ZET Ahead Interactive Dashboard
This resource illustrates the most impactful state actions and investments for transitioning to zero-emission medium and heavy-duty vehicles. States looking to kick-start their transition can use this as a framework for action!
The ZET Ahead Dashboard tracks seven Market Dimensions (Targets, Planning, Economic Development, Vehicle Incentives, Infrastructure, Innovative Policy, and Regulations) inclusive of subcategories we’re calling success factors, which represent a set of known actions that can be taken to help progress that market dimension.
Explore each dimension to understand the key success factors and implementation strategies for zero-emission medium and heavy-duty vehicle adoption.
Set Targets
Establishing clear targets is the foundation of an effective zero-emission vehicle (ZEV) strategy. Goals provide direction, create
accountability, and set the pace for all other actions. The strongest early steps states can take is to sign the State MOU and adopt
the goals of the Advanced Clean Trucks program.
Multi-State MHD ZEV MOU
The Multi-State Medium- and Heavy-Duty Zero Emission Vehicle Memorandum of Understanding (Multi-State MOU) established targets for at least 30% of new MHD vehicle sales to be ZEVs by 2030 and 100% of sales ZEVs by 2050. The MOU has been signed by 17 U.S. states plus DC and Quebec and is accompanied by the Multi-State MHD ZEV Action Plan.
Global MHD ZEV MOU
The Global Memorandum of Understanding on Zero Emission Medium- and Heavy-Duty Vehicles is aimed at amplifying and supporting international government ambition on MHD ZEVs. Signatories are national governments, and sub-national governments (states, provinces) can endorse the MOU. The Global MOU includes targets for 30% of MHD vehicle sales to be zero- emission by 2030 and 100% by 2040.
Executive Order
A head of government (e.g., Governor or Mayor) can issue a directive to set a target for zero-emission vehicle adoption and marshaling government resources to pursue this target without requiring approval from the legislative branch.
Implement Critical Planning
To implement the state’s targets policy makers must have crucial information at their fingers tips, including MHDV populations,
segmentation and user types, as well as models of the energy needs of these vehicles geographically and in time as they phase in
to use. Developing a state transportation carbon reduction roadmap can be a strong action that integrates this data into an
action plan.
MHD- specific Planning
Detailed MHDV decarbonization planning includes either an MHDV-specific decarbonization plan or a more general statewide transportation decarbonization roadmap that significantly details MHDV decarbonization. An MHDV-specific decarbonization plan is a standalone strategy that outlines how a state will use policy, regulation, and investment to support the deployment of zero-emissions MHDVs. A state’s transportation decarbonization roadmap outlines when, where, and how fast transportation needs to shift to zero-emission vehicles.
ZEV Infrastructure Planning
ZEV Infrastructure Planning includes statewide ZEV Infrastructure deployment plans and utility transportation electrification plans. A utility transportation electrification plan (TEP) is a multi-year plan forecasting ZEV growth and the steps the utility is proposing to take to prepare for the transition. A ZEV infrastructure plan identifies the most likely timing for electrification of different vehicle use types, their geographical locations, and their energy needs for refueling as they phase in over time; this is especially valuable for utility and policy planning to inform the timing of investments and gap assessments.
Additional Planning
Additional planning activities include steps like state MHDV inventories or fleet technical assistance (TA) planning. Fleet TA planning can be sponsored by state agencies and/or utilities and offer detailed planning assistance for fleets to prepare for decarbonization by identifying available equipment, incentives, and infrastructure needs. A statewide MHDV inventory compiles and assesses what MHDVs are in the state, where they are located, what size class and application they are, and the vehicle miles traveled. These tools build confidence among fleets and ensure state policy is grounded in real-world data.
Drive Economic Development
One of the most exciting elements of a successful state ZET strategy is to consciously couple it with an economic development plan. Low carbon, zero emitting technologies, vehicles and infrastructure are one of the critical growth areas for the world economy and states with strong market and regulatory support for these technologies will be attractive sites for manufacturing, service and support. In particular, infrastructure installation and maintenance jobs are “hyper-local” – they must be done in region – and are a powerful area for job training, incentives and favorable policies. States with ZET policies can reap job and economic benefits by developing these elements. States who have started with the economic elements can now strengthen their local industries by enacting policies to encourage the use and deployment of the technologies they manufacture.
