States Can Achieve Cleaner Freight System Despite Federal Delays

Over the past years, notable advances towards a more sustainable and efficient freight system have been made, due in large part to state and federal regulations. Significant investments in electric trucks and charging stations have seen the share of zero-emission medium- and heavy-duty trucks, vans, and buses rise from around 0.04 percent in 2020 to nearly 10 percent in 2024. Impressively, in California, zero-emission models accounted for over a quarter of all medium- and heavy-duty vehicle deployments in 2024.

However, the progress of the past few years has been threatened this year. The upcoming repeal of California’s Advanced Clean Fleets Rule in response to threats from the Trump administration, the demise of federal incentives for zero-emission trucks in the budget bill, a nationwide disinformation campaign by truck manufacturers, and Congressional attempts to undo California’s right to set vehicle pollution standards by revoking EPA-approved waivers have all posed significant challenges.

Sales of new zero-emission medium- and heavy-duty vehicles have grown steadily and significantly in the recent past. UCS/S&P Global Mobility 2025.

These setbacks have jeopardized the nation’s strides towards a cleaner, more modern freight system. However, states like California have continued to push for cleaner transportation systems, regardless of federal backing. In June, California Governor Gavin Newsom issued an executive order directing state agencies to continue advancing towards the state’s zero-emission transportation goals. To buoy these efforts, ten other states have joined forces with California to form the Affordable Clean Cars Coalition.

As federal leadership flounders, states must seize the reins to guide the nation towards a sustainable, globally competitive freight system that isn’t subject to the fluctuations of oil prices due to geopolitical conflicts. Now, more than ever, states must step up to the plate. Here are some of the ways they can do so.

Building Zero-emission Ecosystems Around Freight Hubs

Investing in the electrification of freight hubs like seaports, railyards, and warehouses is crucial for both pollution reduction in communities plagued by poor air quality and for the promotion of widespread truck electrification. Over two-thirds of the total freight tonnage shipped within the US is transported via trucks, with many of these goods starting or ending their journey at freight hubs. Consequently, in the absence of strategic federal leadership, these hubs can become the cornerstone of wider progress towards a clean freight system.

Accelerating Zero-emission Truck Sales and Infrastructure Deployments

With federal incentives for clean trucks recently repealed under the Inflation Reduction Act, and the fate of key rules like Advanced Clean Trucks hanging in the balance, state incentives and investment programs become vital for maintaining the market signals driving freight electrification. Currently, battery-electric drayage trucks are expected to have the lowest lifetime costs among all fuel types by the end of the decade. Despite this, the upfront costs for most battery-electric truck models remain significantly higher than their diesel counterparts.

Keeping the Momentum

Despite the federal rollbacks and challenges, states like California can help maintain momentum in achieving a cleaner and more efficient freight system. By doubling down on strategic policies, targeted investments, and problem-oriented solutions, states can help deliver a cleaner, globally competitive, more cost-effective, energy-efficient, and equitable on-road freight system.