Electrification Opportunities in Municipal Fleets

September 16, 2025

Authored by Maddie Henderson, Municipalities Market Lead

Local government fleets operate a variety of internal combustion engine (ICE) vehicles that range from lawnmowers, to passenger vehicles, to heavy-duty refuse trucks and construction equipment. These complex fleets typically offer easy opportunities for electrification wins that can produce substantial operational savings. However, the state of the zero-emission vehicle (ZEV) market readiness varies across vehicle and equipment sectors. As a result, ZEV transition planning based on EV availability, feasibility, and suitability is a critical success factor in municipal fleet electrification.

Light-Duty: Ready for Deployment

Light-duty electric vehicles are at or near cost parity with their ICE counterparts, especially for cargo vans, passenger vehicles, and ½ ton pickup trucks. With increasing range and charging capabilities, most duty cycles are feasible, from long highway drives in rural communities to providing cooling stations at in-town worksites.

Off-Road & Construction Equipment: Early Wins, Future Potential

Smaller off-road vehicles and construction equipment —such as compact excavators, loaders, and forklifts—are available in zero-emission models from manufacturers such as Volvo, Case, Hyster, and Bobcat. Larger types of zero-emission equipment, such as bulldozers and articulated haulers, are in development. However, high upfront costs and the limited availability of fully commercialized models remain barriers for municipalities.

Medium- & Heavy-Duty Vehicles: Cost is Key

Like ICE, Medium- and heavy-duty on-road ZEVs can be upfit with various body types, such as haulers or utility bodies, or can be purchased as purpose-built vocational vehicles such as refuse and sweeper trucks. More body types are coming to market each year, such as battery electric tow trucks, recently announced by Horizon Motor. Still, their purchase price remains significantly higher than diesel equivalents. States such as California are helping bridge this gap with funding programs like the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). While long-term fuel and maintenance savings are compelling, upfront capital costs continue to challenge widespread adoption.

ZEV adoption within municipal fleets is progressing at different speeds—some vehicle types are easy wins, others remain costly, and some ICE vehicles don’t yet exist as zero-emission options.

Emergency Response Vehicles: Emerging Solutions

Zero-emission emergency response vehicles are beginning to be commercially available. The Chevrolet Blazer EV PPV, the first purpose-built all-electric pursuit vehicle, is set to accelerate EV adoption across the public safety sector. While some fleets have experimented with converting existing EVs for police and patrol use, many agencies prefer purpose-designed models that meet their unique performance and safety needs. At the same time, several cities are piloting electric fire engines, signaling that the shift to clean emergency response vehicles is underway.

Filling the Pickup Truck Gap

For many municipalities, pickup trucks make up a large portion of their fleet, with various upfits such as service bodies and lifts to handle the many services a city or county performs for its citizens. While ½-ton EV pickups are now available, there are still limited zero-emission options for ¾-ton to 1 ½-ton trucks—vehicles that municipalities rely on heavily.

California regulators are considering whether van-style zero-emission chassis can serve as replacements, but these often lack the clearance and towing capacity required for public works and utility functions. Encouragingly, a wave of compact and mid-size electric pickups, including models from Slate, Telo, and Ford, are on the horizon to help meet municipal needs in tighter urban settings.

A Clear Path to Early Success

The good news is that municipal fleets can take meaningful steps today, with proven savings opportunities. Cities like Austin, Texas, are demonstrating the value of electrification: since 2017, Austin’s municipal fleet of 373 battery-electric vehicles has reported $2.5M in operational savings, including 48% fuel cost savings and 52% maintenance cost savings.

The Center for Transportation and the Environment (CTE) works with cities and counties nationwide to design and implement zero-emission fleet transition plans. By starting with light-duty vehicles, vans, and available electric pickups, municipal fleets can achieve immediate cost savings while building the expertise and infrastructure needed to accelerate into medium- and heavy-duty deployments in the years ahead.

The path to zero-emission municipal fleets is not without obstacles, but the opportunities are clear. With technology advancing rapidly, local governments are positioned to lead by example—delivering cleaner air, quieter streets, and more sustainable communities.

Ready to plan your municipal fleet’s transition? Reach out to CTE’s Municipalities Market Lead, Maddie Henderson, and our team will help you map a practical, cost-optimized path to zero emissions.