Industry Strategy/Clustering
A powerful economic development tool is to develop a targeted, industry sector strategy to outline the region’s strengths to entice and support zero-emission vehicles, components, and batteries. By enacting this strategy regions try to build on or create a cluster of cross supporting companies that are attractive to outside businesses because of proximity to a supplier and skills network. Cluster development leverages specialization, research and educational institutions, knowledge spillovers, and supply chain efficiencies to enhance productivity and innovation, while creating a critical mass of talent and investment in ZEV manufacturing regions.
Public Financing
Financing – including grants, loans and investments – can focus on manufacturing sites and activities. These programs provide immediate capital funding to manufacturers for facility construction, equipment purchases, or R&D activities, allowing EV vehicle assembly, component and battery producers to establish operations with reduced upfront costs and financial risk. States often tie these direct financial supports to specific job creation targets, production volumes, or local supply chain development.
Tax Inducements
Reducing manufacturer and company tax burdens through abatements, credits, or exemptions on property, sales, or corporate income taxes, can effectively lower operational costs for ZEV, component, and battery producers over extended periods. Tax easements typically require long-term commitments from companies and may be set to increase as manufacturers meet certain investment or employment thresholds.
Workforce Development
Training the necessary workforce is a critical activity. Infrastructure is a hyper-local employment driver and is needed at truck depots, freight hubs and major corridors. Initiatives provide specialized workforce training, recruitment assistance, and wage subsidies specifically designed for ZEV, component, infrastructure and battery manufacturing skills, helping companies access qualified workers while creating employment opportunities in communities. These programs involve partnerships between manufacturers, community colleges, and workforce development agencies to create talent pipelines aligned with the specific technical needs.
Streamlined Permitting and Regulations
Create an expedited and simplified approval processes for industrial land use, environmental compliance, and building
permits specifically for ZEV, component, and battery production facilities. By reducing bureaucratic delays and regulatory uncertainty, states enable manufacturers to establish or expand operations more quickly, often cutting months or years from traditional facility development timelines.
Business Assistance
States can provide business assistance services to help companies select manufacturing locations and understand available incentives. Some even actively recruit companies. This activity provides tailored technical assistance, consulting services, and business development resources specifically designed for ZEV, component, and battery manufacturers, helping them optimize operations and overcome growth challenges. These programs can also include manufacturing extension partnerships, export assistance, supplier development initiatives, and specialized business counseling to strengthen the entire ZEV manufacturing ecosystem.
Establish Vehicle Incentives
Regulations to enforce targets is a critical path item, but vehicle purchase incentives are a vital supporting mechanism to accelerate market adoption by reducing costs. Well-designed programs, especially point-of-sale vouchers, make ZEVs more competitive with combustion vehicles and catalyze early adoption.
Voucher Program
Also known as “point-of-sale” or “cash-on-the-hood” incentives, vouchers directly reduce the cost of purchase to the fleet and bring the cost of new ZEVs closer to parity with conventional vehicles.
Rebate Program
Partial refund of the purchase price given to a customer after the completion of a transaction, typically offered as an incentive or promotion by manufacturers, retailers, or service providers.
Grant Program
Financial award given for a particular project, program, or purpose to provide support for activities that align with grantor priorities. Normally requires submittal of a proposal and a competitive review process, which can be simple or complicated and sometimes time-consuming.
Assignable Income Tax Credit
Tax benefit that can be transferred or assigned to another party, allowing the original recipient to allocate the credit to a third party, such as a partner or investor. The third party ideally reduces the vehicle cost or lease basis by the amount of the tax credit.
Sales Tax Exemption
Legal provision that exempts vehicles from sales tax; can reduce the cost differential between ZEVs and conventional vehicles.
Prepare and Support Infrastructure
Infrastructure is the backbone of the transition, and it is critical for all parties to start early. States must act to help avoid infrastructure deployment bottlenecks given the long lead times for upgrades and permitting and costs of infrastructure. Utility regulation, rate design and corridor development are especially critical to help ease and accelerate the development of infrastructure.
Equipment Incentives
State or utility programs can encourage procurement and installation of charging and hydrogen fueling infrastructure through a subsidy (grant, rebate, tax credit, or voucher).
Make-ready Programs
Make-ready programs allow utilities to cover all, or a portion, of the costs associated with eligible service upgrades, such as transformer replacement, new wiring, trenching, and more on the customer side and/or utility side of the electricity meter, rather than requiring the customer to pay for the full upgrade cost.
