State Strategies for Advancing the Electric Vehicle Marketplace

State Strategies for Advancing the Electric Vehicle Marketplace

INTRODUCTION The U.S. electric vehicle, or EV, industry has witnessed impressive growth over the last decade. While still a small share of car purchases, EVs are becoming a familiar sight on American roads. Nearly every major auto manufacturer now offers at least one plug-in electric vehicle, or PEV, model and thousands of consumers, in some key markets, are purchasing them.

The benefits of EVs are wide-ranging and offer potential for long-term structural reductions in local air pollution, greenhouse gas emissions and petroleum consumption. In geographic areas that use relatively low-polluting energy sources for electricity generation, EVs have a well-to-wheel emissions—meaning all emissions related to fuel production, processing, distribution and use—advantage over similar conventional vehicles running on gasoline or diesel. In addition, EVs can have significantly lower fuel costs and total costs of ownership compared to gasoline-powered vehicles.

Yet, despite their benefits, significant barriers remain to the wholesale adoption of EVs in the country. Issues such as initial cost, range, public charging availability, vehicle-grid compatibility, and consumer knowledge gaps continue to inhibit EV deployment.

These barriers are unlikely to be surmounted without policy action. The right combination of policies and programs can lead

to favorable EV market penetration and help make the electric revolution a reality. In this regard, states may have the greatest opportunity to implement effective EV policies and send the right market signals to automakers, utilities and consumers.

This report identifies state policies and actions that could be effective at increasing the share of EVs in the United States. This report describes the current state of the U.S. EV market and the challenges impacting widespread EV adoption in states. In addition, the report identifies strategies and recommendations that states can undertake—either by themselves or with other partners—to propel the EV marketplace, based on actions already taken in some states or as recommended by key EV stakeholders.

This report focuses largely on PEVs, which can be charged in whole or in part by an off-board electric power source.

PEVs are a subset of EVs that includes plug-in hybrid electric vehicles, or PHEVs, and all-electric or battery electric vehicles, or BEVs. PHEVs are powered by a combination of grid electricity and liquid fuel. A PHEV runs on battery power until the battery charge is exhausted and then switches over to its internal combustion engine. BEVs, on the other hand, run exclusively on electricity via on-board batteries that are charged by plugging into an outlet or charging station. BEVs use large battery packs to give the vehicle a long electric range, with some traveling up to 360 miles on a single charge. While fuel cell electric vehicles, or FCEVs, are not the focus of this report, many of the recommendations highlighted later in the report can very well apply to them (Also see text box for more information on the advantages and challenges faced by FCEVs). Figure 1 provides an overview of EV technology and example models.

FIGURE 1: Electric Vehicle Classification

Plug-in Electric Vehicle (PEV) Hybrid Electric Vehicle (HEV) Toyota Prius

Fuel Cell Electric Vehicle (FCEV) Honda Clarity

Plug-in Hybrid Electric Vehicle (PHEV) Chevrolet Volt

Battery Electric Vehicle (BEV) Nissan Leaf

Fuel Cell Electric Vehicle: Advantages and Challenges Fuel cell electric vehicles (FCEVs) are another type of electric vehicle that are distinct from PEVs. Like all EVs, FCEVs use electricity to power an electric motor. However, unlike other EVs, FCEVs produce electricity using a fuel cell powered by hydrogen, rather than drawing electricity from a battery.

Currently PEVs are ahead of FCEVs in the competitive stakes, though fuel cells are beginning to gain momentum—with good reason. Hydrogen can store more energy in less weight, making fuel cells suitable for larger vehicles with long-distance requirements. Most FCEVs store enough hydrogen to provide up to 300 miles of driving range, comparable to that of many gasoline-powered cars. Faster refueling—FCEVs can be filled in three to five minutes—also benefits commercial fleets and other vehicles in near-continuous use.

Toyota and Honda lead the industry in fuel cell technology development. Three models of FCEVs (Honda Clarity, Hyundai ix35/Tucson Fuel Cell, and Toyota Mirai) are available commercially, and ten additional models are slated for release by 2020.

Although fuel cell technologies are proven and effective, deployment challenges persist—particularly in terms of poor hydrogen fueling infrastructure, further reducing the cost and increasing the durability of fuel cells, and poor consumer awareness. The adoption of FCEVs will be driven by strong incentives and government policies that will boost consumer acceptance and significant public and private investment in establishing a network of hydrogen refueling stations.

CURRENT STATE OF THE U.S. ELECTRIC VEHICLE MARKET The transition to electric vehicles is well underway with EVs hitting U.S. streets in record numbers. In 2017, nearly 200,000 new EVs were sold in the United States (see Figure 2). This brought total EV sales since 2011 to about 765,000 vehicles. However, EVs still remain a very small percentage—a little over 1 percent—of new vehicle annual sales.2 Tesla, one of the very early movers in the market, is still the bestselling EV brand in the market (see Figure 3). In 2017, Tesla sold roughly 50,000 electric cars in the United States (including Tesla Model S, Tesla Model X, and Tesla Model 3), beating traditional carmakers such as Chevrolet (43,669), Toyota (20,936), BMW (20,733) and Ford (19,589) by a significant margin.3 Despite the small share, EVs are expected to play an ever-greater role in the U.S. transportation sector in the next

decades. Energy Innovation’s Energy Policy Simulator model forecasts EVs will likely make up 65 percent of new light-duty vehicle sales by 2050, and with strong technology cost declines or high oil prices, EV sales could even reach up to 75 percent.4 The EV market in the United States is largely driven by what happens in California. Despite representing 12 percent of national new light-duty vehicle sales, California accounts for almost half of all PEV sales nationwide (see Figure 4).5 A combination of policies and promotional activities, including the state’s Zero Emission Vehicle regulation, consumer rebates, extensive EV charging infrastructure, greater model availability and marketing, access to high-occupancy vehicle lanes, and progressive electric utility policies have spurred uptake in California.6 California has further set ambitious goals for 5 million EVs by 2030 and all zero-emission vehicle sales by no later than 2050 to meet its air quality and climate objectives.7 California is followed by New York, Washington, Florida and Georgia in terms of absolute number of PEVs sold between 2011 and June 2018.

FIGURE 2: U.S. Plug-in Electric Vehicle Sales 2011 - September 2018

Source: InsideEVs

250,000 200,000 150,000 100,000 50,000 0

2011

2012

2013

2014

2015

2016

2017

2018

FIGURE 3: U.S. Electric Vehicle Sales in 2017, By Brand (in units)

Source: InsideEVs

60,000 50,000 40,000 30,000 20,000 10,000 0 Telsa Chevrolet Toyota

BMW

Ford

Nissan

Fiat

Chrysler

VW

Kia

Hyundai

Audi

Volvo Mercedes Honda

Porche

Smart

Cadillac Bollore Mitsubishi

FIGURE 4: Top 10 U.S. States for PEV Sales 2011 - June 2018

Source: Alliance of Automobile Manufacturers, Advanced Technology Vehicle Sales Dashboard

Other States

Michigan California

Illinois Oregon New Jersey Texas Georgia Florida Washington

New York

FACTORS DRIVING THE EV MARKET A number of factors have contributed to the widespread deployment of EVs. Improvements in battery technology, lower cost of EV ownership, government support and market sentiment have all continued to influence and support consumer demand.

Battery technology is continuing to improve. As a result, prices for lithium-ion batteries are plummeting, while technical advances are increasing driving ranges and reducing recharging times. Battery costs have already declined by 79 percent since 2010, falling from more than $1,000 per kilowatt-hour to just $209/kWh at the end of 2017.8 This trend is expected to continue, narrowing the cost competitiveness gap between EVs and internal combustion engines.

