As the demand for electric vehicles (EVs) grows, so does the need for an energy ecosystem capable of supporting a fully electrified transportation future. In 2024, state legislatures made significant strides toward modernizing the electric grid for EVs, including streamlining charging station siting, refining permitting processes, and updating building codes to support America’s growing EV fleet. Together, these policies lay the groundwork for a more fair, efficient, and less polluting transportation system. To synthesize the EV action across the country, Advanced Energy United read and summarized hundreds of bills, which we have distilled down into this series that covers seven dominant trends:
- Grid Modernization: Building the Foundation for Electrification
- Siting and Permitting: Clearing the Path for Infrastructure Expansion
- Building Codes and Parking Requirements: Designing for an EV Future
- Leading by Example: State Fleet Policies
- Electric School Buses: Supporting Healthier Communities
- Fees on EVs
- Financial Incentives for EVs and Infrastructure
1. Grid Modernization: Building the Foundation for Electrification
Colorado SB218 represents a groundbreaking step in preparing the grid for widespread electrification. The bill mandates utilities serving 500,000 or more customers to develop comprehensive distribution system plans that integrate renewable energy, electric vehicles, and distributed energy resources (DERs). By focusing on long-term planning and flexibility, SB218 ensures the grid can accommodate the increasing demands of electrification and decarbonization. SB218 also supports innovative solutions like virtual power plants and offers performance-based incentives to encourage utilities to align infrastructure investments with climate goals. This forward-thinking policy cements Colorado’s leadership in building a resilient and inclusive grid for the clean energy transition.
Maryland’s SB959, also known as the DRIVE Act, is a comprehensive initiative to modernize the state’s grid and position electric vehicles (EVs) as critical assets for grid stability. The act requires utilities to transition residential customers to time-of-use (TOU) rates, incentivizing EV charging during off-peak hours with significantly reduced prices. This strategy not only lowers costs for consumers but also helps balance grid demand.
A standout feature of the DRIVE Act is its emphasis on bidirectional EV systems. By expediting the interconnection process and piloting compensation programs for distributed energy resources (DERs), the bill ensures that EVs can actively support grid reliability through vehicle-to-grid (V2G) technology. These innovations, coupled with the bill’s focus on performance-based compensation for DERs, make Maryland a leader in leveraging electrification for grid modernization.
2. Siting and Permitting: Clearing the Path for Infrastructure Expansion
Colorado’s HB1173 establishes clear timelines for EV charger permitting processes, ensuring applications are reviewed within 30-60 days. The bill also creates a grant fund to assist local governments in implementing new permitting standards, helping to rapidly scale charging infrastructure statewide.
California’s SB347 simplifies land use for EV and hydrogen fueling infrastructure by exempting these projects from the Subdivision Map Act. By reducing administrative hurdles, SB347 ensures faster deployment of critical fueling stations across the state.
California’s SB1418 extends streamlined permitting requirements to EV and hydrogen fueling infrastructure projects. By mandating non-discretionary approvals and electronic submissions, the bill ensures faster infrastructure deployment across the state.
California also passed AB2427 which mandates the development of model permitting guidelines for curbside EV chargers, streamlining approval processes for local governments. These efforts support overnight charging for renters and residents in multifamily housing, critical to achieving the state’s ambitious EV goals.
3. Building Codes and Parking Requirements: Designing for an EV Future
California’s AB98 updates building codes to require all new construction to include EV charging infrastructure. By embedding EV readiness into new developments, the bill ensures that homes and businesses are equipped to meet the growing demand for EVs.
Colorado HB1161 supports local governments in adopting advanced building codes to accelerate EV adoption. The bill incentivizes EV-ready construction and parking facilities, aligning municipal planning with state-level decarbonization goals.
Maryland HB159 requires that a portion of new parking spaces include EV charging capabilities, ensuring that infrastructure keeps pace with the state’s growing fleet of EVs. By addressing parking needs at the planning stage, the bill helps avoid costly retrofits and supports a seamless transition to electrification.
New Jersey S3490 mandates the inclusion of EV-ready wiring in new residential and commercial developments, aligning the state’s building standards with the anticipated growth of EV adoption. This policy ensures that future buildings are prepared to support charging needs without costly upgrades.
