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| John Sappington, EVP, Sales & Marketing |
In the realm of transportation and logistics, few challenges loom as large as the transition to zero-emission vehicles. For TCI Transportation, a leading fleet solutions provider with headquarters in Los Angeles and multiple locations throughout California, this challenge is not just a distant goal but an immediate reality.
While TCI has a strong presence across the country, navigating the complex and rapidly evolving regulatory landscape in the Golden State is particularly crucial for the company’s ongoing success and growth. With California implementing aggressive regulations to combat climate change, TCI has had to quickly adapt and innovate to stay ahead of the curve.
At the forefront of this effort is John Sappington, EVP of Sales & Marketing at TCI, who has been instrumental in guiding the company’s sustainability strategy and ensuring its ability to thrive in one of the nation’s most environmentally progressive markets.
California’s Zero-Emission Trucking Regulations
California has long been a leader in environmental regulation, and the transportation sector is no exception. In recent years, the state has introduced a series of ambitious mandates designed to accelerate the adoption of zero-emission vehicles (ZEVs). Chief among these is the Advanced Clean Fleets (ACF) regulation, which requires an increasing percentage of commercial vehicles be zero-emission starting with 2024 model year vehicles depending on the truck category.
“The ACF regulation has really accelerated the timelines for our customers,” Sappington explains. “Fleets need to start planning now to meet the increasing ZEV percentages each year.”
To fully understand the challenges and opportunities facing companies who use diesel vehicles in California, it’s essential to take a closer look at the state’s specific zero-emission regulations. Beginning in 2025 – 10% of Milestone Group 1 which is mostly made up of light duty box and delivery trucks, along with buses and yard tractors will need to be ZEV. The %’s go up from there to 2035 when 100% of vehicles in this group will need to be ZEV.
There are two other Milestone Groups that address the larger vehicles, and the bulk of these vehicles get addressed starting in 2027 and finally sleeper tractors and specialty vehicles in 2030. Drayage trucks, which transport goods over short distances to and from ports and railyards, have an accelerated timeline, with 100% of fleet purchases required to be ZEVs by 2035.
Alongside the ACF rule, California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) offers point-of-sale discounts on clean trucks and buses. The Low Carbon Fuel Standard (LCFS) program also generates credits for fleets using low-carbon fuels like electricity, which can be sold to offset the costs of EV adoption.
TCI’s Strategic Approach
Faced with these challenges, TCI has adopted a proactive and multifaceted approach to sustainability. The company’s journey began with the installation of solar arrays and low energy high illumination LED lighting systems at many of its facilities. While initially driven by a desire to reduce energy costs, this early investment in renewable energy laid the groundwork for TCI’s broader sustainability efforts.
“We’re not leaving California,” Sappington emphasizes. “We’re born and raised here, and we’re not going anywhere. As a consequence, we need to stay ahead of the curve in remaining compliant and additionally, provide our customers solutions in their compliancy demands.”
To do so, TCI has engaged closely with California’s EV mandates and incentive programs, working to develop cost-effective solutions for its customers. The company has also collaborated with utilities like Southern California Edison (SCE) on charging infrastructure development through programs like Charge Ready Transport.
“The utilities have been great partners,” Sappington notes. “But the infrastructure piece is still a challenge. You have to plan ahead, and not every location has enough grid capacity to support large-scale EV charging.”
Recognizing the need for a skilled workforce to maintain and repair EVs, TCI has invested heavily in training its technicians. “You can’t just sell EVs, you also have to support them,” Sappington stresses. “We’re sending our technicians to the OEMs for hands-on training in high-voltage safety and EV repair. It’s a major initiative to ensure we have the skills in-house.”
Evaluating Fleet Operations for Electrification
When considering a transition to EVs, it’s crucial for fleet operators to carefully evaluate their specific operational needs and constraints. Factors to consider include:
- Daily mileage and route patterns: EVs are best suited for routes with predictable distances and frequent returns to a central depot for charging.
- Payload requirements: The weight and size of the cargo being transported can impact the feasibility of electrification, as EVs may have reduced payload capacities compared to diesel trucks.
- Dwell times and charging opportunities: Fleets with longer dwell times between shifts or overnight can take advantage of lower-cost off-peak charging.
- Access to charging infrastructure: The availability of on-site or public charging stations along routes is a key consideration for EV deployment.
By analyzing these factors, fleet operators can identify the applications and routes best suited for electrification.
Deployment of Electric Yard Trucks
One of TCI’s most significant successes to date has been the deployment of over 100 electric yard trucks. Also known as terminal tractors or hostlers, these vehicles are used to move trailers around distribution centers, warehouses, and ports. Their shorter ranges and predictable duty cycles make them an ideal early application for electrification.
