# B usiness Case for Battery- Electric Truck s in Los Angeles, California

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## Environmental 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 p roblem. 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 plant s, but m ost categories of emissions are lower for vehicles running on electricity generated from power plants than from diesel -powered vehicles.

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## For example, the carbon dioxide equivalent (CO 2 

## e) emissions from grid

- based electric ity 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 fr om diesel to California grid kilowatt hours

- kWhs).

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## 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.

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## Quantitative Business Case for Battery
- Electric Trucks Payback of BEV Incremental Cost from Operational Savings Years to Simple Payback = $ Incremental Co st / $ Annual Operational Savings 

## Class 3
- 4 = 4.6 years Class 5
- 6 = 3.1 years Years to Payback with Annual Fuel Price In flation (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 reductio ns, 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:

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## 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

– G reater acc eleration and torque at low power band s; 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.

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## Payback 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 Costs

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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 v s . ICE) 86,701 69,075 Incentives

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BEV 2 0,000 2 0,000 EVSE 3,000 3,000 Fuel Economy

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Diesel ICE Driving ( mpg) 9.3 8.4 Diesel ICE Idling (gal/hr) 0.64 0.76 BEV Driving (kW h/mi) 0. 7 1.0 BEV Idling ( kW h/ idle hr) 0. 233 0. 333 Driving Behavior

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Vehicle Miles Traveled

- VMT (mi/yr) 19,800 19,800 Idling (hr s /yr) 1 , 830 1 , 830 Fuel Costs & Savings

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Diesel ($/gal) 4. 3 89 4. 3 89 Electricity ($/off

- peak kW h ) 0. 1 2 0. 1 2 Annual Savings ($/yr

– BEV vs. ICE) 12, 770 14,001 Maintenance Costs & Savings

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Diesel I CE 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/y r

– BEV vs. ICE ) 63,536 69,305



### USEPA Staff Contact: Jo hn Mikulin – (415) 972

- 3956 / mikulin.john@epa.gov For more information about the West Coast Collaborative , please visit : www.westcoastcollaborative.org For i nformation on US EPA’s National Clean Diesel Campaign, please visit: www.epa.gov/diesel/ 

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