Battery costs could drop to as low as $70/kWh by 2030. On an unsubsidized basis, EVs are expected to hit cost parity with gasoline- and diesel-powered vehicles by about 2024, causing the latter to see declining sales after that point as EVs bite hard into their market.9 EVs are already cheaper to own and run over the long term than gas-powered vehicles. Despite the up-front price tag, EVs have much lower fuel costs—electricity is cheaper than gas or diesel—and maintenance costs.10 The average cost to operate an EV in the United States is $485 per year, while the average for a gasoline-powered vehicle is $1,117.11 The difference in cost can vary by state depending on cost of electricity where one lives.

At the same time, federal and state policies and incentives have encouraged investments in EVs and charging infrastructure. In 2008, the federal government introduced PEV tax credits of $2,500 to $7,500 per vehicle.12 The size of the tax

credit depends on the size of the vehicle and its battery capacity. The federal tax credits have been credited for boosting PEV sales across the country, with one study attributing more than 30 percent of U.S. PEV sales to these tax credits.13 The federal policy is, however, subject to a manufacturer-based cap, with a limit of 200,000 vehicles per manufacturer before the incentive is phased out.14 Tesla has already met its 200,000-vehicle cap, meaning tax credits will now begin to be lowered. General Motors is also expected to hit the 200,000-vehicle threshold in 2018. In addition to federal policy, several states have set ambitious policy goals for EV adoption and are prioritizing transportation electrification as a key strategy to reduce fossil fuel dependence, energy costs, air pollution, and greenhouse gas emissions.15 State Zero-Emission Vehicle, or ZEV, regulation, discussed in more detail later, requires increasing EV sales across the country through 2025.

In response to growing consumer demand as well as federal and state policy actions, auto manufacturers are seizing this as a business opportunity and have invested capital and resources to develop new models with better performance for consumers.

Almost every major auto manufacturer, including Ford, Toyota, BMW, VW, Hyundai, Jaguar and General Motors, has announced investments in EV research and development and additional releases of new electric models in the 2020-2025 timeframe.

Investments announced as of January 2018 include $19 billion by automakers in the United States, $21 billion in China, and $52 billion in Germany, bringing the total to more than $90 billion and growing.16 If these investments come to fruition, the next decade will see a major shift in production trends, bringing EVs to the streets in unprecedented numbers.

FIGURE 5: Announced EV Investment by Major Automakers Source: From company press statements and media reports at time of announcements

Automaker Group

Announced Investment

Electric Models

Annual Global Electric Sales

BMW

$2.4 - $3.6 billion by 2025

12 all-electric models by 2025 13 plug-in hybrid models by 2025

0.5 million by 2019

Ford

$11 billion by 2022

16 electric models by 2022 24 plug-in hybrid models by 2022

Not known

General Motors

Not known

20 all-electric models by 2023

1 million by 2026

Jaguar

$18 billion in electrification R&D over 2019-2022

All models hybrid or electric by 2020 Not known

Mercedes-Benz

$12 billion manufacturing plant $1.2 billion battery manufacturing

10 electric models by 2025 50 electrified models by 2025

0.4-0.6 million by 2025

Nissan-Renault-Mitsubishi

$9 billion over 2018-2022

12 all-electric models by 2022

3 million by 2022

Tesla

$4-5 billion in battery manufacturing

4 electric models (S, X, 3, Y)

1 million by 2020

Toyota

$13.3 billion in R&D of EVs and batteries by 2030

All vehicles hybrid, battery, or fuel cell electric by 2025

5.5 million by 2030

Volkswagen Group

$84 billion with $60 billion in battery production by 2030 80 electric models by 2022 Increase EV-producing plants 300 electric models by 2030 from 3 to 16 by 2022

Volvo

$755 million by Volvo and its Chinese parent company, Geely Holdings, in Polestar

3 million by 2025

All models hybrid or electric by 2019 1 million by 2025

DYNAMICS IN THE GLOBAL EV MARKET The trend toward electric transportation is global. Worldwide sales of new EVs surpassed 1 million in 2017, representing a growth of 54 percent compared with 2016.17 Globally, sales are expected to continue to accelerate, topping 11 million units by 2025 and 30 million by 2030.18 By 2040, EV sales are projected to hit 60 million, or about 55 percent of the global market for light-duty vehicles. Cumulatively, about 559 million EVs are forecasted to be on the roads in 2040, or about a third of the global fleet.19 The United States and China are the largest EV markets, even though China overtook the United States in 2016 to become the world’s biggest market for EVs and has continued its dominance since then (see Figure 6).20 Nearly 580,000 EVs were sold in China in 2017, up 72 percent from the year before.21 Generous subsidies and tight regulation are playing a major role in developing and deploying EVs in China.22

FIGURE 6: Global Plug-in Electric Vehicle Stock 2010-2017 (thousands)

The global trends on EV sales are expected to continue as countries and even cities around the world set the most ambitious goals and pledge their intention to end sales or registrations of new internal combustion engine, or ICE, vehicles by a given year (see Figure 7). The confluence

Source: International Energy Agency

Total

United States

China

of government action is sending a strong signal to the auto industry that there will be an EV market, and action will further accelerate the transition toward an electrified transportation system in the next two decades.

INDIA IRELAND

x

NETHERLANDS

SLOVENIA

x x x

ISRAEL

NORWAY

x

SRI LANKA

x x

x

SWEDEN SCOTLAND TAIWAN UNITED KINGDOM Note:

2045

x

FRANCE GERMANY

2040

2032

2030

COUNTRY

2025

FIGURE 7: Announced Sales Ban for Internal Combustion Engine Vehicles by Country

X = ICE sales ban or 100 percent EV sales target; X = Fleet without ICEs

x

x x

x

BARRIERS TO ELECTRIC VEHICLE ADOPTION Although the EV market is growing, electric vehicles still comprise a small share of cars on the road. There are a number of barriers to widespread deployment of EVs in the country. Some of these barriers are technological, some are societal or perceptual, while others are political.

Electric vehicle charging infrastructure remains a barrier in many markets. California, which has the most EVs of any state in the U.S., also has the fewest number of chargers available per EV with only one public direct current fast charger, or DCFC, per 196 EVs and one Level 2 charger per 27 EVs.23 Hawaii, Colorado, Texas and Ohio have similar ratios of EVs to charging stations, from around one percent in Hawaii to 0.15 percent in Ohio. The current state of EV charging infrastructure indicates that states need to move quickly to meet the demand of oncoming EVs in the next few years. Key barriers to charging infrastructure deployment are as follows:24 • HIGH COSTS: The cost of charging stations, including installation and maintenance, is typically high with uncertain revenues, which deters investment. In addition, the challenge of infrastructure is described as a chicken and egg problem.25 In order for EVs to dramatically expand, consumers need to have access to charging infrastructure. But before investors are willing to pour money into charging, they want to be assured there’s significant demand.

• LACK OF A STRONG BUSINESS MODEL FOR INSTALLING CHARGING STATIONS IN WORKPLACES, MULTI-UNIT DEVELOPMENTS, AND AT INTERSTATE AND URBAN FAST-CHARGING LOCATIONS: Currently, 80 percent of all EV charging occurs at home.26 To grow the market, convenient charging will be needed at a wide range of public locations, including in apartment complexes and other multi-unit dwellings.27 Policymakers and industry leaders will need to improve the business case for investment in these areas.

