2025 Fleet Incentive Roadmap: 17 Key States Supporting Zero-Emissions Adoption

Hoping to electrify your fleet in 2025? The EPA’s $4.3 billion Climate Pollution Reduction Grants program provides major funding opportunities for fleet electrification in 2025. Over $1 billion in funding for zero-emissions vehicles and supporting infrastructure exists across 17 states. Act quickly to secure your share of this funding and reduce conversion costs.

*Please note that all program details are subject to change based on final approval and launch developments. Fleet operators are advised to stay updated on specific application dates and requirements.

California: $500 Million in Fleet Support
California is at the forefront of zero-emissions initiatives, committing $500 million to help fleets deploy ZEVs and charging infrastructure. This funding, managed by South Coast AQMD, targets heavy-freight areas in Southern California, supporting fleets with a major opportunity to offset the costs of adopting clean technologies.

• Funding Highlights: $500 million for Southern California with targeted support for battery electric freight vehicles and heavy-duty charging infrastructure.
• Deployment Plans: Facilitates the deployment of 800 electric trucks and over 1,000 new charging stations in high-traffic areas.

Illinois: First Comprehensive ZEV Initiative with $430 Million
Illinois will launch its first large-scale program aimed at helping small and medium fleet operators transition to zero-emissions vehicles. With $430 million allocated for incentives and infrastructure, Illinois marks a significant shift toward sustainable transportation.

As with all new programs, details are subject to finalization as Illinois continues to develop the Heavy-Duty Vehicle Charging Infrastructure Program.

• Program Vision: Illinois will develop a Heavy-Duty Vehicle Charging Infrastructure Program to drive ZEV adoption among smaller fleets, advancing the state’s broader clean energy goals.

Northeast I-95 Clean Corridor Coalition: $249 Million to Clean Up Key Freight Routes
A coalition of Connecticut, Delaware, Maryland, and New Jersey is transforming the I-95 corridor with $249 million in funding aimed at establishing a clean transportation corridor. This Climate Pollution Reduction Grant (CPRG) funding will support electric and hydrogen fueling stations for zero-emissions fleets.

• Connecticut: May expand its CHEAPR program with $15 million for heavy-duty vehicle incentives, offering up to $120,000 per Class 8 ZEV..
• Delaware: Uses coalition funding to build ZE-MHDV infrastructure, enabling future adoption without specific scrappage or vehicle mandates.
• Maryland: Supports fleets with its MHD ZEV Grant Program, offering up to $525,000 per BEV and $187,500 per FCEV. Maryland’s coalition funding enhances available infrastructure.
• New Jersey: Will invest in NJ ZIP for fleet incentives.

This corridor-based approach aims to support ZE-MHDVs across one of the nation’s busiest routes, allowing fleet operators to benefit from strategically placed fueling stations and robust state support.

Oregon to Expand ZEV Rebates in 2025
Oregon’s Climate Pollution Reduction Grant (CPRG) of $197 million is set to drive equitable access to ZEV rebates for medium and heavy-duty fleets. This initiative aligns with Oregon’s goals to reduce transportation emissions and support environmental justice.

• Upcoming Rebates: CPRG funding will facilitate rebates for up to 176 new ZEVs. When the next funding round opens in February 2025, it will do so with an initial allocation of $3 million, enabling fleet operators to prepare their applications.

Minnesota: $200 Million for Food-Related Transportation Emissions
Minnesota’s recently awarded $200 million in Climate Pollution Reduction Grant (CPRG) funding marks a key step forward in supporting zero-emissions transitions, particularly in heavy-duty vehicles within the food system. This new funding will focus on reducing emissions across food-related transportation, enabling cleaner operations throughout the state.

• Primary Focus: Supporting the transition of diesel-fueled heavy-duty vehicles and equipment to zero-emissions alternatives within Minnesota’s food systems.

With more details on application windows coming soon, Minnesota’s CPRG support will help food-related fleets reduce emissions, improve air quality, and align with local sustainability goals.

South Central Hydrogen Corridor: $100 Million to Fuel the Transition
Arkansas and Oklahoma are leading a pivotal clean transportation initiative with $100 million in new funding to develop a South Central Hydrogen Corridor. The corridor, backed by the CPRG, will establish hydrogen fueling stations and support zero-emissions vehicle (ZEV) adoption across the region.

