electric utilities and the future of clean transportation

1
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Page 1: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 132 WWWAMERICANPROGRESSO

Electric Utilities and the

Future of Clean TransportationBy Myriam Alexander-Kearns and Alison Cassady April 2016

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 232

Electric Utilities and theFuture of Clean Transportation

By Myriam Alexander-Kearns and Alison Cassady April 2016

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 332

1 Introduction and summary

4 The need to electrify the transportation sector

6 Current state of electric vehicles in the United States

9 Electric vehicle growth can benefit electric utilities

12 The role of electric utilities in promoting electricvehicle growth

21 Recommendations

23 Conclusion

24 About the authors

25 Endnotes

Contents

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8182019 Electric Utilities and the Future of Clean Transportation

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2 Center for American Progress | Electric Utilities and the Future of Clean Transportation

uiliy secor and 70 inernaional elecric company members991252signed a memo-

randum o undersanding or MOU wih he US Deparmen o Energy or

DOE o work ogeher o accelerae he deploymen o elecric vehicles and he

charging inrasrucure o suppor hem

Many uiliies are already engaged Some are offering special raes o elecric vehicle owners in heir service area o incenivize hem o charge heir cars dur-

ing off-peak elecriciy demand hours Tis saves consumers money and helps

uiliies manage heir demand load Several uiliies including he hree larges in

Caliornia are invesing direcly in elecric vehicle inrasrucure o accommodae

a prediced increase in elecric vehicle ownership in coming years

Boh privae companies and consumer groups are concerned abou his involve-

men by elecric uiliies Privae companies such as Chargepoin ha provide

charging services worry ha he uiliies will sifle healhy compeiion and crowd

ou raher han build upon privaely unded charging inrasrucure Consumergroups991252such as Te Uiliy eorm Nework and Caliorniarsquos Office o aepayer

Advocaes991252are worried ha raepayers will suffer and be charged higher raes i

he uiliiesrsquo invesmens ail or do no mee expecaions

Given he urgen challenge posed by climae change and he need o cu green-

house gas emissions rom he US ransporaion secor i is imporan ha

uiliies work wih concerned sakeholders and sae public uiliy commissions o

develop a workable model or uiliy engagemen in elecric vehicle deploymen

As providers o a service ha reaches nearly every household and business uili-

ies have a unique reach ino American communiies Te Cener or American

Progress recommends ha elecric uiliies do he ollowing

bull Saring wih pilo programs inves in a public charging inrasrucure in heir

service areas o complemen he privae secorrsquos invesmen in his area

bull Offer ime-o-use raes o encourage elecric vehicle owners o charge during

low-demand imes and ideniy ways o offer elecric vehicle owners elecriciy

generaed rom renewable or zero-carbon energy sources

bull Expand charging access o low-income areas and muliamily residences and

encourage sae policymakers o offer poin-o-sale rebaes or residens in hese

areas o make he cars a more affordable opion

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3 Center for American Progress | Electric Utilities and the Future of Clean Transportation

By implemening hese recommendaions uiliies can encourage a large cusomer

base o consider elecric vehicle ownership resuling in vas greenhouse gas emis-

sions reducions rom he ransporaion secor and a seady susainable demand

or elecriciy For cusomer who are already ineresed in elecric vehicle ownership

uiliies can increase access and affordabiliy o cars and charging inrasrucure

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4 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The need to electrify the

transportation sector

In advance o he December 2015 UN Framework Convenion on Climae

Change Conerence o Paries meeing in Paris he Unied Saes commited

o reduce is greenhouse gas emissions by 26 percen o 28 percen below 2005

levels by 20253 A he conerence 195 counries991252including he Unied Saes991252

adoped a global agreemen o aim o reduce greenhouse gas emissions and limi

global warming o less han 2 degrees Celsius above preindusrial levels in order o

avoid he mos caasrophic impacs o climae change4

Te Unied Saes is on is way o meeing is Paris commimen alhough more

work remains5 o limi warming o 15 degrees Celsius o 2 degrees Celsius

however he Unied Saes will need o ideniy ways o cu oal greenhouse gas

emissions by a leas 80 percen below 1990 levels by 2050 a level ha climae

scieniss have long agreed upon as necessary o limi warming a his level6

Te Unied Saes has sared by cleaning up he power secor Te US

Environmenal Proecion Agency or EPA finalized he Clean Power Plan which

i implemened will reduce carbon emissions rom he power secor 32 percen

rom 2005 levels by 20307 Tis is a sep oward meeing he 2025 and 2050 goals

or emissions reducions in all secors

o achieve even deeper polluion reducions he Unied Saes needs o find a

cleaner way o power vehicles he ransporaion secor accouned or more han

27 percen o domesic greenhouse gas emissions in 20138 Te majoriy o hose

emissions99125260 percen991252came rom ligh-duy vehicles such as passenger cars

ha rely on gasoline or uel9

As he US elecriciy sysem coninues is ransiion oward lower- and zero-carbon energy sources elecric vehicles will become even cleaner han hey

already are on a lie-cycle basis aking ino accoun all emissions semming rom

manuacuring o driving he car (see ex box on page 5) Already greenhouse

gas emissions rom he average batery elecric vehicle are 50 percen lower han

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5 Center for American Progress | Electric Utilities and the Future of Clean Transportation

emissions rom a comparable gasoline car on a lie-cycle basis991252rom manuac-

uring o driving10 An elecric vehicle driven in every region o he Unied Saes

currenly produces less polluion han a new gasoline-ueled car and abou

wo-hirds o Americans live in regions where driving an elecric vehicle ha

plugs ino he regional grid creaes less polluion han a radiional car ha ges 50

miles-per-gallon11

By replacing gasoline-uelled cars wih cleaner elecric vehicles we will see signifi-

can reducions in greenhouse gas emissions rom he ransporaion secor

Cleaning up electricity The surge forward with renewables

2015 was a momentous year for clean energy initiatives in the United States

bull In August the EPA finalized its Clean Power Plan regulations that would require states to reduce

carbon emissions from electricity generation12 If implemented by the EPA pending a decision by

the US Supreme Court states will develop individual plans to achieve their emissions reductions

goals or collaborate with other states13 Many states will increase their generation from renew-

able sources such as wind and solar power as one way to comply with the new regulations

bull In December Congress authorized a five-year extension of the investment tax credit for solar

energy and the production tax credit for wind energy Other renewables like geothermal energy

received one-year extensions to their investment tax credit With the extension of the tax credits

experts predict that utilities that are not already investing in solar and wind technology will

begin to invest in these areas14

bull Rooftop solar power generation became cost-competitive achieving grid-parity with other

forms of electricity in 19 states and Washington DC according to recent data15 Parity is

achieved when the levelized cost of solar power slips below the total electricity bill savings

within the first year of installing the system16 According to the Solar Energy Industries Associa-

tion solar energy grew significantly in 2015 For the first three-quarters of the year 30 percent of

all new generating capacity in the United States came from solar power17

bull Wind energy is also projected to continue its substantial rise Between 2010 and 2013 wind ca-pacity increased roughly 50 percent from 40 GW across 27 states to 60 GW across 34 states18 By

the end of 2015 the US wind capacity passed 74 GW and installations in 2015 were 77 percent

greater than in 201419 By 2020 capacity is expected to rise to 113 GW in the United States20

