Electric Vehicle Sales quotas to be introduced in New York, starting 2026

by Oct 7, 2022

The state of New York has been following suit alongside many other U.S. states in their attempts to accelerate the adoption of electric vehicles within fleets and help realize carbon neutrality targets set by the Biden Administration. A feat inaugurated by California, the State of New York had also previously announced a complete ban on Internal Combustion passenger cars and light commercial vehicles (LCVs) starting from 2035. In order to add to these targets, NY Governor Kathy Hochul has recently outlined a strategy that is set to help in systematically reducing the sales of internal combustion vehicles by 2035, by adopting interim targets previously set by the state of California through the Advanced Clean Cars II regulation adopted in August 2022.

Starting from 2026, OEMs will be required to sell an increasing number of zero emission vehicles annually. The percentage of ZEV sales will start of at a quota of 35%, increasing to 68% sales by 2030, and by 2035, the quota will have eventually reached a 100% ZEV sales. The memo received from the Governor as placed to specification on the type of ZEV, which signifies that these ZEV quotas may also include Plug-in Hybrid vehicles.

In order to execute this act, Governor Hochul has directed the New York Environmental Protection Agency to regulate the implementation of these quotas. The directive is set to advance zero-emission vehicles requirements by 2035 for all new passenger cars, pickup trucks, and SUVs old in the state. The directive, accompanies by the Advanced Clean Trucks regulation adopted by the state in December 2021, will drive an increase in the number of medium- and heavy-duty ZEV models available as purchase options for vehicle purchasers and fleets. In addition, several transit agencies including the Niagara Frontier Transportation Authority, the Rochester-Genesee Regional Transportation Authority, and the Metropolitan Transit Authority are leading by example with second wave deployments of electric buses. DEC, New York State Energy Research and Development Authority (NYSERDA), New York Power Authority (NYPA), and DOT (Department of Transportation) are assisting these authorities with these efforts.

New York is investing more than $1 billion in zero emissions vehicles of all weight classes over the next five years. Active light-duty vehicle initiatives include zero-emission vehicle purchase rebates through NYSERDA’s Drive Clean Rebate Program, zero-emission vehicle and charging infrastructure grants through DEC’s Climate Smart Communities Municipal Grant Program, as well as the “EV Make Ready” initiative, NYPA’s EVolve NY charging infrastructure program, and DOT’s National Electric Vehicle Infrastructure (NEVI) charging infrastructure program to help expand electric vehicle use.

The state is also making available a total of $5.75 million to help municipalities purchase or lease zero-emission vehicles for fleet use and to install public electric vehicle charging and hydrogen fueling stations. Additionally, $10 million has been added to the Drive Clean Rebate program, administered by NYSERDA, to help consumers purchase or lease an electric vehicle to put more clean vehicles on the road by 2035. This point-of-sale rebate takes up to $2,000 off the price of a vehicle and can be coupled with a federal tax rebate of $7,500 to provide consumers with up to $9,500 in savings. All rebatements and incentives included, the state of New York is set to provide a total of more than $1 billion as investment in zero emission vehicles in all weight categories.

This directive, now coupled with the Advanced Clean Trucks act is to holistically cover the advancement of zero emission vehicle models under all commercial and passenger vehicle category.

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