• In Arkansas, plans include a new hydrogen fueling station in Springdale, strategically positioned to enhance access for hydrogen-powered trucks and reduce emissions in freight-heavy regions.
• In Oklahoma, a hydrogen fueling station along Highway 412 in Tulsa will link critical freight corridors, providing fleets with a seamless path to adopt clean energy solutions.

Colorado: Electrifying Fleets with Clean Fleet Grants and Fleet-ZERO Support
Colorado provides significant funding through its Clean Fleet Vehicle Technology Grant Program, with up to $275,000 per ZEV. The Fleet-ZERO program supports this by funding 80% of electric charging infrastructure projects, helping fleets meet ACT mandates.

• Clean Fleet Grants: Offers up to $275,000 per ZEV, with competitive applications reopening in Spring 2025. Vehicle scrappage isn’t mandatory, but favored.
• Fleet-ZERO: Covers 80% of electric infrastructure costs. It aligns with Clean Fleet applications but doesn’t include hydrogen projects.

Washington: $100 Million MHD ZEV Program Boosts Heavy-Duty Truck Transition
Washington plans to launch its MHD ZEV voucher program in late 2024 or early 2025, offering vouchers of up to $120,000 for heavy-duty BEVs. The Northwest Seaport Alliance adds $16 million to support ZEV adoption at ports.

• MHD ZEV Voucher Program: Modeled after California’s HVIP, will provide $120,000 per BEV, or FCEVs. (The program doesn’t exclude FCEVs.) The program will feature a Fleet Advisory Program to help assess fleets’ readiness to electrify their operation and will offer recommendations on vehicles, chargers, insurance, etc. to fleets.
• Northwest Seaport Alliance: Allocates $16 million to deploy ZEV trucks at port facilities to reduce emissions in high-traffic areas.

Texas: $87 Million for Fleets, Hydrogen Grants, and Port Initiatives
Texas offers extensive funding for ZEVs through programs like TxVEMP and SPRY, with added support from the new THIVE program for hydrogen infrastructure and vehicles. With most funding requiring scrappage, Texas prioritizes early action.

• TxVEMP: Statewide program with approximately $57 million remaining for diesel truck replacements, requiring scrappage.
• SPRY: $20 million for diesel truck replacements at seaports and railyards in select counties and facilities.
• THIVE: $16 million exclusively for FCEVs, with a second round possibly opening in Fall 2024 or early 2025.

Nevada: Pioneering Small Fleet Support with $4 Million in Incentives

Nevada’s new Clean Trucks and Buses Incentive Program stands out for its tiered incentives, emphasizing small and independent businesses. With $4 million in initial funding, the program will offer up to $175,000 per vehicle, plus additional bonuses for:

• Small businesses
• Independent truck owners
• Disadvantaged businesses

Utah: $75 Million Charger Rollout

The Beehive Emission Reduction Plan allocates $75 million to deploy 400 electric chargers over four years, which will help support deployment of Class 8 Battery Electric Vehicles in the state.

New York: Comprehensive Programs for Urban and Statewide Fleets

New York’s dual focus on urban and statewide fleets is evident in its programs:

• NYTVIP: Up to $215,000 per vehicle, covering 95% of incremental costs, with approximately $2.3 million in remaining funding. Scrappage is required, and local operation is mandated.
• NYC Clean Trucks Program: Designed for fleets in Industrial Business Zones, offering similar incentives with a limited budget of $1.5 million.

Georgia: Pioneering Port Electrification with $11.9 Million

Georgia may lack direct ZEV incentives for fleets, but its $11.9 million Reduction of Truck Emissions at Port Facilities initiative is a game-changer. This program supports:

• EV charging infrastructure: Spearheaded by Voltera Power at the Port of Savannah, designed for medium- and heavy-duty fleets.
• Low-emission pilot program: A four-year effort by the Georgia Ports Authority to expand ZEV equipment use.

Your Fleet’s Zero-Emissions Opportunity

Act now as the zero-emissions infrastructure expands! These incentives across 17 states represent an unparalleled chance to offset costs and accelerate your fleet’s zero-emission transition. With billions in funding, strict deadlines, and highly competitive application processes, acting early is key to maximizing these benefits.

As program details continue to evolve, we’re actively monitoring and will keep you updated on new opportunities and changes.

To stay informed on the latest incentive developments, visit nikolamotor.com/incentives and sign up for timely updates tailored to your state’s zero-emissions goals.