LAS VEGAS, Nev. — Now in its seventh year, the State of Sustainable Fleets 2026 Market Brief, released today, delivers a comprehensive, technology-neutral assessment of an industry building resilience through powertrain and fuel diversification amid an extended period of uncertainty. The Market Brief was unveiled at ACT Expo in Las Vegas, Nevada — North America’s largest fleet technology conference and expo, now in its 16th year. It was authored by TRC Companies, a WSP member company and leading construction, engineering, and consulting firm.

The Market Brief arrives as commercial fleets face a convergence of pressures that industry analysts are calling the most complex operating environment in modern trucking history. A prolonged freight recession now in its third consecutive year has been compounded by sweeping federal policy reversals, tariff-driven cost increases of up to $35,000 per new truck, and geopolitical volatility affecting global supply chains and energy markets. The rollback of federal greenhouse gas (GHG) vehicle standards, the expiration of zero-emission vehicle (ZEV) tax credits worth up to $40,000 per eligible medium- and heavy-duty (MD/HD) vehicle, the cancellation of federal clean transportation funding, and the nullification of California’s clean truck regulations have restructured the policy landscape from a federally driven system to a decentralized patchwork of state policies and market-driven factors.

Yet across all this disruption, the data reveals a picture of an industry in structural adaptation rather than retreat. TRC estimates that more than $5 billion in state, local, and utility program funding remains available annually through 2028 supporting clean fleet investment. Fleet technology markets are maturing across nearly every fuel and drivetrain type. Artificial intelligence has moved from pilot projects to mainstream fleet operations. And the central strategic finding of this year’s Market Brief is clear: fleets managing total cost of ownership (TCO) across a portfolio of powertrain technologies  rather than concentrating on a single solution or waiting out the uncertainty are demonstrating measurably greater resilience. In a freight economy where external shocks can rapidly change the economics of any single technology, including conventional diesel, powertrain diversification has become both a financial strategy and a risk management imperative.

Penske Transportation Solutions and Volvo Trucks North America serve as title sponsors of the 2026 State of Sustainable Fleets Market Brief. Exelon Companies and S&P Global Mobility serve as supporting sponsors. Each sponsor contributes expertise and data that enhances credibility of the findings.

The 2026 Market Brief identifies key findings shaping the sustainable fleets landscape:

Artificial Intelligence and Autonomous Trucking: From Pilot Projects to Commercial Operations

AI-powered fleet management has moved from experimentation to mainstream operations: approximately half of fleets in the annual survey report using AI for route optimization, dispatching, predictive maintenance, and maintenance diagnostics with users reporting measurable cost savings, greater vehicle uptime, and improved fleet utilization.

Fleet AI adoption is expected to accelerate rapidly: survey respondents project that 35% of their fleets will be AI-enabled by 2027, nearly doubling from an estimated 20% across the fleet in 2025. Among respondents, 49% reported that none of their fleet had been AI-enabled as of 2025, signaling a significant near-term adoption runway.

Autonomous freight is advancing from Sun Belt pilots to commercial-scale operations: driverless light-duty vehicles have logged millions of miles, and HD autonomous trucks entered commercial freight service in 2025. Broader heavy-duty rollouts across more routes and regions are expected by end of 2026.

Policy and Funding: Federal Cuts Reshape the Landscape; States, Markets, and New Biofuel Mandates Take the Lead

Federal clean transportation funding has been substantially reduced: zero-emission tax credits of up to $40,000 for eligible MD/HD vehicles expired; DOE’s Vehicle Technologies Office budget was cut approximately 90%; $2.2 billion in hydrogen R&D funding was rescinded, including so-called “Hydrogen Hubs”; and the DOT’s National Electric Vehicle Infrastructure (NEVI) program was suspended for six months.

Despite federal cuts, available funding for clean fleet projects remains well above pre-2022 levels: more than $5 billion in state, local, and utility programs is estimated annually through 2028. California maintained over $1 billion in active grant funding for on-road trucks and buses in 2025. Low-carbon fuel standards (LCFS) in California, Oregon, Washington, and New Mexico continue generating meaningful revenue streams supporting multiple clean technology pathways.