• UTILITY INVESTMENT: Utilities will need to be involved in charging infrastructure deployment and yet, current utility regulations can make it hard to do so. To justify investments in charging infrastructure, for example, utilities may need to present complex cost-benefit analyses to regulators, which are complicated by uncertainty about market growth.28 Smart Electric Power Alliance, or SEPA, recently released a report that grouped utilities into “early,” “intermediate” and “late” stage when it comes to EV charging programs. SEPA found that only 3 percent of utilities are in the late stage, while 74 percent are in the early stage of EV charging.29 Consumer awareness regarding EV ownership and its benefits is low. Consumer awareness about EV technology is important because consumers are the main drivers in stimulating and maintaining demand in the EV market. Even in the nation’s largest EV market—California—however, consumers by and large remain unaware of how EVs work, which models are available in their area, and what incentives may be available to them.30 Consumers typically cite a number of barriers to the adoption of EVs: • COST: The cost of current EVs is still significantly higher than similarly sized gasoline-powered vehicles (generally $10,000 to $20,000 more expensive), especially as compared to more economical models. However, the operational costs of driving an EV are generally lower than driving a gasoline-powered car, in part due to lower maintenance costs and the lower costs of recharging. Despite this, con-

sumers tend to focus on the high upfront costs of EVs while ignoring the lifecycle cost advantage.

• RANGE: “Range anxiety,” or the fear that the driving range of an EV is insufficient for consumers’ driving needs is also commonly cited as a major impediment to adoption of EVs. • MODEL AVAILABILITY: Consumers also cite the lack of variety in the number of EV models available as a significant barrier to adoption. Currently, most EVs are small, midsize or compact, so consumers wanting pickup trucks or SUVs are left out of the EV market.

These concerns, while valid, are beginning to be addressed. After tax credits, 15 models of EVs cost under $30,000, which is the price at which widespread adoption is generally considered likely.31 Of those models, 10 have at least a 50-mile range in all-electric mode.32 Many more models are expected and Bloomberg New Energy Finance anticipates that by 2020, there will be 39 models of PHEVs and 44 models of EVs available in North America.33

Technical challenges around EV integration with the electric power grid require attention. Experts agree that impacts of EVs on the grid currently are minimal, given the relatively small numbers of vehicles in circulation. However, as more EVs come online, they will rely on the electric power grid for fuel. To incorporate an entire sector’s power needs into the electric grid is a considerable challenge.

While increased production is manageable for the grid on a large scale, localized problems will arise. Clustered charging, when multiple electric vehicles charge in the same area, is a risk to local infrastructure.34 Ways of managing local load, such as building infrastructure and static price signals, will prove to be less effective than before.

The dynamic nature of shifting load as a result of vehicle charging is more challenging to predict and manage. Utilities will need new solutions to manage car charging and encourage plugging in when electricity demand is low.

Policy uncertainty can further dampen the uptake of EVs by consumers. Policy uncertainty at both the federal and state levels—whether existing policies will be dismantled and new ones will take their place—can be a significant barrier to expanding the EV market. At the federal level, the Trump administration’s proposal to freeze automobile emission standards at 2020 levels and revoke California’s authority to set its own rules for vehicle efficiency and electric cars has the potential to slow the growth of EVs. Policy changes at the state level are also impacting the future of the EV market. When Georgia repealed its generous $5,000 tax credit on EVs in July 2015 and implemented a $200 registration fee, sales declined significantly. The economic incentives that have helped EVs gain a toehold in the country are being rolled back. Some states have moved to repeal tax credits for EVs or to let them expire while others, as described in the next section, have levied new fees on those who own EVs. These changes at the state level could lead to a slowdown in the country’s shift toward EVs.

STATE POLICIES TO ACCELERATE EV ADOPTION This section describes several strategies that states can consider as they take a leadership role in expanding the EV market in their jurisdiction. States should consider what combination of policies, such as direct cost reductions, regulations, infrastructure investments, and non-monetary benefits to EV owners, will be most effective at putting more EVs on the road.

PROVIDE FINANCIAL INCENTIVES FOR ELECTRIC VEHICLES AND CHARGING INFRASTRUCTURE. Twenty-two states and the District of Columbia provide some type of financial incentives to lower the cost of a hybrid or electric vehicle. These include rebates and vouchers.

Three states and D.C. have licensing, registration or road use fees that are lower for hybrid or electric vehicles.35 In recent years a debate has emerged about whether electric vehicles should continue to be subsidized and whether electric vehicle drivers should be taxed so they can contribute to the repair of roads they drive on.

In recent years, states such as Georgia, Illinois, Maryland, Tennessee, South Carolina, Utah and Vermont have either repealed or exhausted funding of an electric vehicle incentive program or allowed the program to expire.36 In 2017, New York Gov. Andrew Cuomo launched a $70 million electric car rebate and outreach initiative as part of his efforts to reduce greenhouse gas emissions 40 percent by 2030. The Drive Clean Initiative dedicates $55 million to rebates of up to $2,000 for purchase of a new plug-in hybrid electric, all-electric or hydrogen fuel cell car. The remaining $15 million supports improving customer awareness of electric cars and their benefits, installing charging stations, developing and demonstrating new electric car-enabling technologies and other efforts.37 Cuomo’s office reported in March that more than 10,000 electric cars were sold in 2017, a 67 percent increase over 2016.38 Rhode Island and Utah also launched incentive programs in 2017. Rhode Island’s DRIVE program offered $500 to $2,500 for purchase or lease of an electric vehicle,39 but the program was suspended in July 2017 due to lack of program funding.40 Thirteen states have electric utility companies that offer a wide range of tax credits and other financial incentives for purchasing electric vehicles and hybrids. At one end of the spectrum is the $50 offered annually to plug-in electric vehicle owners within California’s San Diego Gas and Electric service area. At the other end, utilities in Delaware and seven other states offer a one-time tax rebate of $10,000 to their customers and employees who purchase a new Nissan Leaf at participating dealerships. Some utilities also offer reduced utility rates for EV buyers.41 In the District of Columbia, Pepco has proposed offering a lower rate to electric vehicle owners willing to plug in to charge up during off-peak times.42 Alliant Energy in Iowa has also proposed a new EV-charging rate for residential customers and general-service customers.43 EXPAND ELECTRIC VEHICLE CHARGING ACCESS. Access to electric vehicle charging infrastructure is one of the most critical factors likely to drive the marketplace in the decades ahead. States and their partners are deploying a

variety of strategies and tools aimed at increasing the number of chargers available to motorists. States can: Use VW settlement funds to grow EV charging networks.

A number of states have announced they’ll invest in electric vehicle infrastructure using money from the settlement in the Volkswagen case in which the automaker was found guilty of selling more than half million diesel cars that polluted up to 40 times the legal limit of nitrogen oxides. States are splitting $2.7 billion from the settlement and can use up to 15 percent of the funds they receive to build electric vehicle charging stations.44 Most states are likely to spend the full amount. Also, as part of the settlement, Volkswagen is spending $2 billion to build charging stations.45 In Oregon, the Department of Environmental Quality and other state agencies this summer asked for public input on how to spend $10.9 million from the settlement to enhance its electric vehicle adoption strategy, known as Go Electric Oregon.

The options proposed included upgrading the state’s West Coast Electric Highway, a network of 44 fast charging stations along Interstate 5, Highway 99 and other highways; funding the development of 35 new D.C. fast chargers in underserved areas; and funding Level 2 charging installations at multifamily apartment buildings, focusing particularly on lower-income communities.46 Coordinate with electric utilities on planned investments in charging infrastructure.

In California, the Public Utilities Commission in 2016 approved plans for three of the state’s largest utilities to build more than 12,500 charging stations at workplaces, apartment complexes and public locations at a cost of about $200 million. California had previously sought to keep utilities out of building charging stations.47 In 2018, it was announced that California utilities would invest nearly $768 million to expand the network of charging stations and build other electric vehicle infrastructure.