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6 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Current state of electric

vehicles in the United States

More elecric vehicles are on he road han ever beore and expers expec

he elecric vehicle marke o coninue o grow Te cos o vehicles is declin-

ing as is he cos o batery manuacuring and batery lie is longer han ever

Meanwhile charging inrasrucure is going up across he counry991252paricularly

in ciies hroughou Caliornia and on he Eas Coas991252which allows drivers o

charge away rom home21

Sales of electric vehicles

Elecric vehicle use is on he rise in he Unied Saes As o Ocober 2015 plug-in

hybrids and batery elecric vehicles oaled roughly 417000 in he Unied Saes

or 3 percen o he vehicle marke22

Many saes are working o deploy more elecric vehicles as a means o clean

up air polluion and miigae climae change In 1990 Caliornia adoped he

Zero Emissions Vehicle or ZEV program esablishing a goal ha manuacur-

ers include ZEVs as 2 percen o he vehicles hey produce or sale23 Caliornia

updaed his goal in 2012 now requiring ZEVs and plug-in hybrids o com-

prise 15 percen o new vehicle sales by 202524 Connecicu Maine Maryland

Massachusets New Jersey New York Oregon hode Island and Vermon have

adoped he Caliornia ZEV program under Secion 177 o he Clean Air Ac o

1970 which allows saes o adop Caliorniarsquos vehicle emissions sandards25

In 2013 governors rom Caliornia Connecicu Massachusets Maryland New

York Oregon hode Island and Vermon signed a memorandum o undersand-

ing ha commited o pu a leas 33 million ZEVs mos commonly batery-elecric vehicles on he road in hese saes by 202526 In his agreemen he saes

commited o he coordinaed effor so hey could achieve he 33 million goal

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7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

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8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

8182019 Electric Utilities and the Future of Clean Transportation

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 2: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

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Electric Utilities and theFuture of Clean Transportation

By Myriam Alexander-Kearns and Alison Cassady April 2016

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 332

1 Introduction and summary

4 The need to electrify the transportation sector

6 Current state of electric vehicles in the United States

9 Electric vehicle growth can benefit electric utilities

12 The role of electric utilities in promoting electricvehicle growth

21 Recommendations

23 Conclusion

24 About the authors

25 Endnotes

Contents

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 532

2 Center for American Progress | Electric Utilities and the Future of Clean Transportation

uiliy secor and 70 inernaional elecric company members991252signed a memo-

randum o undersanding or MOU wih he US Deparmen o Energy or

DOE o work ogeher o accelerae he deploymen o elecric vehicles and he

charging inrasrucure o suppor hem

Many uiliies are already engaged Some are offering special raes o elecric vehicle owners in heir service area o incenivize hem o charge heir cars dur-

ing off-peak elecriciy demand hours Tis saves consumers money and helps

uiliies manage heir demand load Several uiliies including he hree larges in

Caliornia are invesing direcly in elecric vehicle inrasrucure o accommodae

a prediced increase in elecric vehicle ownership in coming years

Boh privae companies and consumer groups are concerned abou his involve-

men by elecric uiliies Privae companies such as Chargepoin ha provide

charging services worry ha he uiliies will sifle healhy compeiion and crowd

ou raher han build upon privaely unded charging inrasrucure Consumergroups991252such as Te Uiliy eorm Nework and Caliorniarsquos Office o aepayer

Advocaes991252are worried ha raepayers will suffer and be charged higher raes i

he uiliiesrsquo invesmens ail or do no mee expecaions

Given he urgen challenge posed by climae change and he need o cu green-

house gas emissions rom he US ransporaion secor i is imporan ha

uiliies work wih concerned sakeholders and sae public uiliy commissions o

develop a workable model or uiliy engagemen in elecric vehicle deploymen

As providers o a service ha reaches nearly every household and business uili-

ies have a unique reach ino American communiies Te Cener or American

Progress recommends ha elecric uiliies do he ollowing

bull Saring wih pilo programs inves in a public charging inrasrucure in heir

service areas o complemen he privae secorrsquos invesmen in his area

bull Offer ime-o-use raes o encourage elecric vehicle owners o charge during

low-demand imes and ideniy ways o offer elecric vehicle owners elecriciy

generaed rom renewable or zero-carbon energy sources

bull Expand charging access o low-income areas and muliamily residences and

encourage sae policymakers o offer poin-o-sale rebaes or residens in hese

areas o make he cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 632

3 Center for American Progress | Electric Utilities and the Future of Clean Transportation

By implemening hese recommendaions uiliies can encourage a large cusomer

base o consider elecric vehicle ownership resuling in vas greenhouse gas emis-

sions reducions rom he ransporaion secor and a seady susainable demand

or elecriciy For cusomer who are already ineresed in elecric vehicle ownership

uiliies can increase access and affordabiliy o cars and charging inrasrucure

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 732

4 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The need to electrify the

transportation sector

In advance o he December 2015 UN Framework Convenion on Climae

Change Conerence o Paries meeing in Paris he Unied Saes commited

o reduce is greenhouse gas emissions by 26 percen o 28 percen below 2005

levels by 20253 A he conerence 195 counries991252including he Unied Saes991252

adoped a global agreemen o aim o reduce greenhouse gas emissions and limi

global warming o less han 2 degrees Celsius above preindusrial levels in order o

avoid he mos caasrophic impacs o climae change4

Te Unied Saes is on is way o meeing is Paris commimen alhough more

work remains5 o limi warming o 15 degrees Celsius o 2 degrees Celsius

however he Unied Saes will need o ideniy ways o cu oal greenhouse gas

emissions by a leas 80 percen below 1990 levels by 2050 a level ha climae

scieniss have long agreed upon as necessary o limi warming a his level6

Te Unied Saes has sared by cleaning up he power secor Te US

Environmenal Proecion Agency or EPA finalized he Clean Power Plan which

i implemened will reduce carbon emissions rom he power secor 32 percen

rom 2005 levels by 20307 Tis is a sep oward meeing he 2025 and 2050 goals

or emissions reducions in all secors

o achieve even deeper polluion reducions he Unied Saes needs o find a

cleaner way o power vehicles he ransporaion secor accouned or more han

27 percen o domesic greenhouse gas emissions in 20138 Te majoriy o hose

emissions99125260 percen991252came rom ligh-duy vehicles such as passenger cars

ha rely on gasoline or uel9

As he US elecriciy sysem coninues is ransiion oward lower- and zero-carbon energy sources elecric vehicles will become even cleaner han hey

already are on a lie-cycle basis aking ino accoun all emissions semming rom

manuacuring o driving he car (see ex box on page 5) Already greenhouse

gas emissions rom he average batery elecric vehicle are 50 percen lower han

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 832

5 Center for American Progress | Electric Utilities and the Future of Clean Transportation

emissions rom a comparable gasoline car on a lie-cycle basis991252rom manuac-

uring o driving10 An elecric vehicle driven in every region o he Unied Saes

currenly produces less polluion han a new gasoline-ueled car and abou

wo-hirds o Americans live in regions where driving an elecric vehicle ha

plugs ino he regional grid creaes less polluion han a radiional car ha ges 50

miles-per-gallon11

By replacing gasoline-uelled cars wih cleaner elecric vehicles we will see signifi-

