Electric Vehicles: Advantages of an Electrified Fleet

By Steve Saltzgiver, Fleet Success Sr. Advisor

Last week we discussed some of the hidden truths  about electric vehicles fleet operations might not know. This week we focus on some of the advantages EVs can bring to your fleet.

During my career I have had a unique perspective on the topic of electric vehicle (EV) deployment. As such, I have been able to witness all different vehicle applications over the past three decades as EVs continue to gain favor with rising fuel prices and a fluctuating political environment. This blog will discuss the advantages of utilizing an electrified fleet irrespective of any external factors promoting EV deployment.

One of the primary advantages that I have seen over the past several decades is the number of EVs available. There are almost 100 EV models on the market, making the deployment of EVs even more advantageous than before. The Alternative Fuel Data Center (AFDC) website has a comprehensive search tool that lists dozens of EV models now available in the current automotive market.

Leveraging the Benefits of Electrification

According to the AFDC, Electric vehicles can offer the following benefits over traditional internal combustion engines (ICE) for fleet operations to leverage:

• Lower Costs and Fuel Economy,
• Performance Features,
• Reduced Maintenance and Equal Safety,
• Flexible Charging (I.E., Fueling),
• Meeting Fleet Goals and Requirements,
• Energy Security,
• Infrastructure Availability,
• Tailpipe Emissions,

Lower Costs and Fuel Economy

While managing one of North America’s largest beverage distribution fleets, I witnessed firsthand how EVs could lower our operating costs over the lifecycle. We especially found that our medium-duty and heavy-duty dry van-style delivery vehicles, which left distribution centers full of product with batteries fully charged, and returned empty, was a perfect solution when the charging capacity diminishes. In addition, we electrified our fleet of forklifts in over 100 distribution center warehouses throughout North America and discovered this off-road solution was beneficial compared to propane units. Interestingly, our experience is congruent with the AFDC statement below,

“EVs can fulfill many daily driving needs, making them a great solution for fleets. They offer many benefits and can fill roles in light-duty, medium/heavy-duty (MD/HD), and even off-road applications. In addition to federal, state, or local incentives that can lower their purchase price, EVs offer high fuel economy, which translates to lower operating cost. Light-duty all-electric vehicle Operation and Maintenance (O&M) averages about 3 cents per mile according to the U.S (United States). General Services Administration. EVs achieve their best fuel economy during stop-and-go driving conditions typical of many fleet applications. Electricity prices are also less volatile than those of gasoline/diesel, making it easier to predict fuel costs over time. Finally, lower off-peak electric rates may be available for charging, which further reduces EV fuel costs.”

Below is a cost comparison from the AFDC website showing the lower costs of an EV compared to gasoline and diesel vehicles.

According to AFDC, “Electric vehicles can reduce fuel costs dramatically because of the high efficiency of electric-drive components. Because all-electric vehicles and PHEVs rely in whole or in part on electric power, their fuel economy is measured differently than that of conventional vehicles. Miles per gallon of gasoline-equivalent (MPGe) and kilowatt-hours (kWh) per 100 miles are common metrics. Depending on how they are driven, today’s light-duty all-electric vehicles (or PHEVs in electric mode) can exceed 130 MPGe and can drive 100 miles consuming only 25–40 kWh. HEVs typically achieve better fuel economy and have lower fuel costs than similar conventional vehicles. For example, FuelEconomy.gov lists the 2021 Toyota Corolla Hybrid at an EPA (Environmental Protection Agency) combined city-and-highway fuel economy estimate of 52 miles per gallon (MPG), while the estimate for the conventional 2021 Corolla (four-cylinder, automatic) is 34 MPG.

This increase in base fuel economy presents tremendous advantages to a fleet’s fuel budget, especially during times when gasoline averages over $4.00 per gallon.

Performance Features

The AFDC found many operators prefer EVs once they adjust to the subtle differences compared to driving traditional ICE vehicles. EVs can match or surpass the performance of their conventional counterparts, and they are much quieter. They produce maximum torque and smooth acceleration from a full stop, which can be especially useful when hauling heavy loads (i.e., cases of beverages). Additionally, some can even serve as an energy source for off-board equipment such as power tools or lights, providing several kilowatts of electricity through multiple electrical outlets.

