Business Case for Battery-Electric Trucks in 

Los Angeles, California 

UEnvironmental Benefits of Battery-Electric vs. Diesel Trucks

Diesel-powered vehicles are the workhorses of our economy yet they produce emissions that pose a 

significant public health problem. Battery-electric vehicle (BEV) emissions do not come from the 

tailpipe, so BEVs are considered zero-emission vehicles, and thus benefit the health of people who 

would otherwise be exposed to emissions along fleet routes. BEV emissions are produced from electric 

power plants, but most categories of emissions are lower for vehicles running on electricity generated 

from power plants than from diesel-powered vehicles.0F

1 For example, the carbon dioxide equivalent 

(CO2e) emissions from grid-based electricity in the Los Angeles area would be 76% lower for BEVs 

versus comparable diesel internal combustion engine (ICE) vehicles based on relative fuel greenhouse 

gas (GHG) intensities and drivetrain efficiencies (i.e., reduction in GHG intensity by switching from 

diesel to California grid kilowatt hours-kWhs).1F

2,2F3,3F4,4F5 Furthermore, the emissions from grid-based

electricity will decrease over time, while emissions from diesel combustion will remain relatively 

constant on a per gallon basis.5F

6

Quantitative Business Case for Battery-Electric Trucks

Payback of BEV Incremental Cost from Operational Savings 

Years to Simple Payback = $ Incremental Cost / $ Annual Operational Savings

Class 3-4 = 4.6 years 

Class 5-6 = 3.1 years 

Years to Payback with Annual Fuel Price Inflation (Diesel = 10% & Grid Electricity = 5%) 

Class 3-4 = 4.0 years 

Class 5-6 = 2.8 years 

Qualitative Business Case for Battery-Electric Trucks

In addition to their short payback period, immediate operational savings, and significant emissions 

reductions, BEVs generate several ancillary benefits to the fleets that purchase them. The following is a 

list of some additional benefits associated with BEV ownership and operation:6F

7,7F8,8F9,9F10

1) Fuel Cost Certainty – Electricity prices are significantly less volatile than petroleum prices; 

2) Consumer Preference – Modern consumers prefer vendors who operate BEVs; 

3) Business Exposure – Additional media and public attention for operating BEVs; 

4) Driving Performance – Greater acceleration and torque at low power bands; 

5) Driver Recruitment & Retention – Drivers prefer working for companies using latest technology; 

6) Energy Security – Domestic electricity generation versus imported petroleum; and, 

7) Corporate Social Responsibility (CSR) – BEVs reduce air and noise pollution along fleet routes, as 

well as vehicle vibration and emissions exposure for fleet operators.

UPayback Analysis Data & Assumptions

This comparative payback analysis of electric trucks versus their traditional diesel ICE alternatives

required several essential data. The following is a list of the data inputs that the United States 

Environmental Protection Agency (USEPA) West Coast Collaborative (WCC) staff used to conduct this

Los Angeles-specific BEV payback analysis:
West Coast Collaborative | Page 2 

CLASS 3-4 CLASS 5-6

Costs10F

11,

11F

12,

12F

13

Diesel ICE 65,000 97,000

Diesel ICE Registration Fees & Sales Taxes 6,549 8,488

BEV 140,000 155,000 

BEV Registration Fees & Sales Taxes 12,250 13,563

Electric Vehicle Supply Equipment (EVSE) 6,000 6,000 

Incremental Cost (BEV + EVSE vs. ICE) 86,701 69,075

Incentives13F

14,

14F

15

BEV 20,000 20,000 

EVSE 3,000 3,000 

Fuel Economy15F

16,

16F

17,

17F

18

Diesel ICE Driving (mpg) 9.3 8.4

Diesel ICE Idling (gal/hr) 0.64 0.76

BEV Driving (kWh/mi) 0.7 1.0

BEV Idling (kWh/idle hr) 0.233 0.333

Driving Behavior18F

19,

19F

20

Vehicle Miles Traveled-VMT (mi/yr) 19,800 19,800

Idling (hrs/yr) 1,830 1,830

Fuel Costs & Savings20F

21,

21F

22

Diesel ($/gal) 4.389 4.389

Electricity ($/off-peak kWh) 0.12 0.12

Annual Savings ($/yr – BEV vs. ICE) 12,770 14,001

Maintenance Costs & Savings22F

23,

23F

24

Diesel ICE Maintenance ($/mi) 0.105 0.105 

BEV Maintenance ($/mi) 0.0525 0.0525 

Annual Savings ($/yr – BEV vs. ICE) 1,040 1,040

CO2e Emissions Reductions 

Diesel Fuel (lbs/gal) 22.2 22.2

California Grid Electricity (lbs/kWh) 0.681 0.681

Annual Reductions (lbs/yr – BEV vs. ICE) 63,536 69,305

USEPA Staff Contact: John Mikulin – (415) 972-3956 / mikulin.john@epa.gov

For more information about the West Coast Collaborative, please visit: www.westcoastcollaborative.org

