15 minute read
Future of Transportation
Pete Buttigieg and Alex Padilla: GOING ELECTRIC
THE LONG-ANTICIPATED ELECTRIFICATION OF THE
transportation network is happening now. Will the United States be a leader or a follower in this revolution? What public policy measures are needed to ensure American jobs and American companies are at the forefront? From the June 11, 2021, online program “Electrifying the Transportation Future: 12th Annual Mineta National Transportation Finance Summit.” This program was supported by the Mineta Transportation Institute at San José State University. PETE BUTTIGIEG, U.S. Secretary of Transportation ALEX PADILLA, U.S. Senator (D-CA); Former California Secretary of State KAREN PHILBRICK, Ph.D., Executive Director, Mineta Transportation Institute— Program Emcee
KAREN PHILBRICK: Welcome to today’s meeting of The Commonwealth Club of California. I’m very pleased to introduce a special guest, the Honorable Pete Buttigieg, 19th U.S. secretary of transportation. Prior to joining the Biden-Harris administration, Secretary Buttigieg served two terms as mayor of his hometown in South Bend, Indiana. A graduate of Harvard University and a Rhodes Scholar at Oxford, Secretary Buttigieg served for seven years as an officer in the U.S. Navy reserve, taking a leave of absence from the mayor’s office for a deployment to Afghanistan in 2014. Time prevents a full accounting of his many accomplishments. So I will simply say, Welcome. We are so pleased you could join us for this fireside chat, Mr. Secretary. PETE BUTTIGIEG: Karen, thank you so much for the kind introduction and thrilled to be reconnected with The Commonwealth Club, which I’ve so enjoyed addressing, and very honored to be in the virtual company of Secretary [Norman] Mineta, somebody whose public service is also something that time would prevent us fully acknowledging even now, but who has opened doors for so many, who has been very kind to me in introducing me to this position, following in his footsteps; and whose record of service in uniform and in public leadership really is inspiring. . . .
I’ll speak for just a few very brief moments, and I look forward to a brief exchange as well. But the main thing I want to convey is the importance of vehicle electrification to meeting the president’s goals for our climate. This administration views climate change as a defining challenge in our time. It’s why at the April Climate Summit hosted at the White House, the president laid out the ambitious target to cut U.S. carbon emissions in half by 2030, in addition to re-establishing U.S. participation in the Paris Accord.
The scale that we need in order to actually make that real is why the president’s jobs plan is so important, especially when it comes to electric vehicles. Now, I believe the industry is moving there already. I believe adoption around the world is happening already. So someone asked why [do we need] a push on this, if this is where things are headed. And I think that the reason has to do with answering three questions.
First of all, if electric vehicles [are] in the future, will they be made in America? Will America be leading these markets? Will there be American workers and American firms on American soil making EVs? I think that largely depends on our policy choices.
Secondly, are they going to be affordable and accessible to all Americans, especially those who are less wealthy and those who live in rural areas, which for reasons I’ll go into in a minute are among those who stand the most to gain, but not if they can’t afford it in the first place.
And third, maybe most important—okay, an EV transition may be ahead, but will it happen fast enough to beat climate change before it’s too late? So much of that depends on the choices we make.
So let me unpack each of those very briefly. First of all, making the cars of the future in America. This is why the president’s plan focuses on every part of that. Domestic supply chains, retooling factories to build components, funding manufacturers for training programs, helping Americans get the skills to build batteries and other parts of electric vehicles, as well as assembling the vehicles themselves, and creating all the jobs
—PETE BUTTIGIEG
U.S. Secretary of Transportation Pete Buttigieg.
that come with that.
And by the way, a lot of these jobs are not newfangled, futuristic, mysterious jobs. This is the auto workers who will make cars. This is the electrical workers who will install the charger base that we need to support those cars. This is, in other words, a very blue collar vision for a greener America, and the plan incentivizes companies to manufacture their cars right here at home, which takes me to the second point, which is making these electric vehicles more affordable and accessible.
As mentioned earlier, the jobs plan envisions rebates and tax incentives for buyers of electric cars. This is to make the upfront costs more attainable for more Americans, as well as the $15 billion we envisioned to build a network of half-a-million chargers across the country. Because there are some places where, even as we speak, you could easily make a profit on an electric vehicle charger, others where it doesn’t pencil out on its own, unless we make some policy choices.
And often those are rural communities. Rural areas have been the last to be fully connected to any of the new advances in our country—electricity, telephones, broadband internet. In each of those cases, good things happen when policy stepped in. That’s something we need to do here. Rural residents, because they drive 66 percent more miles, just as a matter of common sense, [they] burn more fuel and can save more money. I’m thinking about my in-laws in Michigan, a mom-and-pop landscaping company, and what my father and motherin-law could save with an electric pickup truck. They could charge at home. They will have an electric truck that actually has better torque than the old gas truck, which is useful when my father-in-law’s plowing snow in the winter, as well as when they’re towing equipment. And they won’t have to worry about the distance if we get the charging network right.
