CALSTART and PNWER complete design of Washington state’s zero-emission commercial vehicle incentive program

Incentive program strategy outlines best practices, industry feedback, program structure and future considerations

OLYMPIA, Wash. (Feb. 29, 2024) – CALSTART and Pacific Northwest Economic Region (PNWER) are proud to announce the completion of the voucher incentive program design strategy developed on behalf of the Washington State Legislature’s Joint Transportation Committee (JTC) to accelerate the adoption of medium- and heavy-duty zero-emission vehicles (MHD ZEVs) in Washington state. The comprehensive incentive design strategy, undertaken in collaboration with stakeholders, policymakers and industry partners, lays the groundwork for bridging financial gaps in making the transition to a decarbonized commercial transportation network.

The transportation sector is Washington’s leading greenhouse gas contributor, representing 39% of 2019 statewide emissions, according to the Washington State Department of Ecology. This MHD ZEV incentive program is one of several important efforts led by the Washington State Legislature to meet climate action goals. The project was initiated in April 2023 by the legislature’s 2023-2025 transportation budget, which directed the JTC to oversee the development of an incentive design and deployment strategy that examines existing incentives, incorporates stakeholder feedback and drives the adoption of MHD ZEVs in Washington – with specific recommendations ensuring incentive eligibility for small fleets and pollution reduction benefits for overburdened communities.

Upon its assignment, the JTC selected California-based clean transportation nonprofit CALSTART and its contractor team, S Curve Strategies, to lead the design of the incentive program and provide a final report to the legislature by January 2, 2024. Building off of past commercial-vehicle decarbonization work, the PNWER Regional Infrastructure Accelerator (RIA) team was brought on as a subject-matter expert partner in August 2023 to assist CALSTART in engaging Washington industry and government leaders from across 24 sectors and informing incentive program design.

The PNWER RIA team partnered with Clean and Prosperous Washington and the Seattle Latino Metropolitan Chamber of Commerce to engage dozens of representatives from a variety of industries, including agriculture, minority-owned businesses, long-haul trucking companies and logistics agencies, enabling the CALSTART and PNWER project teams to design an industry-oriented incentive program that acknowledges key obstacles and information gaps. Industry feedback revealed that concerns regarding high vehicle costs, infrastructure readiness and technology performance are key barriers for fleets hoping to make the transition to zero-emission technologies.

Six months of in-depth research, stakeholder engagement, consultation with legislators and coordination with the project’s staff work group ultimately produced a robust point-of-sale voucher-incentive framework that is informed by best practices and addresses concerns voiced across industries.

While this incentive design strategy provides a robust framework for accelerating the adoption of MHD ZEVs in Washington, the program design team acknowledges that existing zero-emission technologies are continuing to evolve. This work is a building block for a growing commercial market as technologies advance to better serve diverse industries. Additionally, the MHD ZEV incentive program strategy was designed to complement existing federal, state and local zero-emission financing mechanisms.

“We understand that the adoption of zero-emission technologies is necessary for environmental sustainability, and that economic resilience is an important consideration,” Betz Mayer, PNWER RIA assistant director, said. “This incentive program is a significant investment in supporting Washington businesses of all sizes exploring zero-emission vehicle options for their operations.”

“We’re pleased to be assisting Washington in advancing their commitment to increasing zero-emission vehicle adoption throughout the state,” said Tor Larson, CALSTART’s Vice President, Trucks and Off-Road. “Reduction of harmful pollutants produced by the transportation sector will have a direct and immediate positive impact on the health of the state’s residents and communities, as well as on Washington’s stunning environment.”

The final MHD ZEV incentive program design strategy is available here.

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About CALSTART

A nonprofit organization with offices in New York, Michigan, Colorado, California and Europe, and with partners world-wide, CALSTART works with more than 300 member company and agency innovators to build a prosperous, efficient, and clean high-tech transportation industry. We overcome barriers to modernization and the adoption of clean vehicles. CALSTART is changing transportation for good.

About PNWER

The Pacific NorthWest Economic Region (PNWER), a statutory public/private non-profit created by Alaska, Idaho, Oregon, Montana, Washington, and the Canadian provinces of British Columbia, Alberta, Saskatchewan, the Yukon and Northwest Territories, works to increase the economic well-being and quality of life for all citizens of the region, while maintaining and enhancing our natural environment.

About S Curve Strategies

S Curve Strategies develops transportation electrification strategies for states, counties, and electric utilities across the U.S. to reduce greenhouse gas emissions. The result is cleaner air for communities nationwide.

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