Reduced Maintenance and Equal Safety

One of the biggest benefits of operating a fleet of EVs is certainly the lower maintenance costs both when it comes to technician labor and parts. EVs can significantly lower a fleet’s unplanned breakdowns (i.e., road calls) along with lowering downtime. The latter is critical with respect to today’s supply chain issues to produce parts and supplies. Moreover, according to AFDC, “EVs meet federal safety standards and undergo the same rigorous safety testing as conventional vehicles sold in the United States. Maintenance needs and safety requirements for plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs) are like those of conventional vehicles, while all-electric vehicles require less maintenance. Manufacturers are designing these vehicles and publishing guides with maintenance and safety in mind.”

Maintenance Comparison

Further, AFDC and independent studies show the electrical system (battery, motor, and associated electronics) requires less scheduled maintenance, and brake systems last longer than ICE vehicles because of regenerative braking. EVs require less maintenance than ICE vehicles due the following unique characteristics:

• The battery, motor, and associated electronics require little to no regular maintenance,
• There are fewer fluids, such as engine oil, that require regular maintenance,
• Brake wear is significantly reduced due to regenerative braking,
• There are far fewer moving parts relative to a conventional fuel engine.

Those who operate and maintain a fleet of vehicles understand most of the significant costs associated with vehicle repair center around brakes, fluids, and drivetrain components associated with the ICE which is a “win-win” overall.

Flexible Charging (i.e., Fueling)

When EVs return to the fleet facility they can simply be plugged into a charging unit to refuel the batteries after business hours. This is an inherent advantage as it eliminates the need for an operator (or mobile fueler) to expend any labor involved to fuel the vehicle. An ICE counterpart may take 5-10 minutes to fill the tank after a delivery route with gasoline or diesel. These fueling labor costs can add up over time whereas this unnecessary labor is eliminated. Further, recharging EV batteries can be scheduled to take place during off-peak hours when kilowatt rates are much lower in cost.

Meeting Fleet Goals and Requirements

Many organizations today have specific sustainability goals to lower their greenhouse gas emissions (GHG) and carbon footprint (CO2). These goals place internal pressure on fleets to achieve solutions that are congruent with greater goals for their organization. EVs can be a perfect solution to meet these goals, especially if the fleet applications are conducive to deployment. For example, many governments, universities, and private fleets operate low mile vehicles that can be easily converted over to EVs.

Moreover, according to the AFDC, “because of their high efficiency and low-emissions benefits, EVs can help organizations meet environmental objectives, demonstrate community leadership, improve their public image, and differentiate themselves from competitors. Highly visible fleets (transit/school buses, police vehicles, taxis) can project a positive image by using EVs. Additionally, EVs can help public fleets meet Energy Policy Act (EPAct) requirements and comply with state or local alternative transportation policies.”

Having personally managed two large state fleets, the ability to utilize EVs to meet EPAct requirements is a tremendous benefit to other alternative fuel vehicle (AFV) options such as compressed natural gas, propane, and ethanol. The main issue with the other AFVs has always been where to access fuel with limited infrastructure availability. In addition, other AFV choices utilize traditional ICE drivetrains which require additional parts and labor to repair and service.

Having operated a fleet of EVs, a huge advantage that I personally saw was the ability to directly market and enhance the company’s brand through the deployment of more fuel efficient and cleaner vehicles. Each of our vehicles became rolling billboards for marketing the company’s sustainability goals and objectives.

Energy Security

According to the AFDC website, “the United States became a net exporter of petroleum in 2020 with exports surpassing imports, although imports of 7.86 million barrels per day remained an important part of balancing supply and demand for domestic and international markets. Overall, the transportation sector accounts for approximately 30% of total U.S. energy needs and 70% of U.S. petroleum consumption. Using more energy efficient vehicles like hybrid and electric vehicles supports the U.S. economy and helps diversify the U.S. transportation fleet. The multiple fuel sources used to generate electricity results in a more secure energy source for the electrified portion of the transportation sector. All of this adds to our nation’s energy security. Hybrid electric vehicles (HEVs) typically use less fuel than similar conventional vehicles because they employ electric-drive technologies to boost vehicle efficiency through regenerative braking—recapturing energy otherwise lost during braking. Plug-in hybrid electric vehicles (PHEVs) and all-electric vehicles, also referred to as battery electric vehicles (BEVs), are both capable of being powered solely by electricity, which is produced in the United States from natural gas, coal, nuclear energy, wind energy, hydropower, and solar energy.”