So every family that’s thinking about their family budget stands to gain from the EV revolution, but only if we set the table right away.
Time is of the essence; the climate crisis, the timelines—they’re not established by Congress. They’re not established by the officials like me. They’re established by physics, and they’re bearing down on us. We can rise to meet this challenge and do it in time and be proud of our actions beginning in the early 2020s when it came to decarbonizing transportation. But only if we act now, only if we act big, which is why you see such energy and such boldness in the president’s vision. So I appreciate the chance to just share that quick outline with you and I look forward to our conversation. PHILBRICK: Well, thank you so much for those comments. They’re very intriguing and let’s just jump right into the first question here. At a conceptual level, what’s the appropriate role for the federal government in helping the U.S. transition toward electrification of the fleet and what specific components of the American Jobs Plan will support that transition? BUTTIGIEG: I think the federal role really is to fill in the gaps. State government, local government, [the] private sector, they’re all playing a role, but it’s clear that they shouldn’t be asked to do it alone. The jobs plan includes $174 billion total to the EV market. The main elements of that include $15 [billion], as I mentioned earlier, to develop this national charging network. This would be a formula program to strategically deploy the EV charging infrastructure, as well as potentially other alternative fuel sources along designated fuel corridors that we were already identifying in partnership with the Department of Energy, so that it’s very clear where that national network is and so that range anxiety doesn’t stop adoption. And then as I mentioned earlier, [the plan includes] those consumer rebates and tax incentives.
Now, we also have to recognize it’s not just private vehicles, right? The federal government, we’re a huge purchaser of vehicles. So electrifying the federal fleet and postal service, school buses. The [plan includes] funds to electrify at least 20 percent of the yellow bus fleet, 40 percent of transit
vehicles, which is obviously a big part of the solution.
And even as we work toward getting the [American] Jobs Plan passed, we’re working this into what we’re doing right now. So for the first time, we have in defined, new ways, climate as a criteria in our existing grant program, both to send a message and to make real improvements and help communities that are doing it. So the federal government’s not going to own and operate every charger, we’re certainly not going to design, develop and sell electric vehicles; but we do have a very important role. And the jobs plan is part of how we step up to that role. PHILBRICK: Absolutely. Thank you. And in that response, you touched on equity. So I’m curious, how can the federal government ensure the benefits from electrification— whether cleaner air or well-paying new jobs— are dispersed equitably to communities across our entire nation, whether rural or urban? BUTTIGIEG: The truth is that our transportation policy has a mixed legacy in this country from an equity perspective, but now’s the chance to do something about it. That’s why the Jobs Plan includes a Justice 40 initiative. We call it Justice 40 because it envisions 40 percent of the overall benefits of the federal investments around things like climate going to disadvantaged communities that have been overburdened or underserved because of federal policy. It’s a chance to make right what was broken in the past.
You also consider the fact that often it is communities of color and low-income communities that are more likely to live near ports or highways, where there is more particulate matter coming from tailpipe emissions, therefore higher rates of susceptibility to things like asthma. There’s a public health equity issue baked into our climate equity issue. All of which is transportation equity.
So this needs to be envisioned in all of our work, specifically funded in the president’s [American] Jobs Plan vision, but also just contemplated in the ways that we’re working with states, with cities, with communities, notably with tribes. As your question mentioned, this is about racial equity, but also regional equity and making sure we support urban and rural communities alike. Rural communities may struggle with EV adoption in terms of range, but they’re actually better off in terms of charging access, because most houses stand alone. You can plug it in your garage. Urban environments it is the opposite. You’re not as worried about range, but not everybody has a house with its own plug points. That’s why we need to think about how to make shared or publicly accessible charging stations more available in cities. All of this adds up into a picture where every American [is able to benefit], because we’re doing this and because we’re doing it now. PHILBRICK: Absolutely. And you know, you touched on the importance of having well-paying jobs, family supporting jobs. To what extent will moveing the nation toward electric vehicles create those quality jobs, those well-paying jobs that can support our families? BUTTIGIEG: Yeah. I think this is where we get to prove the falsehood of the old framework of climate-versus-jobs. This is about job creation through climate action. That’s why whenever you hear the president talk about climate, he’s also talking about jobs. This is a great example of how to do it. And it’s why the [American] Jobs Plan calls for investments connected to things like local hire, community workforce, project labor agreements, registered apprenticeships, because we also need to get people into these jobs who haven’t had a shot at it in the past. And I applaud those organized labor unions, for example, that have been proactive about welcoming in those who have not had the historical expectation to seeing people who look like them on work sites. We’ve got to get this right. And that’s part of what we can do in this electric vehicle revolution. PHILBRICK: So true. You remind me that if you can’t see it, you can’t be it. And how critically important it is that we engage that K-through-12 sector also in this conversation about futures and transportation. I know we’re down to our last couple minutes together. So I have one final question. What are the key barriers the nation will face in moving toward this electric vehicle fleet? BUTTIGIEG: So a lot of it’s technical— supply chains, electrical grid infrastructure. A lot of it’s financial—making sure we’re actually willing to make the investments, those market-making investments, that catapult the electric vehicle adoption faster than it’s been. But actually I think a lot of it’s cultural. We just need to realize that part of our tradition has always been innovation. So in an odd way, nothing could be truer to our tradition, the same tradition that produced internal combustion engine vehicles that defined my city until the collapse of the Studebaker car company in the ’60s. And then that collapsed . . . and our recovery from it defines the life of my hometown to this day. We need to realize the relationship between past, present, and future and acknowledge that nothing could be more
—ALEX PADILLA U.S. Senator Alex Padilla.
