Governments will add more electric vehicles to their fleets, but there are hurdles to overcome

Cities and counties will continue to stock their fleets with electric vehicles (EVs) and hybrids, predicts Bob Stanton, a veteran of more than 18 years of experience in public fleet management. “Government fleets are ideal EV candidates as their routine mission cycles are short and not subject to range anxiety.”

Stanton, who is a Certified Public Fleet Professional (CPFP) and operator of Stanton Fleet Consultants, says local governments still have barriers to wholesale EV adoption. “The true challenge, beyond the significant infrastructure support costs, is the initial cost of EVs. The current average cost of an EV sedan is $55,000. Utilizing such an expensive vehicle in a government setting is not a good look. If, as promised, the cost of entry-level EV’s comes down, the adoption rate by governments will grow.”

Stanton notes roadblocks for larger EVs: “Equally challenging is the cost of large electric trucks such as fire and refuse trucks, which have entered the market. The vehicle upcharge for electric power is significant, and for large trucks those costs can be off the charts.” He notes that larger EVs require much more expensive infrastructure than what smaller EVs need. “Yes, the adoption rate even for these vehicles will grow, but the rate of growth will be much slower and unlikely to ever be mainstream.”

Stanton urges public sector fleet directors to carefully calculate costs when considering a shift to alternative-fuel vehicles. “Any public fleet entity interested in electrification at any level (EV, hybrid, plug-in hybrid) should first recognize and accept that any effort in this regard will run counter to their fiduciary and stewardship responsibilities.” He explains: “That condition will vary depending upon their level of adoption, with 100-percent battery EVs representing the absolute highest cost with minimal return.”

Stanton says fleet managers should aim for actual carbon neutrality as the goal, not simply the appearance of environmental consciousness. Carbon neutrality means having a balance between emitting carbon and absorbing carbon from the atmosphere in carbon capture or sequestration systems or sinks.

He explains that there are many less expensive, albeit less “sexy” ways for a government entity to achieve the above without an extravagant investment in electrification. He offers the following examples of actions that can move a government toward carbon neutrality:

Stanton notes that each of the above actions can save money for the entity, and he urges fleet managers to do their homework as they contemplate electrifying their operations. He says advance due diligence, inclusive of every stakeholder both within the organization and outside (including electric utilities), is crucial. “Fleet, finance, procurement, facilities and anticipated user departments, along with senior-level entity management must all have a seat at the table. Each participant should be a decision maker, be familiar with their budgets and have ‘veto’ power or at the very least, enough respect from the group to be allowed to suspend action until questions are fully vetted and satisfied.”

What if a government has already started electrifying its fleet and is considering adding more EVs or hybrids? Stanton urges the agency to do a quick appraisal. “If the entity has initiated and/or adopted electrification at some level, their first task should be to assess the program’s success and determine if the existing support infrastructure can be scaled sufficiently to support growth. If the program has met or exceeded expectations both in cost and in operational performance, will additions complement the current program sufficiently to justify further investment?”

Stanton says local governments may want to consider hiring a consultant to help them obtain infrastructure funding for their fleets. “Most medium and small governments do not have grant-writing expertise in-house. If such is not readily available on staff, the short answer is yes. I’m not in that field of consultation and hence not a resource for such. Grant-fund sourcing is a minefield and should be undertaken only by those with both documented experience and success in that endeavor.”

He adds that small- and medium-sized governments often do not have the bandwidth to jump through the numerous hoops many infrastructure grants require. In addition, funding can be difficult to obtain and limited both in scope and nature.

Stanton says variations in state and local utility regulations may make it difficult for local governments to expand their EV charging infrastructure by making it available to the general public. “While working at a public-sector fleet in Florida, we attempted to establish a public charger that we could use in local government while being available to the public to use. Our roadblock was a state regulation prohibiting anyone not a public utility from generating revenue from electricity sales.” Stanton points out another headwind: “For many local governments, there is the inability of their own accounting systems to accommodate credit card or direct sales from chargers they might own.”

Stanton notes that a further challenge in the EV landscape is the expense, value and shortage of skilled technicians available to repair EVs. In this Co-op Solutions post, Stanton talks about ways government fleet managers can recruit and retain vehicle technicians and mechanics. He suggests that administrators offer incentives and take other steps to keep their garages adequately staffed.

Michael Keating is senior editor for American City & County. Contact him at [email protected].