With globalization and the constant threat of wars in the Middle East, Russia, and Ukraine, energy security has become paramount for fleet managers to access non-fossil fuel options like EVs to perform individual missions. As an example, according to the International Energy Agency (IEA), “Russia is the world’s second largest gas producer, after the United States, producing 761 billion cubic meters (bcm) in 2021, or 18% of the world’s gas output. Russia is the world’s largest gas exporter, with exports amounting to around 250 bcm in 2021, with 210 bcm exported through pipelines. In addition, Russia exported more than 40 bcm of liquefied natural gas (LNG), making it the world’s fourth largest LNG exporter after Australia, Qatar, and the United States.”

This simple fact makes energy security much more important as fleets look to mitigate and lower fuel expenses making EVs a viable option to alternatives.

Infrastructure Availability

For the past three decades the EV infrastructure has been growing rapidly. Although it still has a way to go to overtake traditional fossil fuel fueling facilities, many states have been focusing on the increase of electric charging availability. Most operators of EVs can now access charging facilities in many public areas and many fleets are now installing the EV infrastructure on their premises. While working with North America’s largest beverage company we installed several EV charging stations in many of our larger urban areas.

In accordance with the AFDC website they state, “All-electric vehicles and PHEVs have the benefit of flexible charging because the electric grid is near most locations where people park. To safely deliver energy from the electric grid to a vehicle’s battery, a charging station, sometimes referred to as electric vehicle supply equipment (EVSE), is needed. Drivers can charge overnight at a residence, as well as at multi-family housing, the workplace, or a public charging station when available. PHEVs have added flexibility because they can also refuel with gasoline or diesel (or other fuels in the future) when necessary. Public charging stations are not as ubiquitous as gas stations. Charging equipment manufacturers, automakers, utilities, Clean Cities coalitions, municipalities, and government agencies are rapidly establishing a national network of public charging stations. The number of publicly accessible charging stations reached more than 41,000 in 2021, offering more than 100,000 places to charge, according to the Alternative Fueling Station Locator. Search for electric charging stations near you.”

The continued availability of electric charging stations will undoubtedly increase the advantages of using EVs for applications that are most suited.

Tailpipe Emissions

EV and hybrid vehicles have significant tailpipe emissions advantages over their conventional ICE counterparts. As an example, all-EVs produce zero tailpipe emissions, and PHEVs produce no tailpipe emissions when operating in all-electric mode. AFDC states the “actual life cycle emissions of an electric vehicle depend on the source of the electricity used to charge it, which vary by region. In geographic areas that use low-polluting energy sources for electricity production, electric vehicles typically have a life cycle emissions advantage over similar conventional vehicles running on gasoline or diesel. In regions that depend heavily on conventional electricity generation, electric vehicles may not demonstrate a strong life cycle emissions benefit.”

As I look out my window toward the mountains in the Salt Lake Valley and see the brown haze, the ability to lower tailpipe emissions presents an advantage to those of us that must breathe the air. Right now, in the Salt Lake Valley, Utah Transit Authority (where I spent 15 years of my career) is now implementing electric drive transportation solutions to reduce vehicle emissions and improve air quality.

Batteries

The advanced batteries in EVs are designed for longer life than those in the past. However, they will wear out eventually. Many original equipment manufacturers (OEMs) of EV models are now offering standard 8-year/100,000-mile battery warranties which rivals or surpasses many of its ICE counterparts by comparison. A study by the AFDC found, “Predictive modeling (PdM) by the National Renewable Energy Laboratory indicates that today’s batteries may last 12 to 15 years in moderate climates (8 to 12 years in extreme climates).”

Additionally, as EVs become much more prominent in the fleet market the prices of batteries are starting to decline, making them much more affordable should they need to be replaced. But replacement really should not be an issue since the OEMs are warrantying them for 100,000 miles (about 160934.4 km). This makes the standard EV battery warranty match most recommended EV life cycles.

Conclusions

The deployment of EVs in the right vocational application has been shown to be a “win-win” by those managing fleets. The best applications are short delivery and parking enforcement routes, confined campus environments (e.g., colleges, universities, utilities, etc.) and many urban city applications.

As EV technology and infrastructure continue to evolve, we should see the applications evolve as well. As an example, we are now starting to see over-the-road trucking, refuse, transit, and traditional longer-range applications being studied. Once the smart infrastructure becomes part of the EV solution where vehicles can charge as they travel the open roads, we are bound to see this technology outpace their ICE counterparts.

Another huge advantage is we have seen an increase in the tools available to calculate costs, emissions, and many other aspects of deploying EVs in a fleet operation. The AFDC site offers several helpful tools for fleet managers to access to determine if EVs are right for your fleet.

The future for EV deployment is bright as technology and model availability continues to evolve!

Let me know your thoughts. ssaltzgiver@rtafleet.com

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