Legal Bulletins

As many Marylander's know, the state has adopted the Advanced Clean Cars II rule from California, which will ban the sale of new gasoline-only powered cars in Maryland by 2035. While this is garnering the most attention, Maryland has also adopted California’s Advanced Clean Truck Rule, which requires increasing percentages of electric medium and heavy-duty vehicles in Maryland beginning in year 2027. 

Similar to cars, manufactures must meet specific truck sales quotas, and gasoline trucks will gradually shift to zero-emission vehicles (“ZEVs”) over the next decade.

Advanced Clean Trucks will require a yearly increase of the sale of ZEVs, such that by 2035 new ZEV truck sales must be at 55% of pickup trucks/vans, 75% of rigid/box truck sales, and 40% of truck tractor sales.

The Maryland Energy Administration (“MEA”) is now offering grants to those purchasing qualifying new ZEVs and heavy equipment for commercial use. More specifically, the grant program provides financial assistance for the purchase of qualified, newly manufactured medium-duty or heavy-duty zero-emission fleet vehicles, as well as qualified zero-emission heavy equipment property, for commercial or industrial use.

A qualified medium-duty or heavy-duty ZEV means a motor vehicle that is rated at more than 10,000 pounds gross vehicle weight and is powered by electricity stored in a battery or produced by a hydrogen fuel cell. Zero-emission heavy equipment property means construction, earth-moving, or industrial equipment, including any attachment for the equipment that is mobile, and does not use an internal combustion engine. Zero-emission heavy equipment property includes a self-propelled vehicle that is not designed to be driven on a highway, and industrial electrical generation equipment, industrial lift equipment, industrial material handling equipment, or other similar equipment.

More details from MEA regarding grant eligibility can be found here: FY24 Medium-Duty and Heavy-Duty Zero-Emission Vehicle Grant Program (maryland.gov). Fleet companies and organizations in Maryland should apply with MEA to determine eligibility for these grants. The application period closes on Thursday, April 11, 2024 at 2:00 PM.

Included below is a table from MEA outlining the Maximum Grant Amount per vehicle.     

(Photo Provided From MEA’s Grant Program Detail Form) 
 

MEA is offering up to $6.5 million in grants in Fiscal Year 2024, and these grants will cover up to 75% of the incremental cost of eligible vehicles and equipment. Given the cost of these ZEV trucks, these grants can go a long way for commercial and industrial vehicle uses.

Users of commercial vehicles will be required to make an eventual shift to ZEVs in the near future. This grant program allows these users to do so at a huge discount.

As stated previously, the application period closes on Thursday, April 11, 2024.

For more information on the Advanced Clean Truck Rule or MEA’s Grant Program, contact:

Max Cooke
410-576-4141 • mcooke@gfrlaw.com