• If exploring a transition to electric vehicles, start the planning process early to meet regulatory deadlines, understand local utility capability, and take advantage of incentives.
• Along with the benefits of EVs, consider all costs of electric vehicles including the charging infrastructure to support operations.

Many in transportation and government are touting battery-electric vehicles’ (BEVs) environmental and cost-saving benefits. Before rushing toward the roar of the EV crowd and government incentives, carriers should understand the considerations and potential benefits of a more environmentally sustainable fleet.

Carriers want to know, “How could EVs affect my business?”

Four areas to better understand EV impacts and considerations include, but are not limited to:

1. Environmental compliance incentives and mandates
2. Vehicle purchase and charging infrastructure considerations
3. Costs
4. Benefits

The following is a high-level overview to familiarize carriers with the considerations before transitioning to EVs.

1. Environmental compliance incentives and mandates

The well-publicized state “greening initiatives” have come out of California, but every state has programs regulating or incentivizing alternatives to diesel fuel. Original equipment manufacturers (OEMs) favor BEV production over hybrids or alternative fuels because many require “zero-emission” vehicles.

Many states and provinces appear to follow California Air Resources Board (CARB) requirements, but carriers must understand the specifics of each mandate and incentive in their operating area. Below are examples of Federal incentives and state mandates.

A couple of Federal incentive programs impacting EVs include:

1. Bipartisan Infrastructure Law – $7.5 billion to build a national network of 500,000 EV chargers so that charging EVs is predictable, reliable, and accessible.
2. Inflation Reduction Act –Incentives for buyers of new and used EVs, credits to help retool existing facilities and build new manufacturing, and deploy zero-emission heavy-duty vehicles.

Some state mandates include:

• California - By 2035, the Advanced Clean Trucks (ACT) rule requires 40 percent of semi-truck tractors sold, and by 2045 all trucks sold must be zero-emission vehicles (ZEVs), not specifically electric. The ACT was enabled by an Environmental Protection Agency (EPA) waiver on March 31, 2023.
• New York - By 2035, all sales or leases of new light-duty passenger vehicles must be ZEVs, and all sales or leases of new medium- and heavy-duty vehicles must be ZEVs by 2045.
• Other states - The ACT rule was also adopted by New Jersey, Washington, Oregon, Massachusetts and Vermont — and others are considering adoption.

The U.S. Department of Energy has a summary table of state and federal laws and incentives covering alternative fuels in addition to EVs. Understanding alternatives before committing to a single fuel source is essential, as the transition can be costly and difficult to reverse.

To learn more about incentives and mandates in your area of operation, consult the following state and federal matrix, which is part of the Alternative Fuels Data Center, at https://afdc.energy.gov/laws/matrix.

It is prudent to transition to zero-emission vehicles early to comply well before deadlines and before incentives are gone.

2. Charging infrastructure and vehicle purchase assessment

Working with utilities and local government

Contact the respective utility provider(s) early on because an inadequate supply of electricity at the times of day and locations can stop any well-intentioned transition. The first question to be asked when assessing charging infrastructure is:

• Will power from the local utility support our planned charging needs?

The utility should have a near-term plan or current capability if you add charging infrastructure and incremental electricity demand. Existing electric utility infrastructure cannot meet surging demand in many areas.

Carriers also need to talk to the affected municipality to understand how they accommodate permits and a surge in businesses with higher electricity needs. Building infrastructure and permit acquisition may have significant lead times, so factoring in a realistic timeline is essential.

Operational assessment

Electric vehicle sizes and possible applications are rapidly increasing. To better outline vehicle specifications, purchase or lease decisions, and charging needs, an operational assessment should include but is not limited to these questions:

• Which routes or work applications can be supported by the current vehicle range considering weather and weights hauled as well as features?
  • EVs can support 100 to 250-mile routes with reported ranges of 400 miles.
  • Battery chemistry matters when operating in extreme weather (hot or cold).
  • During testing, vehicle up-time and driver evaluations of vehicle performance are vital to factor into decisions.
• How many EVs will be implemented over what timeframe considering OEM delivery capability and reliable charging available?
  • Map a three to ten-year strategy of where your business is heading, acquisitions, and operating model changes (long to short-haul or vice versa).
  • Charging infrastructure must be right-sized to carrier needs or high costs, and a reduced return on investment (ROI) will result. The correct number of charging stations is needed at each location with the right power.
  • If you do not want to build or cannot build charging stations, will you need to consider Charging-as-a-Service or CAAS? Is a mobile charging service an option to have a fast-charging platform brought to your site(s)?

• Where will charging occur, and at what times of the day?
  • At terminals, opportunity charging on the route, etc.
• Will vehicle assignment and personal use of vehicle policies need to change?
  • The next vehicle charged may have to be used for the next route versus equipment assigned to specific drivers (slip-seat).
• How will maintenance be supported?
  • Will you have technicians trained on EVs, or can the OEM support all warranty repairs?
• Can emergency services providers that cover your operational area safely respond to an EV crash?
• Is there charging compatibility between manufacturers’ vehicles if testing more than one make and model of EV?
  • Currently, there are more vehicle-related issues causing charge problems versus plug incompatibility between manufacturers in fleets testing or running different makes and models of EVs.
  • Software updates can cause charging issues after over-air updates.
  • Do the truck charge connections match the charging plugs, charging rates, and plug-type compatibility if you have more than one make/model EV?

3. Costs

Without considering incentives, BEVs can cost as much as three times more than diesel vehicles. Also, the time and money it takes to build or lease charging infrastructure can be high.

Before any investment in charging stations or contract negotiation to purchase energy as a service from a charging infrastructure provider, create a map of the expected charging network and vehicle operating area based on the operational assessment.

The cost of installing charging infrastructure on the leased or owned property varies by area of operation, incentives available, and the willingness of a lessor to cost-share.

Charging-as-a-service (CAAS) from providers with an existing network may be a quicker way to ramp up but may be costly on a per-mile or per-day basis. Charging as a service can integrate with your fuel card for energy purchases and provide software that integrates with your dispatch system to track the charge levels of each vehicle to assess readiness for the next dispatch.

4. Benefits

Carriers will want to keep a close eye on competing technologies as alternatives to diesel evolve. However, there are several benefits to converting all or a portion of your fleet to battery-electric vehicles (BEVs), which are:

• Fuel savings - Create realistic estimates of fuel cost savings based on diesel and electricity costs in your operational areas.
• Clean emissions - A reduced carbon footprint meets compliance requirements.
• Driver acceptance - EVs are generally well-received because they are quiet, clean, and powerful.
• Lower maintenance cost - EV drive trains have fewer components than diesel engines. There are no emissions systems to manage and one- or two-speed transmissions versus ten or more gears or complicated automatics.
• Extended vehicle life cycles - Battery life can be as long as eight to ten years.
• Meet customer demands - Many customers require carriers to utilize vehicles with zero or very low emissions to compete for new business.