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Commercial vehicle executives urge CA Governor to provide more funding for zero- and near-zero emission trucks, buses and off-road equipment

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In a letter sent in late December, 11 senior executives from the US commercial vehicle industry urged California Governor Newsom to make a strong statement in his 2020-21 budget by allocating more funds for zero- and near-zero emission trucks, buses, and non-road equipment.

The letter notes that the demand for clean truck and bus incentives has far exceed available funding in the past two years. It only took two weeks for all of the incentives for the 2020-21 budget to be claimed. The executives urged that the Governor commit a minimum of 13.5% of the total Greenhouse Gas Reduction Fund for fiscal years 2020-2021 through 2025-2026, inclusively, for the medium- and heavy-duty (M-HDV) and off-road clean transportation programs at the California Air Resources Board (ARB).

Meeting demand for advanced M-HDV/equipment incentives, as well as funding for critical pilot and demonstration projects will require at least $2.9 billion over the next five years. This funding level is expected to put nearly 25,000 additional M-HD-ZEVs on the road by 2025, and to enable 5,000 vouchers for zero-emission freight & goods movement equipment, as well as fund numerous major projects to test and prove commercialization of new vehicle technologies.

—Letter to Gov. Newsom

The executives signing the letter included CEOs from California companies building electric trucks, buses, and powertrains, as well as global manufacturers such as the Chairman of the Volvo Group, North America and the Vice President-Electrified Power at Cummins Inc.

Unlike the passenger car market, the federal government provides no incentive funding for the purchase of a zero- or near-zero emission truck. As a result, the overwhelming majority of the US’ zero- and near-zero emission trucks and buses are being deployed in California.

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