IMMEDIATE RELEASE - November 15, 2023
Texas could miss out on billions in federal funds to clean up truck pollution
Based on interviews and an assessment of the funding and projects to date, the report finds that the state must move fast to seize the opportunities that IIJA and IRA funds provide
WASHINGTON - Texas still has time to take advantage of unprecedented federal investment to help speed the transition of its massive fleet of more than 600,000 medium and heavy-duty (MDHD) trucks to zero-emission technologies that will save lives, according to a newly released issue brief from Atlas Public Policy and commissioned by the Coalition Helping America Rebuild and Go Electric (CHARGE) coalition. To date, Texas has awarded very little public funding for clean MDHD trucks, but the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) programs and tax credits have nearly $40 billion available for clean MDHD vehicle deployment in the state.
“Texas has immense influence. Its leadership in the transition to more advanced technologies that save lives is critical,” said Bridget Sanderson, the lead coordinator for CHARGE. “We want to see more states like Texas take advantage of the huge opportunities provided by the IIJA and IRA. We want federal funds to maximize their impact, especially in communities suffering more from transportation pollution.”
According to the report, Texas has awarded and been awarded very little public funding for clean MDHD trucking to date. Other more advanced states are supporting the transition with both investments and regulations. Most of the programs through which clean MDHD funds will be distributed are competitive so if Texas wants to maximize funding impact, it should consider bolstering technical assistance services to encourage Texan applicants. And, given the significant benefits of clean MDHD vehicles and the long lead time required to build out clean MDHD infrastructure, Texas must take advantage of these programs to invest in infrastructure now.
Driving funds to modernize trucking in Texas would support an industry that employs more than 1 million Texans. These workers ensure the continuous flow of raw materials and finished products around the United States and the rest of the world. According to a study conducted by the Texas Department of Transportation (TxDOT) using data from 2018, 1.5 billion tons of freight worth $1.2 trillion moves within and through Texas annually, and $562.6 billion in gross state product. There were over 616,000 trucks registered in Texas in 2019, and most of them were class 8 vehicles, according to the report.
“Air quality is disproportionately lower in lower income areas and areas that are more minority dense,” Harry Tenenbaum from EVolve Houston said in an interview for this brief. “Oftentimes, we find that it’s industry generating this — trucking, idling vehicles, traffic through ports, and commerce highways that cut through these neighborhoods.”
Transitioning to clean trucks would have considerable air pollution and greenhouse gas emissions benefits for impacted communities across the state. In 2021, transportation made up over a fifth of total U.S. greenhouse gas emissions, with MDHD trucks emitting 23% of all transportation emissions. In Texas, the transportation sector generates over 215 million tons of carbon dioxide annually, 20 percent more than any other state. These emissions and other air pollutants lead to both environmental and public health impacts which disproportionately burden Black and Brown communities, given the historical construction of highways through their neighborhoods. Highway expansions—including an expansion of Texas’s Interstate 45—displace the communities that abut congested roadways and subject those who remain to increased air pollution. Electrifying fleets operating in these neighborhoods, particularly MDHD vehicles, can help reduce these emissions and, in turn, improve air quality, reduce public health detriments, and reduce urban heat.
The report summarizes the critical benefits of the transition to clean trucks in Texas:
Texas would see more than $100 billion in public health benefits by 2050 from vehicle electrification (including light, medium and heavy-duty vehicles).
If ZEVs made up all new sales by 2040, CO2-equivalent emissions from on-road vehicles would decline by about 35% for Light Duty Vehicles (LDVs) and 52% for M/HD vehicles” by 2050. In the case that the grid is net-zero by 2050, emissions reductions for MDHD vehicles could be 76%.
Texas would gain somewhere between 40,000 and 180,000 net jobs by 2050 in the transition to clean vehicles. More aggressive EV targets could lead to greater job creation.
By 2030 the total cost of ownership of an electric long-haul heavy-duty vehicle will be the most cost-effective option, beating out diesel as well as hydrogen options due to the falling price of trucks, improved fuel economy over time and the build out of MDHD charging that means electric trucks can be equipped with smaller batteries.
GTI Energy development managers Bart Sowa and Nico Bouwkamp, who were interviewed as part of the report, noted that the low cost of fuel in Texas, including electricity, makes alternative-fueled transportation more competitive.
The report observes that Texas should plan now so that it does not miss taking advantage of the considerable resources afforded by IIJA and IRA and can prepare for the future that the industry has signaled. Examples in the report of industry taking the lead in Texas include:
Port Houston is in the process of being electrified. The Port deployed its first electric truck for container operations in June 2022 and has a goal of carbon neutrality by 2050. Port Houston’s climate action plan notes the potential implementation of charging infrastructure.
GTI Energy in Houston Texas was the recipient of $1.25 million awarded through IIJA to plan for a hydrogen-dependent corridor project. The corridor will run 1,600 miles from Houston to Los Angeles, linking the Port of Los Angeles, the Port of Long Beach, and Port Houston, three of the largest ports in the country. In addition, the project incorporates a further 600 miles to plan for the triangle taking in Austin, Houston, Dallas-Fort Worth, and San Antonio.
HOLT Truck Centers for instance in Irving, Texas, just outside Dallas, was reportedly the first company to deploy battery-powered trucks in November 2022.
AES Corporation and Air Products announced an initiative in December 2022 to fund a $4 billion green hydrogen production facility in Wilbarger County, Texas. This facility could produce green hydrogen to support hydrogen-powered MDHD vehicles.
Charging startup TerraWatt announced in October 2022 that it was planning a charging route for electric MDHD vehicles from Long Beach, California, to El Paso, Texas. The company has plans to build seven charging centers along the Interstate 10 highway.
State-level programs that have the potential to support clean MDHD trucking deployment and the complementing federal initiatives include:
The Diesel Emissions Reduction Incentive Program (DERI), which is the largest program in the state.
The Texas Clean Fleet Program has also supported some clean vehicles, though only five percent of the funding from 2009 through 2022 went to EVs, and all of that funding was for buses.
In 2023, the Clean Fleet Program announced it would spend more than $8 million to support the purchase of more than 50 electric trucks.
In 2023, the Texas Council on Environmental Quality made available $87 million for electric trucks and other electric cargo equipment. As of November 1, 2023, nearly $5 million has been awarded to support freight and drayage trucks.
The report concludes that “Texas governments and other entities should plan now to ensure the state secures its fair share of funding via collaboration between public, private, and nonprofit groups and, in doing so, the people of Texas see their fair share of the benefits.”
About CHARGE and CHARGE Communities
CHARGE is made up of transportation, industry, environmental, labor, health, equity, and civic organizations that support smart policy to electrify America’s transportation system. Together, it supports a set of principles for Congress and the new administration to implement smart zero-emission transportation policies.
Since the landmark IIJA legislation was signed into law billions of dollars have been invested in local and federal clean transportation projects but billions still need to be distributed. The success of the IIJA is yet to be determined and questions remain.
CHARGE’s set of principles was designed to guide the implementation of IIJA funding. CHARGE Communities, a project cataloging interviews with people across the U.S., shows what is possible when we support innovative and effective local, clean transportation projects through smart federal funding. From bringing e-bikes to Pittsburgh or the Kansas City Streetcar, CHARGE Communities are bringing more sustainable options that fit the unique needs of the residents. Check out their stories here.
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