The EPA finalized record-high Renewable Fuel Standard (RFS) volume obligations for 2026 and 2027 in April 2026, requiring approximately a 60% increase in biodiesel and renewable diesel production and use compared to 2025 levels — a major structural tailwind for renewable fuel adoption. Regulatory responsibility for GHG and criteria pollutant standards is also increasingly shifting to the state level, though significant questions remain for fleets and their partners.

Diesel Vehicles: Efficiency Gains and Drop-In Renewable Fuels Displace Conventional Diesel at Scale

New Class 8 tractor registrations declined 16% in 2025 according to S&P Global Mobility data amid the prolonged freight recession, tariff-driven cost increases, and economic uncertainty. Fleets and OEMs have focused on diesel fuel efficiency: more than one-third of survey respondents reported using efficiency technologies, with leading heavy-duty adopters in the logistics sector achieving 8.5+ mpg and best-in-class operations demonstrating 11.5 mpg or higher.

Renewable diesel (RD) and biodiesel (BD) drop-in fuels that work in existing diesel engines and infrastructure are displacing conventional diesel at scale: the two fuels combined to replace 74% of conventional diesel used in California transportation in 2024 and 71% in the first three quarters of 2025. More than half of annual fleet survey respondents now report using RD or BD, with near-100% B99 biodiesel adoption expanding in 2025.

The EPA’s Clean Trucks Plan establishing MY 2027 NOx and particulate matter (PM) standards for MD/HD vehicles remains on track, with incremental per-vehicle costs expected to range from $8,000 to $18,000. Final warranty and useful-life provisions are still pending.

Natural Gas Vehicles: 15-Liter Engine Delivers Diesel-Equivalent Performance; RNG Enables Carbon-Negative Fleet Operations

The Cummins X15N 15-liter natural gas engine completed its first full year of commercial availability in 2025 and delivered diesel-equivalent performance, range, and payload capacity alongside compelling fuel cost savings. The U.S. leads the world in commercial use of compressed natural gas (CNG) and liquefied natural gas (LNG) for trucking — a competitive advantage built on years of fleet adoption and infrastructure investment that no other market has matched.

Total MD/HD natural gas vehicle (NGV) registrations fell 15% in 2025, driven in part by the freight recession and the fleet transition period as the market shifted to 15-liter platform deliveries. Straight trucks comprised 82% of 2025 NGV registrations, followed by transit buses (10%) and tractor trucks (7%) according to S&P Global Mobility data.

Renewable natural gas (RNG) sourced from organic waste enables carbon-negative fleet operations and continues to grow: RNG accounted for 97% of all natural gas fuel used in California transportation in 2025. Among NGV-using fleets in the survey, 65% report RNG use, which they estimate accounts for 78% of their total fueling volume.

Propane Vehicles: Cost Savings Drive Steady Growth; New Role as EV Charging Power Source Expands Market

The propane vehicle fleet grew 3.1% in 2025, with school bus and upfitter markets continuing as key adoption sectors. The fuel delivered operational cost savings for 39% of propane fleet operators compared to the vehicles they replaced, reinforcing propane’s role as a cost-effective, practical option in a diversified powertrain portfolio.

Renewable propane use surged: 32% of propane-using fleets reported using it in 2025, up from just 10% in 2023 — a nearly threefold increase that reflects fleet demand for low-carbon, drop-in fuel options requiring no vehicle modifications.

Propane is expanding into a new application as a power source for EV charging infrastructure, offering fleets an alternative to or temporary solution while awaiting utility grid connections with installation cost savings of up to 75% — a development that may accelerate BEV adoption in segments where grid access and utility timelines have been barriers to uptake at scale.

Battery-Electric Vehicles: MD Registrations Set Records as Cost Benefits Demonstrated; HD Vehicles Show Signs of 2026 Growth

MD/HD BEV registrations increased in 2025, led by pickup trucks and delivery vans that set a new record in the MD segment. Fleets operating MD BEVs and HD yard electric tractors reported total cost of ownership benefits compared to the vehicles they replaced, confirming that fleet electrification is delivering financial returns in duty cycles where range and infrastructure align.