San Diego Gas & Electric Co. said they would provide rebates for as many as 60,000 customers to install home chargers. Pacific Gas and Electric said they would build 230 direct current fastcharging stations at a cost of nearly $22.5 million.48 New York Gov. Andrew Cuomo announced in May that the New York Power Authority would invest $40 million in fast chargers for cars on highways and at airports, an amount that could climb to $250 million.49 New Jersey utility company PSE&G in 2018 proposed spending $300 million to set up a network of up to 50,000 charging stations. The state currently has less than 600.50 The Massachusetts Department of Public Utilities in 2017 approved utility company Eversource to spend $45 million to support the deployment of almost 4,000 Level 2 Stations and 72 D.C. Fast Charging stations. National Grid, another utility company in the commonwealth has also proposed investing in charging station infrastructure.51 Utility companies in Maryland have proposed spending $104 million to support a statewide network of 24,000 residential, workplace and public charging stations. Utility customers would be asked to pay 25 cents to 42 cents more a month to support the program, which was pending before the state’s Public Service Commission in the spring of 2018.52 Michigan’s largest utility, Detroit-based DTE Electric Co., has proposed a three-year, $13 million program to provide rebates for residential, commercial and fleet EV charging infrastructure as well as consumer education programs.53 In March 2018, Hawaiian electric companies issued the “Electrification of Transportation Strategic Roadmap,” which outlines a proposal to install nearly 1,900 additional charging stations on Oahu in the next 27 years. It also identifies some more near-term

strategies to boost electric vehicle adoption in Hawaii, including: working with automakers, dealerships and advocates to lower the purchase price and educate customers on vehicle options and benefits; partnering with third-party charging providers and others to facilitate the build out of charging infrastructure, especially in workplaces and multi-unit dwellings; and expanding the network of utility-owned fast chargers and public Level 2 chargers in gap areas to reduce range anxiety.54 But some states have begun to debate whether allowing the utility industry to build more charging stations is forcing all electricity consumers to pay for a service only a few will use. Last year, officials in Kansas, Michigan and Missouri nixed utilities’ requests to build charging stations with customers’ money. Some officials argued investment should come from the private sector rather than the ratepayers.55 Gas station owners were reportedly instrumental in defeating 2018 legislation in Colorado that would have let utilities install EV charger stations there.56 Kentucky has sought to implement a policy that allows utilities to install and operate charging infrastructure but only charge customers who use the service. Louisville Gas and Electric and Kentucky Utilities are allowed to install and operate up to 20 stations and can build and get paid for placing them on commercial properties.

They can recoup costs by charging customers a little under $3 per hour to charge their car. Electricity customers who don’t use the infrastructure don’t pay.57 For utilities, investment in electric vehicle infrastructure may be an offer too good to refuse. A 2017 report from the Deloitte Center for Energy Solutions found that as electric vehicles become more pervasive, they’re likely to revive flat demand for electricity, improve management of power grids and draw new customers to electric utilities. Globally, electric vehicles are expected to drive electricity consumption up 300-fold by 2040.58 But leaping into EV infrastructure, for now, is a bit of a leap of faith, particularly for utility regulators who find themselves in an unfamiliar role in the transportation sector: making decisions about building a charging network for the millions of electric ve-

hicles that might one day be on the roads but aren’t yet and trying to determine the answers to such questions as where to build charging stations, who owns the chargers and how utilities can see a return on their investments.59 A number of major utilities, environmental groups and automakers have signed on to something called the Transportation Electrification Accord, an effort to embrace a common vision for open, simple, ubiquitous electric vehicle charging. But some reports have suggested it may take time for all these parties to align with the same sense of urgency to build out the EV infrastructure in the years ahead.60 Pass laws that allow and encourage localities to increase the installation of more charging stations.

The Atlanta City Council passed an ordinance in 2017 that requires all new residential homes and public parking facilities to accommodate electric vehicles. Under the ordinance, 20 percent of the spaces in all new commercial and multifamily parking structures are required to be EV ready. Further, all new development of residential homes must be equipped with the infrastructure required to install EV charging stations, such as conduit, wiring and electrical capacity.61 The state of Georgia ranks second in the country in the number of electric vehicles and plug-in hybrids on the roads with 25,000 vehicles, 80 percent of those in metro Atlanta.62 California lawmakers passed legislation in 2017 (AB 1452) that allows city officials and private property owners to install electric vehicle charging stations on curbsides of public streets.63 Find other ways to fund and increase access to charging infrastructure.

In June 2015, Nevada Gov. Brian Sandoval announced the launch of the Nevada Electric Highway, a joint initiative between NV Energy, the Governor’s Office of Energy, and

Valley Electric Association to expand the state’s charging infrastructure along U.S. 95, a major North-South artery that connects the cities of Las Vegas, Carson City and Reno.64 The project has been funded in part through license fees assessed on ride-hailing companies operating in Nevada.65 Nevada is also part of a multistate initiative, known as the Electric Vehicle Plan for the West or REV West Plan, to develop charging networks on Western interstates and highways.66 In October 2017, the governors of Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming signed a memorandum of understanding to provide a framework for creating the plan, which spans more than 5,000 miles of highways.67 In September 2017, Washington Gov. Jay Inslee announced his state would spend $1 million to help build 15 new electric vehicle charging stations along some of the state’s busiest highways. The new infrastructure is made possible by a $150 annual registration fee on electric cars.

The state funding is being matched by about $1.5 million in private spending on the charging stations.68 INVEST IN EFFORTS TO INCREASE CONSUMER AWARENESS OF ELECTRIC VEHICLES. The vast majority of consumers still have little understanding and many misconceptions about the capabilities and advantages of EVs, how they operate, and the nature of the charging experience. Addressing this gap in consumer awareness is crucial to increasing EV deployment. Along with key stakeholders, including automakers, auto dealers, utilities, and local governments, states can undertake a number of strategies to encourage consumer awareness, improve infrastructure, and increase the number of EVs on the road.

A new campaign, “Drive Change. Drive Electric,” is a joint effort by seven Northeast states and 16 global automakers to promote EVs in the region.69 The consumer awareness push will include promotions, a social media push, and a website designed to provide information about purchasing incentives, fuel savings and charging infrastructure. The Association of Global Automakers, Alliance of Automobile Manufacturers, and Northeast States for Coordinated Air Use Management are working together to help facilitate the campaign on behalf of the alliance partners. The alliance demonstrates how different players will need to come together to catalyze EV adoption and provides a model for other states to follow.

In addition, states can consider the following to increase consumer awareness: • Support and encourage innovative local and grassroots efforts to increase consumer experience with EVs, such as ride-and-drives in different settings, car sharing, and rental programs, and pop-up or permanent EV showrooms.

• Encourage utilities to include funding for consumer education and outreach activities in transportation electrification proposals submitted to public utility commissions.

• Collaborate with dealership associations and automakers to promote EVs at auto shows through brand-neutral educational booths and ride-and-drive events. A number of Northeast states have showcased EVs in recent auto shows and state officials in Connecticut and Massachusetts have used such events as an opportunity to announce additional funding for their state purchase incentive programs.70 • Encourage auto dealers to engage in activities that

•

raise EV awareness. Awards and recognition programs, if designed properly, can be part of the approach to motivating dealers. Examples of awards that target dealers are Connecticut’s Revolutionary Dealer Award and the Automobile Dealer Zero Emission Vehicle Promotion category under the annual California Governor’s Environmental and Economic Leadership Awards.71 Develop consistent signage and labeling to increase visibility of EVs. Consistent signage is particularly needed to guide drivers to charging stations and indicate any restrictions related to charging and parking. The departments of transportation in Washington, Oregon, and California have adopted a standardized symbol to identify publicly accessible EV charging stations along major highways.72 The New Hampshire Legislature passed a bill (SB 575) in 2018 that requires the state department of transportation to provide signs on highways alerting drivers to the availability of charging stations.73

