Forging a path forward

The future of fleet management is evolving. As more and more states adopt zero- emissions mandates that can include transitioning to electric vehicles (EVs), diesel trucks are no longer the only ones on the road.

In California, the Advanced Clean Trucks regulation, which went into effect in 2024, requires manufacturers selling more than 500 medium- and heavy-duty vehicles to report vehicle sales and the amount of EVs, plug-in hybrid vehicles and hydrogen internal combustion engine vehicles sold.

When it comes to transitioning to an electric waste fleet, however, the roadblocks preventing EV adoption can feel impassable. High cost and lack of infrastructure pose challenges, and applying for and receiving grants can be complex and difficult to navigate.

To address these barriers, Fleet Advantage, a fleet management services provider based in Fort Lauderdale, Florida, launched a program in September 2024 to facilitate the shift toward alternative fuel vehicles such as EVs in a practical way.

“When someone tries to enter that EV space, they’re entering a regulatory environment that’s very challenging,” says Brian Antonellis, senior vice president of fleet operations at Fleet Advantage. “They’re entering a grant environment that’s very challenging, … and they’re entering at a cost point where a typical tractor today is probably $170,000 and a typical EV tractor is $450,000.”

Through the EV Path Program, Fleet Advantage will match the monthly lease payment on an electric truck to that of a diesel truck, which the company says could represent savings to the fleet of up to $3,000 per truck per month in addition to offloading the bulk of the equipment’s residual risk.

“When you place your order for your traditional diesel trucks this year [with Fleet Advantage], let’s take a percentage of those and let’s make them EV,” Antonellis says.

As a Class-8 independent lessor with approximately 30,000 trucks on the road, Fleet Advantage primarily leases diesel trucks, but Antonellis observed the industry’s shift toward EVs and wanted to get ahead of the curve.

“We can’t say, ‘Hey, that’s not where we make our money today,’” Antonellis says. “No, we’re going to embrace it, and we’re going to help companies make that transition.”

After a three-year development phase, Fleet Advantage formalized the EV Path Program and identified some of the trucking industry’s most pressing pain points: cost, infrastructure, type of equipment and the grant process.

“When people got new trucks, for decades, it was exciting,” Antonellis says. “I felt like people weren’t excited about getting into EVs in the truck space because it was so painful.”

The EV Path Program aims to clear those hurdles and make obtaining an alternative fuel vehicle achievable for fleets.

Breaking down barriers

Cost is the first barrier for most companies, Antonellis says, and fleet operators have to consider how much they’ll spend on an electric truck overall, which includes installing the infrastructure and powering the truck regularly. Compared with the cost of a diesel truck, which needs to be fueled almost daily, these calculations can become detailed, down to the kilowatt hour.

Operators also have to be thoughtful of the truck’s application, he says.

“It has to be used correctly,” Antonellis says. “It has to be put on the right routes. But in a world where you put some thought into it … and you put the equipment in the right place, it absolutely pencils out.”

Selecting the right equipment for the appropriate application can be challenging, and replacing a diesel truck with an EV truck might not necessarily make sense.

Typically, with diesel trucks, the weight is less than EVs. Most weigh between 14,900-16,000 pounds, while an EV truck can weigh 23,000 pounds. This limits the amount of weight an EV can carry under the Department of Transportation’s weight limits. Although limits can vary, many trucks cannot legally operate with a gross weight of more than 80,000 pounds, with some exceptions for EV trucks running up to 82,000 pounds.

“You need to think about what you’re hauling,” Antonellis says. “How are you … making sure that you put that piece of equipment in the right place?”

An example of a relevant application for an EV would be in refuse collection, especially in urban areas, Antonellis says.

“Local delivery and pickup—they’re going to fit right in that electric space because you’re not going to have a lot of power draw when you’re moving down a residential street or even a commercial space and processing the work,” he says.

The next challenge is infrastructure—or, more specifically, a lack thereof.

In states like California, where infrastructure is backlogged, Antonellis says it can take 24 to 36 months to install appropriate EV infrastructure, including battery chargers, rapid chargers and battery exchange stations.

“[There’s] also that challenge of going out and hiring a contractor to install EV chargers,” he adds. “Most people don’t have a contractor in their Rolodex, … so they were going to local electricians, and everybody was sort of recreating the process every single time.”

To work around this, Antonellis says, Fleet Advantage has partnered with an infrastructure company with a national presence to install EV infrastructure for the company’s clients.

The last major pain point is applying for and receiving grant funding, which can be particularly confusing for fleet operators attempting to make the switch. With federal, state and local grant programs available, it can be difficult for operators to know which funding they can apply for. Antonellis says some grant programs are basically run by county.

“If a company was going to wait to hear on grant funding because they don’t want to pay the full $450,000 for the tractor, you could be there forever,” he says.

Antonellis says Fleet Advantage takes on the burden of applying for grants for its customers through the EV Path Program.

The future of alternative fuel

Although they have their pain points, EVs have advantages as well.

They are quieter than diesel trucks, for one, and the reduction in noise can be beneficial for both residents and drivers.

“When we put people in electric trucks, the first thing the driver says when he goes in is, ‘I’m going to hate this. It’s not going to have enough power,’” Antonellis says. “And then you let them run it for six or seven weeks, [and] they don’t want to get out of it.”

The environmental benefits of EVs have triggered government organizations like the California Air Resources Board (CARB) to push for clean vehicle regulations. These mandates typically emphasize zero-emissions vehicles, and Antonellis warns against disregarding the benefits of other alternative fuel vehicles as they pertain to replacing diesel.

“While EPA [the Environmental Protection Agency] and CARB have the best intentions when they’re going through these processes, I feel like we’re overlooking a lot of really good strides we can make,” he says. “I think that we’re going to see some natural gas [as well as] some hydrogen fuel cell to extend range. … I think of biodiesel [and] renewable diesel. I even think of combustible hydrogen. While it’s not considered zero [emissions], … it’s better than diesel.”

The EV Path Program, though focused on electric options, could see a shift to include other alternative fuel vehicles down the line, Antonellis says.

Regulation could be driving the shift toward alternative fuel vehicles in certain states, but it could be prudent for fleet operators in states without EV mandates to consider making the switch as well.

“As a country, we’re not going to be on diesel forever, so if you think you’re going to wait and be the last company to switch, you’re not going to be able to adjust,” he says. “As that percentage starts to shift away [from diesel], we think we’re going to see a cost shift. So, you want to be proactive. You want to be out in front of it.”

The author is digital editor for the Recycling Today Media Group. She can be reached at tkazdin@gie.net.