Rate Design Innovations
Electricity rates are designed by utilities to reflect and allocate the costs of providing electric service within customer classes, but most rate structures have been designed for energy consumption by buildings, rather than vehicles. Emerging best practices for addressing barriers include demand charge modifications or holidays as well as time-of-use rates to create more competitive operating costs for EVs.
Other Utility Programs
This broad category can include energy demand planning, distribution grid upgrades and expansion, and initiatives that promote development and integration of renewable energy sources into the grid – including energy storage – thus ensuring availability, accessibility, and reliability for infrastructure services.
Corridor Development
States that have major interstate highways in the national freight network, securing funding to identify and acquire sites and develop and commission zero-emission charging/refueling equipment along those corridors is an important leadership action to signal a state’s support for ZEV adoption.
Institute Supportive Innovative Policies
Spurring wide-spread decarbonization of transport requires creating a broad and innovative ecosystem of policies and investments that encourage and reward zero-emission vehicle and infrastructure adoption. This all of government approach should focus on creating benefits for low and zero carbon technologies and fuels, and potentially penalties and costs to high carbon or conventional technologies and fuels.
Low Carbon Fuel Standard (LCFS)
Framework that establishes carbon intensity targets, credit trading systems (earn credits for supplying low carbon or renewable fuels), and requirements for increasing percentages of fuels to come from renewable sources over time. The credits can help fleets by providing a revenue source for using clean electricity or hydrogen. Also known as a Clean Fuel Standard.
Cap and Trade/Invest
The program is based on setting a cap on the amount of greenhouse gas that can be emitted from transportation or economy-wide,
which declines over time. Regulated parties can then trade, allowing entities with emissions below the cap to sell their excess allowances to those exceeding their limit. States can retain a portion of the revenues and can dedicate these funds to incentives or other policy-aligned investment programs.
Indirect Source Rule
A novel approach for regulating truck emissions is to make freight hubs, such as warehouses, multi-modal and distribution center sites responsible for reducing emissions attributable to the trucks using the sites (the indirect sources). Facilities can comply by requiring fleets using their facilities to operate cleaner vehicles, setting variable fees depending on fuel type, or providing infrastructure.
Weight Exemption
Gross vehicle weights for zero-emission vehicles are currently greater than comparable conventional vehicles because of battery or fuel cell weight. A limited weight exemption for ZEVs can allow ZEV fleets to carry the same cargo weight as a conventional vehicle and suffer no use restriction.
Establish Regulations
Regulations can come earlier or later in this continuum – we think their development should be on a parallel path with all other factors – but eventually they are needed. States must codify their targets and set enforceable requirements for achieving them. There are a range of options for implementing regulations, with the most impactful being to adopt the Advanced Clean Trucks and Advanced Clean Fleets regulations. Other approaches are also possible and useful.
Advanced Clean Fleets (ACF)
Requires fleets that are well suited for decarbonization to reduce emissions through requirements to both phase-in the use of ZEVs for targeted fleets and requirements that manufacturers only manufacture ZEV trucks starting in the 2036 model year.
Advanced Clean Trucks (ACT)
The Advanced Clean Trucks (ACT) rule is a regulation initially promulgated by the California Air Resources Board (CARB) in 2020. The rule requires an increasing number of ZE MHDVs to be manufactured and sold in participating states, ramping up through 2040. To date, 10 other states have adopted the ACT program.
Heavy Duty Omnibus (HDO)
Adopting California’s HDO would ensure that all new internal combustion engine MHDVs follow emissions standards, testing and compliance mechanisms for nitrogen oxide (NOx) and particulate matter (PM) emissions from on-road heavy-duty vehicles for model years (MY) 2024 through 2031.
Application-Specific Purchase Requirement
As required by legislation or executive action, particular applications or vocations of vehicles can be required to phase in progressively greater shares of ZEVs or to be fully zero- emission by a certain date (e.g., airport shuttles, transit buses, school buses, drayage trucks).
State Fleet Electrification
Requiring state agencies to electrify all fleet vehicles by a set timeline highlights “walking the talk” but also can set in place purchase contract structures that all public agencies and municipalities in the state can utilize. While public fleets are a small percentage of total vehicles they are a high-profile application that showcases leadership in action.