Fleet procurement is one of the most powerful levers for market transformation. Shifting how vehicles are purchased not only speeds up the shift from the internal combustion engine (ICE) to EVs; it reshapes supply chains, influences manufacturers, provides highly visible deployments, builds broad support for enabling policies, and expands access to advanced technology. This page houses numerous tools and resources to help interested fleets pursue electrification from inception and planning to financing and execution.
Step One: Determine the Right Path
Ready to procure new electric vehicles?
Use the EC’s procurement decision flow chart to decide which funding options are right for your organization.
Step Two: Outline Your Project
Ready to start your project?
View comparable examples of real-world projects with added context to inform your planning.
Step Three: Identify Financing Options
City-run funds
City-run funds are locally managed financing or incentive programs established by municipal governments to support projects that align with city policy priorities like clean transportation. These funds often operate through a city’s Office of Sustainability or Departments of Transportation or Public Works, and are sometimes capitalized through municipal bonds, budget appropriations, or partnerships with utilities and state agencies.
They can take various forms:
• Direct grants or rebates to offset EV or charger costs.
• Low-interest revolving loan funds for capital projects.
• Public-private partnerships that co-invest with fleet operators.
• Infrastructure matching programs that fund charging or grid upgrades.
City-run funds are localized, mission-driven financial tools aimed at advancing municipal policy goals while supporting fleet operators within city limits.
City-run funds can support fleet electrification in several direct ways:
• Vehicle purchase support: rebates or grants to lower the capital cost of EVs.
• Charging infrastructure: co-funding depot or public chargers, site design, or utility interconnection upgrades.
• Pilot or demonstration projects: funding for small-scale EV pilot fleets to gather data
• Technical assistance: funds can cover planning, transition studies, and procurement support.
• Workforce development: grants for municipal fleet staff training.
City-run funds are best used to:
• Catalyze early adoption when a city or local fleet is new to electrification.
• Leverage larger programs, such as state-level clean fleet grants or utility make-ready funding.
• Support fleets or departments that cannot easily access private capital.
City-run funding is best fit for fleets that:
• Are publicly run (municipal departments, school districts, public works contractors).
• Have limited upfront capital or long procurement cycles.
The City of Los Angeles established the Climate Catalyst Fund in collaboration with the California Infrastructure and Economic Development Bank. The fund provides low-interest loans and credit enhancements for projects that reduce greenhouse gas emissions—including municipal and commercial fleet electrification. Through this mechanism, the city helped finance electric refuse trucks and charging depots for both city-operated and contracted waste haulers.
Green funds
Green funds are pools of capital dedicated to financing projects with positive environmental outcomes. They’re typically established by municipalities or public governments seeking to align financial returns with sustainability objectives.
These funds might operate as:
• Public investment vehicles managed by agencies
• Blended-finance partnerships, where public and private investors invest to lower risk and attract capital to clean technologies.
Their overarching goal is to accelerate the transition to a low-carbon economy by directing capital to sectors like electric mobility, sustainable infrastructure, and energy efficiency.
Green funds can take multiple forms depending on their structure, like low-interest loans, equity investments, grants, or green bonds. For fleet electrification, green funds could accept lower yields if a project delivers measurable emission reductions and contributes to sustainability goals.
Green funds play a catalytic role in financing both vehicles and charging infrastructure. They can provide:
• Capital for EV purchases, often through concessional loans.
• Funding for charging depots, distributed energy systems, or renewable integration.
• Bridge financing for public sector electrification projects awaiting grants.
Green funds are best used to:
• Scale up electrification once pilot projects are proven and ready for wider rollout
• Lower financing costs for large or multi-year electrification programs.
• Blend with other funding sources, such as federal grants, green banks, or municipal bonds, to maximize leverage.
• De-risk private capital, especially for newer technologies or complex infrastructure projects.
Green funds are effective when paired with data-driven reporting like telematics that quantify total cost of ownership improvements.
Green funds are most suitable for:
• Medium to large fleets with established credit and operational data.
• Fleets transitioning at scale that need significant upfront capital for vehicles and infrastructure.
• Municipal or public fleets aligning with city or regional climate action plans.
The Cowlitz Indian Tribe in Cowlitz County, Washington, received $150,000 for the Cowlitz Indian Tribe Fleet Electrification and Resilient Energy Project. The long-term vision of the project is to decarbonize the Tribe’s fleet. The initial step will be to combine renewable energy generation with an EV charging and battery storage solution that recharges using minimal energy from the grid at the administration’s headquarters in Longview.
Leasing
Fleet leasing is a financing structure in which a fleet operator uses vehicles under a contractual lease agreement rather than purchasing them outright. The lessor—typically a leasing company, OEM, or fleet management provider—retains ownership of the vehicles while the lessee pays a fixed monthly fee for their use over a defined term.
There are two primary types of leases:
• Operating leases, where the lessor owns the vehicle and the lessee pays only for use.
• Capital leases, which resemble loans and often lead to eventual ownership.