Global market signals point to long-term BEV competitiveness in heavy-duty applications: BEVs now represent 22% of China’s HD truck market, and battery costs in that market have fallen to $90/kWh — a level widely cited as cost-competitive with conventional powertrains. Battery costs have fallen below $100/kWh in some markets, a leading indicator for future U.S. fleet economics.

Near-term U.S. growth faces headwinds from the expiration of EV tax credits and manufacturer production pivots. However, data from a California funding program and other signals show that Class 8 truck deployments should exceed the 1,000 annual deployments mark for the first time.

Hydrogen Vehicles: Funding Cuts Cloud Long-Term Outlook; Duty-Cycle Fit for Long-Haul and Heavy Payloads Remains Promising

The hydrogen vehicle sector faced its most challenging year in 2025: hydrogen fuel cell electric vehicle registrations dropped 12%, the cancellation of much of the Hydrogen Hub funding removed a critical development resource, and two prominent Class 8 FCEV manufacturers exited the market.

Despite these setbacks, Hyundai, Toyota, Honda, and Cummins continue advancing fuel cell modules and vehicle programs. Real-world fleet operations continue to confirm hydrogen’s operational fit for long-haul, heavy-payload duty cycles where truck weight and range constraints are most acute, with some deployments achieving 400+ miles per day with faster refueling times than EVs.

Long-term hydrogen sector viability for heavy-duty transportation is expected to depend on sustained federal investment in research, development, and fueling infrastructure that private capital alone will not provide at scale. Coordinated government investment remains the defining variable for hydrogen’s commercial future in freight.

“This year’s Market Brief accurately captures the continuing use of AI in fleet technology and how it allows for fleets to drive enhanced fleet and MPG performance and ultimately sustainability.”

— Paul Rosa, Senior Vice President Procurement and Fleet Planning, Penske Truck Leasing

“Volvo Trucks has been clear and consistent in our commitment towards zero emissions,” said Peter Voorhoeve, president, Volvo Trucks North America. “We continue to invest across a broad range of technologies because we believe meaningful progress requires more than a single solution. By investing in multiple solutions, we’re giving fleets the confidence that they can reduce emissions with the solution that makes the most sense for their business.”

— Peter Voorhoeve, president, Volvo Trucks North America

“In a very short time we’ve moved from ‘what’s the best AI-enabled drivetrain’ to ‘how do I utilize each where it works best’ to manage cost and uncertainty. Adoption of multiple advanced, clean technologies for medium- and heavy-duty fleets has emerged as the defining strategy instead of the retreat that many had predicted.”

— Nate Springer, Vice President, Market Development, TRC Companies

To access the full 2026 Market Brief and receive ongoing updates and analysis from State of Sustainable Fleets, visit www.StateofSustainableFleets.com.

About State of Sustainable Fleets
The State of Sustainable Fleets Market Brief is the foremost authority on sustainable technology adoption within America’s on-road fleets. This annual analysis compiles real-world data from early adopter fleets nationwide, offering sector-specific insights into the uptake of battery-electric vehicles, natural gas, propane, and hydrogen fuel cell electric vehicles, alongside renewable fuels, benchmarked against diesel and gasoline vehicles. The annual Market Brief provides essential data and analysis for year-round education on the rapidly developing market via regular webinars, Academy webinar series, fleet guides, and trend briefs. State of Sustainable Fleets is authored by the Clean Transportation Solutions group of TRC Companies.

About Penske Transportation Solutions
Penske Transportation Solutions is the universal 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 GoPenske.com to learn more.

About Volvo Trucks North America
Volvo Trucks North America, headquartered in Greensboro, North Carolina, is one of the leading heavy-duty truck manufacturers in North America. Its Uptime Services commitment is delivered by a network of nearly 400 authorized dealers across North America and the 24/7 Volvo Trucks Uptime Center. Every Volvo truck is assembled in the Volvo Trucks New River Valley manufacturing facility in Dublin, Virginia. Volvo Trucks North America provides complete transport solutions for its customers, offering a full range of diesel, alternative-fuel, and all-electric vehicles, and is part of the Volvo Trucks global organization.