PROVIDE HOV LANE ACCESS AND FREE ACCESS TO TOLL ROADS AND PARKING SPACES FOR DRIVERS OF HYBRID AND ELECTRIC VEHICLES. A 2015 study published by the UCLA Luskin Center for Innovation found that the ability to access high-occupancy vehicle lanes was responsible for 40 percent of electric vehicle purchases between 2010 and 2013 in four of California’s metro regions.74 That ability to access carpool lanes will continue because the California Legislature passed legislation (AB 544) in 2017 to extend the program beyond a Jan. 1, 2019 expiration date.75 California is one of 13 states that incentivize the purchase of hybrid or electric vehicles by providing free access to toll roads and parking spaces, by waiving the requirement that multiple people must be riding in a vehicle in order to use high-occupancy lanes or by allowing hybrid or electric vehicles to use the lanes at all times.76 But in April 2018, Los Angeles County transportation officials announced that in an effort to reduce congestion in toll lanes on the 110 and 10 freeways, they would end the program granting solo drivers of zero-emission vehicles free access to the lanes.77

ENCOURAGE THE ELECTRIFICATION OF PUBLIC FLEETS BY ESTABLISHING NEAR- AND LONG-TERM GOALS AND PROCUREMENT POLICIES. Many see the electrification of public fleets, including those that serve transit, ride-hailing companies and government agencies, as a significant stepping stone to overall electrification.

Battery-electric buses can cost hundreds-of-thousands of dollars more in up-front costs than diesel buses. Researchers at Carnegie Mellon University however found that battery-electric buses are competitive on a total lifecycle-cost basis with liquid natural gas, compressed natural gas and hybrid diesel buses.78 Fuel savings and lower maintenance costs can mean $400,000 in savings over the lifetime of electric buses.

That’s one of the reasons many are bullish that electric vehicles are poised to take over the transit sector in a major way.

“We believe buses will be the first market to go 100 percent electric,” Matt Horton of U.S.-based electric bus manufacturer Proterra told Curbed in November 2017.

Horton speaks from experience. Last year, he saw major cities including Los Angeles, Seattle, Chicago, Miami, Philadelphia and New York purchase electric buses for their transit fleets, and Dallas has become one of Proterra’s biggest clients.79 In May, at the American Public Transportation Association’s Bus & Paratransit Conference, Proterra introduced a new suite of high-power charging options the company says could make electrification of bus fleets more achievable.80 There have been setbacks though. The Los Angeles Times reported in May that Chinese battery manufacturer BYD Ltd., which is positioned to be a prime supplier of electric buses in Los Angeles, has experienced poor performance and mechanical problems with some of its buses. Moreover, the first five buses the company sent to Los Angeles were pulled off the road after less than five months of service.81 According to research by Bloomberg New Energy Finance, municipal bus fleets around the world could reach 80 percent electrification by 2040.82 But they still have some distance to go to get there. The U.S. Public Interest Research Group, or U.S. PIRG, reported in 2018 that more than 60 percent of the nation’s 70,000 transit buses are diesel-powered, 18 percent run on natural gas and just 0.2 percent are all-electric. Moreover, some 95 percent of America’s 480,000 school buses run on diesel.83 States and municipalities are taking actions toward electrifying bus fleets, however. Among them: • The Los Angeles County Metropolitan Transportation Authority announced in 2017 its transit fleet would be emission-free by 2030 and incorporate some 2,300 electric buses.84 Los Angeles is scheduled to deploy North America’s first electric double-decker transit bus in 2019 with the intent of doubling passenger capacity on the region’s traffic-clogged corridors while leaving a lighter environmental footprint. The first buses were purchased in part with revenues from variable tolls on the 10 and 110 freeways.85 • King County Metro Transit in Seattle announced in 2017 they would acquire 120 all-electric buses by 2020.86 • The Metropolitan Transportation Authority in New York City in February began testing five New Flyer electric buses across its system. Tests were also planned this year in Boston, Los Angeles, Portland and Salt Lake City.87 • The Chicago Transit Authority this year requested proposals for 45 new all-electric buses.88 • California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, funded by the state’s cap-and-trade carbon reduction system, provides funds to help fleets purchase lower emission vehicles. Fleet operators can apply

for vouchers worth between $80,000 and $175,000 per electric transit bus and $25,000 to $220,000 per electric school bus, depending on size. They can seek up to $20,000 to invest in inductive charging systems.89 • A Colorado program allows fleets in areas of the state with air pollution concerns to apply for funding to help purchase electric buses. Public fleets can seek up to $35,000 per bus while private bus fleets can seek $22,000 per bus.90 But it’s not just transit fleets that states and localities are seeking to electrify. Among some other fleet-related activity: • California is considering legislation in 2018 (SB 1014) that would require that 100 percent of the vehicles that are purchased, leased, owned or contracted for by a transportation network company be zero-emission vehicles.91 • California Gov. Jerry Brown in 2017 signed AB 739, legislation that requires at least 15 percent of certain heavy-duty vehicles newly purchased by state agencies to be zero-emission vehicles beginning in 2025 and at least 30 percent beginning in 2030. Another bill, SB 498, codifies the light-duty vehicle fleet purchase requirements included in the governor’s 2012 executive order setting zero-emission vehicle targets.92 • City and state agencies around the country are seeking ways to “green” the operation of government, which in places like Atlanta can contribute upwards of 5.5 percent of the total emissions footprint. Atlanta has set goals of reducing municipal operations emissions 20 percent by 2020, 40 percent by 2030 and 80 percent by 2050. New York City is one of 30 cities that have joined forces in a group purchasing pact that will use leverage to negotiate better prices from manufacturers on as many as 114,000 electric vehicles in the years ahead. Public fleets in New York City total more than 29,000 vehicles, contributing nearly 4 percent of the city’s total annual on-road emissions output. The city will add 2,000 plug-in electric vehicles to its fleets in an effort to reduce its emissions footprint to 50 percent of 2005 levels.93 Twenty-eight states have hybrid or electric vehicle fleet requirements, acquisition goals or a stated preference for government agencies to purchase hybrid or electric vehicles.94 EVALUATE ELECTRIC VEHICLE REGISTRATION FEES. As the revenue from gasoline taxes decreases with the rise of fuel-efficient vehicles, many states are looking for alternative sources of money to build and maintain their roads, bridges, and other infrastructure. A growing number of states are imposing new fees on EVs, which generally range from $100 to $200 a year. Before 2017, less than 10 states had EV fees. Today, there are 17 states with newly adopted annual registration fees and nine additional states are considering them.95 Proponents of EV registration fees point out that EVs use roads and highways but don’t pay for their upkeep through gas purchases. But others argue that given that there are so few EVs on the roads compared to gasoline and diesel vehicles, the paltry amount of revenue generated by the fees isn’t worth creating a disincentive for people to buy EVs.

A number of states are trying to find fairer and more reliable ways to raise transportation funds. Oregon’s road-usage charge program, launched in 2015, allows users to pay a per-mile fee rather than fuel taxes.96 Oregon’s program is voluntary and is capped at 5,000 participants. Interest in this approach is growing at the state level. Washington state has initiated a 12-month pilot study on how a road usage charge might replace taxes at the pump.97 California is conducting a pilot vehicle-miles-traveled, or VMT, tax as well, while Connecticut, Delaware, New Hampshire, Pennsylvania, and Vermont have received federal support to test how a VMT tax could work across multiple states.98 A few states have reduced vehicle registration fees for EV drivers. Connecticut offers reduced registration fees of $38 for an EV (normally $80); Illinois has lowered the yearly maximum for an EV registration fee to $18 (normally varies from $101-$114); registration fees for electric-powered vehicles in Vermont is nearly half of what gas/diesel vehicles pay.

As EV adoption grows, more states will follow with their own fees for use of the roads. The key will be getting the timing and policies right so the new fees do not completely deter adoption of a product that has yet to reach mass-market scale.