For information on USEPA’s National Clean Diesel Campaign, please visit: www.epa.gov/diesel/

 

References 1 U.S. Department of Energy (2011); Hybrid and Plug-In Electric Vehicles. http://www.afdc.energy.gov/afdc/pdfs/51017.pdf 2 USEPA (2011); Power Profiler. http://www.epa.gov/cleanenergy/energy-and-you/how-clean.html 3 USEPA (2005); Emission Facts: Average Carbon Dioxide Emissions Resulting from Gasoline and Diesel Fuel. http://www.epa.gov/oms/climate/420f05001.htm 4 Freedom Formula Foundation (2006); Relative Efficiency of Various Electric and Hybrid Drivetrains. 

http://serieshybrid.com/FreedomFormula/images/Drivetrain_Comparison.pdf 5 Cuddy, M.R., Wipke, K.B. (1997) Analysis of the Fuel Economy Benefit of Drivetrain Hybridization. http://www.nrel.gov/vehiclesandfuels/vsa/pdfs/22309.pdf 6 Elson, W. (2010); Electric Vehicles Get Cleaner Over Time: Emissions from Energy Consumption at Power Plants in the U.S. USEPA. 7 Payette, M. (2011); Testimonial on Battery-Electric Truck Delivery Fleet Performance. Staples Inc. 8 Taylor, E. (2011); Testimonial on Battery-Electric Truck Delivery Fleet Performance. Down East Seafood. 9 UC Davis Institute for Transportation Studies (2007); Battery Electric Vehicles: An Assessment of the Technology and Factors Influencing Market Readiness. 

http://hydrogen.its.ucdavis.edu/people/cyang/AEP/TechAssessment/BEV 10 CALSTART (2011) E-Truck Task Force. 11 Commercial Truck Trader (2011); Truck Price Checker. http://www.commercialtrucktrader.com/research/tools/price-checker/ 12 California Department of Motor Vehicles (2011); Vehicle Registration Fee Calculator. https://www.dmv.ca.gov/FeeCalculatorWeb/newVehicleForm.do 13 CALSTART (2011); Aggregated E-Truck & EVSE Price Estimates. 14 U.S. Department of Energy (2011); California Incentives and Laws. http://www.afdc.energy.gov/afdc/laws/state_summary/CA 15 Plug-In America (2011); State & Federal Incentives. http://www.pluginamerica.org/why-plug-vehicles/state-federal-incentives 16 J.D. Power & Associates (2010); U.S. Medium-Duty Truck Engine and Transmission Customer Satisfaction Study. 

http://www.jdpower.com/news/pressRelease.aspx?ID=2010216 17 Argonne National Laboratory (2005); How Much Could You Save by Idling Less? http://www.transportation.anl.gov/pdfs/TA/361.pdf 18 National Renewable Energy Laboratory (2007); Battery Choices and Potential Requirements for Plug- In Hybrids. 

http://www.nrel.gov/vehiclesandfuels/energystorage/pdfs/41328.pdf 19 Chambers, N. (2010); “Navistar Begins Production of Its All-Electric 2-Ton Truck.” Matter Network. http://www.matternetwork.com/2010/5/navistar-beginsproduction-its-all.cfm 20 Washington State University Extension Energy Program (2003); Idling Restrictions. http://www.energy.wsu.edu/ftp-ep/pubs/renewables/IdlingRestrictions.pdf 21 Gas Buddy (2011); Diesel Fuel Prices in Los Angeles, California. http://www.losangelesgasprices.com/index.aspx?fuel=D&area=Los%20Angeles&dl=Y&intro=Y 22 Southern California Edison (2011); Plug-In Electric Vehicles: Your EV Rate Options. http://www.sce.com/PowerandEnvironment/PEV/rate-charging-options.htm 23 Minnesota Department of Transportation (2003); The Per-mile Costs of Operating Automobiles and Trucks. 

http://www.caf.wvu.edu/resm/faculty/borisova/TruckTrCost.pdf 24 Bond, D (2011); Greening Your Fleet & Managing the Grant Process. Alameda County General Services Agency. http://chargedsv.org/wpcontent/uploads/2011/06/Alameda-County-Presentation.Greening-Your-Fleet-Managing-the-Grant-Process-EV-Symposium.pdf