About ACT Expo
ACT Expo is North America’s largest fleet technology conference and expo, bringing together more than 12,000 fleet operators, OEMs, shippers, technology providers, infrastructure developers, energy companies, and policymakers for four days of peer-to-peer education, real-world case studies, and direct

access to the solutions shaping the industry. Now in its 16th year, ACT Expo 2026 takes place May 4–7 at the Las Vegas Convention Center. The 2026 program expands on ACT Expo’s long-standing leadership in clean transportation with increased focus on the digital frontier, including AI, autonomy, connectivity, and software-defined vehicles. More than 500 exhibitors will showcase the advanced vehicles, charging and fueling solutions, equipment, software platforms, and digital tools redefining commercial transportation. For more information, visit www.actexpo.com.

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LAS VEGAS, Nev. – As commercial vehicle programs face mounting pressure from electrification, evolving regulatory requirements, and increasing system complexity, Triz Engineering is introducing its New Engineering model at ACT Expo in response to a growing industry shift: the primary risk in vehicle development is not only technology, it is execution.

Commercial vehicle programs don’t fail in design, they fail in launch. As programs become more complex, with multiple propulsion pathways, increasing software integration, and competitive development timelines, the challenge is no longer only selecting the right technology, but executing it successfully at launch.

“Commercial vehicle programs don’t fail because of a single technical issue,” said Dion van Leeve, Vice President of Engineering, Advanced Technology at Triz Engineering. “They fail because of compounding misalignment, decisions made too late, systems not integrated early enough, and execution that isn’t structured to manage complexity from the start.”

Across the industry, this shift is becoming more visible:

Launch delays driven by late-stage performance challenges.

Increasing rework due to early misalignment.

Cost overruns at both program and product levels.

As complexity increases, these factors are driving execution risk, not just technical risk.

New Engineering: A Structured Model for Delivery
Triz Engineering’s New Engineering model is a structured execution model designed to address these challenges at the program level.

The model is built on:

Specialization in commercial vehicle systems, enabling system-level integration and faster decisions.

Full-system ownership from concept through integration, compliance, and production.

Disciplined delivery with clear accountability for cost, timing, and performance.

Right-first-time decision-making grounded in application and production reality.

This replaces fragmented execution with focused delivery, reducing variability, minimizing rework, and protecting launch timelines.

Engineering Certainty: The Outcome
Triz does not sell engineering hours, they sell Engineering Certainty on launch-critical programs through disciplined execution, clear accountability, and right-first-time delivery.

“Technology uncertainty is something every OEM has to manage,” van Leeve added. “What they can control is how their programs are executed. Engineering Certainty is about removing execution risk, so outcomes become predictable, even in highly complex environments.”

Applied Across Launch-Critical Programs
Triz Engineering works with leading commercial vehicle OEMs and specialty vehicle manufacturers across North America, supporting programs in heavy- and medium-duty trucks, fire and emergency vehicles, last-mile delivery platforms, and commercial chassis systems.

These engagements are delivered at vehicle or system level but always with vehicle level understanding, with responsibility from concept through integration, compliance, and release. They reflect Triz Engineering’s ability to deliver predictable outcomes on complex, launch-critical programs.

Reframing the Industry Conversation at ACT Expo
At ACT Expo, Triz Engineering is highlighting the shift from technology-driven risk to execution-driven risk as complexity increases across commercial vehicle programs. Execution discipline, not just engineering capability, is becoming the defining factor in successful vehicle development.

About Triz Engineering:
Triz Engineering Solutions provides engineering to commercial vehicle OEMs, supporting the development, integration, and launch of vehicle systems and platforms. Focused exclusively on the commercial vehicle sector, Triz works across heavy- and medium-duty trucks, delivery and vocational vehicles, bus and coach, fire and emergency, and other specialty and off-highway applications. Triz supports programs at the system level, taking responsibility from concept through integration, compliance, and release. The company delivers Engineering Certainty on launch-critical programs through disciplined execution, clear accountability, and right-first-time delivery. Built with OEM DNA, Triz embeds within governance structures while preserving internal ownership. Its New Engineering model replaces fragmented delivery with focused execution and early, decisive decision-making. The result is predictable delivery, reduced execution risk, and improved product success at launch.

