The Texas economy is one of the strongest in the nation. We lead the country in job growth, and our GDP has grown at a faster rate than the United States’ GDP six quarters in a row. There is no denying that Texas has one of the best business climates in the country.
The zero-emission transportation industry is a growing contributor to the Texas economy, with extraordinary potential for the coming decade. Zero-emission trucks and buses are great for the environment, but they also provide tremendous economic opportunities for Texas.
An Environmental Defense Fund analysis shows that $2.9 billion has been invested in zero-emission vehicles in Texas in recent years, resulting in 5,600 announced new jobs throughout the state. While most of the discussion on these cleaner vehicles revolves around hybrid or EV passenger cars, where Texas is truly prepared to lead is in the manufacturing and deployment of medium- and heavy-duty trucks, like school buses, delivery vans and 18-wheeler tractor-trailers.
While states like California, New York and others are crafting requirements for companies to transition to zero-emission vehicles over the next decade, Texas is following its traditional low-regulation, light-touch approach to move into the zero-emission sector at the industry’s pace.
Right here in San Antonio, Navistar celebrated the grand opening of its state-of-the-art manufacturing plant in 2022, a one million square-foot facility that builds heavy-duty electric trucks and has delivered approximately 600 jobs to the region. The company has committed that 50% of the trucks it makes will be zero-emission by 2030. Its efforts are just the start of the economic success the region can expect with the coming zero-emission transition.
As the connector for I-10 and I-35, San Antonio sits at the intersection of a newly federally designated National Zero-Emission Freight Corridor, which will make the region eligible for additional federal grant funding for zero-emission transportation projects. The Department of Energy also granted an award for a Houston to Los Angeles Hydrogen Corridor Study, which will determine how to use zero-emission hydrogen fuel-cell trucks through San Antonio and across the country.
On a smaller scale, San Antonio ISD is purchasing electric school buses, delivering cleaner air at cheaper costs for families in the community.
These success stories in the San Antonio region highlight how Texas’ economic model can be great for business while also delivering necessary improvements to our state’s air quality. A recent analysis by the Texas Commission on Environmental Quality found that 24% of the state’s greenhouse gas emissions in 2021 came from the transportation sector — of which the vast majority is the result of fossil fuel combustion.
To help curb the pollution from these diesel truck emissions, Texas has awarded tens of millions for electric trucks and school buses in recent years through the state’s Texas Emissions Reduction Plan, an air quality grant program that helps companies purchase equipment — such as zero-emission trucks and infrastructure — that reduce NOx (nitrogen oxide) emissions in Texas’ nonattainment areas. As the Environmental Protection Agency tightens air quality rules throughout the country, these statewide programs will be critical in ensuring Texas stays in compliance with federal regulation while also furthering investments in our zero-emission transition.
Coastal states have a head start on the zero-emission transition, but Texas remains one of the best states to do business in the nation and is charting its own path toward the zero-emission transportation future. That’s why EDF is attending an important event this week in San Antonio, the National Association of Fleet Administrators (NAFA) 2024 Institute & Expo, to meet with fleet professionals from across the country to share insights and perspectives, and to ensure fleets can capitalize on this transition.
If Texas can double down on investments and policies that support the state’s booming zero-emission transportation economy, there’s every reason to believe that our business-friendly climate will allow us to win out in the long run.
