Government officials accelerate electrification of public transit and other fleets

Executives in municipal, regional and state governments are interested in in transitioning their fleets to electric operations, says Daniel Simounet, vice president, transportation industry, Americas at Hitachi Energy, a worldwide provider of power technologies and energy systems, offering tools and solutions that provide pathways to accelerate the energy transition and deliver customer success.

He adds that the trend is most prominent in the area of public buses. “We are seeing public transit agencies throughout the country looking to transition their fleets. We have seen a rapid expansion in EV [electric vehicle] fleet conversion and expect that trend to accelerate in the coming year, in terms of municipal and regional bus fleets, as well as government maintenance vehicles.”

Simounet says now is a great time for local government procurement officers to seriously look at the opportunity to convert their vehicle fleets to electric propulsion. “There is a growing number and variety of vehicles available, including electric buses and trucks. These can provide a great return to government fleet operators on their EV investments. This is because of their high utilization factors coupled with reduced maintenance and fuel costs. EV charging infrastructure for fleets is also available and can be substantially less costly to install than individual charging stations.”

He adds that EVs also offer the benefit of lower emissions. “This is particularly beneficial in urban environments where poor air quality has long been a major concern, both in terms of public health and overall quality of life.”

What is motivating city-county officials to consider electrifying their vehicle fleets? “A big driver for this is that many local governments already have greenhouse gas (GHG) emission reduction targets in place, and buses offer an obvious opportunity for quick progress toward meeting those goals,” Simounet explains. He outlines several reasons, such as the following:

• Electric buses are widely available in the commercial market.
  • The business case for electric buses can be very good—the total cost of ownership is lower for EVs.
  • The solid business case for electric buses is magnified for vehicles which are used frequently, such as buses; so the return on investment is much quicker than is the case for passenger cars.

Simounet says public transit agencies across the United States are currently planning to install charging infrastructure for their passenger vehicles. “The Los Angeles Metro, for instance, has a goal of a 100 percent zero-emissions fleet by 2030. Similarly, New York’s MTA has a plan to transform its 5,800 buses into a zero-emissions fleet by 2040. There are innumerable other examples throughout the country.”

The federal Infrastructure Investment and Jobs Act (IIJA), which became law in late 2021, has substantial funding available for EV infrastructure. Simounet notes that the legislation includes nearly $39 billion that is targeted to public transport investments. “One area of emphasis for that funding is on expediting conversion to electric buses, including eBus transition planning.”

Simounet explains that the IIJA legislation includes roughly $7.5 billion targeted at the development of EV charging infrastructure. “While a significant portion of that funding is likely to go to the actual vehicle charging equipment (both for individual passenger vehicles and fleets), we also anticipate investments in required upgrades to power grids, such as transmission and distribution expansion, to get renewable energy from where it is generated to load centers, as well as investments in local feeders to serve areas where there is increased EV charging demand.”

The Hitachi Energy executive says his team also expects to see additional investment in efforts to improve grid resiliency throughout the U.S. “This will help ensure a more reliable power supply, in part to address vehicle charging needs.”

The path that federal funds take will become clearer down the road, Simounet predicts. “The mechanisms for the distribution of funds both from the IIJA, as well as the Inflation Reduction Act (IRA), will gain additional clarity in the coming year.”

Simounet urges government procurement officers to keep an eye on the rule-making process that is currently underway at the federal level. He says that knowing what’s going on will help procurement teams “identify potential opportunities to leverage available funding sources in support of their sustainability efforts.” Hitachi Energy offers a variety of sustainable transportation solutions.

OMNIA Partners offers a robust portfolio of cooperative contracts in the public procurement space. The following link lists several OMNIA Partners cooperative contracts under the phrase “electric vehicles.”

Michael Keating is senior editor for American City & County. Contact him at [email protected].