Grants and subsidies can help reduce startup costs for government EV fleets

The public sector is making big investments in electric vehicles (EVs) and EV infrastructure. Government agencies like the U.S. Environmental Protection Agency have pushed for reducing motor vehicle and transport emissions. Governments worldwide spent some $45 billion (current U.S. dollars) on electric passenger vehicles in 2022, according to research from Statista.

Many local governments are contemplating a shift to EVs, and cost is a driving factor, says Jonas Vaughn, program manager–EV charging at Bureau Veritas North America, a firm that does testing, inspection and certification, and has experience in fleet electrification planning. Vaughn works with local government fleet managers to evaluate EV fleet operations. helping those managers implement a resilient program.

Why should government fleet managers consider making the switch to EVs? Vaughn says today’s drivers tend to prefer EVs. Some reasons, according to Vaughn: “EVs run quietly and are clean and accelerate and brake faster.” Other benefits, Vaughn adds: “Operating expenses are 40-60 percent lower compared to an internal combustion engine (ICE), depending on the vehicle type.”

Vaughn notes that capital expenses for running EV fleets could run high. But he adds that there are many subsidies available from federal, state and local governments as well as utilities and non-governmental organizations (NGOs). “The subsidies can often be ‘stacked’ and they are likely higher now than they will be in the future. Programs are often over-subscribed, and you want to be ready with a plan to submit a complete, quality application when the windows open. Remaining costs can often be financed, and in some cases, the carbon credits generated can help to secure financing.”

Vaughn says there’s some urgency if fleet managers are considering a shift to EVs. “Those interested should start their planning now as engineering, procurement and construction of charging infrastructure takes time. Current lead times for acquiring and installing switchgear range from four to 18 months.”

It’s not too soon to start, Vaughn adds. “Organizations should engage the utility company early in the process and share their 10-year plan to ensure there will be adequate capacity on the circuit(s) and substation(s) serving their location(s). Failure to think ahead can cost years. For example, I am currently working with one site that got a new 4000 amp service last year and now they need another 4000 amp service and have been quoted five years by the utility.”

It’s important to quantify each jurisdiction’s vehicle needs, Vaughn tells Co-op Solutions. “The first step for fleet managers is to measure and analyze duty cycles and dwell times. This will determine the need for quantity and type of chargers. Some firms specialize in tracking vehicles and providing analysis and recommendations for vehicle replacement. What works with gasoline may differ from what works with EVs—this can vary greatly depending on routes and loads.”

Within each local government, fleet managers can reach out to some EV charge champions, Vaughn urges. “Organizations should identify the people internally who are most interested in supporting the transition and engage them in the selection, testing and deployment. Have them contribute to the change management planning. Actively engage them to capture and distill learnings from the first deployment phase to ensure that the full rollout goes smoothly.”

Vaughn suggests that fleet planners should lay the groundwork today for tomorrow’s fleet load. “Plan to deploy chargers in phases but do the make-ready work for future phases now. Taking a holistic view now will save time and money later.”

He offers the following nuts-and-bolts advice: “Fleet managers should think about whether they will have to trench across their brand-new lines in the next phase and avoid it. Lay extra and/or oversized conduit while the trenches are open and do the make-ready work in the first phase so you don’t repave and then cut into your new asphalt one or two years later.”

Vaughn offers this time- and potentially money-saving tip: “Instead of choosing a few existing stalls and making them work for EV, look at the final layout after a full transition and think about if and when it will be necessary to restripe the whole lot. Consider timing the restriping and potentially sealing/paving of the whole parking area to coincide with the EV install.”

The pace of the fleet conversion is crucial, Vaughn says: “Start the changeover soon but don’t make the full transition too fast. Fleet managers will learn a lot from operating their first vehicle(s), and technology is changing quickly.”

OMNIA Partners, who sponsors this page, offers a robust portfolio of cooperative contracts in the public procurement space. The firm lists a number of cooperative contracts under the keyword “electric vehicle.”

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