Author: Nahui Olin, Lead, Fleet Incentives, Nikola
In October 2024, the Environmental Protection Agency (EPA) announced a $2.8 billion allocation through its Clean Ports Program to support zero-emissions port equipment and infrastructure. This significant investment represents a pivotal move to reduce environmental impact and foster sustainable growth in port cities across the United States.
This article builds on our previous coverage, 2025 Fleet Incentive Roadmap: 17 Key States Supporting Zero-Emissions Adoption, by offering a focused update on the EPA’s announcement and its implications for the future. Each awarded port will tailor these funds to their specific operational needs and sustainability goals.
Key State Updates and Initiatives
The following states have outlined substantial allocations for zero-emissions trucks and infrastructure, showcasing how these funds will transform port operations:
California
Port of Los Angeles: $411 Million
Deploying 250 zero-emissions drayage trucks to enhance operational sustainability.
Installing 300 new charging ports to support the growing fleet of zero-emissions vehicles.
Developing electric cargo handling equipment alongside solar generation and battery energy storage systems to bolster energy efficiency.
Implementing vessel shore power to reduce emissions from docked ships.
Port of Oakland: $322 Million
Introducing 475 zero-emissions drayage trucks to support sustainable port operations.
Utilizing both electric and hydrogen cargo handling equipment, showcasing a versatile approach to zero-emissions technology.
Expanding charging infrastructure with solar generation and battery energy storage systems.
Port of San Diego: $58 Million
Enhancing electric cargo handling equipment and deploying medium- and heavy-duty zero-emissions vehicles.
Developing charging infrastructure to support the fleet of zero-emissions vehicles.
Installing vessel shore power to reduce emissions across operational aspects.
Other States with Comprehensive Zero-Emissions Initiatives
Following California’s lead, several other states received notable funding for comprehensive zero-emissions projects:
New York and New Jersey: $344 Million
The Port Authority of New York and New Jersey will enhance operations by deploying electric cargo handling equipment and drayage trucks.
The funding includes the installation of vessel shore power to align with sustainability goals.
Maryland: $146 Million
The Port of Baltimore will upgrade with electric cargo handling equipment and drayage trucks.
Improvements include charging infrastructure and battery energy storage systems to support new zero-emission equipment.
Utah: $110 Million
The Salt Lake City Intermodal Terminal will receive funding for electric drayage trucks, cargo handling equipment, and locomotives.
Significant investments in charging infrastructure and solar generation will establish a sustainable logistics hub.
Illinois: $92 Million
The Illinois International Port District will focus on electric drayage trucks, cargo handling equipment, vessels, railcar movers, and hydrogen locomotives.
Projects include charging and hydrogen fueling infrastructure, solar generation, battery energy storage systems, and vessel shore power.
States Utilizing Funding for Zero-Emissions Infrastructure
Several states are dedicating their EPA funds primarily to developing charging and cargo-handling infrastructure at key ports, critical for supporting broader zero-emissions initiatives:
Delaware: $127 Million
Funding will support the Port of Wilmington by developing electric cargo handling equipment and expanding charging infrastructure.
Hawaii: $56 Million
The only state to receive funding specifically for hydrogen fueling infrastructure, which will be developed at Honolulu Harbor.
Georgia: $48 Million
Investments will enhance electric charging and cargo handling infrastructure at transportation hubs, supporting medium- and heavy-duty zero-emissions vehicles.
Connecticut: $34 Million
Allocated for advancing charging infrastructure at the Port of New Haven to facilitate the adoption of zero-emissions vehicles and accommodate electric cargo handling equipment.
Anticipating Changes and Opportunities in 2025
As these funded projects commence in 2025, we expect more detailed plans for their implementation to become clearer. This development phase will be crucial for fleets and operators to fully grasp and engage with the new opportunities presented by each port’s enhanced infrastructure.
Stay Updated and Prepared
Given the potential for administrative policy changes that could affect these programs, staying informed is essential. Sign up for our newsletter or follow our updates to stay connected with the latest information on zero-emissions funding opportunities as they evolve.
The hot topic of climate change is no longer escapable. US ports, and the Class 8 trucks that visit them, are a new focus of discussion where environmentally friendly commerce is concerned. With 90% of the world’s goods transported by ship, ports and the trucks that carry goods from ports to the rest of the country are critical to modern infrastructure[EF1] .
Traditional heavy-duty diesel trucks cause numerous health and environmental issues, but transitioning to zero-emissions fleets presents innovative solutions. By adopting clean technologies like the Nikola battery electric vehicles (BEVs) and the Nikola hydrogen fuel cell electric vehicles (FCEVs), the activity at ports can operate cleaner, smoother, and healthier for all—front-line workers, surrounding neighborhoods, and even the nearby flora and fauna.
Idling Diesel Trucks Create Significant Pollution
In the last several years, ports have suffered major congestion due to shipping and supply chain changes, all made worse by incoming and outgoing trucks awaiting direction, and loading. Diesel trucks idling at ports are a significant source of pollution, both by creating harmful air contaminants and unnecessary noise.
Air pollutants like particulate matter (PM), nitrogen oxides (NOx), sulfur oxides (SOx), carbon monoxide (CO), and volatile organic compounds (VOCs) degrade air quality for truck drivers, port workers, and local residents. Studies have shown that PM and NOx can especially lead to respiratory issues, cardiovascular diseases, and other serious health problems for anyone regularly exposed to these pollutants. Carbon emissions have increased in focus over the last few decades as companies are becoming increasingly aware of the effect of harmful greenhouse gas emission on people and the planet. In 2019, the three major US ports produced over 2.5 million tons of C02 in addition to other toxins[EF2] .
Beyond the issue of air quality, the constant rumble of idling diesel trucks causes significant noise pollution. These unnatural sounds disrupt the natural environment and are shown to negatively affect the mental and physical health of port workers and truck drivers. The persistent background noises of diesel trucks also diminish the quality of life for surrounding communities and their human and animal inhabitants.
By recognizing these challenges as solvable issues, US ports and drayage fleets can collaborate to create healthier and more sustainable working environments.