can reducions in greenhouse gas emissions rom he ransporaion secor

Cleaning up electricity The surge forward with renewables

2015 was a momentous year for clean energy initiatives in the United States

bull In August the EPA finalized its Clean Power Plan regulations that would require states to reduce

carbon emissions from electricity generation12 If implemented by the EPA pending a decision by

the US Supreme Court states will develop individual plans to achieve their emissions reductions

goals or collaborate with other states13 Many states will increase their generation from renew-

able sources such as wind and solar power as one way to comply with the new regulations

bull In December Congress authorized a five-year extension of the investment tax credit for solar

energy and the production tax credit for wind energy Other renewables like geothermal energy

received one-year extensions to their investment tax credit With the extension of the tax credits

experts predict that utilities that are not already investing in solar and wind technology will

begin to invest in these areas14

bull Rooftop solar power generation became cost-competitive achieving grid-parity with other

forms of electricity in 19 states and Washington DC according to recent data15 Parity is

achieved when the levelized cost of solar power slips below the total electricity bill savings

within the first year of installing the system16 According to the Solar Energy Industries Associa-

tion solar energy grew significantly in 2015 For the first three-quarters of the year 30 percent of

all new generating capacity in the United States came from solar power17

bull Wind energy is also projected to continue its substantial rise Between 2010 and 2013 wind ca-pacity increased roughly 50 percent from 40 GW across 27 states to 60 GW across 34 states18 By

the end of 2015 the US wind capacity passed 74 GW and installations in 2015 were 77 percent

greater than in 201419 By 2020 capacity is expected to rise to 113 GW in the United States20

8182019 Electric Utilities and the Future of Clean Transportation

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6 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Current state of electric

vehicles in the United States

More elecric vehicles are on he road han ever beore and expers expec

he elecric vehicle marke o coninue o grow Te cos o vehicles is declin-

ing as is he cos o batery manuacuring and batery lie is longer han ever

Meanwhile charging inrasrucure is going up across he counry991252paricularly

in ciies hroughou Caliornia and on he Eas Coas991252which allows drivers o

charge away rom home21

Sales of electric vehicles

Elecric vehicle use is on he rise in he Unied Saes As o Ocober 2015 plug-in

hybrids and batery elecric vehicles oaled roughly 417000 in he Unied Saes

or 3 percen o he vehicle marke22

Many saes are working o deploy more elecric vehicles as a means o clean

up air polluion and miigae climae change In 1990 Caliornia adoped he

Zero Emissions Vehicle or ZEV program esablishing a goal ha manuacur-

ers include ZEVs as 2 percen o he vehicles hey produce or sale23 Caliornia

updaed his goal in 2012 now requiring ZEVs and plug-in hybrids o com-

prise 15 percen o new vehicle sales by 202524 Connecicu Maine Maryland

Massachusets New Jersey New York Oregon hode Island and Vermon have

adoped he Caliornia ZEV program under Secion 177 o he Clean Air Ac o

1970 which allows saes o adop Caliorniarsquos vehicle emissions sandards25

In 2013 governors rom Caliornia Connecicu Massachusets Maryland New

York Oregon hode Island and Vermon signed a memorandum o undersand-

ing ha commited o pu a leas 33 million ZEVs mos commonly batery-elecric vehicles on he road in hese saes by 202526 In his agreemen he saes

commited o he coordinaed effor so hey could achieve he 33 million goal

8182019 Electric Utilities and the Future of Clean Transportation

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7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

8182019 Electric Utilities and the Future of Clean Transportation

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8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

8182019 Electric Utilities and the Future of Clean Transportation

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

8182019 Electric Utilities and the Future of Clean Transportation

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1432

11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

8182019 Electric Utilities and the Future of Clean Transportation

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

8182019 Electric Utilities and the Future of Clean Transportation

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 3: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 332

1 Introduction and summary

4 The need to electrify the transportation sector

6 Current state of electric vehicles in the United States

9 Electric vehicle growth can benefit electric utilities

12 The role of electric utilities in promoting electricvehicle growth

21 Recommendations

23 Conclusion

24 About the authors

25 Endnotes

Contents

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 532

2 Center for American Progress | Electric Utilities and the Future of Clean Transportation

uiliy secor and 70 inernaional elecric company members991252signed a memo-

randum o undersanding or MOU wih he US Deparmen o Energy or

DOE o work ogeher o accelerae he deploymen o elecric vehicles and he

charging inrasrucure o suppor hem

Many uiliies are already engaged Some are offering special raes o elecric vehicle owners in heir service area o incenivize hem o charge heir cars dur-

ing off-peak elecriciy demand hours Tis saves consumers money and helps

uiliies manage heir demand load Several uiliies including he hree larges in

Caliornia are invesing direcly in elecric vehicle inrasrucure o accommodae

a prediced increase in elecric vehicle ownership in coming years

Boh privae companies and consumer groups are concerned abou his involve-

men by elecric uiliies Privae companies such as Chargepoin ha provide

charging services worry ha he uiliies will sifle healhy compeiion and crowd

ou raher han build upon privaely unded charging inrasrucure Consumergroups991252such as Te Uiliy eorm Nework and Caliorniarsquos Office o aepayer

Advocaes991252are worried ha raepayers will suffer and be charged higher raes i

he uiliiesrsquo invesmens ail or do no mee expecaions

Given he urgen challenge posed by climae change and he need o cu green-

house gas emissions rom he US ransporaion secor i is imporan ha

uiliies work wih concerned sakeholders and sae public uiliy commissions o

develop a workable model or uiliy engagemen in elecric vehicle deploymen

As providers o a service ha reaches nearly every household and business uili-

ies have a unique reach ino American communiies Te Cener or American

Progress recommends ha elecric uiliies do he ollowing

bull Saring wih pilo programs inves in a public charging inrasrucure in heir

service areas o complemen he privae secorrsquos invesmen in his area

bull Offer ime-o-use raes o encourage elecric vehicle owners o charge during

low-demand imes and ideniy ways o offer elecric vehicle owners elecriciy

generaed rom renewable or zero-carbon energy sources

bull Expand charging access o low-income areas and muliamily residences and

encourage sae policymakers o offer poin-o-sale rebaes or residens in hese

areas o make he cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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3 Center for American Progress | Electric Utilities and the Future of Clean Transportation

