Why You Should ZET Ahead!
Photo: Electric Island, Near Daimler Trucks North America’s Headquarters in Portland, Oregon, Showcases How To Power Electric Vans, Trucks, and Buses.
CALSTART blog contributors Jacob Richard (Technical Project Manager, CALSTART) and Bill Van Amburg (Former Exec VP at CALSTART, ongoing strategic consulting advisor) sat down for a candid conversation about the economic drivers behind successful state zero-emission technology adoption.
Jacob Richard (JR): This update of the ZET Ahead Dashboard is very exciting because we are adding a whole new dimension called Economic Development to the resource while also bringing in six new states. From my work on the truck side, you can tell not every state is being driven by policy, and this Economic Development dimension plays a bigger role than people think.
Bill Van Amburg (BVA): 100 percent on that, Jacob! We’ve been researching this for a while now, and what we’re seeing is that states with strong economic development actions targeting the zero-emission sector are gaining manufacturing and jobs and also are cross-supporting faster deployment of vehicles – often even in the absence of supportive policies for those vehicles.
JR: Right? Look at Georgia, for example. They had the second-most zero-emission truck deployments in 2024, yet don’t have the policy levers other states have in place. Big investments from companies like Rivian and Hyundai are just part of the $28 billion (yes, “billion” with a “b”) the state has attracted in clean energy manufacturing investments. What are some of the ways they have been able to attract these investments?
BVA: Georgia is one of the poster child cases here. It’s a great example of having a strong industrial strategy that guides economic development. They target key industrial sectors for action, and one of their sectors is zero-emission vehicles (ZEVs), including vehicle manufacturing and core components, like batteries. Then they instigated a highly effective tax-offset strategy to lure manufacturing and support strong workforce development programs. But top of the list, they did job one – know what you’re going after and then build a strategy to get it.
JR: The industry strategy and clustering factor seems to be very important, in that you are supporting a wide range of components needed to build a successful zero-emission ecosystem. It allows companies to cross-support each other and can enhance productivity and innovation in the state to accelerate their market for zero-emission technology.
BVA: Yeah, and Georgia really aced this clustering strategy. They bolstered their ZEV sector by also targeting and supporting broader automotive, energy, and advanced manufacturing. They then created the Electric Mobility and Innovation Alliance of industry, government, utilities, and others to support sector growth. Cluster strategy, writ large! But they are not alone. Illinois and Texas are also really effectively targeting the ZEV sector with industrial strategy. Wait, what? Texas? Yes, the Lone Star State hides its ZEV strategy on its website but, when you drill down, you see a strong industry targeting and cluster strategy, with ZEVs as a core piece of that. Illinois makes its intent more obvious and has an even more aggressive cluster strategy for ZEVs.
JR: Texas has been an interesting state to follow. Not only are they leaning into the economic development side to bring jobs and money to their state, but they also have vehicle incentives, innovative policies, and infrastructure support for ZEVs. It might be a surprise to many but also could be why they have the second-most zero-emission truck deployments as of year-end 2024, albeit mostly cargo vans, but that’s not nothing.
BVA: You’re right, that’s not nothing, that’s actually the first sector we expected to break out! (Self-serving side note: see our Beachhead Strategy white paper.) And it is happening big in Texas, partly driven by the fact they want to be the national hub for EV manufacturing (and low-cost electricity doesn’t hurt either). So, if anyone was in doubt, one of the most powerful findings from this ZET Ahead work: It’s about economic benefits, stupid. Coupled with supportive policies, planning, and regulations (where possible), don’t forget jobs. States should strategically target key areas of the ZEV supply chain for economic development; use aggressive tax incentives and offsets to lure manufacturing; and create best-in-class workforce training programs manufacturers – and infrastructure installers – need for the jobs they’re bringing.
JR: It really shows there are more benefits to ZEVs than just the environmental reasons. States can bring good jobs, save businesses money, and drive technology innovation — and do it many different ways.
BVA: Absolutely. We must embrace the fact that there is more than one path forward. We are all driven by things that we can see benefit us, and ZEV jobs are the highly skilled, well-paying jobs America needs. Sorry, data centers ain’t gonna do that. And you also find that once you build a thing, it’s no longer a negative — you’re going to want to use that thing you made to support your local industry. That’s why, even without policies like ACT, state fleet adoption goals can help the early market. Consider providing site selection and other support to companies, and maybe a state-supported coalition to identify industry needs. It all feeds together. The more you can build a complete package across the seven dimensions, the more your state benefits and the faster you can ZET Ahead!