Zero-Emissions Trucks Help Solve Sustainability Challenges
Zero-emissions vehicles (ZEVs) are designed to solve the sustainability challenges found in US ports throughout the nation. Nikola offers two types of zero-emissions trucks—the battery electric and the hydrogen fuel cell—to help fleets who are looking to be a part of the solution[EF3] .
Clean fleets bring four distinct benefits to US ports, as follows:
ZEVs Reduce Greenhouse Gas Emissions: BEVs and FCEVs produce zero tailpipe emissions, thus significantly reducing the overall carbon footprint of port operations. By transitioning to ZEVs in the form of trucks, cranes, forklifts, and other necessary mechanical equipment, ports can dramatically cut their greenhouse gas emissions to better align with local, national and global climate goals.
ZEVs Improve Nearby Air Quality: When PM, NOx, and other toxic chemicals are eliminated from emissions with BEV and FCEV trucks, the air quality immediately shows a noticeable improvement. As a result, port workers, truck drivers, and local residents are less likely to be affected by air pollution and as a result, may enjoy fewer health problems and a better quality of life.
ZEVs Reduce Noise Pollution: One of the most noticeable benefits of BEVs and FCEVs is their smooth and quiet operation. Unlike diesel trucks, which generate significant noise, battery and hydrogen fuel cell powered trucks operate on a much quieter decibel level. This major reduction in noise pollution greatly enhances the physical and mental health of port employees and truck drivers in their working environment. In addition, ZEVs minimize noise disruptions to nearby communities, benefiting neighboring residents and their overall well-being.
ZEVs Contribute to Overall Efficiency: BEV and FCEV trucks are designed to be more energy efficient than their diesel counterparts. Both types consume less energy than diesel trucks, not only reducing operational and maintenance costs but also supporting broader sustainability goals by minimizing energy waste.
ZEVs Power Cleaner Air and Healthier Communities
When US ports transition away from diesel to BEV and FCEV trucks, the advantages do not stop at the obvious recipients but expand into the surrounding neighborhoods. Sustainability efforts of commercial operations reduce air and noise pollution for the greater community and help boost other environmental efforts within the whole region. Consider the positive ripple effects in four areas when implementing zero-emissions trucks[EF4] :
Local Neighborhoods: As air quality improves and noise pollution decreases, the overall quality of life for residents near ports will rise. Cleaner air and quieter environments help to create healthier and more vibrant communities.
Nearby Businesses: The shift to ZEVs can improve the economy of an area by creating new jobs in vehicle maintenance, infrastructure manager and development, and technology innovation. Additionally, the long-term operational savings from potentially lower fuel and maintenance costs can be reinvested into the workforce, further driving economic growth.
Regional and Global Development: By reducing emissions and energy consumption during the transition to zero-emissions trucks, ports can set a standard in solving environmental issues. In turn, these ports align with local, regional and national environmental goals, position the US as a leader in global sustainability, and demonstrate that it is not only possible but also beneficial for other industries to follow suit.
Area Wildlife: Beyond the consideration that ZEVs benefit human health and economics, reducing pollution at ports also helps local wildlife and the earth as a whole. Lower levels of air and noise pollution can lead to healthier ecosystems where coastal wildlife is less disturbed by human activity.
The Path to Sustainability, Safety, and Savings for US Ports
Adopting sustainable practices at US ports is fundamental to the future of the industry. While the environmental and health challenges caused by diesel fleets are significant, there is a solution. By transitioning to the Nikola battery electric or hydrogen fuel cell trucks, ports can reduce their carbon footprint, improve air and sound quality for healthier communities, and potentially achieve long-term operational cost reductions through lower fuel and maintenance costs.
Connect with a Nikola authorized dealer to learn how to lead the charge.
Author: Nahui Olin, Lead, Fleet Incentives, Nikola
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
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.
Authored with the assistance of Nikola’s Head of Propulsion Engineering and Nikola’s Head of Environmental Health and Safety
Published
As the trucking industry in the U.S. shifts towards more sustainable energy and fueling options to help combat climate change, hydrogen has emerged as a promising alternative to standard diesel Class 8 semi-trucks. Electric semi-trucks have made significant progress in the last decade, opening the door to hydrogen-powered vehicles, especially in the commercial marketplace.
Hydrogen is a powerful, clean fuel source that’s been used in transportation for much longer than most realize. Like any new technology, it comes with its own considerations, particularly about safety. However, advancements in hydrogen storage and distribution, alongside decades of research, have proven its safety and efficiency relative to traditional diesel, gasoline, and other electrified vehicles.
The key focus for hydrogen fueling stations is ensuring consistent training and support for local municipalities. This helps maximize the efficiency and readiness of hydrogen infrastructure in communities.
When Nikola introduced its first hydrogen fuel cell electric Class 8 semi-truck in the U.S. in 2023, the trucking industry welcomed the innovation with both enthusiasm and careful consideration. As with any groundbreaking product, especially one as substantial and advanced as a hydrogen-powered semi-truck, questions about safety naturally arise. Similar to other fuel sources, the use of hydrogen comes with a set of unique considerations. However, these conversations are also helping to expand the dialogue around developing a more robust hydrogen refueling network across the U.S.
Hydrogen as Fuel Isn’t New
Hydrogen was first identified by British scientist Henry Cavendish in 1766 during a demonstration to the Royal Society of London, where he sparked hydrogen gas to yield water, disproving the belief that water was an element. The concept of using hydrogen as fuel dates back almost 200 years to the discovery of combining hydrogen and oxygen together to produce both water and electricity by Swiss chemist Christian Friedrich Schoenbein in 1838. In 1845, Sir William Grove, an English scientist and judge, and often called the “Father of the Fuel Cell,” created a “gas battery.” By the early 1900s hydrogen was already being used in gas furnaces to heat homes .
Throughout the early 20th century, scientists and engineers continued to experiment with hydrogen as fuel. In the 1950s, hydrogen fuel cells powered both NASAs space program and 20-horsepower tractors in Great Britain. NASA first used hydrogen fuel cells in 1965 with Project Gemini with the Gemini V. Today, NASA remains the primary user of hydrogen fuel, relying on liquid hydrogen to propel rockets and power fuel cells.