By implemening hese recommendaions uiliies can encourage a large cusomer

base o consider elecric vehicle ownership resuling in vas greenhouse gas emis-

sions reducions rom he ransporaion secor and a seady susainable demand

or elecriciy For cusomer who are already ineresed in elecric vehicle ownership

uiliies can increase access and affordabiliy o cars and charging inrasrucure

8182019 Electric Utilities and the Future of Clean Transportation

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4 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The need to electrify the

transportation sector

In advance o he December 2015 UN Framework Convenion on Climae

Change Conerence o Paries meeing in Paris he Unied Saes commited

o reduce is greenhouse gas emissions by 26 percen o 28 percen below 2005

levels by 20253 A he conerence 195 counries991252including he Unied Saes991252

adoped a global agreemen o aim o reduce greenhouse gas emissions and limi

global warming o less han 2 degrees Celsius above preindusrial levels in order o

avoid he mos caasrophic impacs o climae change4

Te Unied Saes is on is way o meeing is Paris commimen alhough more

work remains5 o limi warming o 15 degrees Celsius o 2 degrees Celsius

however he Unied Saes will need o ideniy ways o cu oal greenhouse gas

emissions by a leas 80 percen below 1990 levels by 2050 a level ha climae

scieniss have long agreed upon as necessary o limi warming a his level6

Te Unied Saes has sared by cleaning up he power secor Te US

Environmenal Proecion Agency or EPA finalized he Clean Power Plan which

i implemened will reduce carbon emissions rom he power secor 32 percen

rom 2005 levels by 20307 Tis is a sep oward meeing he 2025 and 2050 goals

or emissions reducions in all secors

o achieve even deeper polluion reducions he Unied Saes needs o find a

cleaner way o power vehicles he ransporaion secor accouned or more han

27 percen o domesic greenhouse gas emissions in 20138 Te majoriy o hose

emissions99125260 percen991252came rom ligh-duy vehicles such as passenger cars

ha rely on gasoline or uel9

As he US elecriciy sysem coninues is ransiion oward lower- and zero-carbon energy sources elecric vehicles will become even cleaner han hey

already are on a lie-cycle basis aking ino accoun all emissions semming rom

manuacuring o driving he car (see ex box on page 5) Already greenhouse

gas emissions rom he average batery elecric vehicle are 50 percen lower han

8182019 Electric Utilities and the Future of Clean Transportation

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5 Center for American Progress | Electric Utilities and the Future of Clean Transportation

emissions rom a comparable gasoline car on a lie-cycle basis991252rom manuac-

uring o driving10 An elecric vehicle driven in every region o he Unied Saes

currenly produces less polluion han a new gasoline-ueled car and abou

wo-hirds o Americans live in regions where driving an elecric vehicle ha

plugs ino he regional grid creaes less polluion han a radiional car ha ges 50

miles-per-gallon11

By replacing gasoline-uelled cars wih cleaner elecric vehicles we will see signifi-

can reducions in greenhouse gas emissions rom he ransporaion secor

Cleaning up electricity The surge forward with renewables

2015 was a momentous year for clean energy initiatives in the United States

bull In August the EPA finalized its Clean Power Plan regulations that would require states to reduce

carbon emissions from electricity generation12 If implemented by the EPA pending a decision by

the US Supreme Court states will develop individual plans to achieve their emissions reductions

goals or collaborate with other states13 Many states will increase their generation from renew-

able sources such as wind and solar power as one way to comply with the new regulations

bull In December Congress authorized a five-year extension of the investment tax credit for solar

energy and the production tax credit for wind energy Other renewables like geothermal energy

received one-year extensions to their investment tax credit With the extension of the tax credits

experts predict that utilities that are not already investing in solar and wind technology will

begin to invest in these areas14

bull Rooftop solar power generation became cost-competitive achieving grid-parity with other

forms of electricity in 19 states and Washington DC according to recent data15 Parity is

achieved when the levelized cost of solar power slips below the total electricity bill savings

within the first year of installing the system16 According to the Solar Energy Industries Associa-

tion solar energy grew significantly in 2015 For the first three-quarters of the year 30 percent of

all new generating capacity in the United States came from solar power17

bull Wind energy is also projected to continue its substantial rise Between 2010 and 2013 wind ca-pacity increased roughly 50 percent from 40 GW across 27 states to 60 GW across 34 states18 By

the end of 2015 the US wind capacity passed 74 GW and installations in 2015 were 77 percent

greater than in 201419 By 2020 capacity is expected to rise to 113 GW in the United States20

8182019 Electric Utilities and the Future of Clean Transportation

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6 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Current state of electric

vehicles in the United States

More elecric vehicles are on he road han ever beore and expers expec

he elecric vehicle marke o coninue o grow Te cos o vehicles is declin-

ing as is he cos o batery manuacuring and batery lie is longer han ever

Meanwhile charging inrasrucure is going up across he counry991252paricularly

in ciies hroughou Caliornia and on he Eas Coas991252which allows drivers o

charge away rom home21

Sales of electric vehicles

Elecric vehicle use is on he rise in he Unied Saes As o Ocober 2015 plug-in

hybrids and batery elecric vehicles oaled roughly 417000 in he Unied Saes

or 3 percen o he vehicle marke22

Many saes are working o deploy more elecric vehicles as a means o clean

up air polluion and miigae climae change In 1990 Caliornia adoped he

Zero Emissions Vehicle or ZEV program esablishing a goal ha manuacur-

ers include ZEVs as 2 percen o he vehicles hey produce or sale23 Caliornia

updaed his goal in 2012 now requiring ZEVs and plug-in hybrids o com-

prise 15 percen o new vehicle sales by 202524 Connecicu Maine Maryland

Massachusets New Jersey New York Oregon hode Island and Vermon have

adoped he Caliornia ZEV program under Secion 177 o he Clean Air Ac o

1970 which allows saes o adop Caliorniarsquos vehicle emissions sandards25

In 2013 governors rom Caliornia Connecicu Massachusets Maryland New

York Oregon hode Island and Vermon signed a memorandum o undersand-

ing ha commited o pu a leas 33 million ZEVs mos commonly batery-elecric vehicles on he road in hese saes by 202526 In his agreemen he saes

commited o he coordinaed effor so hey could achieve he 33 million goal

8182019 Electric Utilities and the Future of Clean Transportation

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7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

8182019 Electric Utilities and the Future of Clean Transportation

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8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

8182019 Electric Utilities and the Future of Clean Transportation

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

8182019 Electric Utilities and the Future of Clean Transportation

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 4: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 432

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 532

2 Center for American Progress | Electric Utilities and the Future of Clean Transportation

uiliy secor and 70 inernaional elecric company members991252signed a memo-

randum o undersanding or MOU wih he US Deparmen o Energy or

DOE o work ogeher o accelerae he deploymen o elecric vehicles and he

charging inrasrucure o suppor hem

Many uiliies are already engaged Some are offering special raes o elecric vehicle owners in heir service area o incenivize hem o charge heir cars dur-

ing off-peak elecriciy demand hours Tis saves consumers money and helps

uiliies manage heir demand load Several uiliies including he hree larges in

Caliornia are invesing direcly in elecric vehicle inrasrucure o accommodae

a prediced increase in elecric vehicle ownership in coming years

Boh privae companies and consumer groups are concerned abou his involve-

men by elecric uiliies Privae companies such as Chargepoin ha provide

charging services worry ha he uiliies will sifle healhy compeiion and crowd

ou raher han build upon privaely unded charging inrasrucure Consumergroups991252such as Te Uiliy eorm Nework and Caliorniarsquos Office o aepayer