American than finding a way to lead the world on the cars of the future, just as we did on the cars in the past. PHILBRICK: Absolutely. What a pleasure it has been to be with you today. Thank you for making the time. Thank you for sharing your incredible comments. And we wish you well, Mr. Secretary. BUTTIGIEG: Well, thank you. Thanks for this conversation and thanks again for the expertise and the passion of everybody participating in this event. These kinds of problem solvers are going to create incredible results. I think we’ll look back and be proud of the 2020s if we get off to the right beginning right now. PHILBRICK: I couldn’t agree more. Thanks again. Be well.
I’m now pleased to introduce U.S. Senator Alex Padilla, who will make some introductory remarks. Senator Padilla is the proud son of immigrants from Mexico, who previously served on the Los Angeles City Council and was then elected to the California State Senate, where he passed more than 70 bills, including landmark legislation to combat climate change. He was named one of Sacramento’s most effective legislators before being sworn in as California’s first Latino secretary of state in 2015. He was reelected in 2018, receiving the most votes of any Latino elected official in the United States. Now, he’s gone on to even greater things. In December 2020, Senator Padilla was appointed by Governor Gavin Newsom to finish the term of Vice President Kamala Harris. Welcome Senator Padilla. ALEX PADILLA: Hi, I’m Senator Alex Padilla. Thank you for inviting me to open this important conversation of the challenges and opportunities of electrifying our transportation system. As we begin the process of recovery from the COVID-19 pandemic, we must invest in a more just and more sustainable future. In California, we know that climate action can’t wait. California’s already experiencing the devastating effects of the climate crisis, from record-breaking droughts and wildfires to coastal erosion and habitat loss. And the transportation sector is the largest generator of greenhouse gas emissions in the United States.
To meet the demands of the climate crisis, we need to make bold investments in cleaner transportation technologies. Along with partners in the Senate, I introduced a resolution that outlines a plan for electrifying America’s future. We call for a widespread modernization of the power grid to support the electrification of high emissions sectors like transportation and are proud to support President Biden’s call for $174 billion of federal funding to bolster the electric vehicle market.
Transitioning to electric vehicles is an essential step in reducing our carbon footprint. It will also strengthen our economy by spurring the creation of goodpaying jobs and innovative technologies, but federal grant funding is just one of the funding sources we’ll need to renew our infrastructure for a clean transportation future. Low-interest federal loan programs and bonds are also helping transportation agencies to access the capital they need to get shovels in the ground.
In more than 20 years of public service, I’ve seen that virtually every major infrastructure project using federal funds also leverages state and or local dollars. And increasingly, public-private partnerships are bringing additional investments to infrastructure plans that will pay off for the whole community. It’s our job as policymakers to ensure that our funding strategies and new projects are also rooted in equity. Low-income communities, communities of color, immigrant communities, and Native Americans disproportionately live on the front lines of the climate crisis, but have too often been left out of critical infrastructure investments.
To address decades of environmental injustice and disparities in health and employment, we must bring robust funding to projects in vulnerable and disadvantaged communities. We must ensure that electric vehicle infrastructure like charging and fueling stations are available to all Americans in all communities. We should bring cleaner, safer electric school buses to every school, an effort I’m leading in the Senate. And we need to improve the sustainability and reliability of public transportation, which has enormous potential to connect communities to jobs and resources. That’s why I’m a proud co-sponsor of the Build Green Infrastructure and Jobs Act, which would invest $500 billion over the next 10 years to accelerate our transition to an all electric public transportation future. This bill would create up to 1 million jobs at the same time as supporting equity in fighting the root causes of climate change.
Now is the time to build a clean transportation future. That means innovating beyond our traditional infrastructure funding tools, because the investments we make today will multiply in value for our communities and our environment. Thank you. PHILBRICK: And thank you, Senator Padilla. It’s just so wonderful to hear your vision of an equitable, just, and sustainable future. And we look forward to working with you on achieving that vision.
