State of Sustainable Fleets Market Brief: Diesel Engine Development Begins to Sunset as Funding, Fleets, & Regulators Focus in on ZEVs

With 13 states (and D.C.) passing ZEV mandates and approximately $32 billion of funding available for each of the next 4-5 years, regulators and industry portend the sunset of the diesel engine development

Anaheim, California, May 01, 2023 (GLOBE NEWSWIRE) -- In the fourth annual State of Sustainable Fleets Market Brief, a new trend is clear — public policy and funding has shifted sharply to build the ZEV market and sunset diesel engine development on an accelerated timeframe. Report author and leading clean technology consulting firm, Gladstein, Neandross & Associates (GNA), unveiled the findings at the Advanced Clean Transportation (ACT) Expo, a four-day conference which drew over 10,000 expected attendees Anaheim, California. 

This year’s Market Brief illustrates much more about the future, one where new diesel engine development programs are moving towards a sunset, and zero-emission vehicles (ZEVs) will be the “law of the land” in states representing approximately half of the U.S. economy. The past 18 months have laid the roadmap for a zero-emission (ZE) future in many states and produced early signals that the era of the diesel engine, the workhorse of heavy-duty vehicles, will end sooner than many predicted. Previously, the State of Sustainable Fleets demonstrated that some clean fuels and vehicles are now superior to gasoline- and diesel-fueled vehicles for many fleet applications, and adoption of renewable fuels and advanced technology drivetrains is accelerating. 

"The past year has brought a historic amount of investment from the federal government, as well as from private industry,” said Erik Neandross, chief executive officer of GNA. “Across clean fuel types, we’re seeing accelerating momentum and an increasing commitment to low carbon fuels and zero emission commercial vehicles.”  

This year’s report offers another deep analysis into the alternative fuels and clean transportation markets, with the following findings: 

  • The federal government and California have adopted rules requiring an 80% reduction in NOx emissions from diesel engines, adding tens of thousands of dollars to the cost of new diesel engines and likely requiring additional ongoing maintenance 
  • More than $32 billion per year, on average, in public incentive funding for clean vehicles and infrastructure will be available for the next 4-5 years; 
  • A total of 13 states and the District of Columbia have passed or are considering some form of California’s ZEV sales mandate on manufacturers and these same states are expected to consider California’s ZEV purchase mandate on fleets that passed last week 
  • U.S. renewable diesel production doubled from 2021 – 2022 to 800 million gallons and renewable natural gas replaced nearly all fossil natural gas in California transportation for the second year in a row  
  • In 2022, CNG averaged $2.73 per diesel-gallon-equivalent, and propane averaged $2.10 per-gasoline-gallon equivalent compared to an average of $5.78/gallon and $4.79/gallon for diesel and gasoline, respectively  
  • Orders for medium- and heavy-duty battery-electric vehicles surged 640% with nearly 30,000 medium-duty orders and 2,400 heavy-duty battery-electric school bus orders in 2022 
  • At least half of fleets across 11 different fleet types, including logistics, transit, school, cargo, and delivery fleets, have operated a medium- or heavy-duty battery-electric vehicle in the annual survey and 92% of those fleets plan to grow their use 
  • Supply chain disruptions have raised the price of medium- and heavy-duty battery-electric vehicles and delays for electrical service have caused multi-year delays for some deployments 
  • The public hydrogen station network grew 12% and the first plans to build station networks outside of California were announced for the central, mid-Atlantic, and southwestern U.S. 

Daimler Truck North America, Penske Transportation Solutions, and Shell serve as the title sponsors of this year’s Market Brief while Dana serves as supporting sponsor. 

“Driving sustainability in North American transport, the State of Sustainable Fleets report brings together the most relevant data from key industry leaders and stakeholders and innovators,” said Thomas de Boer, CEO of Shell’s Commercial Road Transport business. “This forward-thinking report is a powerful tool that sparks engaging collaboration and helps commercial road transport decarbonize.” 

 “We appreciate the important work that GNA is doing to investigate trends in the zero-emission and alternative fuels space through the State of Sustainable Fleets Market Brief,” said Greg Treinen, vice president, on-highway market development, DTNA. “Their seminal study continues to show the important progress being made, and we look forward to working with our customers - the nation’s fleets - to assist in their transition to these propulsion technologies.” 

