Truck and bus fleets key to emission reduction, but are EVs ready?
WASHINGTON – Executives that oversee commercial truck and bus fleets are interested in switching their light, medium and heavy-duty vehicles to electric, but they question if technology or infrastructure can support their businesses.
That was the main sentiments of Steve W. Chriss, director of energy services at Walmart, Inc., and Jim Bruce, senior vice president and chief energy policy officer at UPS, who were among the featured speakers at the ninth annual “Powering the People” event on advancing electric transportation hosted by the Edison Foundation’s Institute for Electric Innovation this week.
“We want the trucks and we are ready but we want to see how they perform,” Chriss said. “We always test them at least for a year and then roll them into the fleet. And we aren’t going to go junk the trucks we [own].”
Ensuring trucks last up to 20 years, keep refueling costs low and are available for rapid-fire loading and unloading are key components to the success of both Walmart and UPS, the speakers said.
Transportation accounts for the largest portion of total U.S. greenhouse gas emissions and 82 percent of those emissions come from light-duty vehicles and medium- and heavy-duty trucks, according to the most recent Greenhouse Gas Emissions guide from the U.S. Environmental Protection Agency (EPA).
Some truck and bus manufacturers have stepped up to advance the feasibility of electrifying fleets. Volvo is manufacturing and selling electric buses in Europe and last year launched a Class 8 truck equivalent in Europe, said Dawn Fenton, director of Sustainability & Public Affairs at Volvo Group North America.
“There is great excitement but in reality, diesel trucks will still be around for decades,” she said. “We are going to make [electric] Volvo light trucks available in 2020. Mack Trucks and refuse trucks will also be available in short order. A lot of fleets have told [truck manufacturers] that quality is No. 1. They need to operate well and have the equivalent uptime and total cost of ownership available now.”
The company’s Volvo Lights (Low Impact Green Heavy Transport Solutions) partnered with California Climate Investments to find solutions to the battery costs, charging and weight for fleet vehicles.
“We are learning. We won’t put our name on the products and launch them unless they are reliable, we can support repairs and they fill customers’ needs,” she said. “While we are working diligently to expedite this, we need to be clear [EVs] won’t be taking over in the next dozen years.”
Yet progress is being made on other fronts, too. EV battery costs have markedly dipped in recent years, said Michael Berube, acting deputy assistant secretary of Sustainable Transportation at the U.S. Department of Energy.
“When you look at it in perspective, 11 years ago the cost was $1,000 per kilowatt hour,” said Berube. “After significant research it went to $197. By the end of this year, it will cost $185 per kilowatt hour.”
Yet the cost needs to be cut further so that electric vehicle prices and costs are on par with gasoline and diesel-powered vehicles. To meet that goal, the government is investing in the next generation of chemistry.
“We know what the barriers and problems are,” Berube said. “It gives me some confidence that there is not one pathway. We have multiple pathways to break down the technology [and meet goals] … I can see by 2028 we will be at the $100 level.”
Even if that level is reached, though, other challenges must be overcome before electrified fleet vehicles are widespread.
U.S. labor costs slow some advancement in EV development. In addition, there are many concerns about the energy grid. But overall, those that operate fleets were concerned about the reliability of EVs. Several speakers said they would not have placed an order for 100,000 electric trucks, as Amazon recently did.
“We are excited about electric buses, but we can’t afford to get this wrong, said Jeffrey D. Knueppel, general manager of the Southeastern Pennsylvania Transportation Authority. “We have to make sure they are ready for use.”
In order to earn the confidence of fleet managers, utilities and other stakeholders must work closely with them.
“The reason I volunteered to speak here is because I speak my mind. You don’t just buy the trucks. It is a marriage with a local utility,” said Chriss, adding his concern about EV back-up plans in case tornados or other storms disrupt electric power. “You must really be able to trust each other.”
