Nearly every day, a story is published touting the savings fleet operators can realize by implementing technologies that reduce diesel consumption. Although there are many choices, by far the most attractive is conversion to non-petroleum fuels, so-called “alternative fuels.” Beyond fuel cost savings, fleets can reduce exposure to toxic air contaminants, lower their contribution to their community’s smog problem, decrease maintenance costs, and limit exposure to volatile fuel prices that result from foreign political crises.
Before fleet managers begin to forecast cost savings related to alternative fuels, it is important to understand that incorporating alternative fuel vehicles (AFVs) into one’s fleet operations often requires a large initial capital investment. In addition to paying higher incremental vehicle costs, fleet operators may need to construct new charging or fueling infrastructure, upgrade maintenance facilities, and conduct employee training among other considerations. In the long run, up-front costs are offset by potential long-term fuel and operating cost savings. In the short term, however, grants, rebates, loans, tax incentives, and emissions reduction credits can be useful to help fund the launch of a clean transportation program.
In fact, grant funding programs have made possible many of the nation’s largest and most successful AFV deployment and infrastructure projects. Some prominent examples include: the conversion of nearly all of Waste Management’s Southern California refuse truck fleet; the launch of the first heavy-duty NGVs in Ryder’s rental and leasing operation; and the ongoing development of multiple alternative fueling corridors, such as the Texas Clean Transportation Triangle.
Hundreds of AFV funding programs exist at the local, state, and federal level. To take advantage of available grant funding opportunities, fleet managers should:
- Find the opportunities. Sign up to receive email notifications as new funding opportunities arise by visiting the websites of the agencies that manage these programs, such as California’s Carl Moyer Memorial Air Quality Standards Attainment, the Texas Emissions Reduction Plan, and Pennsylvania’s Act 13 Natural Gas Energy Development Program.
- Submit a winning application. Competition to secure funding for AFV deployments is often steep. Beyond meeting the basic grant criteria, fleets should convey the unique value that project funding will bring to taxpayers.
- Secure stakeholder support. The best grant applications are those with the widest community support, including elected officials, environmental organizations, chambers of commerce, health advocates, and other key stakeholders. Fleets should ask these key constituencies to convey their support.
Many fleet operators opt to hire a firm with experience writing, managing, and tracking grant funding opportunities rather than going it alone. Fleets should ask the contractor how many grants they write and how many grants they win. It goes without saying, but always work with consultants with winning track records.
To sum things up, before fleet operators decide to “green their fleet,” they should seek opportunities to secure some “green.”
Cliff Gladstein is president of Gladstein, Neandross & Associates (GNA), the clean transportation and energy consulting firm that organizes the Alternative Clean Transportation (ACT) Expo. With a 93% success rate, GNA has secured more than $230 million in grants for AFV projects. Learn more at www.gladstein.org and www.actexpo.com.
