Timing the Transition: 3 Considerations for Private Fleet Decarbonization

As electric vehicles (EVs) continue to diversify, many businesses are starting to consider augmenting a portion of their fleet with electricity-powered alternatives. According to the U.S. Environmental Protection Agency (EPA), the transportation sector is one of the largest contributors of greenhouse gases (GHGs), accounting for 28% of total emissions. The vast majority of these emissions come from passenger vehicles and larger shipping trucks.

The federal government and states across the U.S. are also pushing for the adoption of EVs in response to consumer demand and market forces. Some states have adopted the Advanced Clean Truck Act (CTA) to incentivize manufacturers to make more EVs available in their state. Big businesses are also investing heavily in EVs. For example, one major logistics company in the U.S. has already deployed over 10,000 electric delivery vans. Meanwhile, one of the country’s largest retailers is also investing in decarbonizing its delivery fleet and is building EV charging stations at its locations nationwide.

The attorneys and government relations professionals at Buchanan are keeping a close eye on the EV landscape as well as their viability for businesses today and in the future. For any organization considering making the switch, here are a few factors to keep in mind:

1. EV Availability: Automobile manufacturers are investing heavily in their EV lines, but production delays and setbacks are an unfortunate reality for companies seeking to purchase a large volume of EVs. As manufacturing ramps up, buyers will need to be patient as the major car producers scale their EV offerings to supply larger geographic regions. Another detail to consider is whether or not your state has put in place a CTA. Many EV manufacturers are looking for these when deciding which states to invest in serving. Organizations decarbonizing their fleet will also need to think about getting access to maintenance professionals with expertise in EVs.

2. Charging Infrastructure: With EVs in hand, businesses will need to think about how they’re going to quickly and efficiently charge their fleet. For many organizations, this often means building a charging facility large enough to serve the entire fleet. Organizations will also need to think about charging while on the road and ensuring their fleet has access to charging stations compatible with their brand of vehicle. In some instances, organizations will need to work with local utility companies and municipalities to ensure their charging stations will have access to enough energy to charge the fleet every day. All of these initiatives will require significant investment and planning from both businesses and the public sector.

3. Electrical Grid Capacity: With more EVs on the road, electrical grids across the U.S. will need to handle this extra demand. Legitimate concerns remain about the electricity infrastructure in certain geographies being able to support this additional capacity. Large amounts of electricity will also be needed to support the advancement of artificial intelligence (AI), and EV charging facilities may have to compete for reliable electrical supply in some areas. Companies seeking to decarbonize their fleet, especially those seeking to build large charging facilities, will need to assess the infrastructure in their area to make sure there is a reasonable probability it will be able to reliably supply its energy needs. In some cases, they should consider partnering with an existing AI project to secure reliable supply.

Policymakers Hold the Power

Serious action is required from policymakers on the state and federal levels to help the energy industry, EV manufacturers, and businesses overcome these roadblocks.

In the meantime, we’re advising our clients to plan ahead and consider how this transition fits into their organizations or company’s three- and five-year plans. Switching to EVs will require time, significant financial investment and the hiring of additional talent. It’s also imperative to get a seat at the table among state and federal lawmakers and influencers that are shaping the future of EV policy.