Tag: Electric-Vehicles

Electrification of the Fleet is on the Horizon, Preparing Now is Key

While we often hear how EVs will revolutionize the lives of the average consumer, commercial fleet owners are starting to take note of the impact these new powertrain systems will have on their own business and operations. As OEMs find creative ways to increase aerodynamics, extend battery range, and increase charging speeds, the zero emission and lower long-term cost of EVs compared to ICE (internal combustion engine) vehicles makes a compelling argument for adoption, at least on paper. What really matters is how those factors play out as the rubber hits the road, which OEMs are starting to see play out in real time. Over the past few years, there has been an explosion of commercial fleet platforms from existing and new entrants in the commercial vehicle space. From light to heavy trucking to fleet platform automobiles, EV technology is looking to capture every corner of the commercial fleet sector. Coupled with a slow reduction in the number of ICE vehicles produced in future years, the market may start pushing fleet operations towards EVs, whether they like it or not.

According to the Department of Transportation, over eight million vehicles made up commercial fleets in the US in 2020, which includes a mix of trucks and automobiles used in commercial and government operations. Even more make up commercial vehicles on the road that are not considered part of a fleet. As consumer demand drives most traditional OEMs toward EV dominated fleets, commercial fleet owners and operators need to start to prepare now for the same shift in their vehicle suppliers, or risk playing catchup once the market does turn from ICE to EV. This isn’t to say that failure to be an early adopter will be the death-knell to commercial fleet businesses; it likely won’t be. What businesses with commercial fleets should consider is their own business needs and their timeline for their own fleet replacement as EV technology and infrastructure support continues to evolve. Establishing a process and plan for upgrading existing fleets, training personnel, upgrading infrastructure, and understanding available programs for conversion will be key.

The switch from an ICE to EV fleet isn’t as simple as flipping a switch or plugging in a car – EVs bring a new powertrain and new sources of information. EVs in their current state are expensive, new vehicle supply is constantly in question, current operators are unaware of the nuances involved with operating an EV, and the infrastructure necessary to support a commercial fleet of EVs isn’t universally robust. For the average fleet operator, there also is a need to focus on route optimization, installing and maintaining new hardware capable to supporting charging on-site, revamping their maintenance and care procedures, and working with their local energy providers to understand how power demands in their local market may impact their own energy costs and needs. Additionally, although data analytics has improved existing fleet operations over the past few years, expect to see more nuanced data availability to the benefit of fleet operators.  As commercial and consumer EVs come out with ever more connectivity to the web and each other, coupled with the ability for “smart cities” to increase data available to drivers and vehicles, expect future fleet operators to get even more granular and predictive understanding of traffic patterns to optimize commercial routes. Managing these dynamics and capitalizing on new sources of information will better enable operators to adapt to the changing landscape. The ability to adapt to this new frontier will be a key trait for successful fleet operations in the Auto-2.0 operated environment.

Article By Christopher R. Boll of Foley & Lardner LLP

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© 2022 Foley & Lardner LLP

Obama Administration Announces Plan to Promote Electric Vehicles

Electric VehiclesIn late July, the Obama administration announced a collaboration with 50 federal and state agencies, electric utility companies, vehicle manufacturers, electric charging station companies, and others in the private sector to promote faster development of electric vehicle charging infrastructure and increased numbers of electric cars on the roads.

This announcement, made in partnership with the Department of Energy (DOE), Department of Transportation (DOT), Environmental Protection Agency (EPA), Air Force and Army, comes just after the DOE’s first-ever Sustainable Transportation Summit. To learn more about the collaboration, continue reading!

This collaboration aims to promote consumer adoption of electric vehicles and increase the accessibility of charging infrastructure across the country. Major goals include:

  • Guaranteeing $4.5 billion in loans to finance a national network of electric vehicle charging infrastructure to increase consumer access;

  • Utilizing funds from the Fixing America’s Surface Transportation(FAST) Act, signed into law by Obama in December 2015, to identify zero emission and alternative fuel corridors and developing a 2020 vision for the optimal placement of fast charging infrastructure; and

  • Encouraging state, county, and municipal governments to partner with the Federal government to procure subsidized electric vehicle fleets.

Additionally, the collaboration has agreed to a set of Guiding Principles to Promote Electric Vehicles and Charging Infrastructure to encourage market growth and spur adoption of electric vehicles by developing vehicles and charging infrastructure that are accessible, affordable, reliable and convenient for consumers.

The market for electric vehicles has grown significantly in recent years, with battery costs falling 70%, more than 20 plug-in electric vehicle models now on the market, and more than 16,000 charging stations deployed – up from fewer than 500 in 2008.

ARTICLE BY Sahir Surmeli of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

©1994-2016 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. All Rights Reserved.

Electric-Vehicle Infrastructure: Fertile Ground for P3’s

Electric-VehiclesIn 2006, the documentary “Who Killed the Electric Car?” hit the theaters. Ten years later, there remains substantial disagreement on the answer to that question, but one truth has emerged: the electric car lives again. As Electric-Vehicles (EV) range steadily increases while both charging times and prices continue to fall, it appears inevitable that an EV will someday be in every driveway. Yet one critical obstacle to widespread EV adoption remains. All of those EVs will need to be charged–not only at home, but at work, and on the go. And that requires brand-new infrastructure on a massive scale.

Public-private partnerships are proven model for delivering new infrastructure in a reduced timeframe and, in many cases, at a reduced cost. Because the public sector will inevitably play a significant role in EV use and EV infrastructure, there are many opportunities–now and on the horizon–for P3s. State and local governments will no doubt be procuring fleets of EV vehicles in the near future, and concessions for rapid charging stations (along with restaurants and other services to keep drivers occupied while their vehicles charge) will be needed along highways throughout the country. Although governments are beginning to plan for these procurements and facilities, Florida’s P3 statute permits interested private-sector partners to jump start the process by submitting an unsolicited P3 proposal.

At the federal level, the Obama Administration has just released a framework for fostering the adoption of electric vehicles, called “Guiding Principles to Promote Electric Vehicles and Charging Infrastructure.” Although the details have yet to be worked out, the framework contemplates P3s and innovative methods of procurement for federal, state, and local governments. Although federal funding and federal assistance will be a valuable asset (the results achieved through the Canadian federal government’s aid to provincial and local P3 procurements provide a vivid example of what can be accomplished), in many cases, the right P3 structure and procurement approach, along with the right private partner, will permit state and local governments to move forward with EV adoption and infrastructure right now.

© 2016 Bilzin Sumberg Baena Price & Axelrod LLP