ENCOURAGE STATE PUCS TO REASSESS THEIR REGULATORY FRAMEWORKS. Increasing penetration of EVs pose new challenges for regulators and utility companies. Regulatory policy will have to evolve to address this challenge. There are several opportunities for states, working in close partnership with their PUCs and utilities, to reassess their existing regulatory framework. States can open PUC proceedings to consider: • Effective utility deployment of charging infrastructure and market acceleration. In April 2018, the New York Public Service Commission opened a proceeding to consider the role of electric utilities in providing infrastructure, along with rate designs to accommodate the needs of and electricity demand for EVs and electric vehicle supply equipment. In May, the Nevada Public Utilities Commission adopted rules allowing NV Energy to build EV charging stations and directed NV Energy to use $15 million in existing incentive funds to help build out the state’s charging infrastructure.

• Variable electric rates such as time of use, or TOU, rates or similar alternatives to provide clear grid benefit-focused price signals for residential customers. The heart of rate design is getting EV owners to charge during off-peak times and avoid charging during the system’s peak demand. Several pilot programs have been launched to understand the impact of these new rate structures. The Minnesota Public Utilities Commission has approved a residential TOU pilot rate for Xcel Energy.99 San Diego Gas & Electric has also proposed TOU residential rates with a year-long money-back offer that allows customers to opt out at any time, and the utility will refund them if standard rates would have been cheaper.100 • Alternative demand charge rate designs, waivers, or other options for public charging that can provide the most equitable and least burdensome price signals to charging infrastructure hosts and end-users. Demand charges are fees that were originally created to help utilities charge big commercial customers when they have a large spike in electricity use. However, public charging sta-

tions are also being hit with these major demand charges, with demand charges in many cases comprising as much as 90 percent of a public charging station’s monthly utility bill.101 Some states have started addressing this issue. The California Public Utilities Commission has pushed two utilities—Southern California Edison and San Diego Gas & Electric—to propose new rate designs that significantly reduce the burden of the demand charges on public fast-chargers.102 ADVOCATE FOR FEDERAL PEV POLICIES TO ENCOURAGE INDUSTRY SUPPORT. In the coming years, many believe sustaining federal incentives will be important for ensuring market growth of EVs. States, in collaboration with automakers, utilities and other partners, can advocate for the continuation of federal tax credits, which are currently scheduled to be phased out for individual automakers once they sell 200,000 EVs in the United States. The manufacturer-based cap hamstrings the EV market and according to its critics, the federal credits would be more effective if they had an expiration date instead.103 In addition, states should advocate for the continuation of other federal programs that help to reduce the cost of batteries, make consumers more familiar with EV technology, and deploy charging infrastructure. Federal research support, such as the Public Transportation Innovation Program and the Low or No Emission Vehicle Program, has been important in bringing down costs and improving EV performance. In 2017, the Low-No Vehicle Program provided $55 million in R&D funding to state and local governments and public transportation providers.104 ADVOCATE FOR FEDERAL CARBON TAX POLICY AND EXPLORE CARBON PRICING AT THE STATE LEVEL. Economists have long argued that a carbon tax is one of the most effective means of reducing greenhouse gas emissions by placing a tax or fee on emissions from fossil fuel sources such as coal, natural gas, and gasoline. In the transportation sector, carbon tax would discourage unnecessary driving by making each mile more expensive for all gasoline-powered cars. At the same time, it would boost the adoption of hybrid and EVs by making them more cost-competitive. So far, no carbon tax has ever been established at either the state or federal level in the country.

At the federal level, there is a growing momentum for a serious bipartisan discussion about pricing carbon pollution. Two national carbon tax proposals have emerged recently, indicating a heightened level of interest in carbon taxes: a proposal from the Climate Leadership Council—a group of Republicans and centrists—that has garnered support from oil companies, carmakers, solar companies, utilities, and some environmental groups and, second, a carbon tax proposal released in July 2018 by Rep. Carlos Curbelo (R-FL), co-chair of the House Climate Solutions Caucus.105 Neither proposal is anywhere close to passage any time soon. But the existence of these proposals reflect that a federal carbon tax is becoming the subject of serious national debate, providing an opportunity for states to strongly advocate for them.

In the absence of federal-level action on carbon pricing, a handful of states are turning to the concept of carbon pricing. In 2017, one-fifth of U.S. states considered bills on carbon fees and dividends and the Massachusetts Senate passed a carbon-pricing bill in June 2017.106 In November 2018, voters in Washington State will decide whether to adopt a carbon tax. If the measure passes, Washington State will become the first state to adopt a carbon tax, and that too by a ballot referendum. Success in Washington State could pave the way for success in other states.

Establishing either a national or state-level carbon tax is no small undertaking. It requires careful consideration of various factors including what impact it will have on the economy, will it be fair and equitable, and will it be able to reduce greenhouse gas emissions. A carefully crafted carbon pricing policy can, however, be a useful tool to cut carbon emissions, including from the auto sector.

ADOPT ZERO-EMISSION VEHICLE MANDATE. The zero-emission vehicle, or ZEV, mandate has been identified as a vital tool to support EV growth in the future, and there is evidence to suggest that such mandates are driving increasing deployment of EVs in several parts of the country.

The ZEV mandate is a California state regulation that requires that between 2018 and 2025 automakers must accelerate their production of ZEVs, which includes BEVs, PHEVs, and FCEVs, to account for 15.4 percent of vehicles sold. Under the Clean Air Act, California has unique authority to issue vehicle emission standards that are stricter than federal vehicle standards and to establish a ZEV mandate. Other states can adopt the California standard. Currently, nine other states—Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont—participate in the ZEV mandate.

ENDNOTES 1 Steven Loveday, “December 2017 Plug-In Electric Vehicle Sales Report Card,” January 3, 2018. Available at: https://insideevs.com/december-2017-plugin-electric-vehicle-sales-report-card/ 2 Herman K. Trabish, “Team of Rivals: Utilities, Enviros Unite to Push Electric Vehicles,” Utility Dive, February 26, 2018.

3 Steven Loveday, “December 2017 Plug-In Electric Vehicle Sales Report Card,” January 3, 2018. Available at: https://insideevs.com/december-2017-plugin-electric-vehicle-sales-report-card/ 4 Jeffrey Rissman, “The Future of Electric Vehicles in the U.S.” San Francisco: Energy Innovation, 2017.

5 Alliance of Automobile Manufacturers, “Advanced Technology Vehicle Sales Dashboard.” Available at: https://autoalliance.org/ energy-environment/advanced-technology-vehicle-sales-dashboard/ 6 Peter Slowik and Nic Lutsey (2017). Expanding the Electric Vehicle Market in U.S. Cities. Washington, DC: The International Council on Clean Transportation.

7 Steve Hanley, “California Wants 5 Million Zero Emissions Cars on its Roads by 2030,” Clean Technica, January 30, 2018.

8 Mark Chediak, “The Latest Bull Case for Electric Cars: The Cheapest Batteries Ever,” Bloomberg, December 5, 2017.

9 Bloomberg New Energy Finance (2018). Electric Vehicle Outlook: 2018. BNEF. Available at: https://about.bnef.com/electric-vehicle-outlook/#toc-download 10 Gas-powered cars require replacing parts that go bad over time. EVs have fewer components and items that do not need to be replaced include oil, fan belts, air filters, timing belts, head gaskets, cylinder heads, and spark plugs. Thus maintenance costs for EVs are less compared to conventional cars. Further-

Research into which policies can effectively increase EV market share in a state has found that joining the ZEV mandate is the most effective thing states can do.107 States with the ZEV mandate have significantly higher market shares of PEVs than states without the ZEV mandate, collectively reaching 3.65 percent of new vehicle sales in December 2017. Moreover, adoption of the ZEV mandate could influence regional PEV markets. While the average market share of PEVs in ZEV-mandate states was 1.06 percent, in states neighboring ZEV states the average market share was 0.62 percent. In all other states, the share was lower at 0.35 percent.108 CONCLUSION The public benefits of EVs are clear. They can help states reduce their transportation sector emissions and solve key environmental and public health challenges. And yet the United States EV market, comprising just 1 percent of new vehicle registration, is not large enough to see those benefits. State policies can help address the numerous barriers that currently inhibit EV deployment, including cost, range, lack of knowledge about EVs, and needed improvements to charging infrastructure. more, since an electric motor is able to slow itself down, the use of brake pedals is reduced and brake pads and rotors last longer.

