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What happened: EV charging startups are looking to capitalize on California's new regulations aimed at increasing the adoption of zero-emission vehicles (ZEV). The state of California allocated $391.4M for grants to build medium- and heavy-duty ZEV infrastructure in the fiscal year 2021-22. For the fiscal year 2022-23 and 2023-24, the state has allocated $298.9M for medium- and heavy-duty infrastructure. Schematic Ventures' general partner Julian Counihan said, "You are seeing new business models that are just directly a result of the regulation and the grants." Relevance: Per the new rules, trucking companies and owner-operations must purchase EV trucks starting Jan. 1, 2024. The state intends to replace more than 30,000 trucks with zero-emission vehicles by 2035. However, the state lacks sufficient EV charging infrastructure. Daimler Truck North America's CEO John O'Leary estimates that 30 new DC chargers must be added daily between now and 2026 to satisfy the demand for projected EV trucks.
Why it matters: California's new regulations aim to solve the charging infrastructure dilemma plaguing the EV industry. Funding is being allocated to build public charging infrastructure and hydrogen refueling stations under the EnergllZE project. The California Electric Vehicle Infrastructure Project (CALeVIP) provides rebates of up to 75% towards the costs associated with installing publicly available EV charging stations. Funds for the initiatives are earmarked from the National Electric Vehicle Infrastructure (NEVI) Program. In addition to EV charging infrastructure and NEVI funds, the state is also channelizing funds from other federal programs, including the Charging and Fueling Infrastructure Discretionary Grant, Low No Emission Grants Program for Transit, and Reduction of Truck Emissions at Port Facilities grants. |