New York’s S01736 ensures that new construction projects with off-street parking are equipped to meet the needs of an electrified future. The bill requires residential and commercial buildings to dedicate a percentage of parking spaces to EV charging infrastructure, including EV-ready wiring of Level 2 charging stations. To support cost-effective deployment, shared circuits, and energy management systems are allowed, while exemptions are provided for affordable housing and cases of technical or geographic infeasibility. These requirements will apply to new construction contracts starting April 1, 2025, ensuring New York remains ahead of the curve in preparing its buildings for the growing demand for EVs.
4. Leading by Example: State Fleet Policies
With state and school district fleets accounting for thousands of vehicles on the road, electrifying state fleets is an opportunity to improve air quality, lower harmful emissions, save costs for taxpayers, and to lead by example. While many states made commendable progress, one surprising misstep in New York highlighted the importance of thoughtful, data-driven policymaking.
State governments are uniquely positioned to showcase the benefits of electrification by transitioning their fleets to zero-emission vehicles (ZEVs). Colorado, Delaware, and Indiana were among the standout states making headlines this year.
Colorado’s commitment to fleet electrification is already well-established through the Colorado Electric Vehicle Plan (2020) and Executive Order D 2022 016, which mandate that all appropriate state vehicles must be zero-emission by 2030. This year’s SB214 builds on this strong foundation by creating the Office of Sustainability within the Department of Personnel, tasked with coordinating and assisting in planning and constructing state agencies’ EV charging infrastructure and in transitioning to electric equipment. This centralized office ensures that agencies have the guidance and tools to meet these mandates, streamlining efforts and addressing operational hurdles. By transforming ambitious goals into actionable plans, SB214 ensures Colorado stays on track for a zero-emission fleet by 2030.
Delaware followed a similarly structured path with HB9, which laid out ambitious yet achievable milestones for fleet electrification. By requiring light-duty state vehicles to be 50% electric by 2032 and 100% by 2040, Delaware sent a strong signal that it’s committed to aligning public investments with climate goals. This phased approach allows for flexibility while ensuring momentum.
Indiana’s HB1194 took a practical yet impactful route, requiring state agencies to prioritize clean energy vehicles when purchasing or leasing. However, it provided exemptions for situations where ZEVs might not yet be a perfect fit—like specific functionality or cost concerns. By threading this needle, Indiana created a replicable model for states balancing ambition with practicality.
5. Electric School Buses: Supporting Healthier Communities
School buses represent a powerful opportunity to reduce emissions and improve public health, especially for our nation’s children. Washington, Illinois, and New Jersey made major strides in supporting electric school bus (ESB) adoption in 2024.
Washington set an adoption deadline with HB1368, requiring all new school buses purchased after 2035 to be zero-emission. The law also established a grant program to fund ESBs and charging infrastructure, ensuring that financial support accompanies the mandate.
Illinois made headlines in 2024 with HB4959, a landmark policy creating a robust incentive program to accelerate the adoption of electric school buses. The program offers grants covering up to 80% of the costs for purchasing ESBs and installing charging infrastructure, with a strong focus on supporting low-income and environmental justice communities. This equity-first approach ensures the districts most affected by diesel pollution reap the earliest benefits of electrified transportation. HB 4959 goes beyond funding by also offering technical assistance to schools, helping them navigate the operational challenges of fleet electrification. By removing financial and logistical barriers, the program empowers districts to transition to cleaner transportation with increased ease.
New Jersey’s A1677 empowers the New Jersey School Boards Association to act as a government aggregator for ESB procurement. This centralization allows school districts to benefit from cooperative purchasing agreements, reducing costs through bulk procurement. Additionally, the bill permits long-term contracts of up to 20 years, aligning leasing agreements with the operational lifespan of ESBs. By streamlining procurement and offering cost-saving opportunities, A1677 removes key barriers to electrifying school transportation statewide.
Unfortunately, not all 2024 legislation advanced the EV fleet transition. New York’s A9238 lowers the “probable usefulness” of zero-emission school buses from twelve years to eight, incorrectly equating standard vehicle warranties with actual useful life. This change forces school districts to amortize ESB purchases over a shorter period, imposing unnecessary financial strain or misaligning spending with the state’s climate mandates. By ignoring evidence that ESBs reliably last twelve to fifteen years, the bill risks higher costs, premature replacements, and long-term savings, placing New York out of step with national best practices in fleet electrification.
