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Electrifying 97% of the federal fleet by 2030 could save billions: report

Originally posted by Jason Plautz | August 18, 2021 | SmartCitiesDive | Original Article

President Joe Biden signed an executive order in January that, in part, directed federal agencies to “procure carbon pollution-free electricity and clean, zero-emission vehicles,” a goal experts said could provide a boost to the EV market because of the government’s purchasing power and influence. In August, Biden set a separate goal to make half of all new vehicles sold in 2030 zero-emissions vehicles. 

“The federal fleet provides a unique and important opportunity, as one of the largest fleets in the country, to help prioritize the market and encourage transportation electrification to happen much more quickly,” said Electrification Coalition Executive Director Ben Prochazka in a briefing Wednesday. Fleets are appealing for electrification because they provide a steady market, centralized management, predictable use patterns and visibility among the public, Prochazka added.

The Atlas Public Policy report found that the transition makes financial sense, especially when considering the full lifetime cost of the vehicle. Using the total cost of ownership (TCO) metric — which includes factors like fuel costs, maintenance and the sustainability savings — the report found that the government could see significant savings by electrifying despite the higher upfront cost. With up to 40% of the fleet (mostly mid-size and large passenger vehicles) able to transition at a lower cost by 2025, the savings could be $316 million. That rises to $1.18 billion by 2030 as the analysis expects the cost of EVs will drop and more charging infrastructure will become available. 

Considering the installation of new charging equipment and the lifetime savings in fuel and maintenance, study co-author Nick Nigro said those savings would grow more the faster the fleet started its transition. That, however, could require a shift in thinking for federal operators, who are typically more concerned with the upfront capital. 

“The time to electrify the federal fleet is now, for sure,” said Nigro, the founder of Atlas. “That is clear from the numbers.”

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