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Background and Motivation
In response to a 29% rise in fleet fuel costs from 2009 to 2011, Loveland, Colorado adopted battery electric vehicles (BEVs) and innovative municipal leasing creating a compelling case study on how fleets can drastically reduce operational costs. This led to a 41% reduction in ownership and operating costs compared to gasoline vehicles; key context points include:
- Operates a fleet of about 600 vehicles, with nearly 100 passenger cars previously averaging just 12 mpg due to frequent short trips.
- BEVs proved highly cost-effective, with costs dropping to 17 cents per mile versus 29 cents for gas vehicles.
- The city aims to convert all light-duty fleet vehicles operating within a 35-mile radius to EVs.
- Employee acceptance of EVs grew quickly due to their reliability and performance, supporting Loveland’s broader sustainability and cost-saving goals.
Fleet Electrification Strategy
Loveland’s electrification initiative focused on:
- Vehicle Selection: The city chose the Nissan LEAF BEV, attracted by its lower retail price (MSRP $28,800 before incentives), strong dealership support, and the desire to decouple fleet operations from gasoline prices. The vehicles were deployed for daily local service needs, such as city employee transportation for various municipal functions.
- Financing Model: Loveland utilized Nissan’s municipal lease program, which allowed the federal $7,500 tax credit to be incorporated directly into the lease price-a crucial advantage for tax-exempt public agencies. The lease was structured as a full payout over three years, with the option to retain or sell the vehicles at the end of the term
Cost and Operational Impact
- Cost Savings: Loveland’s analysis found that its BEVs cost just $0.17 per mile to own and operate, compared to $0.29 per mile for gasoline-powered fleet vehicles-a 41% reduction in total cost of ownership
- Fuel Efficiency: With local electricity rates between $0.06 and $0.07 per kWh, the cost of driving a BEV was estimated at just 2.4 cents per mile, compared to 14.6 cents per mile for a gasoline vehicle achieving 24 mpg at $3.50 per gallon
- Maintenance: In the first seven months, the BEVs required no maintenance at all, further contributing to operational savings and reliability
Deployment and Infrastructure
Overcoming Challenges and Changing Perceptions
Initial skepticism among employees-centered on range anxiety and performance concerns-was quickly dispelled. After firsthand experience, employees praised the EVs for their instant torque, rapid acceleration, and strong handling. Reliability exceeded expectations, and the regenerative braking system often resulted in higher-than-expected range for short city trips.
- Initial Rollout: Two Nissan LEAFs were deployed in September 2011, stationed at different city facilities, each equipped with a Level 2 charging station available for public use. The city soon expanded its EV fleet, with three more vehicles ordered for 2013 and an additional four planned for 2014.
- Charging Infrastructure: Three Level 2 chargers were installed for this phase, with a vehicle-to-charger ratio of 5:3, supplied by Eaton and Schneider.
Overcoming Challenges and Changing Perceptions
Initial skepticism among employees-centered on range anxiety and performance concerns-was quickly dispelled. After firsthand experience, employees praised the EVs for their instant torque, rapid acceleration, and strong handling. Reliability exceeded expectations, and the regenerative braking system often resulted in higher-than-expected range for short city trips.
Key Takeaways for Fleet Managers
- Financial Innovation: Lease programs can unlock federal incentives for public agencies, reducing upfront costs and spreading expenses over time.
- Operational Fit: BEVs are ideal for short-distance, frequent-stop municipal applications, where their efficiency and low maintenance needs deliver maximum benefit.
- Employee Engagement: Early exposure and positive experiences with EVs can quickly overcome resistance and drive adoption within fleets.
Conclusion
Loveland’s experience demonstrates that municipal fleet electrification is not only environmentally responsible but also economically advantageous. By leveraging public-private partnerships, innovative financing, and targeted deployment, cities can achieve substantial cost savings, operational improvements, and community leadership in clean transportation.
