Achieving net zero in fleets means you have created a balance between any greenhouse gases that you are emitting and the amount being removed from the atmosphere. For government fleets, this means moving to zero-emission vehicles (ZEVs).
Why net zero matters for government fleets
Fleet managers face increased pressure to live up to aggressive government emissions reduction targets and mandates at the federal, state, and local levels. For example, the Federal Sustainability Plan created by Executive Order 14057 requires 100% ZEV acquisition for light-duty vehicles by 2027. As part of the net zero initiatives, all vehicles must be 100% zero emission by 2035. But with current federal fleets consisting of less than 5% electric vehicles, there’s a significant amount of work to do.
Citizens also expect that governmental units lead by example when it comes to climate change and embracing eco-friendly solutions. Essentially, net zero initiatives matter beyond just mandates. Public fleets are highly visible, and demonstrating a commitment to emissions reduction can help accelerate broader adoption.
Furthermore, reducing emissions is crucial for improving air quality and lowering operational costs.
A framework for a net zero initiative for government fleets
McKinsey & Company has created a three-phase framework for implementing a net zero initiative for government fleets to ease the transition. Here’s a breakdown.
Phase one: Fleet segmentation
The first phase starts with research. Fleet managers must assess their current fleet, use cases, and infrastructure to support any net zero initiatives.
In most cases, sedans, vans, and SUVs comprise about 20% of government fleets. These are the most likely candidates for early action. Vehicles with low-mileage requirements or regular service areas will be the easiest to assess and schedule for replacement. Areas with high densities of existing charging stations also help ease the transition.
Phase two: Roadmap development
The second phase focuses on the development of a comprehensive roadmap and action plan. This includes:
- Identifying and coordinating your fleet electrification team
- Developing your net zero strategy for electrification
- Reviewing mandates, goals, and reporting procedures
- Prioritizing your EV and charging infrastructure needs
- Coordinating your site plan
A key action item will be identifying the need for charging infrastructure and location suitability. You will want to work closely with local utility companies on feasibility studies to determine sites for development, with a particular focus on electrical grid capacity.
Most grids cannot support EV charging at scale without upgrades, which can take years to plan and implement. It’s also expensive: a single direct-current, fast-charging station with four chargers can result in more than $150,000 in upgrades to sites and grids.
Your action plan needs to identify funding sources and budgetary impact. ZEVs are more expensive than vehicles with internal combustion engines. While there are long-term savings in electrifying fleets, the initial upfront cost will be high. Budgets must reflect this reality.
It will require working with various stakeholders throughout the government to ensure that proper funding is available. This has been a challenge for many local governments operating under exceptionally tight budget constraints. Overcoming this challenge requires buy-in across the board.
While many grants and incentives are still available, there is not an unlimited supply. As we get closer to 2027, there may or may not be funds accessible for everyone trying to hit their mandates. Early adopters are more likely to get assistance with their ZEV adoption strategy.
Phase three: Execution
With a plan in place, the final step is execution. In most cases, this will require a phased procurement process, balancing mandates and budgetary constraints. It will be crucial to right-size vehicles based on use cases and commit to a formal replacement/retirement schedule. Right-sizing vehicles promote efficiency and help keep costs under control.
Part of the execution will be training for fleet drivers and maintenance teams. As you phase in ZEVs, it will help get drivers more comfortable with the technology and reduce concerns about range anxiety.
It’s also a good idea to install telematics to monitor performance. This helps track efficiency and promotes eco-driving strategies. The data from telematics can help demonstrate tangible results for your efforts. Showing progress and public reporting provides transparency and showcases your commitment to reducing carbon emissions.
How cooperative purchasing agreements help
Sourcewell can help at each phase with cooperative purchasing agreements and competitively sourced contracts to reduce time and cost. By leveraging the combined buying power of 50,000 government entities and educational institutions, it can achieve economies of scale to lower costs and streamline procurement.
During the planning and development stages, Sourcewell can also connect you with strategic consulting services, software, and expertise to help guide your efforts. During the execution phase, you can streamline ZEV procurement, telematics, software, and training tools.
The electrification of fleet vehicles can save city leaders and public fleet professionals money and time—and accelerate the progress to net-zero emissions in government fleets. Is your public fleet ready to transition to electric vehicles? See how Sourcewell can be a trusted partner in your EV journey.
