USDA_Business Case_EV Charging_Pilot Program_WEX_ChargePoint_20September2022.pdf

USDA Electric Vehicle Charging Pilot Program

Business Case

Executive Summary Executive Order 14057 (Catalyzing Clean Energy Industries and Jobs through Federal Sustainability) provides that executive agencies, to include USDA, will target 100 percent zero-emission vehicle (ZEV) acquisitions by 2035, including 100 percent zero-emission light-duty vehicle acquisitions by 2027.

USDA will strive to reduce petroleum use within its fleet by displacing it with electricity. The agency will take action to integrate environmental accountability into vehicle acquisition decisions and long-term planning, while shepherding in successful fleet management programs and policies that emphasize energy-efficient, low-carbon practices which can be integrated agency-wide.

Currently, USDA lacks an efficient, cost-effective, and straightforward method to pay for electric vehicle (EV) battery charging. Existing fleet cards are not an acceptable payment method at electric vehicle charging stations. The reason for this is that the electric vehicle charging industry has historically gone to market with a consumer-based payment approach; whereby a customer opens an “account” with an electric vehicle-charging merchant and their consumer credit card is stored as a method of payment for retail charging events. There is no physical card swipe / chip payment at the point of sale. This model does not lend itself to how fleet card programs operate, which are much more complex with cards assigned to vehicles (not a person) and large / complex account hierarchy structures that are supported by fleet card banking systems.

USDA will seek to leverage an existing and established partnership with WEX Inc. and ChargePoint Inc.

Through this partnership, the aim will be to develop a structured payment solution:

• To efficiently pay for electric vehicle charging costs.

• To capture corresponding comprehensive key data-points for analysis and reporting purposes.

• To use our existing account structure, customized invoicing and reallocation process, and financial code data capture that is well established within WEX’s systems.

• To track and report on expenditures of both our ICE (internal combustion engine) vehicles and our electric vehicles side by side within the same WEX systems for the many years it will take for the transition to electric vehicles to occur. Trying to manage separate reporting and payment solutions is arduous and inefficient.

Business Need ChargePoint Inc., operates the largest online network of independently owned EV charging stations operating in 14 countries and manufactures the internal technology used within the network.

Currently, for USDA to ensure that a payment mechanism is in place for electric vehicle charging, a major undertaking of many complex and time-consuming steps must be carried out across multiple platforms.

Current state:

• Numerous internal accounts must be established with ChargePoint.

o Once accounts are established, each electric vehicle must be manually added to an internal ChargePoint system.

o Each vehicle must have a corresponding unique charging radio frequency identification (RFID) fob (received from ChargePoint) meant to be used for payment.

o Each vehicle fob must be manually linked to an existing WEX Fleet Card to ultimately allow for billing and payment, as well as capture and collection of comprehensive data-points.

Future state:

• Establish a one-stop, seamless and efficient process through WEX.

o Maintain existing accounts established with WEX.

o Match WEX fleet cards to electric vehicle inventory. Each electric vehicle will be provided with a WEX fleet card (including fob).

o Billing and payments associated with electric vehicle charging will route directly through existing channels, to include through the WEX system, exactly as is currently in place with how billing and payments associated with vehicle fuel and maintenance are routed through use of the WEX fleet card.

o Capture and collection of corresponding comprehensive data associated with each vehicle charge will automatically flow into the WEX system for USDA review and analysis purposes.

o Leverage WEX’s leadership in the fleet industry as a partner who is driving innovation forward in the payment space for electric vehicles.

Recommendations WEX is engaging charging point operators to become accepting merchants such that WEX Cards or other payment devices can be used at certain electric vehicle charging stations. WEX has an existing agreement with ChargePoint, who is the market leader in electric vehicle charging infrastructure. On top of that, WEX is also engaged in card acceptance conversations with many other vendors in the industry, which will bring USDA future broader acceptance of WEX payment within the industry.

• Establish agreement with WEX aimed at initiating USDA participation in a specific electric vehicle charging pilot program.

Value / Benefits Pilot will further actionize engagement with WEX and also specific charging point operators to become accepting merchants such that WEX Fleet Cards or other payment devices can be used at electric vehicle charging stations.

o USDA will be empowered through an effective and efficient means of payment for electric vehicle charging costs.

o Also, USDA will be able to efficiently capture corresponding comprehensive key data-points for analysis and reporting purposes.