Because of amount of hydrogen used in NASA mission, NASA has published several guides on hydrogen safety, including the Safety Standard for Hydrogen and Hydrogen Systems. The guide is a central agency document containing guidelines for safely storing, handling, and using hydrogen in gaseous, liquid, or slush form, whether used as a nonpropellant or propellant.
Acceleration of Hydrogen Fuel Cell Use
Unlike traditional diesel engines, the only emission from hydrogen fuel cells is water. Those fortunate enough to see a hydrogen fuel cell truck in person may notice a small amount of water under the truck —that’s it. No fumes, no loud gear shifting, no plumes of diesel smoke. Both battery-electric trucks (BEV) and hydrogen fuel cell electric trucks (FCEV) are designed to reduce the carbon footprint of the transportation sector.
Though the use of hydrogen fuel cell is steadily increasing, this modern fuel technology is still in its early stages.
Because the trucking industry is responsible for a significant portion of tailpipe carbon emissions, the adoption of Class 8 trucks with alternative fueling options such as battery-electric and hydrogen fuel cell electric vehicles will only increase.
Hydrogen fuel cell electric trucks, like Nikola’s, not only have longer ranges than traditional battery-electric trucks, but compared to traditional diesel trucks, they are also considered easier to maintain and better for drivers’ health with lower vibrations, quieter powertrains, and no harmful emissions.
However, barriers to the adoption of hydrogen fuel cell electric trucks begin with the lack of infrastructure for high-pressure hydrogen fueling across the U.S. Hydrogen refueling stations, like those operated by Nikola’s HYLA brand, are currently scattered across North America, with a greater concentration in California, thanks to state incentives.
But, as they say, this won’t stop the (hydrogen) train from leaving the station. From Class 8 trucks and passenger cars to forklifts, trains and airplanes, hydrogen fuel is here, and it’s here to stay.
One Quirky Thing About Hydrogen: Training
Hydrogen is the most abundant element in the universe. Like any fuel, hydrogen is flammable under the right conditions. However, many experts in the field agree that the single biggest challenge surrounding its use as a fuel is the need for consistent and standardized training for its safe handling. Individuals who work with traditional fuels have been trained for a century on how to manage those fuels and their vapors, while hydrogen safety training is still a relatively new subject.
Unlike diesel fuel, when hydrogen leaks and ignites, the flame may be invisible, and water is not always be the best extinguishing agent. Additionally, hydrogen is odorless, making leaks more difficult to detect without specialized equipment. Understanding this new fuel requires specialized knowledge and training.
We won’t delve too deeply into the properties of hydrogen gas, as organizations like the Center for Hydrogen Safety and the International Association for Hydrogen Safety offer well-curated and thoroughly researched resources on safely handling hydrogen. This is new territory and with innovation comes the need for centralized and consistent training as the hydrogen network grows.
The Hydrogen Safety Training Landscape is in its Infancy
Access to hydrogen training varies across North America, differing not only from state to state but also from county to county. Larger cities often provide more resources and full-time safety training for first responders and often volunteers without formal HAZMAT training on this emerging fueling option.
In Arizona, where Nikola is headquartered, the safety team responding to a hydrogen leak or fire may vary depending on whether the incident occurs in Maricopa or Pinal County. Response teams could include local firefighters, HAZMAT teams, or even Nikola teams specifically focused on hydrogen safety. Similarly, in California, where hydrogen refueling stations are found in smaller towns and counties, any number of first responders may be called to Nikola’s HYLA refueling stations.
It is crucial that personnel operating with hydrogen, as well as those responding to hydrogen emergencies, receive proper training.
Comprehensive hydrogen safety training should include an understanding of:
Properties and hazards of hydrogen fuel
Proper handling and storage
System operation
Inspection and maintenance
Leak detection and response
Emergency preparedness and response
Continuing education and certification
This training should include adherence to safety standards for hydrogen storage and refueling, as well as guidelines for transporting hydrogen. Compliance with these regulations not only ensures the safety of staff and the public but also protects the company from potential legal and financial liabilities.
Smart Solutions Require Smart Tech
Companies like Nikola are paving the way for hydrogen fuel cell powered semi-trucks. With great power comes great responsibility, and the launch of a new class of products in the market necessitates the development of smart technology to monitor them effectively. Recognizing that hydrogen fuel cell electric trucks are relatively new to the marketplace, Nikola has developed a comprehensive digital product portfolio, standard on every truck, providing both drivers and fleet managers instant access to the health and safety status of their vehicles.
Hydrogen Fuel News. (n.d.). Safety tips for hydrogen fueling stations. Retrieved from https://hydrogenfuelnews.com
Smart tech is not just for entertainment. For Nikola trucks, it helps drivers manage everything from leaks to safety system challenges, enabling quick and efficient responses. Standard features on every Nikola truck include:
• Nikola Human Machine Interface (HMI): Information-packed in-vehicle digital displays for drivers
• Nikola DRIVE: An app that enables drivers to control truck features
• Nikola FLEET: An app that allows fleet operators remote access and monitoring of their fleets, including a new function to ensure maximum charge before departure
• Nikola VIEW: An app that streamlines warranty issues, parts, and service
• Nikola PULSE: An app that provides real-time monitoring of Nikola vehicles to improve uptime
With our four web apps and a smart display, our trucks are monitored frequently by professionals trained in truck performance and hydrogen safety. Smart tech, combined with hydrogen safety training, is essential for addressing hydrogen safety concerns as the industry grows and evolves to meet the demands of a population interested in zero-emissions transportation.
Hydrogen Safety – We’re On It
At Nikola, we recognize the need and urgency for hydrogen fuel cell safety as we expand. We are committed to collaborating with communities, counties, partners, states, and governments to provide the training and technology necessary to ensure that hydrogen fuel cell electric trucks not only become the new technology on the market but also the new standard for Class 8 trucks.
