Newly Updated Tool IDs Vehicles Eligible for Incentive Funding in California and New York

PASADENA, CA, June 17, 2021 — More than 60 organizations ranging from commercial vehicle stakeholders to utilities and non-profits to industry associations wrote to call on the House Committee on Ways & Means and Senate Committee on Finance to act on the Biden-Harris Administration’s Fiscal Year 22 Budget Request proposal for the creation of a new zero-emission medium- and heavy-duty vehicle tax incentive with a direct pay option. This option is the most aggressive federal policy proposed yet to advance the purchase of clean trucks and is projected to be more effective for encouraging zero-emission truck adoption than a typical tax credit. The incentive can be claimed closer to the point of purchase, more readily encouraging fleets’ purchase of zero-emission trucks; and can be claimed by fleets of all sizes, in pa

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July 7, 2021

Contact: Roxanna Smith, 510.326.0390
Roxanna.Smith@GlobalDrivetoZero.org

PASADENA, Calif. – An innovative online tool that catalogs global zero-emission truck and bus models now makes it easier to identify the vehicles eligible for significant point-of-sale discounts in California and New York. CALSTART’s Zero-Emission Technology Inventory (ZETI) now features Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) and New York Truck Voucher Incentive Program (NYTVIP) “badges” on vehicle model descriptions. This new information was added to help raise awareness around the types of vehicles these two leading edge programs support.

“HVIP and NYTVIP put clean commercial vehicles within reach for purchasers by lowering sticker prices tens or hundreds of thousands of dollars per vehicle at the point-of-sale,” said Dr. Cristiano Façanha, Global Director of CALSTART’s Global Commercial Vehicle Drive to Zero program and campaign (Drive to ZeroTM). “By highlighting HVIP and NYTVIP-eligible vehicles in ZETI, we hope to create a one-stop resource for fleets and small businesses that are in the market for advanced technology vehicles like delivery vans, yard tractors, medium-duty trucks and more.”

Users can access HVIP and NYTVIP eligibility information by clicking ZETI’s vehicle information pages, which also include data about vehicle technology, weight/class, payload, range, storage and availability for purchase.

The California Air Resources Board (CARB) and CALSTART announced the reopening of HVIP to new voucher requests in June. That reopening made available $84 million to California-based businesses and other purchasers seeking to transform their fleets with new, zero-emission and near-zero-emission clean vehicles. All funds from the first wave – representing funding for more than 700 vehicles – have now been requested. HVIP will open again for additional point-of-sale voucher requests in August. In the meantime, public entities and any drayage vehicles can still request HVIP vouchers now.

Earlier this year, the NYTVIP released $2.5 million in new funding for advanced technology school buses, along with an additional $16 million for clean transit buses. A total of $53.9 million was available for purchasers through the program. Since 2013, NYTVIP has helped put more than 600 clean vehicles on the road. NYTVIP is administered by the New York State Energy Research and Development Authority (NYSERDA) and helps make it easier for fleets to adopt clean vehicle technologies to help meet New York State’s nation-leading climate and clean energy goals under the Climate Leadership and Community Protection Act.

Adam Ruder, Assistant Director of Clean Transportation, NYSERDA said, “Drive to Zero is an important resource in advancing access to zero-emission vehicles and helping meet New York State’s climate and clean energy goals. The ZETI database is a tool for purchasers to easily identify commercial vehicle eligibility and characteristics.”

Launched in 2020, ZETI is aimed at cataloging models of current and upcoming zero-emission commercial trucks, buses and off-road equipment globally. A first-of-its-kind platform, ZETI creates a foundation for better understanding this developing technology segment.

