Pricing credits high enough is critical for transportation electrification.
(San Francisco, CA) 8, Oct, 2025—  A new study from the International Council on Clean Transportation (ICCT) finds that the amendments made to the Low-Carbon Fuel Standard (LCFS) in November 2024 have the potential to offer around $8.8 billion in support for medium- and heavy-duty vehicle (MHDV) electrification over the next decade. Although the exact amount could vary, the level of funding is expected to far exceed that of any previous program for the MHDV segment.
The study estimates that the combination of funding from energy and infrastructure credits and reinvested credit revenue represents unprecedented funding levels that could range from $4 billion to over $16 billion depending on credit prices. Even at the lower end, this funding would nearly triple what California has invested in zero-emission trucks and buses since 2010 and could cover most of the infrastructure costs needed for commercial vehicle electrification through 2035.
Despite the program’s strong potential, the study notes that actual outcomes depend on LCFS credit prices, which can fluctuate based on market dynamics. (....)