Nikola Corporation. (n.d.). Nikola celebrates the commercial launch of hydrogen fuel cell electric truck in Coolidge, Arizona. Nikola Motor Company. Retrieved from https://nikolamotor.com
Hydrogen Fuel News. (n.d.). Safety tips for hydrogen fueling stations. Retrieved from https://hydrogenfuelnews.com
Centre for Financial Accountability. (n.d.). History of hydrogen as a fuel. Retrieved from https://cenfa.org ATCO. (n.d.). History of hydrogen. Retrieved from https://www.atco.com/en-au/for-business/hydrogen/Hydrogen-History.html AltEnergyMag. (n.d.). The history of hydrogen. Retrieved from https://www.altenergymag.com History of hydrogen as a fuel – Centre for Financial Accountability (cenfa.org) NASA. (n.d.). History of hydrogen as a fuel (Publication No. 19970033338). Retrieved from https://nasa.gov U.S. Department of Energy. (n.d.). Alternative fuels data center: Fuel cell electric vehicle emissions. Retrieved from https://energy.gov
Reuters. (n.d.). Key issues for development and expansion of hydrogen fueling infrastructure. Retrieved from https://reuters.com Center for Hydrogen Safety. (n.d.). CHS. AIChE. Retrieved from https://aiche.org HySafe. (n.d.). International Association for Hydrogen Safety. Retrieved from https://hysafe.org
Author: Alexia Bednarz, Head of Sustainability, Nikola
When we think about sustainability, what truly comes to mind first? Recycling? EV cars? Protecting forests? Endangered species? Plastic in the ocean? Most likely not semi-trucks, or at least not how they directly contribute to air pollution. Anyone who has watched a documentary or even a short video on sustainability has seen semi-trucks featured, usually as a B-roll piece representing the roads and highways that often contribute greenhouse gas emissions. This is usually followed by images of a city surrounded by smog or even traffic jams stretching for miles.
Semi-trucks are usually thought of as background players in the climate-change story, rather than a major contributor. In 2022, the Environmental Protection Agency released a report[1] that cited transportation as the top sector responsible for U.S. greenhouse gas emissions, coming in at 28%, just above electricity. Right after light-duty vehicles in the transportation sector came, you guessed it, medium- and heavy-duty trucks.
Medium and heavy-duty trucks produce more emissions than passenger cars and rail combined[2]. The medium and heavy-duty trucking industry consumed around 36.5 billion gallons of distillate fuel in 2022.[3] In the U.S. alone, heavy duty, long-haul trucks moved 71% of all freight.[4] This challenging combination of fuel usage, pollution created, and the need for trucks to haul freight is the reason why companies, countries, industries, and entrepreneurs are looking at alternative commercial transportation solutions – and why companies like Nikola exist.
Seemingly, moving an industry like the trucking industry away from diesel seems like a good starting point to solving the daunting climate-change puzzle. But like all change, it takes time, infrastructure, and resources.
More than a Century of Semi-Trucks as the Lifeblood of America
One of the first semi-trucks was conceived by auto-enthusiast and inventor, Alexander Winton, in 1898[5] as a way to deliver cars produced by the Packard Motor Car Company to customers without putting miles on them. This “car hauler” opened the door to the semi-truck industry, slowly evolving to transport goods all over the U.S., ushering in a new way for people to purchase goods outside of their immediate surroundings and without the restrictions of infrastructure, such as train tracks. Winton would go on to work with General Motors (GM)[6] to develop diesel engines in 1913, developing ways to make the engines lighter, faster, and with increased flexibility.
In the early part of the 20th century, the logging industry gained popularity because of the invention of the semi-truck. Peterbilt semi-trucks were used extensively to haul logs starting in 1939 to the surrounding lumber mills.[7] The growth of the trucking industry from there is well-documented history, resulting in semi-trucks transporting more than 70% of goods in the U.S. with 3.5-plus million truck drivers behind the wheel. [8]
Sustainability Matters for the Trucking Industry
Until we invent a way to beam goods straight into people’s homes, the trucking industry will continue…trucking. People around the world rely on semi-trucks to deliver the goods they need. Trucking is an integral part of the consumer goods supply chain, employing millions, creating revenue, and, unfortunately, contributing to pollution through vehicle emissions. According to the U.S. EPA, more than 3% of all carbon dioxide (CO2) emissions came from long-haul trucks in 2022.[9]
Projections are that by 2025, as international commerce increases and supply chains become more global and complex, shipments of U.S. goods will grow another 23.5%, and by 2040, a total of 45%.
As freight activity in the United States increases, projections are that during this same time frame, growth in air emissions from freight will exceed growth in emissions from all other transportation activities, including passenger transportation. -Environmental Protection Agency, 2024[10]
What can be done to enhance sustainability? Change often starts with businesses committing to zero-emission sustainability initiatives. This includes retailers, manufacturers and fleets that use trucks to deliver goods. Many fleet operators have been around for more than a century, and old habits can be the hardest ones to break when considering new technology. There are newer companies developing and delivering both electric and hydrogen fuel cell electric trucks to customers today, encouraging change through both marketing signals and federal and state regulations.
Below are some of the top sustainability challenges that, if tackled, will likely make a positive impact in the trucking industry by reducing negative impact not just on the environment, but also for drivers, ports, and surrounding communities.
Create change at a rapid scale with zero tailpipe emissions
With tailpipe emissions of battery-electric trucks non-existent and hydrogen fuel cell electric trucks releasing water vapor only, investing in the modernization of fleets can aid rapid reduction of tailpipe emissions if scaled properly. Many fleet operators may have emissions reduction goals, as do their customers. Most major retailers and manufacturers now have sustainability goals that they need to report progress on to their boards, investors, customers, and employees.[11] And while there may be other transportation decarbonization alternatives, the only “big swing” is zero-tailpipe emission trucks which can create substantial change at a rapid pace.
Sustainability goals are increasingly important to consumers and to investors
Sustainability goals set by companies from 2020 to 2023 promise continued progress towards reduced emissions world-wide. Many of these goals involve positively impacting air quality in communities, decarbonization, and implementing zero tailpipe emission fleets. In 2023, the U.N. Global Compact surveyed 2,600 CEOs from 128 countries and 18 industries and found that 98% felt that it was their responsibility to make their businesses more sustainable.[12] Additionally, more than 95% of S&P 500 companies issue sustainability reports but not very many have ESG goals. Linking sustainability goals to ESG reports help investors understand the link between a company’s financial performance and their efforts in sustainability. According to recent reports, 85% of chief investment officers state that ESG is an important factor in their investment decisions.[13]
Sustainability reporting started in earnest in early 2000, with companies reporting to CDP, Ecovadis, and the Dow Jones Sustainability Index, among others. While companies do their due diligence to set realistic sustainability goals, both investors and consumers are watching closely to make sure these goals are met. And these publicly-stated goals can show in the pocketbook – products making ESG-related claims for consumers averaged 28% cumulative growth over the past five years versus 20% growth for products making no sustainability goals.[14]
Scope 1 and Scope 3 emission goals can be conquered, and quickly, by re-outfitting fleets with battery-electric and hydrogen fuel cell electric semi-trucks.
