Electrifying the medium- and heavy-duty portion of the transportation sector, however, faces some unique challenges. These include higher up-front costs for vehicles and associated charging/refueling infrastructure, a lack of widespread access to charging and refueling infrastructure, strain on local electric grids, reduced cargo capacity due to the size and weight of batteries, conflicts between recharging/refueling needs and regulations on drivers’ hours of service, and the upstream emissions associated with hydrogen fuel production. At the same time, MHD vehicle electrification also presents significant opportunities. In addition to the environmental and public health benefits, MHD vehicle electrification could offer greater long-term fuel cost savings and enhanced community resilience.

Policy Recommendations:

Numerous federal and state regulations, incentives, and programs are already in place to support the electrification of the MHD vehicle fleet. These include federal emissions standards, state clean truck regulations, federal funding programs for innovation and deployment, and state rebate programs. Still, additional policy measures are necessary to overcome the range of challenges facing MHD vehicle electrification, including:

Supporting technology development and innovation: Congress should provide additional funding to support innovations in battery efficiency and to improve green hydrogen production efficiency and costs. The Department of Energy (DOE) should also conduct battery-swapping pilots for federal and commercial MHD fleets to explore cost and performance feasibility.

Expanding accessible MHD charging and refueling infrastructure: Congress and state legislatures should increase the amount of, and expand eligibility for, commercial charging/refueling infrastructure tax credits. Congress should also fund grants to enable utilities to make grid upgrades to support charging infrastructure, and the DOE should prioritize clean hydrogen development along freight corridors. In addition, federal regulators should update regulations, including on drivers’ hours of service, to accommodate charging times and other technology-specific constraints.

Accelerating vehicle deployment: The Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) should strengthen federal emissions standards to reach 100 percent zero-emissions MHD vehicle sales no later than 2040, and earlier where possible. Congress should also provide block grants for states and municipalities to replace government MHD vehicles with zero-emission vehicles, prioritizing high-pollution areas. To overcome potential wariness about newer technologies, the Departments of Transportation, Labor, and Education should fund and provide education, outreach, and workforce training initiatives to fleet owners, operators, drivers, and service technicians on zero-emission vehicle operation, charging management, and cost-benefit analysis.

Proactive policy at all levels is needed to accelerate the decarbonization of the medium- and heavy-duty vehicle fleet and the transition to a zero-emission transportation future.

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Regarding vehicle emissions and fuel economy standards, the federal government sets standards in the United States to avoid having many different state standards which could put a significant regulatory burden on vehicle manufacturers. Greenhouse gas emissions are regulated by the Environmental Protection Agency (EPA), and fuel economy standards are regulated by the National Highway Traffic Safety Administration (NHTSA), often—but not necessarily—in a joint rulemaking. California has unique authority through a waiver under Section 209 of the Clean Air Act to maintain motor vehicle emissions standards that are stricter than the federal standards.

California’s motor vehicle emission standards are referred to as the Low-Emission Vehicle (LEV) standards, which are part of the state’s larger Advanced Clean Cars Program. The LEV III standards, which govern new passenger vehicles through model year 2025, set increasingly stringent emissions standards for criteria pollutants and greenhouse gases. In addition to these standards, California has its  Zero Emission Vehicles (ZEV) program, which is also part of the Advanced Clean Cars Program. The ZEV program, which applies only to light- and medium-duty vehicles, requires manufacturers to produce and deliver for sale an increasing number of low-emitting and zero-emitting vehicles, growing from 4.5 percent in model year 2018 to 22 percent in model year 2025. The program awards “ZEV credits” to manufacturers for each qualifying vehicle they deliver for sale based on the vehicle’s all-electric range. Manufacturers must acquire a specific number of ZEV credits depending on their size.

California also has an Advanced Clean Trucks Program, which requires manufacturers producing Class 2b–8 vehicles in California to sell zero-emission trucks as an increasing percentage of their sales from 2024 to 2035.

