The Future Is Now Fleet Electrification: Finance

We’ve welcomed a new year, and 2023 brings new funding opportunities for battery electric trucks and charging infrastructure.  Kenworth Truck, the manufacturer, set up a grant tracking map that you can access here.  When you click on a state, it shows a list of grants with links.  Most grants and incentives are awarded based on the state where the truck will be registered, but effective January 1, there are federal tax credits available, too.  Options worth researching include:

State Programs

• VW Settlement Fund
  Remember back in 2015 when Volkswagen installed devices in 590,000 cars that faked reduced NOx emissions? The fine for their crime was $2.7 billion!  That money was distributed to the states to help fund clean air initiatives, including diesel truck replacement.  Many states still have grants available in this program.
• Diesel Emissions Reduction Act (DERA)
  DERA was first introduced as part of the Energy Policy Act in 2005, authorizing $200 million per year for states to use as grants and rebates for projects that reduce emissions from existing diesel engines. It was renewed in 2020 through 2024 but at a reduced $100 million.  Grantees must prove that a qualifying diesel engine was destroyed before they are paid.
• Power Companies
  Many local power companies are offering grants to offset the cost of chargers and the needed infrastructure. They may also offer to review the existing power at your facility to see if it will successfully support your charging needs.

Federal Programs

• Inflation Reduction Act (IRA) of 2022
  “The IRA invests $1 billion to replace dirty heavy-duty vehicles with clean, zero-emission vehicles, support zero-emission vehicle infrastructure, and to train and develop workers.” (EPA, Clean Heavy-Duty Vehicle Program.) Maximum tax credits for heavy-duty trucks are $40,000 and $100,00 for charging infrastructure.  More funding may be available through the EPA once the program is developed further.  Work with your accountant to determine how to take advantage of the IRA.