The best sustainability value for your company’s dollar
Most companies are looking for ways to pledge, and fulfill, sustainability goals to reduce carbon emissions. Decarbonization is possible in the trucking industry with the purchase of an electric or hydrogen fuel cell electric semi-truck as fleet managers phase out or replace older diesel trucks. Modernizing heavy-duty trucking fleets with zero tailpipe emission vehicles can begin the journey of reducing carbon emissions.
On average, replacing one diesel Class 8 truck with one battery-electric or hydrogen fuel cell electric Class 8 truck can be the equivalent of removing 23 gasoline powered passenger vehicles for a year in terms of annual transportation emissions. Rapid decarbonization by investing in alternative fuel heavy-duty trucks is the best value for your decarbonization dollar.
Zero-emissions benefit ports and communities
U.S. shipping ports and the communities that surround them are often the victims of poor air quality and noise pollution, one of the many goals of the Inflation Reduction Act, which aims to reduce diesel emissions around U.S. ports[15]. Battery-electric and hydrogen fuel cell electric trucks have zero tailpipe emissions and minimal idling noise, benefiting those working and waiting at shipping ports and the communities that surround them, especially the fragile ecosystem that surrounds port locations. Recently, the Port of Miami restored 40 acres of mangroves at Oleta River State Park, planted trees at the port, and relocated coral to a designed habitat area, hoping to increase the port’s climate resilience and support wildlife diversity.[16]
Battery-electric and hydrogen fuel cell electric vehicles can lead to new jobs by extending our alternative transportation infrastructure
Consumption of goods will likely increase as the world’s population increases – by 2025, the EPA has projected that commerce in the U.S. for goods will increase by 23.5% and by 45% by 2040.[17] The need for alternative fuel transportation options is likely to continue to grow with added policies and regulations, making space in the industry for alternative fuels and zero tailpipe emissions heavy-duty trucks. With alternative-fuel heavy-duty trucks gaining ground, infrastructure must expand to create paths for battery-electric to charge and hydrogen fuel cell electric vehicles to refuel. With a vibrant community built around truck refueling stations, new jobs likely will be created to expand and manage these alternative refueling stations for zero tailpipe emission trucks.
Benefits for drivers
The most important sustainability benefit of zero tailpipe emission heavy-duty trucks may be the benefits to drivers. The health benefits to drivers who drive alternative fuel trucks are numerous.
In Nikola trucks, for instance, the lack of diesel fumes allows drivers to open cab windows without breathing in harmful gases. The trucks can also offer a significant reduction of noise and vibration, increased visibility in the cab, and less stress on drivers’ elbows and shoulders as they move away from gear-shift-dependent diesel trucks. This increased cabin comfort may reduce physical and mental recovery time after shifts, potentially improving long-term health and wellbeing and improving quality of life for drivers.
“I LOVE THAT IT’S A LOT QUIETER THAN A DIESEL. WITH THE DIESEL I WAS LIKE ‘OK, I NEED TIME TO UNWIND’, VS THE NIKOLA I COULD JUST GET HOME AND SPEND TIME WITH MY KIDS.” -IMC LOGISTICS
The 100+ year habit of fossil fuel usage and associated emissions won’t change overnight, although legacy diesel heavy-duty truck manufacturers are working towards cleaner options. Nikola’s legacy is zero tailpipe emission trucks, and we are solely focused on that mission with purpose-built semi-trucks delivered and used on roads today.
Sustainability for the heavy-duty trucking industry is not just a nice-to-have, it can benefit our planet, people, communities, businesses, and drivers.
[1] Fast Facts on Transportation Greenhouse Gas Emissions. U.S. Environmental Protection Agency. [PDF file]. Available at: https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P101AKR0.pdf
[2] Fast Facts on Transportation Greenhouse Gas Emissions. U.S. Environmental Protection Agency. [PDF file]. Available at: https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P101AKR0.pdf
[3] Fast Facts on Transportation Greenhouse Gas Emissions. U.S. Environmental Protection Agency. [PDF file]. Available at: https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P101AKR0.pdf
[4] Reducing Carbon Emissions from Long-Haul Trucks. MIT Climate Portal. Available at: https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P101AKR0.pdf
[5] Winton, Alexander. “Encyclopedia of Cleveland History.” Case Western Reserve University.
[6] Cleveland Diesel Engine Division of General Motors Corp. “Encyclopedia of Cleveland History.” Case Western Reserve University.
[7] The History of Semi Trailer Trucks. Great Western Transportation. Available at: https://www.gwtrans.com
[8] Economics and Industry Data. American Trucking Associations. Available at: https://www.trucking.org
[9] Reducing Carbon Emissions from Long-Haul Trucks. MIT Climate Portal. Available at: https://climate.mit.edu
[10] Why Freight Matters to Supply Chain Sustainability. U.S. Environmental Protection Agency. Available at: https://www.epa.gov
[11] Linking ESG Initiatives to Financial Performance. McKinsey. Available at: https://www.mckinsey.com
[12] Why Sustainability Matters for Trucking Success. Fuel Smarts. Trucking Info. Available at: https://www.truckinginfo.com
[13] Linking ESG Initiatives to Financial Performance. McKinsey. Available at: https://www.mckinsey.com
[14] Do Consumers Care About Sustainability & ESG Claims? McKinsey. Available at: https://www.mckinsey.com
[15] EPA Launches Multi-Billion-Dollar Effort to Boost Air Quality Around U.S. Ports. Environmental Health News (EHN). Available at: https://www.ehn.org
[16] Issue Brief: Climate Change Mitigation and Adaptation at U.S. Ports (2022). White Papers. Environmental and Energy Study Institute (EESI). Available at: https://www.eesi.org
[17] Why Freight Matters to Supply Chain Sustainability. U.S. Environmental Protection Agency. Available at: https://www.epa.gov
Author: Nahui Olin, Lead, Fleet Incentives, Nikola
Fleet owners in California should act now to benefit from substantial financial assistance under a statewide incentive offered on a first-come, first-serve basis. The Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (HVIP) is undergoing major changes that were approved in November 2023, which may impact the transition from diesel-powered Class 8 vehicles to zero-emissions vehicles (ZEVs).
