Last-mile delivery fleets everywhere can benefit from going electric
Cities, countries and regions around the world have set ambitious goals for electrification. Many such requirements are accompanied by financial incentives to accelerate the transition. Here are some notable mandates which are driving electrification globally.
Canada has made a variety of commitments to electrification at the city and province level. The federal iZEV program allows businesses to choose between a financial incentive for purchasing up to 10 eligible light-duty vehicles or a tax write-off covering light-, medium- or heavy-duty vehicles.
The Canadian government, along with provincial governments in British Columbia and Quebec, and the City of Vancouver have all signed the Drive to Zero commercial vehicle pledge.
British Columbia, Edmonton, Toronto, Montreal and Laval transit agencies have committed to stop purchasing diesel buses between 2020 and 2025.
Major commitments to electrification among cities, states and regions will drive growth in electric fleets in the U.S. over the next decade and beyond. States and utilities are offering billions of dollars in funding to incentivize fleet electrification.
The United States recently passed the Infrastructure Investment and Jobs Act (IIJA), a bipartisan, trillion-dollar infrastructure package with $5 billion for highway charging, $2.5 billion in additional grants for alternative fueling infrastructure along highways and in communities, and $5 billion for a Clean School Bus program, as well as additional incentive programs to support electrification of fleet vehicles at ports, transit bus depots, and schools.
A 30% federal tax credit for installing EV charging infrastructure was extended through 2021, and Congress is currently considering further extension of the tax credit into 2022 and beyond.
Nearly 200 collaborative members have committed to purchase more than 3,500 EVs by the end of 2021, thereby avoiding nearly 28 million tons of CO2 emissions and 1.7 million gallons of gas per year and investing US$123.5 million (104,3M€) in EVs.
The Multi-State Medium- and Heavy-Duty ZEV MOU has state 16 signatories aiming to make at least 30% of all new medium- and heavy-duty vehicle sales zero-emission vehicles by 2030.
Illinois, Indiana, Michigan, Minnesota and Wisconsin will form the Regional Electric Vehicle Midwest Coalition, or “REV Midwest.”
Several regions have agreed to fully or mostly electrify their fleets, paving the way for their experiences to inform other heavy-duty fleets:
California has been setting the pace for all-electric fleets for years. Beyond leading the way for the multi-state medium- and heavy-duty ZEV MOU already mentioned, here are some notable commitments the state has made toward promoting electric fleet vehicles for various uses.
The California Clean Miles Standard creates new requirements to help curb emissions among transportation network companies (TNCs) as new forms of mobility continue to emerge.
The Advanced Clean Trucks (ACT) Rule, California's Clean Truck Standard, creates fleet reporting standards and requires zero-emission sales to rise to 55% for Class 2b–3 trucks, 75% for Class 4–8 straight trucks and 40% for truck tractors by 2035. By 2045, every new truck sold in California will be zero-emission.
Governor Gavin Newsom has also announced that California will sell only zero-emission new light-duty and off-road equipment by 2035, and zero-emission new medium- and heavy-duty vehicles by 2045.
The California Department of General Services will purchase only zero-emission vehicles for its fleet, and only purchase from manufacturers that have committed to California's clean fuel requirements.
EVs are an important area of focus for utilities due to the increased demand for energy they will
generate. Utilities can both make their own fleets run on electricity and support fleet electrification more broadly by building out charging infrastructure and offering incentives for businesses that want to electrify.
American Electric Power (AEP) will replace 100% of 2,300 cars and light-duty trucks with electrics by 2030, leading to a 40% electric fleet in under 10 years. AEP serves Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.
Xcel Energy aims to transition 20% of vehicles in its service area (Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin) to electric by 2030.
In North Carolina, Duke Energy announced it will electrify 100% of its nearly 4,000 light-duty fleet vehicles and convert 50% of its roughly 6,000 medium- and heavy-duty and off-road vehicles to electric and other zero-emission vehicles by 2030. The planned fleet electrification targets will reduce carbon emissions and petroleum usage by 60,000 metric tons/year and 10 million gallons/year by 2030, respectively.
FirstEnergy (serving northern Ohio, most of Pennsylvania, northern New Jersey, eastern West Virginia and western Maryland) expects to electrify 30% of its approximately 3,400 light duty and aerial fleet vehicles by 2030, representing 1,034 vehicles, with the goal of electrifying 100% by 2050.
Georgia Power plans to electrify portions of its own public fleet as part of a Southern Company initiative to electrify half of company fleet vehicles, including auto, forklift and ATVs, by 2030.
Portland General Electric (PGE) in Oregon has committed to go 60% electric by 2030, including going 100% electric for Class 1 vehicles by 2025.
In August 2020, the California Public Utilities Commission approved the nation’s largest utility program for charging infrastructure: $437 million for Southern California Edison to fund 40,000 chargers. Half of the investment is for low-income communities and 30% is dedicated to multi-family residences. The program demonstrates the leadership of utilities in bringing charging to underserved communities.
