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Many in transportation and government are touting the environmental and cost-saving benefits of battery-electric vehicles (BEVs). Before rushing toward the roar of the electric vehicle (EV) crowd and government incentives, carriers should understand the considerations and potential benefits of a more environmentally sustainable fleet.
Scope
Carriers, drivers, and employers can all benefit from EVs.
Regulatory citations
- None
Key definitions
- Battery electric vehicles (BEVs): BEVs are a type of EV that are fully powered by an electric motor that uses only rechargeable battery packs for energy. All BEVs are EVs, but not all EVs are BEVs as other EV types are not fully electric.
- Charging-as-a-service (CAAS): CAAS enables businesses to avoid high upfront costs when purchasing and installing electric vehicle supply equipment (EVSE). Instead of high upfront costs, the costs will be bundled into a recurring fee.
- Electric vehicles (EVs): EVs come in four types (BEVs, HEVs, PHEVs, and FCEVs) and are powered through a combination of batteries, internal combustion engines, and fuel cells. Only BEVs are fully electric.
Summary of requirements
Four areas to better understand EV impacts and considers include environmental compliance incentives and mandates, vehicle purchase and charging infrastructure considerations, costs, and benefits.
Environmental compliance incentives and mandates: Each state has programs regulating or incentivizing alternatives to diesel fuel. 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. Two federal incentive programs impacting EVs include the Bipartisan Infrastructure Law and the Inflation Reduction Act.
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.
Vehicle purchase and charging infrastructure considerations: Contact the respective utility provider(s) early on to determine whether the provider(s) will be capable of supporting the anticipated charging needs.
Carriers also need to talk to the affected municipality to understand how permits and a surge in businesses with higher electricity needs will be accommodated. Building infrastructure and permit acquisition may have significant lead times, so factoring in a realistic timeline is essential.
As electric vehicle sizes and possible applications rapidly increase, conduct an operational assessment to better outline vehicle specifications, purchase or lease decisions, and charging needs. The assessment should include these questions:
- Which routes or work applications can be supported by the current vehicle range considering weather and weights hauled as well as features?
- How many EVs will be implemented over what timeframe considering OEM delivery capability and reliable charging available?
- Where will charging occur, and at what times of the day?
- Will policies regarding vehicle assignments and personal use of vehicles need to change?
- How will maintenance be supported?
- Can emergency service 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?
Costs: Without considering incentives, BEVs can cost three times more than diesel vehicles. The time and money it takes to build or lease charging infrastructure can also be high. This is why it’s important to create a map of the expected charging network and vehicle operating area before investing in charging stations or negotiating contracts with a charging infrastructure provider.
The total cost of installing charging infrastructure on leased or owned property varies by area of operation, incentives available, and a lessor's willingness to cost-share. Taking advantage of 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.
Benefits: Carriers will also want to monitor competing technologies as alternatives to diseases evolve. However, converting all or a portion of your fleet to BEVs has several benefits, including fuel savings, clean emissions, driver acceptance, (lower) maintenance costs, extended vehicle life cycles, and customer demands.