PNWER RIA Applauds Clean Transportation Funding in Supplemental State Transportation Budget

State directs funding to deploy commercial vehicle incentive program designed by PNWER RIA team & partners

OLYMPIA, Wash. (March 28, 2024) – Today, Governor Jay Inslee signed the 2024 Washington state supplemental transportation budget (HB 2134), which includes a significant investment of $227 million towards advancing clean transportation networks in Washington state. Of particular note is the allocation of $110 million to support the deployment of a voucher incentive program for medium- and heavy-duty zero-emission vehicles (MHD ZEV). The MHD ZEV incentive program, designed and championed by PNWER, CALSTART and S Curve Strategies on behalf of the Washington Legislature Joint Transportation Committee, is a pioneering effort to increase accessibility to and accelerate the adoption of zero-emission commercial vehicles. 

“This supplemental budget language allows WSDOT to start hiring staff and put together a request for proposal (RFP) for the third party contractor who will administer the incentive program,” Betz Mayer, PNWER Regional Infrastructure Accelerator (RIA) assistant director, said. “We know from our work designing this program that the businesses owning and operating MHDVs are interested in this new technology, but that the price point of the zero-emission versions is a major barrier for them. By investing in this incentive program, the Washington Legislature is making it easier and more affordable to purchase and deploy zero-emission MHDVs in Washington state.” 

In Washington, trucks and buses represent 10% of on-road vehicles, but are responsible for 30% of the state’s on-road greenhouse gas emissions, and more than 50% of other transportation-related air pollutants. These harmful pollutants have detrimental effects on the state’s air quality and public health, as they are more likely to disproportionately impact overburdened communities, according to the Washington State Department of Health. Despite this, most zero-emission infrastructure and vehicle acquisition programs have been focused on the passenger application rather than the commercial; the PNWER RIA commends the Washington Legislature for its proactive and timely action towards addressing this disparity. 

The MHD ZEV voucher incentive program design incorporates recommendations and stakeholder feedback from 24 Washington transportation sectors. The PNWER RIA team is proud to have played a vital role in spearheading stakeholder engagement efforts for the incentive program design, ensuring industry concerns, needs and expectations were addressed. 

The funded incentive program, for which commercial on-road vehicles, cargo handling equipment and off-road vehicles are eligible, will provide vehicle and infrastructure incentives to bridge the financial gap between zero-emission technologies and their diesel counterparts. Additional incentives will be available for select populations based on equity considerations, such as vehicles in disadvantaged communities and vehicles purchased by small, minority-owned businesses.

As part of the larger $227 million budget allocation is $10 million in state match funding for secured federal funds to finance hydrogen refueling infrastructure for MHD vehicles. When appropriate, the state match funding will support refueling locations in disadvantaged and overburdened communities. 

The $20 million originally set aside for an early action grant program is now designated for the replacement of fossil-fuel powered school buses with zero-emission school buses, inclusive of refueling infrastructure costs. Under this allocation, school buses and transit vehicles that are already eligible for state grants are not eligible for these vouchers, though they can access the technical assistance provided through this program. 

PNWER applauds the Washington Legislature for its foresight in allocating resources to advance the acquisition of zero-emission vehicles and infrastructure – an important step in developing an enhanced, clean supply chain for the region. PNWER, as a U.S. Department of Transportation Build America Bureau designated RIA, is dedicated to facilitating public and private investment and project bundling in Alaska, Idaho, Montana, Oregon and Washington. Among PNWER RIA priorities is the systems integration of hydrogen refueling and ZEV charging facilities along the region's interstate highway system. This initiative aligns with those of the Washington Legislature; combined, these efforts lay a foundation for cleaner transportation networks for communities and our environment. 

The Climate Commitment Act (CCA) is a critical policy framework designed to deliver emissions reductions at a pace required to address climate change while ensuring a prosperous future for Washington state. PNWER underscores the importance of upholding the CCA to ensure important initiatives like the MHD ZEV incentive program remain funded.

Of additional note, the supplemental transportation budget directs $50,000 for WSDOT to support Montana’s Big Sky Passenger Rail Authority (BSPRA) in its Corridor ID effort to study the reinstatement of the North Coast Hiawatha route, which would include east-west passenger rail travel through Washington. The PNWER RIA team is eager to collaborate with BSPRA as a project partner on combined efforts to enhance the region’s rail network as part of a decarbonized supply chain. 

PNWER extends its appreciation to the Washington Legislature for its leadership in prioritizing accessible, clean transportation solutions for Washington businesses. As an advocate for continued public and private investment in our region’s commercial transportation network, the PNWER RIA remains committed to collaborating with policymakers, stakeholders and industry partners to drive an integrated clean energy-fueled transportation system for a more prosperous and resilient Pacific Northwest.

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ABOUT PNWER

The Pacific NorthWest Economic Region (PNWER) is a public/private non-profit organization created by statute in 1991. Member jurisdictions include Alaska, Idaho, Oregon, Montana, and Washington, and the Canadian provinces and territories of British Columbia, Alberta, Saskatchewan, the Northwest Territories, and Yukon. PNWER's mission is to increase the economic well-being and quality of life for all citizens of the region; identify and promote "models of success; and serve as a conduit to exchange information. For more information on PNWER, visit www.pnwer.org.

ABOUT PNWER RIA

Initiated in 2021, the PNWER RIA serves as a convener for transportation projects in the region, specifically multistate and multi-jurisdictional initiatives with multi-modal and region-wide benefits. Funded through U.S. DOT’s Build America Bureau, the PNWER RIA helps identify Public-Private Partnerships (P3s) and federal financing opportunities to accelerate the delivery of transportation projects with region-wide benefits that ease supply chain disruptions, reduce transportation-related pollution, and increase economic and environmental justice, especially for historically underserved communities.