6. Fees on EVs
In 2024, several states introduced new fees targeting electric and hybrid vehicles, attempting to compensate for declining gas tax revenues. However, these policies highlight the shortcomings of outdated gas tax systems, which are often set too low to adequately fund necessary road infrastructure. Rather than address these systemic issues, EV fees may unfairly shift the financial burden onto EV owners to fill funding gaps. Instituting fees on EVs also risks slowing the adoption of cleaner transportation.
Kentucky SB107 introduces new registration fees for electric and hybrid vehicles, redirecting the funds to the state road fund for infrastructure maintenance.
New Hampshire HB1631 establishes a commission to explore revenue options for traditional road tolls, including potential models for taxing electric and fuel-efficient vehicles.
New Jersey A4702 phases out the sales tax exemption for zero-emission vehicles, gradually increasing the tax rate to the full statutory amount by mid-2025.
New Jersey A4011 imposes an annual fee on zero-emission vehicles, with proceeds directed to the “Transportation Trust Fund Account” for infrastructure projects.
Pennsylvania SB656 creates an Electric Vehicle Road User Charger, with fees based on vehicle weight, requiring EV owners to pay an annual surcharge during registration.
These fee structures highlight a growing trend of states turning to EV-specific charges to offset declining gas tax revenues. While intended to support infrastructure funding, these measures may place disproportionate burdens on EV owners, potentially discouraging adoption at a time when accelerating the shift to cleaner transportation is critical. Thoughtful, balanced solutions are essential to ensure equitable contributions without hindering progress toward sustainability goals.
7. Financial Incentives for EVs and Infrastructure
In 2024, several states passed legislation introducing or expanding financial incentives to encourage the adoption of EVs and the development of supporting infrastructure. These initiatives reflect a growing recognition of the need to reduce upfront costs and accelerate the transition to clean transportation.
California AB2922 reestablishes capital investment incentive programs, allowing local governments to support clean transportation and alternative fuel projects, including EV manufacturing facilities.
California SB1158 updates the Carl Moyer Air Quality Standards Attainment Program to allocate funding for zero-emission vehicle technologies, including emission-reducing retrofits and repowers.
Washington D.C. B25-0106 expands the Electric Vehicle Charging Station Pilot Program and creates an EV Charging Station Grant Program, incentivizing the installation and upgrade of EV charging infrastructure.
Georgia HB1181 introduces and modifies tax credits for zero-emission vehicles, EV charging infrastructure, and other clean energy initiatives, reducing financial barriers for individuals and businesses.
New Mexico HB252 establishes a suite of new tax credits for clean vehicles and EV charging units, providing incentives for both personal and commercial EV adoption.
Vermont H0868 authorizes grants for Level 1 and Level 2 EV charging ports at workplaces and multi-unit dwellings, supporting more accessible charging options across the state.
These financial incentives play a critical role in making EVs and infrastructure more affordable and accessible, addressing a key barrier to widespread adoption. However, ensuring these programs effectively target underserved communities and equitably distribute benefits remains an important consideration.
Looking Ahead to 2025
As we reflect on 2024’s legislative progress, the stage is set for an even more ambitious year in 2025. With the increasing adoption of EVs and the electrification of transportation sectors, we expect to see a growing focus on modernizing the grid to accommodate large-scale electrification, such as enhancing grid flexibility, expanding energy storage capacity, and deploying smart technologies to ensure reliability under rising demand. Bills like Colorado’s SB218, which integrates renewable energy and DERs into long-term distribution system planning, offer a glimpse of what’s to come.
Beyond grid modernization, we expect continued momentum in streamlining permitting processes, implementing EV-ready standards into building codes, and scaling financial incentives at a state level to make clean transportation accessible to all. By building on the foundation laid in 2024, these efforts will help create an energy ecosystem capable of supporting widespread electrification, driving progress toward climate goals, and fostering economic growth.
Stay tuned as we continue to track these developments and advocate for impactful policies that accelerate that transition to electrified transportation. To see summaries of all the EV legislation passed in 2024, and to keep up to date on all legislative and regulatory action, check out Advanced Energy United’s Insight Engine.