Electrify the fleets in our streets
Aaaand…we’re back in action, implementing our favorite (read: only) multibillion-dollar landmark climate law! The Inflation Reduction Act (IRA) has the potential to turbocharge local governments’ ability to switch their vehicle fleets from gas to electric.
Your city needs you! Local governments operate fleets of vehicles that ought to be electric, but most aren’t. Now there is federal funding available to make the switch! YOU have the power to help your city replace your snowplows, garbage trucks, buses, police cars, firetrucks, and maintenance trucks. As constituents, we can urge our local elected officials to get ahead of the curve and invest early in electric municipal fleets using these new federal incentives.
Electrifying municipal fleets is a triple win:
Emissions reduction: Transportation is a major contributor to climate pollution in the U.S. Switching to electric vehicles can significantly cut down on a city or county’s transportation emissions and serve as a key pillar of local decarbonization strategy.
Health benefits: Reducing reliance on fossil fuels means less toxic air pollution, which we know is linked to a range of health issues, from asthma to heart disease.
Economic and social equity: Cleaner air benefits everyone, especially underserved communities often hit hardest by pollution. Plus, the savings from EVs (thanks to lower maintenance and fuel costs) can be redirected to other community services.
The IRA’s direct pay provision is a catalyst for real change at the municipal and county level. By electrifying their fleets, local governments can lead by example.
Finally fixing the “how do we pay for this” pothole
The road to electrifying municipal fleets has been a bumpy one. This is primarily due to high initial costs. The IRA is changing that with an innovative approach called "direct pay." Think of direct pay like getting a cash reward for a job well done rather than being roped into a complex coupon system. It's a straightforward way for the federal government to support often cash-strapped municipalities in their climate initiatives.
Direct pay makes it easier and more financially viable for local governments to adopt electric vehicles (EVs). This approach simplifies the previous system, where non-taxable entities (like cities) could not directly benefit from tax credits.
There are lots of ways local governments can take advantage of direct pay for climate-related initiatives, but electrifying fleets is low-hanging fruit.
When crafting the IRA, Congress intentionally designed a “Qualified Commercial Clean Vehicle Credit” and additional credits specifically for “clean vehicle refueling infrastructure in disadvantaged communities.”
Because of these two credits, it’s now much more feasible for cities to replace, and maintain, their light- and medium-duty vehicles. This is especially true for vehicles with predictable schedules, like garbage collection vehicles and snow plows, that can be hooked up to a charger at regular intervals.
Now, for what we need to do…
As constituents, we can make progress by alerting our local officials to the new tax credits specifically for municipal vehicles, plus their eligibility for direct pay. We’ll also connect them to some useful resources that could help them make EV procurement decisions.
Feel ready to contact your local officials? Click here to get started or sign up for an Hour of Action to take action alongside fellow changemakers and a Climate Changemakers facilitator!
Want a deeper dive into this topic? Check out the full Issue Briefing.