“As detailed in this State of Sustainable Fleets report, progress is being made across all fronts,” explained Drew Cullen, Penske senior vice president of fuels and facility services. “ZEVs and other alternative powertrains, infrastructure, renewable energy, and funding all continue to make significant strides in meeting and exceeding fleet sustainability targets. This year’s report highlights the growing investments and innovations OEMs, energy providers, public and private fleets, and government agencies are making in developing, experimenting, and adopting clean transportation technologies.” 

 “The increasingly rapid shift to sustainable powertrains requires collaboration across the industry to help deliver continuous improvement for commercial vehicles for decades to come,” said Ryan Laskey, senior vice president of Dana Commercial Vehicle Drive and Motion Systems.  “The State of Sustainable Fleets report enables us to gather and identify actionable data that we can use to support OEMs and fleets in delivering the best possible solutions to the market.” 

The State of Sustainable Fleets is the leading source of information on sustainable technology decisions being made by America's on-road fleets. The annual analysis gathers real-world data directly from early adopter fleets across the U.S. to provide deep sector-specific insights into the adoption of battery-electric, natural gas, propane, and hydrogen fuel cell electric vehicles, against a baseline of diesel and gasoline vehicles. The analysis provides insights into public, private, and for-hire fleets, including school bus, shuttle, state/county/municipal, urban delivery, refuse, utility, transit, regional-haul, long-haul, drayage, and off-road cargo handling sectors. This first-of-its-kind report, developed annually, includes unique insights into vehicle sale trends, anticipated vehicle development timelines, real-world infrastructure and fuel costs, and the growing adoption of renewable fuels. 

To read the complete 2023 Market Brief, visit 


About Gladstein, Neandross & Associates (GNA)

GNA is the leading North American consulting firm specializing in market development for low- and zero-emission transportation technologies, infrastructure, and ultra-low carbon fuels for commercial transportation. For the past 30+ years, the company has managed the design and development of more clean fleet deployment projects than any other firm in North America, as well as facilitated the development of some of the largest alternative fuel corridors in the world. In addition to its leading consulting practice, GNA operates a full-service creative services team to provide expert branding, digital marketing, and communications assistance to its clients in the clean transportation space. GNA also produces industry-leading educational events and tradeshows, including the Advanced Clean Transportation (ACT) Expo, ACT Fleet Forum, and the California Hydrogen Leadership Summit

About Shell  

Shell USA, Inc is an affiliate of Shell plc, a global group of energy and petrochemical companies with operations in more than 70 countries. In the U.S., Shell operates in 50 states and employs more than 12,000 people working to help tackle the challenges of the new energy future.   

Shell is a global group of energy and petrochemical companies with more than 70,000 employees in more than 70 countries. We use advanced technologies and take an innovative approach to help build a sustainable energy future.  

About Daimler Truck North America 

Daimler Truck North America LLC, headquartered in Portland, Oregon, is a leading provider of comprehensive products and technologies for the commercial transportation industry. Daimler Truck North America designs, engineers, manufactures and markets medium- and heavy-duty trucks, school buses, vehicle chassis and their associated technologies and components under the Freightliner, Western Star, Thomas Built Buses, Freightliner Custom Chassis Corp and Detroit brands. Daimler Truck North America is a subsidiary of Daimler Truck Holding AG (DTG), one of the world’s leading commercial vehicle manufacturers. 

About Penske 

Penske Transportation Solutions is the umbrella brand for Penske Truck Leasing, Penske Logistics, Epes Transport Systems, Penske Vehicle Services, and related businesses. Our businesses provide innovative transportation, supply chain and technology solutions to keep the world moving forward. Visit to learn more. 

About Dana 

Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe.  The company is shaping sustainable progress through its conventional and clean-energy solutions that support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing, and digital solutions. 

Based in Maumee, Ohio, USA, the company reported sales of $10.2 billion in 2022 with 42,000 people in 31 countries across six continents.  Founded in 1904, Dana was named one of the “World’s Most Ethical Companies” by Ethisphere and one of “America’s Most Responsible Companies 2023” by Newsweek for its emphasis on sustainability and social responsibility.  The company is driven by a high-performance culture that focuses on valuing others, inspiring innovation, growing responsibly, and winning together, earning it global recognition as a top employer.  Learn more at


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2023 State of Sustainable Fleets Market Brief

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