The Drive to Zero program and campaign unites key regions of change, along with leading manufacturers and fleet users, to collaboratively speed the development and adoption of zero-emission trucks and buses through policies, financial incentives, infrastructure investments and pilot projects that support early market success and create conditions for organic growth. Drive to Zero works collaboratively with the Clean Energy Ministerial (CEM), Action Towards Climate-friendly Transport (ACT), the Transport Decarbonisation Alliance (TDA) and The Climate Group / EV100. It is an official campaign of CEM under the organization’s Electric Vehicles Initiative (EVI).

Drive to Zero is now co-leading bilateral talks to adopt a global zero-emission medium- and heavy-duty vehicle (ZE-MHDV) MoU. The proposed global agreement would aim to reach 100 percent ZE-MHDV sales between 2040 and 2050.

Visit our website at www.globaldrivetozero.org to learn more about Drive to Zero, our tools and our progress.

CALSTART | Changing transportation for good

A national nonprofit consortium with offices in New York, Michigan, Colorado and California and partners world-wide, CALSTART works with 280+ member company and agency innovators to build a prosperous, efficient and clean high-tech transportation industry. We knock out barriers to modernization and the adoption of clean vehicles. CALSTART is changing transportation for good.

rticular smaller fleets with fewer capital resources who represent the vast majority of the U.S. on-road commercial fleet.

The full text of the letter and list of signatories are below:

The Honorable Richard Neal, Chairman
Committee on Ways & Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington D.C. 20515
The Honorable Ron Wyden, Chairman
Committee on Finance
United States Senate
219 Dirksen Senate Office Building
Washington, D.C. 20510
The Honorable Kevin Brady, Ranking Member
Committee on Ways & Means
U.S. House of Representatives
1139 Longworth House Office Building
Washington D.C. 20515
The Honorable Mike Crapo, Ranking Member
Committee on Finance
United States Senate
219 Dirksen Senate Office Building
Washington, D.C. 20510

The undersigned organizations write to thank you for your leadership in advancing zero-emissions transportation incentives this Congress in support of the Biden-Harris Administration’s American Jobs Plan. The Plan calls for unprecedented investment in the manufacture, charging and refueling, and purchase of zero-emission or electric vehicles (EVs). Collectively these investments help advance a clean energy economy that promotes American manufacturing competitiveness, addresses racial inequities from transportation sector air pollution, and combats the climate crisis. As the Committee considers clean transportation tax incentives and stimulus investments this Congress, we urge you to incorporate the proposal in the President’s Fiscal Year 2022 Budget Request for a new zero-emission medium- and heavy-duty vehicle (MHDV) tax incentive, with the option for the taxpayer to elect a cash payment in-lieu of the credit (i.e. a direct pay option).

The American Jobs Plan lays the groundwork for the creation of critical purchase incentives for zero-emission MHDVs. The FY22 Budget Request furthers this goal by calling for new zero-emission MHDV investment tax credits with a direct pay option. As you are aware, the proposed credits would range from $25,000 for purchases of Class 3 vehicles to $120,000 for Class 8 vehicles, starting in 2022 and stepping down according to class through 2027. The credits would also be paired with strong labor standards to encourage good-paying and good-quality jobs. We encourage the Committee to make these zero-emission truck purchase incentives for fleets of all sizes an integral part of the United States’ proposed investment in EV tax incentives.

The approach of combining an investment tax credit with the short-term ability to quickly obtain the cash equivalent benefit as a cash payment in-lieu of credit, utilized in the American Recovery and Reinvestment Act of 2009, was proven to be an extremely effective and successful mechanism to stimulate the desired clean technology investments.

The significant upfront incremental cost difference of zero-emission trucks and buses, which are still in the early stages of commercialization, is a key barrier to commercial fleet electrification in goods and people movement. The most effective state zero-emission MHDV incentives offer rebates that in practice provide cash payments to offset this incremental cost and higher purchase price close to the time of purchase. Tailoring a tax incentive amount to offset a large portion of the incremental cost with the option to monetize the credit, as the FY22 Budget proposal does, will help aggressively knock down this barrier to deployment. In addition, most U.S. fleets operate six or fewer trucks and are unable to overcome the upfront incremental cost barrier to purchasing cleaner trucks. A cash payment in-lieu of credit would directly benefit these smaller fleets with fewer capital resources.