11 Michael Sivak and Brandon Schoettle (2018). Relative Costs of Driving Electric and Gasoline Vehicles in the Individual U.S. States. The University of Michigan, Sustainable Worldwide Transportation.

12 Emergency Economic Stabilization Act of 2008, Public Law 110-343, 110th Cong., 2nd sess. (October 3, 2008).

Available at: www.congress.gov/110/plaws/publ343/ PLAW-110publ343.pdf 13 Gil Tal and Michael Nicholas, “Exploring the Impact of the Federal Tax Credit on the Plug-In Vehicle Market,” Transportation Research Record, Journal of the Transportation Research Board 2572, 2016.

14 Fred Lambert, “There’s a New Effort to Remove the EV Tax Credit Cap Just as Tesla and GM are About to Hit it,” Electrek, March 16, 2018.

15 Paul Allen and others (2017). Utility Investment in Electric Vehicle Charging Infrastructure: Key Regulatory Considerations. M.J. Bradley & Associates and Georgetown Climate Center.

16 Paul Lienert, “Global Carmakers to Invest at Least $90 Billion in Electric Vehicles,” Reuters, January 15, 2018.

17 IEA (2018). Global EV Outlook 2018: Towards Cross-Modal Electrification. International Energy Agency.

18 Bloomberg New Energy Finance (2018). Electric Vehicle Outlook: 2018. BNEF. 19 Ibid.

20 IEA (2018). Global EV Outlook 2018: Towards Cross-Modal Electrification. International Energy Agency.

21 Ibid.

22 Patrick Hertzke and others, “The Global Electric-Vehicle

Market is Amped Up and On the Rise,” McKinsey & Company, May 2018.

23 Garrett Fitzgerald and Chris Nelder (2017). From Gas to Grid: Building Charging Infrastructure to Power Electric Vehicle Demand. Boulder, CO: Rocky Mountain Institute.

24 Lia Cattaneo (2018). Plug-In Electric Vehicle Policy: Evaluating the Effectiveness of States Policies for Increasing Deployment. Washington, DC: Center for American Progress.

25 Emma F. Merchant, “The Next Big Obstacle for Electric Vehicles? Charging Infrastructure,” Greentech Media, November 3, 2017.

26 Brian Jones and others (2017). Accelerating the Electric Vehicle Market: Potential Roles of Electric Utilities in the Northeast and Mid-Atlantic States. M.J. Bradley & Associates.

27 Mark Singer (2016). Consumer Views on Plug-in Electric Vehicles: National Benchmark Report. National Renewable Energy Laboratory.

28 Garrett Fitzgerald and Chris Nelder (2017).

29 Erika Myers and others (2018). Utilities and Electric Vehicles: Evolving to Unlock Grid Value. Washington, DC: Smart Electric Power Alliance.

30 Ken Kurani and Scott Hardman, “Automakers and Policymakers May Be on a Path to Electric Vehicles; Consumers Aren’t,” Blog, Institute of Transportation Studies, UC Davis.

31 Garrett Fitzgerald and Chris Nelder (2017).

32 Ibid.

33 Andrew Grant, “Electric Vehicle Data Hub,” Bloomberg New Energy Finance.

34 Matteo Muratori (2018). Impact of Uncoordinated Plugin Electric Vehicle Charging on Residential Power Demand,” Nature Energy, Vol. 3: 193-201.

35 Kristy Hartman and Emily Dowd (2017). “State Efforts to Promote Hybrid and Electric Vehicles,” National Conference of State Legislatures, September 26.

36 “Some States Pulling Plug on Electric Car Incentives,” State Net Capitol Journal, April 14, 2017. Available at: https://goo.gl/13DrkG 37 Office of Gov. Andrew M. Cuomo. “Governor Cuomo Launches $70 Million Electric Car Rebate and Outreach Initiative,” Press Release, March 21, 2017.

38 Office of Gov. Andrew Cuomo. “Governor Cuomo Announces More Than 5,750 Electric Car Rebates Approved in First Year of Drive Clean Rebate Program,” Press Release, March 22, 2018.

39 Laurel Passera, “Get Outta My Dreams, Get Into My Jurisdiction,” EQ Research Blog, June 6, 2017.

40 Driving Rhode Island to Vehicle Electrification. “DRIVE Program Suspension Notice,” Press Release, July 2017. Accessed from: http://www.drive.ri.gov/ 41 Hartman and Dowd (2017).

42 Katherine Shaver, “Utility Wants to Offer Discount to D.C. Electric Vehicle Owners Willing to Plug in During Off-hours,” The Washington Post, April 25, 2017.

43 Laurel Passera, “Get Outta My Dreams, Get Into My Jurisdiction.”

44 Alana Miller and others (2018). Plugging In: Readying America’s Cities for the Arrival of Electric Vehicles. U.S. PIRG Education Fund 45 Martha T. Moore, “Billions from VW Settlement Boost Push to Clean Vehicles,” Stateline, January 4, 2018.

46 Skip Descant, “Oregon Is Planning a Large Buildout of EV Charging Infrastructure,” Future Structure, July 12, 2018.

47 California Public Utilities Commission. “Infrastructure Pilot Programs,” Accessed from: www.cpuc.ca.gov/zevChargingInfrastructure.aspx 48 Christopher Weber, “California to spend $768M on electric vehicle infrastructure,” Associated Press, May 31, 2018.

49 “Calif. and N.Y. put big money on charging infrastructure,” Energy Wire, June 1, 2018. Subscription Service.

50 Jake Levine, “State Investments in Electric Vehicle Charging Infrastructure,” The National Law Review, June 23, 2018.

51 Ibid.

52 Colin Campbell, “Maryland Utilities Want a Statewide EV Charging Network,” The Baltimore Sun, March 26, 2018.

53 Jeffrey Tomich, “Detroit utility pursues ambitious EV charging pilot,” Energywire, July 11, 2018. (subscription service) 54 Hawaiian Electric Companies, “Hawaii Poised to be Global Leader in Electrification of Transportation,” Medium, March 29, 2018.

55 Martha T. Moore, “Should Utilities Build Charging Stations for Electric Cars?” Stateline, September 11, 2017.

56 Russell Gold, “Oil, Utilities Fight to Fuel Vehicles of the Future,” The Wall Street Journal, July 15, 2018.

57 Constance Douris. “Who Should Pay for Electric Vehicle Chargers? Who Should Profit?” Forbes, November 8, 2017.

58 Deloitte Center for Energy Solutions. “Powering the Future of Mobility,” 2017. Available at: https://goo.gl/5eWLg3 59 David Ferris, “Utility Regulators: No Easy Road to Supporting EVs,” Energywire, June 21, 2018 (subscription service).

60 David Ferris and Jeff Tomich. “Automakers and Utilities Want EVs. But Who Drives?” Energywire, June 19, 2018 (subscription service).

61 Mayor’s Office of Communications, City of Atlanta, GA. “City of Atlanta Passes ‘EV Ready’ Ordinance into Law,” Press Release, November 21, 2017.

62 Urvaksh Karkaria and Dave Williams, “Atlanta May Require New Buildings to Accommodate Electric Vehicles,” Atlanta Business Chronicle, October 17, 2017.

