees will replace a total of 35 diesel trucks with vehicles representing a mix of power technologies.
The list includes 10 new diesel trucks, two all-electric, 14 hybrid, eight propane and one compressed natural gas.
Recipients of grants in the Large Truck program will replace a total of 42 diesel trucks with 33 new diesel, one all-electric, one hybrid and seven compressed natural gas trucks.
Calculating Investment
The EPA has created a list of tools and resources available to truckers to understand what's involved in transitioning to electric technology.
Nationally, the agency's Diesel Emissions Reduction Act (DERA) Program funds grants and rebates that protect human health and improve air quality.
ChargePoint's Electric Vehicle (EV) Charging Incentives includes a list of tax credits, rebates and grants provided by governments and utilities for the purchase of and investment in commercial electric vehicles and charging infrastructure.
The DOE's Alternative Fuels Data Center (AFDC) maintains a comprehensive list of federal and state laws and incentives regarding transportation-related topics, including electric vehicles.
The EPA site offers fleet managers access to calculators for figuring cost of ownership.
Atlas Public Policy's Assessing Financial Barriers to the Adoption of Electric Trucks features a dashboard tool that explores analysis results.
NACFE offers a guidance report, which discusses the total costs of ownership of medium-duty electric trucks. It also addresses the market status, battery technology, regulatory barriers and the power grid.
The organization's Excel-based cost of ownership calculator compares investment in diesel or gasoline trucks against battery electric alternatives.
Drivetrain supplier Dana provides similar calculators for diesel and electric vehicles.
Resource information is plentiful, as well. The University of California has produced an overview of hydrogen fuel cell electric, catenary electric, and dynamic inductive charging technologies.
NACFE has available its Annual Fleet Fuel Study — North American Council for Freight Efficiency (2020), which analyzes the adoption of various fleet efficiency products and practices.
A report by the California Electric Transportation Coalition and the Natural Resources Defense Council compares emissions reductions and the total cost of ownership for various alternative fuel technologies.
The U.S. DOE has created a home page for its Vehicle Technologies Office. Links to research for various technology areas, including batteries, charging and electric vehicles, can be found there. NACFE also has a library of guidance reports on the electric truck market. It features business models as well as topics on charging infrastructure and barriers to adoption.
The International Council on Clean Transportation publishes research on clean transportation across all modes, sectors and vehicle technologies. University of California-Davis' Sustainable Freight Research Center maintains a publications library. The center studies the decarbonization of freight, including transitions to electric medium- and heavy-duty vehicles.
The Luskin Center for Innovation — Transportation at UCLA develops policy recommendations and research to help advance a transition to zero-emission transportation. Topics include vehicle and truck electrification, shared mobility, grid and infrastructure development, accessibility and safety. CEG
Lucy Perry
Lucy Perry has 30 years of experience covering the U.S. construction industry. She has served as Editor of paving and lifting magazines, and has created content for many national and international construction trade publications. A native of Baton Rouge, Louisiana, she has a Journalism degree from Louisiana State University, and is an avid fan of all LSU sports. She resides in Kansas City, Missouri, with her husband, who has turned her into a major fan of the NFL Kansas City Chiefs. When she's not chasing after Lucy, their dachshund, Lucy likes to create mixed-media art.
Read more from Lucy Perry here.
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