An analysis conducted by the nonprofit organization CALSTART of a 10-year zero-emission truck tax incentive, made available through a cash payment, for Class 3 through 8 vehicles was projected to support over 478,000 clean trucks and buses deployed nationwide, avoid emissions equivalent to taking 5.4 million cars off the road, and support 55,000 direct and indirect jobs over the incentive’s lifetime.

High-tech zero-emission trucks are in development or early production in most weight classes right now. Zero-emission MHDV product offerings in North America are on track to more than double by the end of 2023. The rising growth of e-commerce, compounded due to the COVID-19 pandemic, means electric delivery vans and trucks will quickly have an outsized role to play in our Nation’s economic recovery because of substantial increases in goods delivery in local-, regional-, and long-haul freight movement segments.

Zero-emission MHDVs also present a significant opportunity to make stimulus investments that both boost this important industry and support economic growth, but also help clean the air of frontline communities and address climate change. Medium- and heavy-duty vehicles represent a small share of all vehicles on U.S. roads but reflect a high level of the Nation’s daily vehicle use in support of critical goods movement. As a result, they contribute to a disproportionate fraction of total transportation sector fuel consumption, greenhouse gas emissions, and air pollution. Decarbonizing these trucks will support the Administration’s goal to invest in environmental justice communities through smart EV investments, with the potential to directly benefit the communities adjacent to where MHDVs often operate or are domiciled.

As the Committee works to balance EV investment priorities, we would welcome the opportunity to work with you to advance clean transportation tax legislation this Congress that includes zero-emission MHDV incentives redeemable as a cash payment in-lieu of tax credit. These incentives would help drive aggressive clean truck deployments by the middle of the decade, bend down the curve on MHDV transportation emissions as quickly as possible, and support the clean truck and bus supply chain and its workforce. Thank you for your consideration.

Sincerely,

ABB
AlphaStruxure
American Council for an Energy-Efficient Economy (ACEEE)
AMPLY Power
Anaheim Transportation Network
Arrival Automotive, USA
Ballard
Bollinger Motors
BYD
California Electric Transportation Coalition (CalETC)
California Hydrogen Business Council
CALSTART
Ceres
Chanje Energy
Climate Resolve
ClipperCreek, Inc.
Colorado Cleantech Industries Association (CCIA)
Conservation Law Foundation
Danfoss
DD DANNAR, LLC
DHL
Dream Corps Green For All
DTE Energy
Earthjustice
Eaton
EAVX
Edison International
Effenco Development Inc.
Elders Climate Action
Elected Officials to Protect America
Electric Transportation Community Development Corporation (ETcommunity)
Electriphi Inc
Environmental Defense Fund
EVgo
Fontaine Modification
Forth
GreenLatinos
Hyzon Motors
ITS America
Kalmar Solutions LLC
Lightning eMotors
Lion Electric
Motiv Power Systems, Inc.
NAFA Fleet Management Association
National Association of State Energy Officials
National Grid
Navistar, Inc.
Nikola Corporation
Odyne Systems, LLC
Paired Power, Inc.
Phoenix Motorcars
Plug In America
Proterra
Revolv
Roush CleanTech
San Diego Gas & Electric (SDG&E)
Sierra Club
SRECTrade
Stark Area Regional Transit Authority
Union of Concerned Scientists
Veloce Energy
Voices for Progress
Volvo Group North America
Xos Trucks

Cc: The Honorable Nancy Pelosi, Speaker of the House, U.S. House of Representatives
The Honorable Kevin McCarthy, Minority Leader, U.S. House of Representatives
The Honorable Charles E. Schumer, Majority Leader, United States Senate
The Honorable Mitch McConnell, Minority Leader, United States Senate