Recent months have seen significant shifts in federal priorities that are reshaping the clean transportation landscape. Most relevant to the clean transportation industry has been the marked shift in climate agenda, international geopolitics, and the federal workforce. These changes have had a dramatic impact on clean transportation incentives, particularly those stemming from agencies that have long funded transportation projects, including the Environmental Protection Agency, Department of Energy, and the Department of Transportation. As we emerge from the first 90 days of the new administration, one thing is abundantly clear – we’re not in Kansas anymore.
States Emerge from the Fray
In one of his first actions, President Trump dismantled Biden-era initiatives focused on electric vehicles and recharging infrastructure. Specifically, the “Unleashing American Energy” executive order revoked the non-binding initiative to have EVs account for half of new cars sold by 2030, a goal set by President Biden. That executive order also set in motion an effort to eliminate the Clean Air Act waiver that allows California (and several other states) to establish vehicle emission standards, effectively phasing out gasoline car sales by 2035.
While federal policy has taken a new direction on alternative fuel vehicle regulations, several states have created or reinforced their own clean transportation initiatives. Two of the most prominent examples of such efforts are those in New Jersey and Colorado.
The New Jersey Economic Development Authority (NJEDA) and the Department of Environmental Protection (NJDEP) in particular have emerged at the forefront of clean transportation leadership at the state level. In a recent interview, NJEDA Chief Executive Officer Tim Sullivan promoted the role of the state’s zero-emission vehicle (ZEV) incentive programs, which are managed by NJDEP: “Through NJ ZIP and NJ ZEV, business owners will be able to modernize their fleets with environmentally friendly vehicles that reduce fuel costs and keep their businesses moving forward.”
Along similar fronts, Denver Mayor Mike Johnston recently announced a slate of 2025 goals, including reducing carbon pollution via the installation of electric vehicle chargers at city businesses, homes, and non-profits. These state- and city-level programs, in tandem with many others throughout the US, continue to roll out in order to support local and regional initiatives of clean energy, air quality, and economic development, despite the current noise at the federal level.
Disaster Response Leads to New Funding Opportunities
Perhaps the Greeks had it right — the only thing constant is change. TRC Senior Vice President JoAnne Golden reiterates that point: “We’ve seen political shifts and policy changes before – the fact that our landscape is changing is really the only constant. What we see now is a reenergized focus on domestically produced alternative fuels, like renewable natural gas, waste-to-energy solutions, and prioritization of resiliency measures.”
Particularly impactful to the clean transportation space has been the nomination of Energy Secretary Chris Wright. Energy Secretary Chris Wright has signaled a strong focus on natural gas for power generation, a stance in line with his prior experience leading one of the country’s largest hydraulic fracturing companies. What remains unclear though is whether or not Wright’s influence will turn into market tailwinds for the natural gas transportation market, which was largely put on the back burner during the previous administration in favor of zero-emission vehicles.
Finally, as it pertains to resilience, disaster response has created potential incentive opportunities, just as was seen in the wake of Hurricane Katrina and Superstorm Sandy, among others. Indeed, the multiple deadly and devastating California wildfires triggered California Governor Gavin Newsom to seek $4.3 billion for economic development grants to help seed the growth of businesses in the fire-affected areas – this ask is part of a broader $40 billion request by the state to Federal authorities. The economic development funds will support climate resilience initiatives, such as rebuilding and upgrading energy infrastructure, integration of water and fire management systems, and the promotion of renewable energy resources.
Several states now have taken up the mantle of leadership as it relates to clean transportation incentives and policy. As the saying goes, actions speak louder than words, and states certainly are taking action to fund large-scale initiatives to deploy alternative fuel cars, trucks, buses, and non-road equipment, as well as the supporting infrastructure. But time will tell how the Federal authorities will make clear their own clean transportation initiatives.
To navigate the shifting incentives landscape, TRC’s Clean Transportation Solutions team has clearly plotted the location and timing of all of these incentive programs. TRC maintains relationships with every transportation, environmental, and energy agency at the local, state, and Federal level across the U.S. and Canada, which provides the intelligence needed to help fleet managers, technology providers, and fuel suppliers identify and secure the best incentives for their projects. If your organization is looking to make progress on its sustainability efforts, there has never been a better time to leverage funding programs that can help achieve your economic and environmental goals.
Gain insight into the regulations, rules, and policies transforming clean commercial transportation at ACT Expo in Anaheim, California, from April 28 – May 1, 2025. Sessions will highlight the current state of clean transportation incentives and recent technology advancements, featuring the industry’s largest show floor of vehicles, equipment, and demonstrations. Industry and policy experts will also discuss some of the most groundbreaking regulations ever adopted at the local, state, and federal levels, with a specific focus on the commercial transportation sector.