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This year’s STN EXPO West keynote speaker plans to provide attendees the tools they need to cut through the noise and express their relevance in a way that stands out in the crowd.

National Speakers Association’s Speaker Hall of Fame member Bruce Turkel takes the stage in Reno, Nevada this summer at the STN EXPO West conference for student transportation professionals.

Turkel will first address transportation leaders at the Transportation Director Summit, an exclusive training at The Chateau at Incline Village at Lake Tahoe. The directors attending the exclusive training and networking leadership summit will gain insights from Turkel that they can use to instill trust throughout their organizations and how the values of honesty and integrity impact operations.

Clear Communication

Turkel’s July 13 keynote presentation “All About Them: The Power of Relentless Relevance” will bring a message to all conference attendees on how to position oneself in today’s society of instant informational access. In his high-energy presentation, Turkel plans to show attendees that just credentials may not be enough, but that connecting with stakeholders means showing them what you can do for them. Whether its customers or team members, this keynote will give attendees practical strategies to communicate clearly, relevantly and bring positive results.

Turkel’s unique musical talent will also be featured in an interactive exercise in the power of shared experience as attendees learn in minutes to play a song together. This unforgettable presentation will have attendees not only connecting through laughter but have a renewed confidence to update their communication style with necessary clarity and have a customer-centered framework that boosts success for their operations.

Turkel has been in the brand clarity field for over 30 years, running his own global branding firm. His specialty has been how to stand out in a competitive market, having worked with brands like American Express, Nike, Discovery and HBO. He wrote seven books, appeared on national tv news channels and in major publications such as The New York Times and The Wall Street Journal.

Save $100 on main conference registration with Early Bird Savings when you act by June 5. The STN EXPO West conference will be held July 9-15 at the Peppermill Resort in Reno, Nevada. Updates to agenda and speaker lists can be found at stnexpo.com/west.

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Registration is now open for the STN EXPO West conference, an innovative six-day training and networking event by School Transportation News taking place this summer in Reno, Nevada.

STN EXPO West brings together student transportation leaders to have conversations that are making the difference in the pupil transportation industry. The conference and trade show is scheduled to begin July 9 at the Peppermill Resort with a four-hour seminar providing modules on school bus and transportation security response from law enforcement officials. It concludes July 15 with a special half-day seminar taught by renowned industry trainers Dick Fischer and Pete Baxter, both National Association for Pupil Transportation Hall of Fame members.

STN EXPO West Overview

Other exciting experiences return this year, including the Transportation Director Summit, an exclusive leadership event that begins July 9 at the Peppermill and continues July 10 at the picturesque Chateau at Incline Village at Lake Tahoe. The Ride and Drive event in conjunction with the Green Bus Summit and Bus Technology Summit are on July 12. The STN EXPO Trade Show “Wonderland of Ideas” opens the evening of July 13 to expose attendees to the technological and green solutions needed to optimize their operations. The Trade Show continues the morning of July 14.

First, keynote speaker Bruce Turkel will deliver an impactful presentation July 13 on how to cut through the constant information overload and how to market your communication to stand out in the crowd.

Michelle Atwell, chief of safety countermeasures for the National Highway Traffic Safety Administration, also joins the STN EXPO West agenda to highlight federal actions taking place to combat illegal passing of stopped school buses.

Other special training opportunities include the National School Bus Inspection Training Program, “So You Want to Be a Transportation Supervisor?” and hands-on wheelchair securement classes. Educational sessions will break down the pressing issues that face the student transportation industry and provide practical solutions and strategies, including the use of AI, lap/shoulder seatbelt research, budgeting and employee culture.

Save $200 on main conference registration with the Super Early Bird special pricing, only available through April 10, 2026. Learn more about unique experiences and stay tuned for more agenda updates at stnexpo.com/west.

