Jumpstart Your EV Transition: Navigating Fleet Electrification Funding Opportunities

Coming off the heels of a landmark year of electric vehicle deployment in the U.S., many public fleets are taking steps to prepare for the road ahead. While we have seen an unprecedented shift in fleet operation – it’s also in a time of an unprecedented incentive landscape. Here is everything you need to account for when it comes to EV incentives.

There are programs, grants, and incentives still available to help in your EV transition, but they are all time-sensitive and require project details in your application. ForeFront Power is here to help you coordinate all those details and guide you throughout the process.

Incentive Landscape

Whether your public agency is just starting your electrification journey or has applied for funding before, understanding the incentive landscape is crucial to making the most of available opportunities.

Electrification incentives come in various forms, primarily as rebates, tax credits, and grants. The funding typically comes from federal, state, and local sources, including air boards and utility programs. However, most rebates require you to pay upfront and receive reimbursement later, meaning careful financial planning is essential.

Key Considerations When Evaluating an Incentive Program

When assessing whether an incentive program is a good fit for your project, consider the following: 

• Eligible Applicants: Ensure your organization meets eligibility requirements for the program
• Scope of Funding: Does the program cover vehicles, charging infrastructure, or both? Some programs fund only chargers, while others may include installation, utility upgrades, warranties, operations and maintenance, software, and more.
• Public vs. Private Charging: Some grants are for public chargers, while others support private fleet charging.
• Funding Amount: Understand how much funding you could receive and whether it’s an upfront grant or a reimbursement.
• Additional Incentives: Some programs offer bonuses for projects in disadvantaged or low-income communities. It’s also possible to stack incentives, using different programs in conjunction with one another, which our team can help you figure out.

Funding Sources

When looking at all the different programs across the incentive landscape, the options can seem endless and confusing: Which one is right for me? Let’s take a closer look at the opportunities that may be available to your organization:

Federal Programs

These national-level programs may be at risk as political climates shift, but these are big opportunities to potentially tap into:

• Section 30C Tax Credit: Available to organizations and individuals that place qualified refueling property into service during the tax year. Provides up to $100,000 per port for charging infrastructure in low-income or rural areas
• EPA Clean School Bus Program: Covers both vehicle and infrastructure costs. The program is vehicle-focused but can also fund infrastructure for electric bus purchases.
• Low-No Emission Grant Program (Low-No): Provides funding to state and local governmental authorities for the purchase or lease of zero-emission and low-emission transit buses as well as acquisition, construction, and leasing of required supporting facilities.
• FAA VALE Program: Funds airport-related electrification projects through the Airport Improvement Program and the Passenger Facility Charges program, including shuttles and ground service equipment, development of fueling and recharging stations, implementing gate electrification, and other airport air quality improvements.

State-level Programs

State-level programs tend to be less generous than federal ones, but states like California have many programs that cater to specific types of electrification projects. Local and state incentives like these are less likely to be impacted by federal funding changes. Here’s a few examples from California of programs that are available on a state-level:

• EnergIIZE: Major funding source for medium and heavy-duty infrastructure to support zero-emission commercial vehicles in California. There are four funding lanes, which essentially means 4 programs, which each open at regular intervals.
• Communities in Charge: California’s market-accelerating, light-duty electric vehicle (EV) charging incentive project funded by the California Energy Commission’s Clean Transportation Program. Designed to transform EV accessibility, rapidly catalyze new markets, and swiftly deploy Level 2 EV charging stations.
• CalEVIP: Provides funding for installing publicly available EV charging stations in disadvantaged or low-income communities.

Utility Incentives

Many utilities offer incentives for EV infrastructure because they recognize the increased energy demand that comes with electrification.

• Grid Upgrades: Some utilities will cover the cost-of-service upgrades to support EV projects.
• Make-Ready Programs: These programs cover the design, construction, and maintenance of infrastructure up to the charger itself, reducing upfront costs.
• EV-Specific Rates: Some utilities offer special electricity rates for EV chargers to lower operating costs, like PG&E’s BEV rates, or SCE’s TOU-EV rates.

Securing Incentives

To successfully secure incentives, it is essential to plan ahead, as programs are highly competitive and often operate on a first-come, first-served basis. Gather documentation early, including project details, financial estimates, and any required environmental or business certifications. Understand reporting requirements, as many programs require periodic updates on how the funding is utilized. Finally, consider working with experts like ForeFront Power who specialize in understanding available electrification incentives and can help maximize your funding potential and ensure a smooth application process.

The landscape of fleet electrification incentives is complex and ever-changing, but the opportunities have never been greater. With new funding rounds opening soon and federal programs potentially at risk of reduction, now is the time to act.

Reach out to our expert team to start exploring your options and take advantage of the resources available to accelerate your transition to electric transportation.