Federal agencies have credited the acquisition of alternative fuel vehicles and better management of their existing vehicles as reasons for their success in meeting requirements to reduce gas emission and fuel consumption.

But according to an Aug. 26 Government Accountability Office report, agencies may struggle to meet future standards, as the costs and infrastructure associated with electric and hybrid vehicles could prevent the government from acquiring them. In addition, such vehicles often don’t come in the larger sizes needed for agency tasks.

“According to [General Services Administration] data, agencies purchased 373 electric vehicles (sedans and minivans) in fiscal year 2017 — along with about 4,500 hybrid electric sedans — out of a total of over 16,000 sedans and minivans acquired. In total, agencies spent about $10.5 million more to purchase hybrid or electric vehicles than they would have to purchase comparably sized conventionally fueled vehicles,” the report said.

“However, agencies did not consistently track the life-cycle costs of these vehicles. In the time since this study was published, according to [the Department of Energy], battery costs have continued to fall, and these vehicles may be cost competitive in the near future.”

According to the report, lower maintenance and fuel costs associated with electric and hybrid vehicles could ultimately bring the vehicle’s total cost at or below that of a gas-fueled vehicle.

“While electric vehicles have higher acquisition costs, they generally have lower fuel and maintenance costs than conventionally fueled vehicles, and as a result, GSA officials charge agencies lower mileage rates for these vehicles. GSA also charges agencies lower mileage rates for hybrid vehicles, based on their higher fuel efficiency,” the report said

“Because of these lower mileage rates, the more miles an agency drives a leased electric vehicle, the more the overall cost difference to the agency between an electric vehicle and a conventionally fueled vehicle will shrink.”

However, the report noted that over a 5-year span — the typical lease length for an electric or hybrid vehicle — the mileage costs do not yet make up for the higher upfront expense of the vehicle.

(Source: Government Accountability Office)

Agencies that rely on electric-only vehicles may also struggle with finding enough charging stations in their location to keep the vehicle running, as gas stations for traditional vehicles are far more abundant.

“Another challenge that may limit further progress towards energy goals is that agencies continue to need larger, less efficient vehicles for many of their mission needs, according to many agency officials. According to [Federal Automotive Statistical Tool] data, about 85 percent of agencies’ fleets in fiscal year 2018 was comprised of sport-utility vehicles, passenger vans and trucks,” the report said.

“For example, GSA offered one 4x2 hybrid-electric sport-utility vehicle and one 4x4 plug-in hybrid-electric sport-utility vehicle in fiscal years 2017 and 2018. In fiscal year 2019, additional vehicles have been added. While these options are considered low greenhouse-gas-emitting vehicles, an agency official told us that they have a variety of other characteristics that may make them less desirable for certain missions — for example, they may cost significantly more than other options to acquire, or, in the case of the plug-in, rely on charging infrastructure that the agency may not have in the location where the vehicle is needed.”

The report also noted that the environmental value of switching from a traditional, petroleum vehicle to an electric vehicle can vary depending on the region.

The Northeast region of the U.S., for example, has high levels of green energy generation, meaning that the electricity used to charge electric vehicles isn’t produced in a way that emits large amounts of greenhouse gasses. The Midwest, by contrast, generates over 60 percent of its energy using coal-fired power plants, which emit high levels of greenhouse gasses, and electric cars in that region would be charged using that energy.

About Jessie Bur

Jessie Bur covers federal IT and management.

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