For electrification, fleet leasing can extend beyond vehicles to include charging infrastructure, energy services, and maintenance, forming part of a broader “Fleet-as-a-Service” (FaaS) model.
This structure allows municipalities and fleets to adopt EVs without large initial investments or long-term risk.
Fleet leasing supports electrification in several direct ways:
• Vehicle acquisition: leasing enables immediate access to EVs without tying up capital. The lessor handles procurement, financing, and sometimes insurance.
• Charging infrastructure: some lessors bundle charging equipment, installation, and maintenance into lease agreements.
• Turnkey electrification solutions: under FaaS models, fleets pay a single fee covering vehicles and charging.
Leasing is best suited for fleets that:
• Have limited capital budgets.
• Operate in dynamic duty cycles, where flexibility and vehicle refresh are key.
• Are seeking turnkey solutions with maintenance, insurance, and charging bundled in.
• Need predictable, steady cash flow and simplified asset management.
Public fleets often use leasing to accelerate electrification without waiting for annual budget approval.
The City of San Marcos TX added their first electric vehicles to their fleet in an agreement with Enterprise Fleet Management, Inc., which authorized the lease and maintenance of fleet vehicles and the purchase of miscellaneous equipment. Following the approval from City Council, the Public Works Department added level 2 dual charging stations at various locations around San Marcos to make the recharging process more efficient and easily accessible.
Dealer financing
Dealer financing refers to financing offered directly through a vehicle manufacturer or its financing subsidiary, rather than through an independent bank or third-party lender. The OEM or dealership acts as both the supplier and the lender, providing capital or credit terms for the purchase or lease of new vehicles. Examples include Ford Credit, GM Financial, etc.
Dealer financing is designed to simplify procurement, allowing fleets to acquire vehicles and arrange financing through a single transaction with the manufacturer or its authorized dealer network. OEMs want to accelerate adoption of their electric models, and many offer preferential interest rates or incentives for EV purchases.
Dealer financing can directly support fleet electrification in several ways:
• Vehicle acquisition: fleets can finance EV purchases directly through the OEM, often with discounted rates or bundled warranties.
• Volume discounts: by financing directly through the manufacturer, fleets may gain volume-based incentives or fleet loyalty programs.
This integration of product and finance makes it easier for fleets to procure EVs without navigating multiple contracts or lenders.
Dealer financing is best used when:
• A fleet is standardized around a single OEM or a small number of brands.
• The dealer or OEM offers competitive interest rates on EVs.
• The fleet wants a streamlined procurement and financing process managed by one provider.
• Warranty and service integration are priorities—simplifying maintenance and reducing administrative overhead.
Dealer financing also helps fleets that need rapid deployment, since the OEM can expedite both vehicle delivery and credit approval compared to external lenders.
Dealer financing is particularly well-suited for:
• Smaller fleets that lack internal financing capacity.
• Municipal or utility fleets procuring through state purchasing contracts with OEM participation.
• Corporate or service fleets that have brand or equipment standardization.
• Fleets that value simplicity and OEM-backed reliability.
It’s less optimal for fleets that operate diverse vehicles across multiple brands.
Example
Ford Pro Fleet Financing and Electrification Program Ford Motor Company offers dealer-based financing and leasing through its division, Ford Credit, under the Ford Pro umbrella: a dedicated program for commercial and municipal fleets transitioning to EVs. This approach has been implemented by numerous city and utility fleets, such as the City of Dallas and Portland General Electric, allowing them to electrify vehicles while minimizing administrative complexity and upfront costs.
Green banks
A Green Bank is a public financial institution created to accelerate investment in clean energy, low-carbon technologies, and climate-resilient infrastructure. They use limited public capital to leverage private investment, offering low-interest loans, credit enhancements, or co-financing for electrification and infrastructure. Unlike traditional banks, green banks are mission-driven, using limited public capital to leverage much larger amounts of private investment. Their goal is to make climate-aligned projects financially viable and scalable. Green banks exist at the state, regional, or local level.
For fleets, green banks can finance both EV purchases and charging infrastructure, often at below-market rates. They are particularly useful for public–private partnerships or large-scale deployments where infrastructure investment is critical. The main challenges are that green banks exist only in certain states and tend to have longer underwriting timelines. They are best suited for large-scale projects or fleets coordinating with municipalities or utilities. Their investment types include:
• Low-interest or long-term loans for EVs and charging infrastructure,
• Loan loss reserves or guarantees to de-risk private lenders,
• Credit enhancements to improve borrowing terms.
Applications include:
• Vehicle financing: providing low-cost capital or credit-enhanced loans for purchasing or leasing EVs.
• Charging infrastructure: financing depot charging systems, distributed charging hubs, or on-route infrastructure.
• Gap financing: filling the funding gap left by grants or private capital—especially where traditional lenders are hesitant to finance new EV technology.
Green bank financing is best used when:
• A fleet needs affordable, flexible capital for EVs and charging infrastructure.
• Projects involve new technologies.
• Public and private funds need to be blended to lower the overall cost of capital.
Green bank funding is a strong fit for:
• Municipal or public-sector fleets transitioning to electric vehicles (e.g., public works, transit, waste collection).
