Despite facing unprecedented regulatory uncertainty and shifting federal policies, the U.S. commercial transportation industry continues to show resilience and momentum in its shift toward sustainable fleet technologies. The 2025 State of Sustainable Fleets Market Brief, released today by TRC Companies at the ACT Expo in Anaheim, offers a comprehensive look into how the industry is adapting and evolving.
Now in its sixth year, the annual report provides an authoritative snapshot of key trends, challenges, and investments driving clean transportation. From battery-electric and hydrogen fuel cell vehicles to renewable fuels and natural gas, fleets are doubling down on cleaner, cost-effective alternatives.
According to the report, more than $13.5 billion in state and local funding remains available for zero-emission (ZE) and near-zero-emission (NZE) vehicle projects. This financial backing is helping sustain momentum even as federal funding flows, including from the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), face executive-ordered pauses.
“The rapidly evolving policy landscape and questions around how that will impact technology investments have introduced uncertainty for fleets,” said Nate Springer, vice president of market development at TRC Companies. “Nevertheless, the industry’s response — marked by growing adoption of renewable fuels, innovative infrastructure solutions, and strategic partnerships — underscores strong fundamentals for continued growth of many clean fleet solutions.”
Among the standout stats:
- Renewable diesel (RD) production jumped 28% in early 2024, with 39% of fleets now using RD—the highest in the report’s history.
- Renewable natural gas (RNG) supply has increased 234% over six years, fueled by a 63% rise in stations offering RNG.
- Battery-electric vehicle (BEV) deliveries reached a record 41,472 medium- and heavy-duty units, dominated by cargo vans and pickups (92% of registrations).
- Hydrogen fuel cell electric vehicle (FCEV) adoption rose modestly, despite high-profile manufacturer exits, with 165 MD/HD vehicles and 75 transit buses deployed in 2024.
The past year introduced a new level of complexity for fleet operators. Federal priorities shifted toward conventional fuels, with key GHG-related regulations paused or reconsidered. Yet state and local leaders, particularly in California, continued to invest in clean vehicle infrastructure and programs, even as some regulatory mandates were paused.
For diesel users, cleaner fuels like RD and biodiesel (steady at 29% adoption) paired with declining diesel prices (down 11% to $3.21/gal) offered some relief. Meanwhile, top-performing fleets using advanced HD vehicles achieved over 8.5 mpg, highlighting gains in diesel efficiency.
Natural gas saw major traction with the launch of 15-liter engines and a 50% surge in Class 8 tractor registrations. CNG continued to offer savings, priced $0.25 lower per diesel-gallon-equivalent.
To meet growing demand, fleets are exploring new infrastructure solutions. Shared charging hubs and “flexible interconnects,” which enable earlier electricity access in the development timeline, are becoming essential tools in scaling battery-electric operations.
Though hydrogen faces the steepest challenges ahead — with two OEM bankruptcies and an uncertain federal stance — Class 8 hydrogen tractor deployments reached a record 165 units. The report anticipates a cautious slowdown in this sector but notes continued interest among transit agencies.
Title sponsors Volvo Trucks North America, Penske Transportation Solutions, and Chevron Renewable Energy Group reiterated their long-term commitment to clean fleet transformation.
“Volvo Trucks remains focused on our three-pillar strategy to provide the industry with solutions that are ready now and built for the future,” said Peter Voorhoeve, President of Volvo Trucks North America. “We’re proud to support this year’s report and help fleets continue their journey toward sustainable freight movement.”
Chevron Renewable Energy Group President Stacey Orlandi added, “It’s going to take all forms of energy to meet growing global demand. By focusing on products that leverage our strengths, we can deliver ever-cleaner energy.”
The 2025 Market Brief reinforces that despite today’s policy turbulence, the long-term trajectory for clean transportation remains clear. Fleets are adapting, innovating, and investing in scalable, sustainable solutions. As the report makes clear: transformation may bring uncertainty, but it also drives progress.
To download the full report or sign up for updates, visit www.StateofSustainableFleets.com.
