In a recent post, we explored how fleet managers can develop a fleet electrification strategy that could take them from zero electric vehicles to an all-electric fleet. This post, however, will take a deep dive into how communities with limited resources can electrify their public fleets on a tight budget.
Many Communities Face Unique Challenges Electrifying Their Public Fleets
Many local municipalities operate within lean budgets. That situation can make electrification more complex. Communities with smaller tax bases — including both rural areas and under-resourced urban neighborhoods — often carry additional financial pressures while also serving residents who stand to benefit most from cleaner, more reliable transit.
Municipalities with constrained budgets face what can feel like a Catch-22. Limited revenue restricts fleet upgrades, yet improved transit systems are essential for connecting residents to economic opportunities and better-paying jobs.
Urban Public Fleet Electrification Challenges
According to an Urban Wire article, some urban areas already face inadequate public transportation options. For example, in McAllen, Texas, where 27% of residents live below the federal poverty line, transit service ends at 9 p.m. on weekdays, preventing evening shift workers from relying on public transit. Even during operating hours, routes may only run once per hour.
As the article shows, if McAllen’s public transit could access the same level of funding that Dallas residents enjoy, it could double the number of routes, run buses every 15 minutes, and extend service hours into the night. Similar improvements could be realized in other cities with the right investment.
However, expanding diesel bus routes would mean increased air pollution — a burden that already disproportionately impacts underserved communities. Switching to electric buses would eliminate these emissions, improve community health, and help residents miss fewer work days while boosting local revenue.
Rural Public Fleet Electrification Challenges
Rural communities also face distinct challenges, including longer commutes and dispersed populations, which make funding and operating robust public transit more difficult.
As Vermont US Senator Peter Welch pointed out, “[F]or many rural communities in Vermont and across the country with limited transit budgets, making the switch to electric vehicles is easier said than done.” Even though the total cost of ownership (TCO) is significantly lower with an all-electric fleet, many rural communities cannot afford to fund the initial investment.
So, How Can Our Municipality Fund the Transition to EVs?
What’s that old saying about how to eat an elephant? The answer, of course, is one bite at a time.
Above All, Start Small
Start small. Raise the funds for only one electric vehicle to start.
Then compare the data for fuel and maintenance expenses versus similar ICE-powered vehicles in your fleet. If possible, measure the air quality inside both your electric fleet vehicle and its diesel- or gasoline-fueled counterparts. Make that data publicly available to garner support among local residents.
Find Funding Sources with a Vested Interest in Electrification
If you can find state, local, and private sources to fund your efforts to convert your fleet to an all-electric one, you could have an electric fleet in less time than you thought possible. Utilities, nonprofit environmental groups, state governments, and local organizations can provide grants and other incentives to help you fund your revamped fleet, as an L-Charge post points out.
Utilities may have a profit motive in expanding electricity usage, while environmental groups and governments aim to reduce pollution and improve community health. Funding efforts to electrify a fleet on a budget can help advance these goals, especially in areas with high pollution levels.
Once you find possible funding sources, check your fleet’s eligibility, make sure all your paperwork is in order, and submit the proper applications. As the L-Charge article advises, it’s a good idea to apply for as many programs as your fleet is eligible for to increase your chances of success.
Educate Community Leaders About the Health Benefits of an EV Fleet
Your community’s leadership isn’t only the city council, the mayor, or other elected officials. Healthcare providers, educators, and other trusted community leaders also play a key role.
Since many of them don’t have time to research the benefits of fleet electrification, arrange meetings to share data and case studies. Once they see the health and economic benefits that electric fleet vehicles bring, they will be more likely to advocate for electrification within the community.
Armed with that information, residents will have more reasons to support initiatives that fund the area’s public fleets with electric vehicles. Cleaner air and more reliable transit benefit everyone.
Partner with Local Nonprofits to Fund Fleet Improvements
Creative partnerships can help bridge funding gaps. Nonprofits, foundations, and community organizations often share the goal of improving transportation equity and access.
For example, in Austin, Texas, the Transit Empowerment Fund brings together nonprofits to “fund innovative demonstration projects that expand transit services in underserved neighborhoods.” The fund also provides bus tickets to residents who otherwise couldn’t afford public transportation, generating more revenue for the transit agency. With this support, and the city’s partnership with the Climate Mayors Electric Vehicle Purchasing Collaborative, Austin has begun its transition to an all-electric fleet.
Likewise, in rural Carroll County, Ohio, the Carroll County Transit depends on donations and nonprofit partnerships to improve fleet services for low-income residents, people with disabilities, and seniors. Far from major cities, these partnerships ensure reliable transit remains available.
Find Economical Alternatives to Steep Upfront Costs
As the L-Charge piece cited earlier advises, there are cost-effective alternatives to outright purchasing electric fleet vehicles. Leasing, for instance, can preserve your agency’s line of credit while reducing upfront costs.
Another innovative approach is to use an EV-as-a-Service (EVaaS) company, which provides vehicles along with maintenance, charging, and possibly insurance for a subscription fee.
Save Money with an Economical Charging Plan
While it would be ideal to install cutting-edge charging infrastructure, that isn’t always feasible for fleets on tight budgets. Thankfully, some innovative companies now provide alternative solutions.
Charging-as-a-Service (CaaS)
With CaaS, fleets avoid high upfront infrastructure costs. A subscription program provides full-service charging without the hassle of permitting, construction, or hiring extra labor. As your fleet grows, your subscription can grow with you.
Mobile Charging
Mobile charging offers another cost-effective alternative. Instead of waiting up to 18 months for on-site construction, fleets can rely on battery-powered chargers delivered directly to their vehicles along routes or at garages. Containerized charging — upcycled shipping containers fitted with chargers — offers yet another flexible option.
Incorporate Renewable Fuel Sources and Battery Storage
If they’re available, renewable energy sources, such as solar, wind, or hydropower, can significantly reduce charging costs. For communities without access to renewables, battery storage systems can be charged during off-peak hours and used during peak times to save money.
Take Advantage of V2G Charging to Earn Passive Income
If you purchase fleet vehicles capable of bidirectional charging, you can take advantage of idle time by sending energy back to the grid with vehicle-to-grid (V2G) charging. Utilities often pay organizations that do so through credits or direct payments.
Convert Diesel Buses into Zero-Emissions EVs
Fleet managers don’t always need to purchase new vehicles. As the Beaverton School District in Oregon discovered, converting diesel buses into electric ones can cost only $200,000 compared to $400,000 for a new EV bus. Factoring in the reduced cost of ownership, conversion can be a smart strategy.
Discover More Ways to Electrify on a Budget at the EV Charging Summit & Expo
With presentations focused on EV fleet management and development strategies, the EV Charging Summit & Expo is the place to learn from the finest minds in the EV fleet industry. There, you’ll learn even more about how to build a successful strategy to transition your public fleet into an all-electric one — even if you’re on a tight budget.
Don’t wait to reserve a spot for you and your teams. Register for your seat at the Summit today!