Advocaes991252are worried ha raepayers will suffer and be charged higher raes i

he uiliiesrsquo invesmens ail or do no mee expecaions

Given he urgen challenge posed by climae change and he need o cu green-

house gas emissions rom he US ransporaion secor i is imporan ha

uiliies work wih concerned sakeholders and sae public uiliy commissions o

develop a workable model or uiliy engagemen in elecric vehicle deploymen

As providers o a service ha reaches nearly every household and business uili-

ies have a unique reach ino American communiies Te Cener or American

Progress recommends ha elecric uiliies do he ollowing

bull Saring wih pilo programs inves in a public charging inrasrucure in heir

service areas o complemen he privae secorrsquos invesmen in his area

bull Offer ime-o-use raes o encourage elecric vehicle owners o charge during

low-demand imes and ideniy ways o offer elecric vehicle owners elecriciy

generaed rom renewable or zero-carbon energy sources

bull Expand charging access o low-income areas and muliamily residences and

encourage sae policymakers o offer poin-o-sale rebaes or residens in hese

areas o make he cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 632

3 Center for American Progress | Electric Utilities and the Future of Clean Transportation

By implemening hese recommendaions uiliies can encourage a large cusomer

base o consider elecric vehicle ownership resuling in vas greenhouse gas emis-

sions reducions rom he ransporaion secor and a seady susainable demand

or elecriciy For cusomer who are already ineresed in elecric vehicle ownership

uiliies can increase access and affordabiliy o cars and charging inrasrucure

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 732

4 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The need to electrify the

transportation sector

In advance o he December 2015 UN Framework Convenion on Climae

Change Conerence o Paries meeing in Paris he Unied Saes commited

o reduce is greenhouse gas emissions by 26 percen o 28 percen below 2005

levels by 20253 A he conerence 195 counries991252including he Unied Saes991252

adoped a global agreemen o aim o reduce greenhouse gas emissions and limi

global warming o less han 2 degrees Celsius above preindusrial levels in order o

avoid he mos caasrophic impacs o climae change4

Te Unied Saes is on is way o meeing is Paris commimen alhough more

work remains5 o limi warming o 15 degrees Celsius o 2 degrees Celsius

however he Unied Saes will need o ideniy ways o cu oal greenhouse gas

emissions by a leas 80 percen below 1990 levels by 2050 a level ha climae

scieniss have long agreed upon as necessary o limi warming a his level6

Te Unied Saes has sared by cleaning up he power secor Te US

Environmenal Proecion Agency or EPA finalized he Clean Power Plan which

i implemened will reduce carbon emissions rom he power secor 32 percen

rom 2005 levels by 20307 Tis is a sep oward meeing he 2025 and 2050 goals

or emissions reducions in all secors

o achieve even deeper polluion reducions he Unied Saes needs o find a

cleaner way o power vehicles he ransporaion secor accouned or more han

27 percen o domesic greenhouse gas emissions in 20138 Te majoriy o hose

emissions99125260 percen991252came rom ligh-duy vehicles such as passenger cars

ha rely on gasoline or uel9

As he US elecriciy sysem coninues is ransiion oward lower- and zero-carbon energy sources elecric vehicles will become even cleaner han hey

already are on a lie-cycle basis aking ino accoun all emissions semming rom

manuacuring o driving he car (see ex box on page 5) Already greenhouse

gas emissions rom he average batery elecric vehicle are 50 percen lower han

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 832

5 Center for American Progress | Electric Utilities and the Future of Clean Transportation

emissions rom a comparable gasoline car on a lie-cycle basis991252rom manuac-

uring o driving10 An elecric vehicle driven in every region o he Unied Saes

currenly produces less polluion han a new gasoline-ueled car and abou

wo-hirds o Americans live in regions where driving an elecric vehicle ha

plugs ino he regional grid creaes less polluion han a radiional car ha ges 50

miles-per-gallon11

By replacing gasoline-uelled cars wih cleaner elecric vehicles we will see signifi-

can reducions in greenhouse gas emissions rom he ransporaion secor

Cleaning up electricity The surge forward with renewables

2015 was a momentous year for clean energy initiatives in the United States

bull In August the EPA finalized its Clean Power Plan regulations that would require states to reduce

carbon emissions from electricity generation12 If implemented by the EPA pending a decision by

the US Supreme Court states will develop individual plans to achieve their emissions reductions

goals or collaborate with other states13 Many states will increase their generation from renew-

able sources such as wind and solar power as one way to comply with the new regulations

bull In December Congress authorized a five-year extension of the investment tax credit for solar

energy and the production tax credit for wind energy Other renewables like geothermal energy

received one-year extensions to their investment tax credit With the extension of the tax credits

experts predict that utilities that are not already investing in solar and wind technology will

begin to invest in these areas14

bull Rooftop solar power generation became cost-competitive achieving grid-parity with other

forms of electricity in 19 states and Washington DC according to recent data15 Parity is

achieved when the levelized cost of solar power slips below the total electricity bill savings

within the first year of installing the system16 According to the Solar Energy Industries Associa-

tion solar energy grew significantly in 2015 For the first three-quarters of the year 30 percent of

all new generating capacity in the United States came from solar power17

bull Wind energy is also projected to continue its substantial rise Between 2010 and 2013 wind ca-pacity increased roughly 50 percent from 40 GW across 27 states to 60 GW across 34 states18 By

the end of 2015 the US wind capacity passed 74 GW and installations in 2015 were 77 percent

greater than in 201419 By 2020 capacity is expected to rise to 113 GW in the United States20

8182019 Electric Utilities and the Future of Clean Transportation

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6 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Current state of electric

vehicles in the United States

More elecric vehicles are on he road han ever beore and expers expec

he elecric vehicle marke o coninue o grow Te cos o vehicles is declin-

ing as is he cos o batery manuacuring and batery lie is longer han ever

Meanwhile charging inrasrucure is going up across he counry991252paricularly

in ciies hroughou Caliornia and on he Eas Coas991252which allows drivers o

charge away rom home21

Sales of electric vehicles

Elecric vehicle use is on he rise in he Unied Saes As o Ocober 2015 plug-in

hybrids and batery elecric vehicles oaled roughly 417000 in he Unied Saes

or 3 percen o he vehicle marke22

Many saes are working o deploy more elecric vehicles as a means o clean

up air polluion and miigae climae change In 1990 Caliornia adoped he

Zero Emissions Vehicle or ZEV program esablishing a goal ha manuacur-

ers include ZEVs as 2 percen o he vehicles hey produce or sale23 Caliornia

updaed his goal in 2012 now requiring ZEVs and plug-in hybrids o com-

prise 15 percen o new vehicle sales by 202524 Connecicu Maine Maryland

Massachusets New Jersey New York Oregon hode Island and Vermon have

adoped he Caliornia ZEV program under Secion 177 o he Clean Air Ac o

1970 which allows saes o adop Caliorniarsquos vehicle emissions sandards25

In 2013 governors rom Caliornia Connecicu Massachusets Maryland New

York Oregon hode Island and Vermon signed a memorandum o undersand-

ing ha commited o pu a leas 33 million ZEVs mos commonly batery-elecric vehicles on he road in hese saes by 202526 In his agreemen he saes

commited o he coordinaed effor so hey could achieve he 33 million goal

8182019 Electric Utilities and the Future of Clean Transportation

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7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1132

8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1232

9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 5: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 532

2 Center for American Progress | Electric Utilities and the Future of Clean Transportation

uiliy secor and 70 inernaional elecric company members991252signed a memo-

randum o undersanding or MOU wih he US Deparmen o Energy or

DOE o work ogeher o accelerae he deploymen o elecric vehicles and he

charging inrasrucure o suppor hem

Many uiliies are already engaged Some are offering special raes o elecric vehicle owners in heir service area o incenivize hem o charge heir cars dur-

ing off-peak elecriciy demand hours Tis saves consumers money and helps

uiliies manage heir demand load Several uiliies including he hree larges in

Caliornia are invesing direcly in elecric vehicle inrasrucure o accommodae

a prediced increase in elecric vehicle ownership in coming years

Boh privae companies and consumer groups are concerned abou his involve-

men by elecric uiliies Privae companies such as Chargepoin ha provide

charging services worry ha he uiliies will sifle healhy compeiion and crowd

ou raher han build upon privaely unded charging inrasrucure Consumergroups991252such as Te Uiliy eorm Nework and Caliorniarsquos Office o aepayer