Under Section 177 of the Clean Air Act, other states may adopt California’s Advanced Clean Cars standards, including one or both of its LEV standards and ZEV regulation, but they may not develop independent standards. As of August 2022, fourteen states have adopted both California’s ZEV program as well as the LEV standards: Colorado, Connecticut, Maine, Maryland, Massachusetts, Minnesota, New Jersey, Nevada, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington. Delaware, Pennsylvania, and the District of Columbia are following California’s LEV standards but have not adopted the ZEV program. Together, all 17 of these states and the District of Columbia are referred to as “Section 177 states.”

California, Connecticut, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont are also part of the Multi-State ZEV Task Force, which was established in 2013 to coordinate the implementation of policies and programs to increase the deployment of electric vehicles in their respective states. The Task Force set a target to cumulatively have 3.3 million ZEVs operating in their jurisdictions by 2025. In 2020, Colorado, the District of Columbia, Hawaii, Maine, North Carolina, Pennsylvania, and Washington joined the ZEV Task Force states in signing a multi-state memorandum of understanding focused on zero-emission medium- and heavy-duty vehicles, and in 2022 the ZEV Task Force released the Multi-State Medium- and Heavy Duty Zero-Emission Vehicle Action Plan laying out strategies to reach its goal of making 100 percent of new sales of medium- and heavy-duty vehicles in their jurisdictions ZEVs by no later than 2050, with 30 percent of sales zero-emission by 2030.

In 2017, Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming signed a memorandum of understanding to create the Regional Electric Vehicle Plan for the West (REV West) to promote a “seamless” EV charging network across the region’s major transportation corridors.

In 2021, Illinois, Indiana, Michigan, Minnesota, and Wisconsin signed a memorandum of understanding to create the Regional Electric Vehicle Midwest Coalition (REV Midwest) with the goals of accelerating medium- and heavy-duty fleet electrification, elevating economic growth and industry leadership, and advancing equity and a clean environment.

Last updated August 2022.

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In this phase, the project team interviewed utilities, charging station service providers, and non-profits to investigate whom retailers should be engaging as they design, install, and operate fleet and passenger vehicle charging infrastructure at their buildings.

• The key external stakeholders for retailers to engage during the charging infrastructure development process are utilities, charging station service providers, product suppliers, delivery services providers, and retail customers. These groups provide access to financial incentives, technical advice, and customer insights. Of these stakeholder groups, utilities are the most important because they can provide retailers information about commercial rebates and consulting services that assist with fleet electrification. They are the parties most involved during the entire infrastructure process.
• Early and continuous communication between retailers and utilities is essential for success throughout the process. The utility needs to be aware of where and when fleet charging station installations are happening and plan for any potential utility infrastructure upgrades, especially for medium- and heavy- duty vehicle and Direct Current Fast Charger (DCFC) loads.
• Selecting a charging network service provider who has worked with other retailers on deploying fleet and passenger charging infrastructure within the same business segment such as a fueling station or grocery store is ideal. The charging network service provider’s experience can avoid or forestall technical issues the retailer otherwise would not have anticipated.
• For passenger and fleet charging, charging network service providers offer amenities that benefit customers and retailers. This includes visibility into and control of charging stations to provide real-time data and insights for future planning, syncing with the grid to provide adaptability with time-of-use rates, and allowing customers to use a mobile phone app to manage charging and make payments.
• Since many retailers do not own their delivery vehicles, engaging with their third-party logistics providers about potentially using EVs and the fleet charging options retailers plan to implement at their sites is key. This will allow retailers to meet their internal supply chain targets while reducing fuel and logistics costs for both retailers and supplier fleets.
• As vehicle electrification becomes more commonplace over time, retail customer preferences and charging behavior are likely to change, along with technology availability. Surveying customers regularly to assess their experiences at retail charging locations is key to maintaining a competitive edge in the market.

How C2ES works to advance electric trucks and charging infrastructure

Jessica Leung, C2ES Solutions Fellow, on Electric Vehicle Charging for Retailers

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