Fleets of 50 trucks or more will no longer be eligible to apply to HVIP, effective January 1st, 2025. By applying today, you will be granted up to 18 months to make your new vehicle purchases with no scrappage requirements. For smaller fleets (fewer than 20 trucks and less than $15 million in annual revenue), you can stack incentives to receive up to 90% of the cost per vehicle in savings.
We encourage you to stay informed about the latest changes and act quickly on these limited opportunities. Contact a Nikola representative or an authorized dealer to begin your application process today.
HVIP Funding Closing for Large Fleets Opens Opportunities Today
Starting January 1st, 2025, fleets with 50 or more trucks will no longer be eligible for California’s HVIP funding. This change creates a fresh urgency for large private fleets to take advantage of substantial vouchers that pave the way for the industry’s broader push toward sustainability.
The good news for fleet owners facing this critical change with HVIP is that eligible fleets who complete the application process and are approved before 2025 will have 18 months to take possession of new trucks.
Apply today before the change goes into effect and utilize the voucher anytime within the delivery window. Most large fleets may request up to 30 vouchers per calendar year while drayage operators may request up to 50. Further, if all approved vouchers are redeemed before the end of the year, fleet owners may apply for additional vouchers.
Take Advantage of No Scrapping Requirements
California HVIP has no scrappage requirements; therefore, large fleets do not need to scrap existing vehicles to qualify for incentives. However, once the HVIP eligibility period ends, large fleet owners may face different guidelines under other state and local incentives to qualify for additional types of funding. By transitioning your fleet today, you can avoid any complicated conditions when replacing or upgrading older diesel trucks.
The current HVIP incentives for large fleets can reduce the cost of ownership for zero tailpipe emissions vehicles. Both the Nikola Tre battery-electric vehicle (BEV) and the Tre fuel-cell electric vehicle (FCEV) are eligible for HVIP vouchers, so working with a Nikola representative today can get you started on the right track before the end-of-year deadline arrives.
Small Fleets Can Save Even More, Up to 90% with Stacked Incentives
Meanwhile, the change for small fleets will result in greater support from HVIP, allowing you to take substantial steps toward zero-emissions operations at a fraction of the cost.
In November 2023, the California Air Resources Board (CARB) made meaningful changes to the HVIP program. Small fleets, defined as 20 or fewer trucks, with an annual revenue of less than $15 million, now have access to double the base award, significantly increasing the financial support available (California HVIP) (California Air Resources Board).
Designed to lower the cost barrier to entry through significant financial assistance, the funding per ZEV for small fleets can be up to 90% of the cost in certain cases. For example, the base HVIP award is currently $120,000, but small fleets can now receive up to a $240,000 base. For a hydrogen fuel cell truck, the incentive can be even greater with small fleets getting up to $480,000 off the purchase price.
California also has other statewide incentives, such as the Volkswagen (VW) Environmental Mitigation Trust, which can be combined with the HVIP voucher to further increase benefits by covering sales tax and the federal excise tax (FET). While this incentive does require replacing diesel trucks, a fleet can theoretically receive 90% off the vehicle cost with California HVIP while also having sales tax and FET paid by the local program.
Nikola Can Help You Start the Application Process Today
Own a fleet? If so, one of the most important actions you can take is to contact a Nikola dealer to immediately get started on the application process. Whether you have a large or small fleet, these incentives are available on a first-come, first-served basis with no guarantee they will be offered at a later date.
The number of vouchers and funding are limited. Once allocated funds are exhausted, no more incentives may be available until additional funding is provided, if at all. Start by taking two recommended steps.
Step 1: Check Your Fleet Compliance Status for Faster Processing
To avoid delays in the application process, you should ensure that all your trucks comply with existing laws. Fleet allocation discrepancies or other non-compliance issues can delay vouchers and vehicle delivery.
Step 2: Connect with a Nikola Dealer to Handle Your HVIP Application
The amount of information on incentives can be overwhelming and discouraging at times, but with California HVIP, there is less footwork for fleets in the application process. Local dealers are required to take HVIP training and can guide truck purchasers step-by-step through the process.
Have compliance questions? Not sure about eligibility? A California-based Nikola dealer can answer all questions and submit the HVIP voucher on behalf of your fleet, ensuring the process is done correctly and that an immediate price reduction is received at the point of sale.
California Fleet Owners Should Act Now on These Game-Changer Rules
The HVIP program is a game-changer for California fleet owners, and the Nikola Tre BEV and Tre FCEV are eligible for HVIP vouchers. Nikola is proud to be on the cutting edge, being the first manufacturer to offer both battery and hydrogen-powered Class 8 trucks through this incentive program. Whether a large or small fleet owner, you can secure these valuable incentives by contacting a California Nikola dealer to start the process today.
Author: Nahui Olin, Lead, Fleet Incentives, Nikola
The Diesel Emissions Reduction Act (DERA) is a nationwide grant program that aims to do exactly what its name says: reduce diesel emissions. For fleet owners committed to reducing their carbon footprint, this grant covers a significant portion of the costs of transitioning to zero-emissions vehicles (ZEVs). At present, the availability of funds under the is restricted due to the ongoing reauthorization process.
Introduced in 2005 by the Environmental Protection Agency (EPA), DERA’s goal is to help with vehicle upgrades, without incurring prohibitive expenses. The long-term benefit is to improve air quality, decrease public health risks, and promote the adoption of cleaner technologies through the reduction of harmful pollutants emitted by diesel engines.
DERA grants make the transition to zero tailpipe emissions trucks more affordable for fleets. Nikola dealers have the Tre Battery-Electric Vehicle (BEV) and Tre hydrogen Fuel cell Electric Vehicle (FCEV) available as you make the change toward a sustainable future. By understanding funding details, eligibility requirements, and application process, you may be in a strong position to receive this generous grant and benefit from substantial financial assistance.