Advocaes991252are worried ha raepayers will suffer and be charged higher raes i

he uiliiesrsquo invesmens ail or do no mee expecaions

Given he urgen challenge posed by climae change and he need o cu green-

house gas emissions rom he US ransporaion secor i is imporan ha

uiliies work wih concerned sakeholders and sae public uiliy commissions o

develop a workable model or uiliy engagemen in elecric vehicle deploymen

As providers o a service ha reaches nearly every household and business uili-

ies have a unique reach ino American communiies Te Cener or American

Progress recommends ha elecric uiliies do he ollowing

bull Saring wih pilo programs inves in a public charging inrasrucure in heir

service areas o complemen he privae secorrsquos invesmen in his area

bull Offer ime-o-use raes o encourage elecric vehicle owners o charge during

low-demand imes and ideniy ways o offer elecric vehicle owners elecriciy

generaed rom renewable or zero-carbon energy sources

bull Expand charging access o low-income areas and muliamily residences and

encourage sae policymakers o offer poin-o-sale rebaes or residens in hese

areas o make he cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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3 Center for American Progress | Electric Utilities and the Future of Clean Transportation

By implemening hese recommendaions uiliies can encourage a large cusomer

base o consider elecric vehicle ownership resuling in vas greenhouse gas emis-

sions reducions rom he ransporaion secor and a seady susainable demand

or elecriciy For cusomer who are already ineresed in elecric vehicle ownership

uiliies can increase access and affordabiliy o cars and charging inrasrucure

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 732

4 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The need to electrify the

transportation sector

In advance o he December 2015 UN Framework Convenion on Climae

Change Conerence o Paries meeing in Paris he Unied Saes commited

o reduce is greenhouse gas emissions by 26 percen o 28 percen below 2005

levels by 20253 A he conerence 195 counries991252including he Unied Saes991252

adoped a global agreemen o aim o reduce greenhouse gas emissions and limi

global warming o less han 2 degrees Celsius above preindusrial levels in order o

avoid he mos caasrophic impacs o climae change4

Te Unied Saes is on is way o meeing is Paris commimen alhough more

work remains5 o limi warming o 15 degrees Celsius o 2 degrees Celsius

however he Unied Saes will need o ideniy ways o cu oal greenhouse gas

emissions by a leas 80 percen below 1990 levels by 2050 a level ha climae

scieniss have long agreed upon as necessary o limi warming a his level6

Te Unied Saes has sared by cleaning up he power secor Te US

Environmenal Proecion Agency or EPA finalized he Clean Power Plan which

i implemened will reduce carbon emissions rom he power secor 32 percen

rom 2005 levels by 20307 Tis is a sep oward meeing he 2025 and 2050 goals

or emissions reducions in all secors

o achieve even deeper polluion reducions he Unied Saes needs o find a

cleaner way o power vehicles he ransporaion secor accouned or more han

27 percen o domesic greenhouse gas emissions in 20138 Te majoriy o hose

emissions99125260 percen991252came rom ligh-duy vehicles such as passenger cars

ha rely on gasoline or uel9

As he US elecriciy sysem coninues is ransiion oward lower- and zero-carbon energy sources elecric vehicles will become even cleaner han hey

already are on a lie-cycle basis aking ino accoun all emissions semming rom

manuacuring o driving he car (see ex box on page 5) Already greenhouse

gas emissions rom he average batery elecric vehicle are 50 percen lower han

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 832

5 Center for American Progress | Electric Utilities and the Future of Clean Transportation

emissions rom a comparable gasoline car on a lie-cycle basis991252rom manuac-

uring o driving10 An elecric vehicle driven in every region o he Unied Saes

currenly produces less polluion han a new gasoline-ueled car and abou

wo-hirds o Americans live in regions where driving an elecric vehicle ha

plugs ino he regional grid creaes less polluion han a radiional car ha ges 50

miles-per-gallon11

By replacing gasoline-uelled cars wih cleaner elecric vehicles we will see signifi-

can reducions in greenhouse gas emissions rom he ransporaion secor

Cleaning up electricity The surge forward with renewables

2015 was a momentous year for clean energy initiatives in the United States

bull In August the EPA finalized its Clean Power Plan regulations that would require states to reduce

carbon emissions from electricity generation12 If implemented by the EPA pending a decision by

the US Supreme Court states will develop individual plans to achieve their emissions reductions

goals or collaborate with other states13 Many states will increase their generation from renew-

able sources such as wind and solar power as one way to comply with the new regulations

bull In December Congress authorized a five-year extension of the investment tax credit for solar

energy and the production tax credit for wind energy Other renewables like geothermal energy

received one-year extensions to their investment tax credit With the extension of the tax credits

experts predict that utilities that are not already investing in solar and wind technology will

begin to invest in these areas14

bull Rooftop solar power generation became cost-competitive achieving grid-parity with other

forms of electricity in 19 states and Washington DC according to recent data15 Parity is

achieved when the levelized cost of solar power slips below the total electricity bill savings

within the first year of installing the system16 According to the Solar Energy Industries Associa-

tion solar energy grew significantly in 2015 For the first three-quarters of the year 30 percent of

all new generating capacity in the United States came from solar power17

bull Wind energy is also projected to continue its substantial rise Between 2010 and 2013 wind ca-pacity increased roughly 50 percent from 40 GW across 27 states to 60 GW across 34 states18 By

the end of 2015 the US wind capacity passed 74 GW and installations in 2015 were 77 percent

greater than in 201419 By 2020 capacity is expected to rise to 113 GW in the United States20

8182019 Electric Utilities and the Future of Clean Transportation

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6 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Current state of electric

vehicles in the United States

More elecric vehicles are on he road han ever beore and expers expec

he elecric vehicle marke o coninue o grow Te cos o vehicles is declin-

ing as is he cos o batery manuacuring and batery lie is longer han ever

Meanwhile charging inrasrucure is going up across he counry991252paricularly

in ciies hroughou Caliornia and on he Eas Coas991252which allows drivers o

charge away rom home21

Sales of electric vehicles

Elecric vehicle use is on he rise in he Unied Saes As o Ocober 2015 plug-in

hybrids and batery elecric vehicles oaled roughly 417000 in he Unied Saes

or 3 percen o he vehicle marke22

Many saes are working o deploy more elecric vehicles as a means o clean

up air polluion and miigae climae change In 1990 Caliornia adoped he

Zero Emissions Vehicle or ZEV program esablishing a goal ha manuacur-

ers include ZEVs as 2 percen o he vehicles hey produce or sale23 Caliornia

updaed his goal in 2012 now requiring ZEVs and plug-in hybrids o com-

prise 15 percen o new vehicle sales by 202524 Connecicu Maine Maryland

Massachusets New Jersey New York Oregon hode Island and Vermon have

adoped he Caliornia ZEV program under Secion 177 o he Clean Air Ac o

1970 which allows saes o adop Caliorniarsquos vehicle emissions sandards25

In 2013 governors rom Caliornia Connecicu Massachusets Maryland New

York Oregon hode Island and Vermon signed a memorandum o undersand-

ing ha commited o pu a leas 33 million ZEVs mos commonly batery-elecric vehicles on he road in hese saes by 202526 In his agreemen he saes

commited o he coordinaed effor so hey could achieve he 33 million goal

8182019 Electric Utilities and the Future of Clean Transportation

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7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

