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If the last few months tell us anything, it’s that electric vehicles (EVs) aren’t going anywhere. In fact, we are seeing more states pass sweeping legislation that impacts fleets. Most recently, the California Air Resources Board passed the Advanced Clean Fleets rule, which requires that: 

  • All fleet operators with 50+ vehicles must convert their trucks and buses to zero-emission by 2042.
  • Sales of internal combustion models will end in 2036.
  • Some fleet types (like last mile delivery and drayage) will buy only zero-emission vehicles starting in 2024.

To date, 22 other states and the District of Columbia also have EV-related mandates. These programs are in addition to the federal Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act that offer a wide range of laws and incentives from the 30D EV tax credit for new and used vehicles to the National Electric Vehicle Infrastructure (NEVI) program for highway public charging.

Though the electric transition has already started, fleets still feel uneasy about how it may impact their operations. Charging infrastructure availability, range anxiety, vehicle availability, and residual value uncertainty continue to be the major blockers for widespread fleet adoption. But the used vehicle tax credit is improving confidence in residual values, private and public charging investments are accelerating, and OEMs are releasing new models and ramping up production. For example, the Ford F-150 Lightning has an impressive range of 320 miles and Ford also recently announced an extended range option for their popular eTransit van.

The takeaway? Now is the time for lessors to start helping their fleet lessees plan for their electrification journey. Forward-thinking lessors and fleets will be rewarded by the enhanced financial profile of EVs (i.e. – lower fuel, maintenance, and lifecycle costs), take early advantage of grant programs, and secure supply of their desired vehicles.

Inspiration Mobility is the first EV only lessor, investing, developing, and managing the real assets enabling the electrification of transportation. NVLA member and past president Ed Kaye, Inspiration’s SVP of Sales and Business Development, can be reached here.

As published in the NVLA May 19, 2023 issue of Leasewire