63 Vu Chau, “More Power for Electric Vehicles?” Capitol Weekly, October 4, 2017. Available at: http://capitolweekly.net/ more-power-electric-vehicles/ 64 Nevada Governor’s Office of Energy. “Governor Sandoval and NV Energy Announce the Nevada Electric Highway: Will link

Northern and Southern Nevada with electric vehicle charging stations along Route 95,” Press Release. June 16, 2015.

65 AASHTO Journal. “Nevada DOT Adds US 95 Electric Charging Station in Continued Buildup of EV Infrastructure,” March 23, 2018. Available at: https://news.transportation.org/ Pages/032318nevcharge.aspx 66 Nevada Department of Transportation. “Nevada Further Expands Electric Vehicle Infrastructure,” News Release. March 8, 2018.

67 Office of Colorado Gov. John Hickenlooper. “Governors of Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming Sign MOU to Plan Regional Electric Vehicle Corridor for the West,” Press Release. October 4, 2017.

68 David Gutman, “Washington State to Spend $1M on Electric-Vehicle Charging Stations,” The Seattle Times, September 7, 2017.

69 For more information about the campaign, see the website: https://driveelectricus.com/ 70 See, for instance, Massachusetts’ announcement of adding $2 million in funding to its EV rebate program, announced at the New England International Auto Show. Available at: https://goo. gl/XjA5ee 71 Noel Popwell, “A Critical Partnership in the Push for Electric Cars,” Governing, February 26, 2018.

72 For more information, see the website of West Coast Green Highway, available at: www.westcoastgreenhighway.com/evsigns.htm 73 Bob Sanders. “New Law Boosts Electric Vehicle Charging Infrastructure in NH: DOT Will Install Highway Signage for EV Stations,” New Hampshire Business Review, June 21, 2018.

74 Tamara L. Sheldon and J.R. DeShazo. “How does the presence of HOV lanes affect plug-in electric vehicle adoption in California? A generalized propensity score approach,” UCLA Luskin School of Public Affairs, University of South Carolina Department of Economics, February 23, 2016.

75 Kate Cagle, “Bill Would Extend Carpool Lane Access for Hybrid and Electric Cars,” Santa Monica Daily Press, July 3, 2017.

76 Hartman and Dowd (2017).

77 Irvin Dawid, “Electric Vehicles to Lose Important Perk in Southern California,” Planetizen, April 30, 2018.

78 David Roberts, “Electric Buses are Coming, and They’re Going to Help Fix 4 Big Urban Problems,” Vox, October 25, 2017.

79 Patrick Sisson, “Buses—Small, Electric and Automated—May be Transit’s Future,” Curbed, November 2, 2017.

80 “Proterra Introduces New High Power Interoperable EV Charging Technology,” Mass Transit, May 9, 2018. Available at: https://goo.gl/BYqhbV 81 Paige St. John, “Stalls, Stops and Breakdowns: Problems Plague Push for Electric Buses,” Los Angeles Times, May 20, 2018.

82 Iulia Gheorghiu, “80% of Transit Buses Expected to Go Electric by 2040, Report Forecasts,” Utility Dive, May 23, 2018.

83 Alana Miller and others (2018). Electric Buses: Clean Trans-

portation for Healthier Neighborhoods and Cleaner Air. U.S. Public Interest Research Group, Frontier Group, and Environment America.

84 Laura J. Nelson, “L.A. Metro Wants to Spend $138 Million on Electric Buses. The Goal: An Emission-free Fleet by 2030,” Los Angeles Times, July 21, 2017.

85 Claire Tran, “Electric Double-Decker Buses Are Coming to L.A.,” City Lab, July 12, 2018.

86 Office of King County Executive Dow Constantine.

“King County Executive Announces Purchases of Battery Buses, Challenges Industry to Build Next-Generation Transit,” Press Release. January 10, 2017.

87 Mark Kane, “New York City to Test 5 New Flyer Electric Buses,” Inside EVs, February 15, 2018.

88 Kevin Stark, “Chicago Seeks to Expand its Electric Bus Fleet,” Energy News Network, January 4, 2018.

89 California Air Resource Board. “Implementation Manual for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) and Low NOx Engine Incentives Implemented Through HVIP.” January 10, 2018.

90 Clean Air Fleets. “ALT Fuels Colorado.” Accessed from: https://goo.gl/UY1qkx 91 “CA Bill: Ride Sharing Electric Vehicles Requirement,” California News Wire Services, February 7, 2018.

92 Irvin Dawid. “A Dozen New Laws to Spur Sales of Zero Emission Vehicles in California,” Planetizen. October 13, 2017.

93 Zach McDonald, “How Public Fleets Use Electric Vehicles to Meet Emissions Targets,” Fleet Carma, September 20, 2017.

94 Hartman and Dowd (2017).

95 Sierra Club and Plug In America (2018). AchiEVe: Model State and Local Policies to Accelerate Electric Vehicle Adoption.

96 For more information about the program, see OReGO’s website at www.myorego.org/ 97 Aria Shephard Bull, “Washington Unrolls Pay-Per-Mile Pilot Program,” Kitsap Sun, April 21, 2018.

98 Irwin Dawid, “East Coast Prepares to Launch Road Usage Charge ‘Mini’ Pilot,” Planetizen, August 9, 2017.

99 Robert Walton, “Xcel Energy Minnesota Approved to Test Residential Time-Of-Use Rates in 2020,” Utility Dive, June 1, 2018.

100 Ibid.

101 Garrett Fitzgerald and Chris Nelder (2017). EVGO Fleet and Tariff Analysis. Boulder, CO: Rocky Mountain Institute.

102 Katie Fehrenbacher. “Public Electric-Car Chargers are Being Crushed by Demand Charges,” Greentech Media, April 6, 2017.

103 Letter from coalition of energy providers to Reps. Paul Ryan (R-WI), Nancy Pelosi (D-CA), Kevin Brady (R-TX), and Richard E. Neal (D-MA), and Sens. Mitch McConnell (R-KY), Chuck Schumer (D-NY), Orrin G. Hatch (R-UT), and Ron

Wyden (D-OR), March 13, 2018. Available at: https://goo. gl/ezaVjr 104 U.S. Department of Transportation Announces $55 Million in Grants to Support High-Tech Low-No Buses, American Manufacturing. Available at: https://goo.gl/1YP3AP 105 For more information about the Climate Leadership Council’s proposal, see their website at www.clcouncil. org/. For understanding Rep. Carlos Curbelo’s proposed legislation, see the following analysis: Noah Kaufman and others, “Emissions, Energy, and Economic Implications of the Curbelo Carbon Tax Proposal,” Columbia Center on Global Energy Policy, July 19, 2018.

106 Kevin Kennedy and Christina DeConcini, “How the US can Meet its Emissions Targets with a Carbon Tax,” World Resources Institute, June 21, 2018.

107 Lia Cattaneo (2018).

108 Ibid.

1776 Avenue of the States Lexington, KY 40511 859.244.8000 | www.csg.org

STATE STRATEGIES FOR ADVANCING THE ELECTRIC VEHICLE MARKETPLACE:

A CSG National Report | December 2018

AUTHORS

Devashree Saha The Council of State Governments Director of Energy & Environmental Policy Washington, DC Sean Slone The Council of State Governments Director of Transportation & Infrastructure Policy Lexington, KY

ABOUT CSG

Founded in 1933, The Council of State Governments is our nation’s only organization serving all three branches of state government. CSG is a region-based forum that fosters the exchange of insights and ideas to help state officials shape public policy. This offers unparalleled regional, national and international opportunities to network, develop leaders, collaborate and create problem-solving partnerships.

© The Council of State Governments, 2018. All rights reserved.