Arizona’s state and local governments could save more than $100 million over the next decade by replacing retiring gasoline-powered vehicles with electric models, according to a new analysis by the Arizona PIRG Education Fund (AZ-PIRG) and Frontier Group.
The report estimates that Arizona agencies and municipalities own more than 100,000 vehicles, including over 7,500 in the state fleet alone. Most run on gasoline or diesel, which the authors say are more costly to fuel and maintain than electric alternatives.
By replacing light-duty trucks, SUVs and vans in state and local fleets with electric vehicles (EVs) as they retire, the study projects total cost-of-ownership savings of $102.9 million over the lifetime of the vehicles. That figure includes purchase price, depreciation, fuel, insurance, registration, maintenance and repairs — but excludes infrastructure costs.
For state agencies, the projected savings would total $44 million, or about 21% less than the cost of continuing to operate comparable gasoline-powered fleets.
EV technology has expanded in recent years, the report notes, with more than 100 light-duty and larger electric models now available. Examples include electric pickup trucks such as the Ford F-150 Lightning and Chevrolet Silverado EV — popular vehicle types in government fleets — as well as electric buses, cargo vans, freight trucks and garbage trucks.
The transition could also yield environmental benefits. Over 10 years, replacing gasoline-powered light-duty vehicles with EVs could save more than 1 million barrels of oil and cut greenhouse gas emissions by nearly 387,000 tons, equivalent to removing about 81,000 cars from the road for a year.
The study also calculates reductions of 103,000 pounds of nitrogen oxides and 496,000 pounds of volatile organic compounds, pollutants that contribute to smog and poor air quality.
Federal incentives for EV purchases under the 2022 Inflation Reduction Act are set to expire Sept. 30, 2025, but the report finds that lifetime cost savings remain significant even without them. It suggests that savings could be higher if governments use fleet-specific models, such as the Ford F-150 Lightning Pro, and coordinate bulk purchases.
The authors recommend Arizona develop a fleet electrification plan, pool purchasing power among public agencies, and take advantage of utility incentives for vehicle charging infrastructure.
Click the audio link above to hear from AZ-PIRG executive director Diane Brown.
Click below for the shorter version of the interview that aired on KAWC 88.9fm August 14. 2025.