• Projects with large infrastructure components, such as depot electrification or shared charging networks.
The New York Green Bank closed an $8.5 million transaction with Inspiration Mobility to help electrify vehicles that are operating in New York City.
Community development financial institutions (CDFI)
A community development financial institution (CDFI) is a mission-driven lender certified by the U.S. Department of the Treasury to provide affordable financing and financial services in underserved or low-income communities.
CDFIs include:
• Community development banks
• Credit unions
• Loan funds
• Venture capital funds
Their purpose is to close financing gaps for borrowers who are creditworthy but underserved by traditional banks, often due to size, credit history, or the perceived risk of emerging technologies.
In the context of fleet electrification, CDFIs are increasingly recognized as key financing partners that can deliver equitable access to clean transportation.
CDFIs play a growing role in democratizing access to clean transportation by serving fleet operators who might otherwise lack access to capital for EVs or charging.
They can:
• Finance small or regional fleet conversions (e.g., delivery vans, shuttle buses, waste trucks).
• Support charging infrastructure for depots or community hubs.
• Help nonprofits electrify vehicles used in public contracts or essential services.
CDFI financing is best used when:
• A project serves or is located in a disadvantaged community.
• The borrower is a community fleet operator without access to traditional commercial lending.
• There’s a need to blend multiple funding sources (grants, rebates, loans).
• Equity outcomes are a project mission.
CDFI funding is especially suitable for:
• Municipal sub-contractors (e.g., waste haulers, landscapers, shuttle providers) that serve public agencies.
• Nonprofits or cooperatives operating community-based fleets.
• School bus electrification projects in low-income districts.
• Rural or regional operators without easy access to national financial institutions.
For example, Self-Help Credit Union, a certified CDFI, partnered with EVNoire and regional clean transportation groups to launch an Electric Vehicle Loan Fund for minority- and women-owned small businesses.
The program offers:
• Low-interest, flexible-term loans for electric vans, sedans, and light-duty trucks.
• Financing for charging equipment installation.
• Credit assistance and education for first-time fleet borrowers.
• Partnerships with utilities to leverage rebates and rate incentives.
This initiative has enabled dozens of small logistics and transportation companies to replace gas-powered vehicles with EVs, improving local air quality and lowering operating costs while keeping the economic benefits within the communities served.
Summary of Financing Options
| Objective | Recommended financing approach |
|---|---|
| Minimize upfront cost | Leasing, green bank, city-run funds |
| Access lowest cost of capital | Green bank, city-run funds, green funds |
| Simplify process and OEM alignment | Dealer finance |
| Support equity or community | CDFI, city-run funds |
| Scale fast and flexible capital | Private capital |
| Combine funding layers | Green bank and city funds; CDFI and green funds |
Step Four: DriveEVFleets.org
Visit DriveEVFleets.org to view EV and electric vehicle supply equipment (EVSE) purchase options, as well as additional resources.
Additional Resources
DRVE Tool
The Dashboard for Rapid Vehicle Electrification (DRVE) Tool provides users with unique, turnkey analysis for light-, medium-, and heavy-duty fleet electrification. Upload simple fleet data into an easy-to-use Excel-based tool that can analyze and assess the best fit for EV deployment within minutes. This tool works for both private-sector and public fleets, including local and state fleets.
DriveEVFleets.org
Drive EV Fleets helps cities across the country leverage their collective buying power and accelerate the conversion of public fleets to EVs–sending a powerful signal to the global auto market and helping the United States strengthen its economic and national security through transportation electrification. It is a turnkey, one-stop, online procurement portal providing U.S. cities, counties, courts, school districts, state governments, and public universities equal access to competitively bid EVs and charging infrastructure, innovative financing options, best practices, and other forms of expertise.
Enterprise Fleet Management
Enterprise, a member of the Electrification Coalition Business Council, has a dedicated fleet electrification program to help fleets navigate this new territory.
AFLEET’s GHG Estimator
The AFLEET CFI tool is designed to estimate the well-to-wheel greenhouse gas emissions and vehicle operation air pollutant emissions for CFI applications, allowing comparison of the data against current conditions to show GHG emission reductions.
DOT’s Transportation Disadvantaged Census Tracts
This map provides data across the whole country, highlighting areas exposed to transportation disadvantages. Since some sources of funds prioritize rural and underserved areas, knowing whether your project is eligible is important.
GEM Tool
The GEM tool is a comprehensive online mapping tool that identifies areas that are suitable for low- or no-carbon power generation and other energy-related projects. This tool can help ensure that the intended project area is EVSE–ready and has the grid capacity to support charging, preventing construction and power issues. Additionally, utilization of traffic mapping and data can help applicants plan installation and construction so as not to pose risks to pedestrians or maintenance staff, and to ensure utilization of the U.S. DOT’s National Roadway Safety Strategy’s Safe Systems Approach.
Here to Help!
EC staff are available at infrastructure@electrificationcoalition.org if you have any specific questions or wish to discuss further support our organization can provide for your fleet procurement and electrification planning.