“We saw yard trucks as the logical place to start with EVs, the shorter ranges and opportunity charging are a good fit. By leveraging California’s Clean Off-Road Equipment (CORE) voucher program, our customers are often surprised just how competitive the rates can be when comparing them to diesel. We also have been able to utilize California’s HVIP program to help our customers get into the smaller Class 4 trucks at very compelling rates ” Sappington says”.
Charging Infrastructure Planning and Deployment
One of the most significant challenges in transitioning to EVs is the deployment of adequate charging infrastructure. Fleet operators must carefully plan for the number and type of chargers needed, the electrical upgrades required, and the ongoing energy costs and management.
Factors to consider when planning charging infrastructure include:
- Fleet size and growth projections: The number of chargers needed will depend on the current and projected size of the EV fleet.
- Vehicle duty cycles and charging patterns: The frequency and duration of charging sessions will impact the type and number of chargers required.
- Facility electrical capacity: Upgrading electrical infrastructure can be costly and time consuming, so it’s essential to assess the existing capacity and plan accordingly.
- Energy management and cost optimization: Implementing smart charging systems and energy management software can help optimize charging times, reduce peak demand charges, and integrate renewable energy sources.
Partnering with utilities and charging providers can help fleet operators navigate these challenges and access valuable support. For example, TCI has collaborated with Southern California Edison on its Charge Ready Transport program, which provides significant funding for charging infrastructure deployment.
Workforce Development and Training
Another critical aspect of a successful transition to EVs is ensuring that the workforce is properly trained and prepared. This includes both driver training to optimize EV performance and technician upskilling to handle the unique maintenance and repair needs of electric drivetrains.
For drivers, key areas of focus include:
- Regenerative braking: Learning to maximize the benefits of regenerative braking can significantly extend the range of EVs.
- Charging procedures: Drivers must be trained on proper charging protocol and etiquette to ensure safe and efficient charging.
- Range management: Understanding how factors like weather, terrain, and driving style impact EV range is crucial for successful route completion.
On the maintenance side, technicians will need to acquire new skills related to high-voltage safety, battery management systems, and EV-specific diagnostic tools. Investing in comprehensive training programs, whether in-house or through partnerships with OEMs and training providers, is essential for a smooth transition.
Change management is also a critical consideration when introducing EVs into a fleet. Engaging employees early in the process, communicating the benefits and reasons for the transition, and providing ongoing support and resources can help build buy-in and ensure a successful rollout.
Navigating Challenges and Uncertainties
Despite the progress made by TCI and others, the road to zero-emission trucking is not without its obstacles. The higher upfront costs of EVs compared to traditional diesel trucks remain a significant barrier for many fleets. Range limitations and the need for expanded charging infrastructure also present challenges, particularly for long-haul operations.
There are also concerns about the ability of California’s electrical grid to handle the substantial increase in demand that widespread EV adoption will bring. As Sappington notes, “The grid has to be able to support all these EVs. We’re already seeing capacity constraints and calls to conserve power during peak times. What happens when millions more EVs are plugging in?”
Addressing these challenges will require a collaborative effort between fleet operators, utilities, policymakers, and technology providers. The development of more efficient and affordable EV batteries, the deployment of smart charging solutions, and the strategic expansion of renewable energy sources will all play a role in ensuring a sustainable and reliable zero emission trucking future.
Partnering with Customers for Success
Amidst this complex and rapidly evolving landscape, TCI sees its role as being a trusted resource and partner for fleets looking to navigate the transition to zero-emission trucking.
“We’re here to be a resource for our customers,” Sappington says. “Whether you have one truck or 1,000, we can help you navigate the complex web of rules and incentives and develop an EV adoption plan that works for your business.”
This support includes providing detailed total cost of ownership (TCO) analyses, guidance on available incentive programs, and assistance with planning charging infrastructure. By working closely with customers to understand their unique operational needs and constraints, TCI aims to develop sustainable solutions that make good business sense.
Looking Ahead
As TCI Transportation continues to lead the charge on sustainable trucking in California, Sappington remains optimistic about the company’s ability to navigate the challenges ahead. “We’re committed to being part of the solution,” he affirms. “It’s not always easy, but by staying ahead of the curve and working closely with our customers, we believe we can help navigate the shift to zero-emission trucking in a way that makes good business sense.”
For other companies considering a transition to EVs, TCI’s journey offers valuable insights and inspiration. By proactively engaging with regulatory mandates, carefully evaluating fleet operations, investing in infrastructure and workforce development, and prioritizing customer needs, companies can position themselves for success in the new era of sustainable transportation.
As California continues to push the envelope on zero-emission regulations, the state’s trucking industry finds itself at a critical inflection point. With leaders like TCI Transportation paving the way, the future of sustainable trucking looks brighter than ever. Through innovation, collaboration, and a steadfast commitment to environmental responsibility, the industry can not only meet the challenges ahead but also unlock the significant economic and societal benefits of a clean transportation future.