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8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 6: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

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3 Center for American Progress | Electric Utilities and the Future of Clean Transportation

By implemening hese recommendaions uiliies can encourage a large cusomer

base o consider elecric vehicle ownership resuling in vas greenhouse gas emis-

sions reducions rom he ransporaion secor and a seady susainable demand

or elecriciy For cusomer who are already ineresed in elecric vehicle ownership

uiliies can increase access and affordabiliy o cars and charging inrasrucure

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 732

4 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The need to electrify the

transportation sector

In advance o he December 2015 UN Framework Convenion on Climae

Change Conerence o Paries meeing in Paris he Unied Saes commited

o reduce is greenhouse gas emissions by 26 percen o 28 percen below 2005

levels by 20253 A he conerence 195 counries991252including he Unied Saes991252

adoped a global agreemen o aim o reduce greenhouse gas emissions and limi

global warming o less han 2 degrees Celsius above preindusrial levels in order o

avoid he mos caasrophic impacs o climae change4

Te Unied Saes is on is way o meeing is Paris commimen alhough more

work remains5 o limi warming o 15 degrees Celsius o 2 degrees Celsius

however he Unied Saes will need o ideniy ways o cu oal greenhouse gas

emissions by a leas 80 percen below 1990 levels by 2050 a level ha climae

scieniss have long agreed upon as necessary o limi warming a his level6

Te Unied Saes has sared by cleaning up he power secor Te US

Environmenal Proecion Agency or EPA finalized he Clean Power Plan which

i implemened will reduce carbon emissions rom he power secor 32 percen

rom 2005 levels by 20307 Tis is a sep oward meeing he 2025 and 2050 goals

or emissions reducions in all secors

o achieve even deeper polluion reducions he Unied Saes needs o find a

cleaner way o power vehicles he ransporaion secor accouned or more han

27 percen o domesic greenhouse gas emissions in 20138 Te majoriy o hose

emissions99125260 percen991252came rom ligh-duy vehicles such as passenger cars

ha rely on gasoline or uel9

As he US elecriciy sysem coninues is ransiion oward lower- and zero-carbon energy sources elecric vehicles will become even cleaner han hey

already are on a lie-cycle basis aking ino accoun all emissions semming rom

manuacuring o driving he car (see ex box on page 5) Already greenhouse

gas emissions rom he average batery elecric vehicle are 50 percen lower han

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 832

5 Center for American Progress | Electric Utilities and the Future of Clean Transportation

emissions rom a comparable gasoline car on a lie-cycle basis991252rom manuac-

uring o driving10 An elecric vehicle driven in every region o he Unied Saes

currenly produces less polluion han a new gasoline-ueled car and abou

wo-hirds o Americans live in regions where driving an elecric vehicle ha

plugs ino he regional grid creaes less polluion han a radiional car ha ges 50

miles-per-gallon11

By replacing gasoline-uelled cars wih cleaner elecric vehicles we will see signifi-

can reducions in greenhouse gas emissions rom he ransporaion secor

Cleaning up electricity The surge forward with renewables

2015 was a momentous year for clean energy initiatives in the United States

bull In August the EPA finalized its Clean Power Plan regulations that would require states to reduce

carbon emissions from electricity generation12 If implemented by the EPA pending a decision by

the US Supreme Court states will develop individual plans to achieve their emissions reductions

goals or collaborate with other states13 Many states will increase their generation from renew-

able sources such as wind and solar power as one way to comply with the new regulations

bull In December Congress authorized a five-year extension of the investment tax credit for solar

energy and the production tax credit for wind energy Other renewables like geothermal energy

received one-year extensions to their investment tax credit With the extension of the tax credits

experts predict that utilities that are not already investing in solar and wind technology will

begin to invest in these areas14

bull Rooftop solar power generation became cost-competitive achieving grid-parity with other

forms of electricity in 19 states and Washington DC according to recent data15 Parity is

achieved when the levelized cost of solar power slips below the total electricity bill savings

within the first year of installing the system16 According to the Solar Energy Industries Associa-

tion solar energy grew significantly in 2015 For the first three-quarters of the year 30 percent of

all new generating capacity in the United States came from solar power17

bull Wind energy is also projected to continue its substantial rise Between 2010 and 2013 wind ca-pacity increased roughly 50 percent from 40 GW across 27 states to 60 GW across 34 states18 By

the end of 2015 the US wind capacity passed 74 GW and installations in 2015 were 77 percent

greater than in 201419 By 2020 capacity is expected to rise to 113 GW in the United States20

8182019 Electric Utilities and the Future of Clean Transportation

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6 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Current state of electric

vehicles in the United States

More elecric vehicles are on he road han ever beore and expers expec

he elecric vehicle marke o coninue o grow Te cos o vehicles is declin-

ing as is he cos o batery manuacuring and batery lie is longer han ever

Meanwhile charging inrasrucure is going up across he counry991252paricularly

in ciies hroughou Caliornia and on he Eas Coas991252which allows drivers o

charge away rom home21

Sales of electric vehicles

Elecric vehicle use is on he rise in he Unied Saes As o Ocober 2015 plug-in

hybrids and batery elecric vehicles oaled roughly 417000 in he Unied Saes

or 3 percen o he vehicle marke22

Many saes are working o deploy more elecric vehicles as a means o clean

up air polluion and miigae climae change In 1990 Caliornia adoped he

Zero Emissions Vehicle or ZEV program esablishing a goal ha manuacur-

ers include ZEVs as 2 percen o he vehicles hey produce or sale23 Caliornia

updaed his goal in 2012 now requiring ZEVs and plug-in hybrids o com-

prise 15 percen o new vehicle sales by 202524 Connecicu Maine Maryland

Massachusets New Jersey New York Oregon hode Island and Vermon have

adoped he Caliornia ZEV program under Secion 177 o he Clean Air Ac o

1970 which allows saes o adop Caliorniarsquos vehicle emissions sandards25

In 2013 governors rom Caliornia Connecicu Massachusets Maryland New

York Oregon hode Island and Vermon signed a memorandum o undersand-

ing ha commited o pu a leas 33 million ZEVs mos commonly batery-elecric vehicles on he road in hese saes by 202526 In his agreemen he saes

commited o he coordinaed effor so hey could achieve he 33 million goal

8182019 Electric Utilities and the Future of Clean Transportation

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7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

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8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 7: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