Save up to 45% of Costs with DERA Funding
DERA’s financial assistance covers both BEVs and FCEVs. Here are the most important aspects of the funding:
Up to a 45% price reduction: DERA grant funding can cover up to 45% of the total cost of a new zero-emissions truck. It is paid as a reimbursement after a grant application is awarded, and a vehicle purchase has been made
Stacking: Funding from DERA can be stacked with other available incentives, including the Qualified Commercial Clean Vehicle Credit (currently in place until 2032) and additional local incentives (depending upon your state).
Competitive process: DERA grants are awarded through a competitive selection process. Not all applicants will be funded, so a fleet owner must submit a thorough application for a greater chance of receiving benefits.
Burden on fleet owner: While the fleet owner is responsible for managing the application process, some states may offer flexibility by allowing third-party assistance.
Limited window, limited funding: Timely applications are critical to meet application windows that may only be open for specific periods. Currently, DERA has limited funds because it is going through a process of reauthorization. Once renewed, $100 million may be available each year through 2029.
Determine Your Eligibility for Fleet Assistance
DERA funding is accessible to a broad range of fleets, but eligibility criteria and state requirements vary. Here’s what you may need to know:
Fleet types: Both private and public fleets operating diesel-powered vehicles are eligible for DERA funding. Private and public fleets operating diesel-powered vehicles may qualify for Diesel Emissions Reduction Act (DERA) funding. There is a higher likelihood of funding for fleets with older vehicles, as these trucks typically produce more emissions. By replacing older trucks, the reduction in emissions is more significant, enhancing the environmental impact of these applications and increasing their appeal to funding bodies.
Fleet size: Both small and large fleets are welcome to apply. DERA is designed to be inclusive, offering the same opportunities to smaller companies that may not have the same resources as larger fleets.
Community awareness: DERA emphasizes reducing diesel emissions in areas historically affected by industrial pollution, which may assist smaller companies, minority business owners, and marginalized neighborhoods that have historically suffered from higher pollution levels.
Prepare for the DERA Application Process and Guidelines
Fleet owners must stay up to date on application windows and requirements in order to avoid missing funding opportunities. While some states fully follow federal guidelines, each state handles applications and funding differently. Below is a general overview of the application process you may expect:
Identify eligibility and funding opportunities: Determine how your fleet may qualify for DERA funding and identify specific funding opportunities available.
Prepare application: Gather required documentation and information, including details about your current fleet, diesel trucks you’re replacing, and new ZEVs you plan to purchase.
Submit application: Submit your completed application by the deadline according to your state’s guidelines.
Order the new ZEV: When your application is approved, order the new BEV or FCEV according to grant guidelines.
Scrap the old truck: Where applicable, follow state or program-specific requirements to scrap the old diesel truck.
Submit reimbursement request: After purchasing your new ZEV and scrapping your old truck, submit a reimbursement request to receive grant funds.
Remain compliant: Complete any operational or reporting requirements for your new zero-emissions fleet.
Nikola is Here to Assist with Your DERA Application
Consider the following ways that the Nikola team may help you:
Third-party assistance: While DERA places the burden of application on fleet owners, some states may allow third-party assistance to help manage the process and guarantee compliance. Contact Nikola directly to see if your state allows third-party assistance.
Support: For states that do not permit third-party applicants, Nikola may still be able to guide you through each step, which may streamline the process.
Updates: Nikola regularly provides updates on new and existing incentives. Subscribe to the Nikola incentive newsletter to receive updates as they are available.
Since DERA has limited application windows and funding, act now to secure your grant and upgrade your fleet to zero-emissions vehicles. Contact your Nikola Dealer today!
Author: Nahui Olin, Lead, Fleet Incentives, Nikola
Upcoming ZEV Incentives: Updates for Fleet Owners in CT, NV, and WA
Incentives for zero-emissions vehicles constantly shift across the nation and around the globe. By learning about upcoming programs in your state and understanding the details beforehand, you position yourself to maximize savings for your fleet.
New voucher programs are in the pipeline in Connecticut, Nevada, and Washington. Modeled after California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), these new incentives may offer significant cost reductions as cleaner technology is adopted.
Let’s look at the anticipated offerings in these three states to help prepare you for action when they go live.
Three Distinct Benefits of Vouchers
Fleets transitioning to zero-emissions vehicles (ZEVs) do well to keep an eye on new voucher programs for three specific reasons:
Point-of-Sale Discounts: Vouchers can provide immediate savings. Instead of waiting for rebates or tax credits to come in after purchasing a battery electric or hydrogen fuel cell truck, vouchers may reduce your financial burden upfront at the point-of-sale.
No Scrapping Requirements: Most voucher programs can streamline your new truck purchase. Other incentives can often require scrapping an old diesel truck after ordering a specific ZEV replacement. These particular vouchers usually have no restrictions, which can enable you to retire your old truck on your terms.
Dealer Assistance: Dealers can help manage the voucher process which can mean less paperwork for fleet owners and a more efficient overall process.
With that in mind, we’ll look at the three vouchers soon offered by Connecticut, Nevada, and Washington for fleets transitioning to ZEVs.
Connecticut legislators passed the Clean Air Act in 2022, providing $15 million per year for new incentives. Following successful results with CHEAPR for standard automobiles, the state plans to launch a secondary voucher program that extends benefits to medium- and heavy-duty vehicles. The program has yet to be implemented, but is expected to include the following:
Program Funding: $15 million per year is expected for the updated program.
Voucher Amount: Up to $120,000 per truck.
Eligibility Details: Small fleets (up to 20 vehicles and no more than $15 million in annual revenue) and disadvantaged communities are expected to be prioritized.
Expected Launch: End of 2024 or early 2025.
Fleet owners who remain informed and ready to apply for the upcoming program when it is available put themselves in a position to receive these benefits.
Nevada passed Assembly Bill 184 in 2023. However, the state is waiting for clarification on the use of Federal funds for the program. Modeled after California’s HVIP, AB-184 seeks to use federal funds for the greatest benefit to fleet owners who purchase Class 8 Heavy-Duty ZEVs. Here is the breakdown of what the program may include:
Program Funding: $4 million per year.
