Advanced Energy Perspectives

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:  

1. Grid Modernization: Building the Foundation for Electrification
2. Siting and Permitting: Clearing the Path for Infrastructure Expansion
3. Building Codes and Parking Requirements: Designing for an EV Future 
4. Leading by Example: State Fleet Policies 
5. Electric School Buses: Supporting Healthier Communities
6. Fees on EVs
7. Financial Incentives for EVs and Infrastructure

Last week at the Pennsylvania State Capitol, Advanced Energy United was joined by state legislators and a coalition of stakeholders advocating for electric school buses and a bill that would allow more school districts in the state to buy them. Legislators experienced the benefits of electric school buses firsthand, riding along in one provided by Steelton-Highspire School District, which procured new buses with funding from the federal government for clean transportation.  

Electric vehicles (EVs) continue to soar in popularity and, as they become more commonplace, it’s increasingly important for businesses and decisionmakers to not only understand the benefits, complexities, and future use cases for EVs, but also implement policy solutions to better prepare for the widespread transition to electrified transportation.  

Kicking off today and running through October 6 is National Drive Electric Week (NDEW), which aims to heighten awareness and highlight the benefits of today's widespread availability of all-electric and plug-in hybrid vehicles. NDEW is a celebration of the transformative power of EVs to lower transportation costs for drivers, improve public health, and even improve electricity resilience for households and communities. During NDEW, there are several events hosted in various cities throughout the country, including EV showcases, test drives, presentations, and community engagement activities to educate the public about the advantages and positive economic and environmental impacts of EVs. 

Last month, Illinois became the first state in the Midwest, and one of the few states outside the coasts, to establish a state-run incentive program for medium- and heavy-duty (MHD) electric vehicles (EV) that are part of a fleet, such as commercial trucks, transit, and school buses. The primary purpose of the legislation is to support fleet owners and operators who wish to go all electric; although MHD EVs show strong market growth, their adoption has been slow in part due to their high up-front cost. EVs represent less than 1% of new MHDV sales currently and incentives for vehicle purchases are proven to help increase EV adoption. Rebates and tax incentives for light-duty vehicle (LDV) EVs have captured a larger share of the LDV market overall, accounting for roughly 10% of new LDV sales. It’s no surprise that most MHD EVs are sold in states offering a purchase incentive program.