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LAS VEGAS, Nev. – Geotab Inc. (“Geotab”), a global leader in connected transportation, video telematics and asset tracking solutions, today at Geotab Connect 2026 launched the GO Anywhere family of asset trackers. Purpose built for distinct customer needs and use cases, the new hardware line delivers unified visibility across trailers and equipment while addressing critical business challenges, including the significant financial drain caused by lost or underutilized assets. The launch comes as the industry faces staggering costs from equipment misplacement and downtime; for instance, construction equipment loss alone exceeds $1 billion yearly in the U.S., often leading to project delays that multiply the total financial impact.

Geotab is including Starlink Direct To Cell connectivity in its GO Anywhere Plus asset tracker*. This marks a significant milestone in the industry, merging mobile and satellite networks, in a commercial IoT device. This innovation provides seamless coverage for high-value assets even in the most remote “dead zones,” at a fraction of the cost of traditional, hardware-intensive satellite connectivity.

“Losing a critical piece of equipment is about more than the replacement cost, it’s about the worker who can’t finish their job and the customer whose project is now stalled,” said David Wooten, Senior Manager Product Management at Geotab. “By providing near real-time visibility and vital data insights, we are helping remove the uncertainty that comes with managing valuable assets across multiple sites. Whether it’s ensuring a generator is maintained based on engine hour readings or confirming a trailer is ready for the road, we want to ensure that when a crew shows up for work, the tools and assets they need are working well and are exactly where they should be.”

Three Tailored Solutions for Total Fleet Visibility

The GO Anywhere family includes three distinct solutions tailored for various operational needs:

GO Anywhere Plus: The ultimate all-in-one solution for high-value mixed fleets. This hybrid tracker combines wired power for near real-time location, engine hours, and inferred hubometer readings with a field-replaceable backup battery for uncompromised insights. GO Anywhere Plus utilizes Starlink Direct to Cell technology, ensuring total operational awareness even in the most remote locations.This eliminates the need for expensive, specialized satellite hardware while maintaining connectivity where traditional cellular networks fail.

GO Anywhere: The definitive “set and forget” solution for non-powered assets, combining long battery life with consistent, reliable tracking. Engineered to deliver up to 10 years of battery life, the device lowers total cost of ownership by eliminating the need for frequent battery maintenance. GO Anywhere provides hourly location updates as a standard, helping ensure assets are trackable over time. In the event of theft, High-Frequency Mode can be activated for rapid recovery.

Small Asset Tracking: Utilizing Bluetooth Low Energy (BLE) beacons, this solution allows businesses to track portable tools and equipment via nearby connected assets. This helps reduce the “invisible” costs of equipment loss through geofences that trigger alerts when assets move or are left behind.

By integrating these devices into the unified MyGeotab platform, businesses can eliminate blind spots in their operations, moving from reactive recovery to proactive asset management. Whether protecting construction equipment or monitoring sensitive logistics, the GO Anywhere family helps ensure every asset is accounted for in an increasingly complex global supply chain.

For more information on the GO Anywhere asset tracking solutions, please visit: https://www.geotab.com/fleet-management-solutions/asset-tracking/.

The GO Anywhere will be available in North America in Q2 2026, with a global rollout to follow.

*Starlink Direct To Cell will be available through select carrier partners.

About Geotab:
Geotab is a global leader in connected vehicle and asset management solutions, with headquarters in Oakville, Ontario and Atlanta, Georgia. Our mission is to make the world safer, more efficient, and sustainable. We leverage advanced data analytics and AI to transform fleet performance and operations, reducing cost and driving efficiency. Backed by top data scientists and engineers, we serve approximately 100,000 global customers, processing 100 billion data points daily from more than 5 million vehicle subscriptions. Geotab is trusted by Fortune 500 organizations, mid-sized fleets, and the largest public sector fleets in the world, including the US Federal government. Committed to data security and privacy, we hold FIPS 140-3 and FedRAMP authorizations. Our open platform, ecosystem of outstanding partners, and Geotab Marketplace deliver hundreds of fleet-ready third-party solutions. This year, we’re celebrating 25 years of innovation. Learn more at www.geotab.com and follow us on LinkedIn or visit Geotab News and Views.

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