Voucher Amount: Up to $175,000 per truck.
Eligibility Details: Fleets who purchase Class 8 Heavy-Duty Zero-Emissions Trucks may apply for the voucher.
The first incentive for ZEVs in Washington State is expected to be available at the beginning of next year. Modeled closely after California’s HVIP, this voucher will most likely operate in the standard fashion with dealer-managed applications, point-of-sale discounts, and no scrappage requirements. Further, federal tax credits may be able to be stacked with the voucher to potentially provide an additional $40,000 of savings per year.
Although this new program has been in development for some time and the specific guidelines and application deadlines are yet to be finalized, here are the anticipated details:
Program Funding: $100 million on a first-come, first-served basis.
Voucher Amount: Up to $120,000 per truck.
Eligibility Details: Only Class 8 Heavy-Duty Zero-Emissions Vehicles may apply.
Expected Launch: Early 2025.
This upcoming incentive is expected to fill a gap for fleet owners in Washington state who have yet to receive local benefits for transitioning to ZEVs. As more details are forthcoming, stay connected with Nikola for updates.
Prepare Today for Tomorrow’s Incentives with Nikola
Vouchers come with limited funds and application deadlines, so staying informed is important.
There’s no doubt zero-emissions trucks are the future of the transportation industry. However, the initial investment in new technology can be high, so governments are stepping in to offer support to fleet owners that may reduce costs. With the combination of tax credits, vouchers, and grants on both the federal and local levels, owners may be able to save big.
Nikola is at the forefront of innovation. Fleets can order a hydrogen-powered fuel cell electric vehicle with a range of up to 500 miles and a refueling time of approximately 20 minutes, depending on fuel quantity and station capability.
If you are ready to transition to zero-emissions vehicles (ZEVs), here’s what you need to know. Programs are available to:
Reduce your tax liability with federal and state tax credits
Receive vouchers for immediate cost reduction at the point of sale
Apply for competitive grants that offer substantial financial assistance
By understanding how each incentive process works, you can take advantage of all available funds by stacking incentives on every level. We make it easy to collaborate with a Nikola representative or authorized Nikola dealer today to receive expert assistance on maximizing benefits for your transitioning fleet.
Reduce Your Tax Liability with Tax Credits
Tax credits are straightforward incentives that are applied directly to your accounting process. Since they may immediately reduce your tax liability, both federal and state credits are a powerful tool for any ZEV fleet owner.
On the federal level, the United States government offers the Qualified Commercial Clean Vehicle Credit of up to $40,000 per ZEV. For fleets, the credit is applicable per vehicle for each year with no cap on the number of credits that you can claim each year. The current incentive structure is projected to remain valid until 2032.
Incentives on a state level are regularly developing, creating an added challenge to navigate, but also may create greater financial benefits to capitalize upon. Some states, such as Utah and Colorado, encourage the purchase of ZEVs by providing their own tax credits. Other states may not offer these kinds of incentives.
To fully take advantage of tax relief on both a federal and state level, begin by understanding what credits apply to your fleet within your operating region. Plan strategically to guarantee you will receive the best tax breaks available. For instance, you may be able to maximize your allowance for annual credits by scheduling purchases of ZEVs to coincide with certain tax periods.
As state-specific opportunities continually fluctuate and a single repository of nationwide and state-offered tax credits does not currently exist, Nikola can help you stay informed. A timely discussion with a Nikola-authorized dealer may help you understand recent updates, plan ahead and budget for the future of your fleet. Additionally, please subscribe to our incentive’s newsletter to receive updates on new and existing incentives.
Vouchers May Provide Immediate Cost Reduction
Vouchers are the second type of incentive, offering upfront cost reductions at the point of purchase. The financial benefits may be significant and immediate, as the voucher is obtained ahead of time and applied at the point-of-sale transaction.
Dealers play a crucial role in the application process, assisting you to access to the largest discounts while minimizing regulatory hassles.
Most states now recognize that expanding the available options helps fleets adopt new vehicle technology. California’s Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (HVIP) leads the way toward encouraging fleet owners to transition to ZEVs. Other states, such as Massachusetts, are beginning to introduce similar voucher programs.
Note that prompt action may be required when a voucher becomes available, as they are typically offered on a limited basis. Nikola-authorized dealers are trained to facilitate the voucher application process, making it more likely that your application is handled quickly and smoothly.
Offset Major Costs with Competitive Grants
Grant programs are the third major type of incentive. Unlike tax credits and vouchers, grant applications must be completed by the applicant, whether it’s an owner, operator, or fleet manager. The process may be complex and requires detailed information about a fleet, diesel trucks being replaced, and the anticipated benefits of new ZEVs to the community.
Grants can be competitive, which means that applications may be thoroughly assessed and scored using criteria established by the granting body. These factors may emphasize smaller fleets, marginalized communities, and businesses dedicated to improving local air quality. And as a result, smaller fleets may have a good chance of winning grant funding.
Grants typically are available in approximately 30 states at various times throughout the year, offering somewhat wider geographic accessibility than voucher programs and allowing fleet owners across the country to access essential funding regardless of location.
Assistance from a knowledgeable party can be quite beneficial during the application process. Nikola may be able to guide fleets interested in navigating applicable competitive grant applications.
Stack Incentives for Even Greater Savings: Cover Up to 90% of Cost
In some cases, incentives can be stacked for even greater cost reductions for zero-emissions vehicles.
For example, for a small fleet owner in California with fewer than 20 trucks and less than $15 million in annual revenue, can purchase a brand new zero-emissions vehicle, such as a Nikola Class 8 ZEV truck for up to a 90% discount. How? By combining the California HVIP voucher, which already provides substantial discounts, with other local incentives.
Nikola dealers can help you understand eligibility requirements and how to effectively combine them.
Nikola Can Help Navigate the Complicated Landscape of Incentives
Nikola’s representatives understand the challenges of each type of application—whether annual federal tax credits that go toward your whole fleet, a once-in-a-lifetime grant opportunity to replace old diesel trucks, or a new state-issued voucher to drastically cut the cost of a new Nikola truck.
If you have questions about available incentives or would like to learn more about our zero tailpipe emissions Class 8 semi-trucks, please contact us or reach out to an authorized Nikola dealer today.
