EV Fleet: municipal fleets

With return-to-base routes and fixed charging locations, municipalities in California are well positioned to benefit by electrifying their fleets. Gains can include reduced operating costs, fewer incidences of unscheduled maintenance and lower maintenance expenses. Plus, battery electric vehicles produce no tailpipe emissions, so they eliminate exposure to the harmful diesel emissions and toxic fumes that diesel-fueled buses produce.

Additionally, by electrifying their fleet, municipalities in California can get ahead of looming zero emission regulations such as California’s ACT Rule and the Clean Fleet Rules.

The California Air Resources Board (CARB) passed the Advanced Clean Transportation (ACT) Regulation in June of 2020 to encourage the production and sales of zero-emission vehicles (ZEVs). The goal of this regulation is to increase the supply of available medium- and heavy-duty ZEVs and technologies to fleets, while also collecting fleet data that will help shape clean air regulations in the future.

The ACT Regulation has two components—one affecting vehicle manufacturers and one affecting fleets.

How the ACT Regulation affects fleets: The ACT Regulation requires fleet operators to provide information to CARB on their assets and operations in California. This data will be used by CARB to shape future regulations regarding ZEV purchase requirements for California-based truck fleets.

How the ACT Regulation affects vehicle manufacturers: Starting in 2024, truck manufacturers will be required to produce and sell ZEVs in California. The ACT regulation does not distinguish between battery-electric or fuel cell vehicles—all technologies that produce zero tailpipe greenhouse gas emissions (GHG) and criteria pollutants are encouraged.

For more information on California’s ACT Regulation, download our ACT Regulation Fact Sheet.

In June 2020, the California Air Resources Board (CARB) passed the Advanced Clean Transportation (ACT) Regulation, which will require an increasing percentage of the trucks sold in California to be zero emissions by 2024. To ensure that this manufacturer mandate is successful, CARB is developing a new regulation, the Advanced Clean Fleet Rule which requires California fleet owners and operators to purchase zero-emission vehicles (ZEVs). The goal of this emerging public policy will be to transition California’s entire fleet of medium- and heavy-duty trucks to zero-emission technology by 2045.

While this proposed rule is still under development, certain sectors, including public, bus and shuttle, refuse, and utility fleets, are being considered for early adoption.

For more information on California’s Advanced Clean Fleet Regulation, download our Advanced Clean Fleet Rule Fact Sheet.

The California Air Resources Board’s (CARB’s) Innovative Clean Transit (ICT) mandate calls for all California transit buses to be zero emission by 2040. Beginning in 2029, all new bus purchases by transit agencies must be zero-emission, including agencies that own, operate, or lease buses with a gross vehicle weight rating greater than 14,000 lbs. With a combination of state and local grants, as well as partnerships with utilities including PG&E, municipal fleets can make the transition to electric vehicles smoother and more cost-effective.

Municipal fleets can take advantage of incentives available for both infrastructure and EV chargers. A municipal fleet with a mix of Class 3-8 vehicles and equipment can receive up to $4,000 per vehicle in incentives, up to 25 vehicles. A few examples include:

A mid-sized electric shuttle bus is eligible for an incentive up to $4,000.
An electric medium-duty delivery truck is eligible for an incentive up to $4,000.
An electric forklift is eligible for an inventive up to $3,000.

Charger rebates: Municipal fleets are eligible for rebates up to 50% of the cost of an EV charger. The total amount will depend on power output of the charger.

Up to 50 kW is eligible for a rebate up to $15,000 per charger.
50.1 kW to 150 kW is eligible for a rebate up to $25,000 per charger.
150.1 kW and above is eligible for a rebate up to $42,000 per charger.

Fleets can select from a variety of EV charger configurations to fit their charging needs, including from our approved vendors list (PDF, 111 KB).

Yes, several state incentive and rebate programs can be stacked with EV Fleet. PG&E is closely coordinating with state and regional funding programs including the California Air Resources Board, California Energy Commission, and Bay Area Air Quality Management District, and others to help best co-fund the project.

For additional incentives available for municipal fleets, download the summary of incentives.