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4 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The need to electrify the

transportation sector

In advance o he December 2015 UN Framework Convenion on Climae

Change Conerence o Paries meeing in Paris he Unied Saes commited

o reduce is greenhouse gas emissions by 26 percen o 28 percen below 2005

levels by 20253 A he conerence 195 counries991252including he Unied Saes991252

adoped a global agreemen o aim o reduce greenhouse gas emissions and limi

global warming o less han 2 degrees Celsius above preindusrial levels in order o

avoid he mos caasrophic impacs o climae change4

Te Unied Saes is on is way o meeing is Paris commimen alhough more

work remains5 o limi warming o 15 degrees Celsius o 2 degrees Celsius

however he Unied Saes will need o ideniy ways o cu oal greenhouse gas

emissions by a leas 80 percen below 1990 levels by 2050 a level ha climae

scieniss have long agreed upon as necessary o limi warming a his level6

Te Unied Saes has sared by cleaning up he power secor Te US

Environmenal Proecion Agency or EPA finalized he Clean Power Plan which

i implemened will reduce carbon emissions rom he power secor 32 percen

rom 2005 levels by 20307 Tis is a sep oward meeing he 2025 and 2050 goals

or emissions reducions in all secors

o achieve even deeper polluion reducions he Unied Saes needs o find a

cleaner way o power vehicles he ransporaion secor accouned or more han

27 percen o domesic greenhouse gas emissions in 20138 Te majoriy o hose

emissions99125260 percen991252came rom ligh-duy vehicles such as passenger cars

ha rely on gasoline or uel9

As he US elecriciy sysem coninues is ransiion oward lower- and zero-carbon energy sources elecric vehicles will become even cleaner han hey

already are on a lie-cycle basis aking ino accoun all emissions semming rom

manuacuring o driving he car (see ex box on page 5) Already greenhouse

gas emissions rom he average batery elecric vehicle are 50 percen lower han

8182019 Electric Utilities and the Future of Clean Transportation

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5 Center for American Progress | Electric Utilities and the Future of Clean Transportation

emissions rom a comparable gasoline car on a lie-cycle basis991252rom manuac-

uring o driving10 An elecric vehicle driven in every region o he Unied Saes

currenly produces less polluion han a new gasoline-ueled car and abou

wo-hirds o Americans live in regions where driving an elecric vehicle ha

plugs ino he regional grid creaes less polluion han a radiional car ha ges 50

miles-per-gallon11

By replacing gasoline-uelled cars wih cleaner elecric vehicles we will see signifi-

can reducions in greenhouse gas emissions rom he ransporaion secor

Cleaning up electricity The surge forward with renewables

2015 was a momentous year for clean energy initiatives in the United States

bull In August the EPA finalized its Clean Power Plan regulations that would require states to reduce

carbon emissions from electricity generation12 If implemented by the EPA pending a decision by

the US Supreme Court states will develop individual plans to achieve their emissions reductions

goals or collaborate with other states13 Many states will increase their generation from renew-

able sources such as wind and solar power as one way to comply with the new regulations

bull In December Congress authorized a five-year extension of the investment tax credit for solar

energy and the production tax credit for wind energy Other renewables like geothermal energy

received one-year extensions to their investment tax credit With the extension of the tax credits

experts predict that utilities that are not already investing in solar and wind technology will

begin to invest in these areas14

bull Rooftop solar power generation became cost-competitive achieving grid-parity with other

forms of electricity in 19 states and Washington DC according to recent data15 Parity is

achieved when the levelized cost of solar power slips below the total electricity bill savings

within the first year of installing the system16 According to the Solar Energy Industries Associa-

tion solar energy grew significantly in 2015 For the first three-quarters of the year 30 percent of

all new generating capacity in the United States came from solar power17

bull Wind energy is also projected to continue its substantial rise Between 2010 and 2013 wind ca-pacity increased roughly 50 percent from 40 GW across 27 states to 60 GW across 34 states18 By

the end of 2015 the US wind capacity passed 74 GW and installations in 2015 were 77 percent

greater than in 201419 By 2020 capacity is expected to rise to 113 GW in the United States20

8182019 Electric Utilities and the Future of Clean Transportation

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6 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Current state of electric

vehicles in the United States

More elecric vehicles are on he road han ever beore and expers expec

he elecric vehicle marke o coninue o grow Te cos o vehicles is declin-

ing as is he cos o batery manuacuring and batery lie is longer han ever

Meanwhile charging inrasrucure is going up across he counry991252paricularly

in ciies hroughou Caliornia and on he Eas Coas991252which allows drivers o

charge away rom home21

Sales of electric vehicles

Elecric vehicle use is on he rise in he Unied Saes As o Ocober 2015 plug-in

hybrids and batery elecric vehicles oaled roughly 417000 in he Unied Saes

or 3 percen o he vehicle marke22

Many saes are working o deploy more elecric vehicles as a means o clean

up air polluion and miigae climae change In 1990 Caliornia adoped he

Zero Emissions Vehicle or ZEV program esablishing a goal ha manuacur-

ers include ZEVs as 2 percen o he vehicles hey produce or sale23 Caliornia

updaed his goal in 2012 now requiring ZEVs and plug-in hybrids o com-

prise 15 percen o new vehicle sales by 202524 Connecicu Maine Maryland

Massachusets New Jersey New York Oregon hode Island and Vermon have

adoped he Caliornia ZEV program under Secion 177 o he Clean Air Ac o

1970 which allows saes o adop Caliorniarsquos vehicle emissions sandards25

In 2013 governors rom Caliornia Connecicu Massachusets Maryland New

York Oregon hode Island and Vermon signed a memorandum o undersand-

ing ha commited o pu a leas 33 million ZEVs mos commonly batery-elecric vehicles on he road in hese saes by 202526 In his agreemen he saes

commited o he coordinaed effor so hey could achieve he 33 million goal

8182019 Electric Utilities and the Future of Clean Transportation

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7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

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8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

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httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 8: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

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5 Center for American Progress | Electric Utilities and the Future of Clean Transportation

emissions rom a comparable gasoline car on a lie-cycle basis991252rom manuac-

uring o driving10 An elecric vehicle driven in every region o he Unied Saes

currenly produces less polluion han a new gasoline-ueled car and abou

wo-hirds o Americans live in regions where driving an elecric vehicle ha

plugs ino he regional grid creaes less polluion han a radiional car ha ges 50

miles-per-gallon11

By replacing gasoline-uelled cars wih cleaner elecric vehicles we will see signifi-

can reducions in greenhouse gas emissions rom he ransporaion secor

Cleaning up electricity The surge forward with renewables

2015 was a momentous year for clean energy initiatives in the United States

bull In August the EPA finalized its Clean Power Plan regulations that would require states to reduce

carbon emissions from electricity generation12 If implemented by the EPA pending a decision by

the US Supreme Court states will develop individual plans to achieve their emissions reductions

goals or collaborate with other states13 Many states will increase their generation from renew-

able sources such as wind and solar power as one way to comply with the new regulations

bull In December Congress authorized a five-year extension of the investment tax credit for solar

energy and the production tax credit for wind energy Other renewables like geothermal energy

received one-year extensions to their investment tax credit With the extension of the tax credits

experts predict that utilities that are not already investing in solar and wind technology will

begin to invest in these areas14

bull Rooftop solar power generation became cost-competitive achieving grid-parity with other

forms of electricity in 19 states and Washington DC according to recent data15 Parity is

achieved when the levelized cost of solar power slips below the total electricity bill savings

within the first year of installing the system16 According to the Solar Energy Industries Associa-

tion solar energy grew significantly in 2015 For the first three-quarters of the year 30 percent of

all new generating capacity in the United States came from solar power17

bull Wind energy is also projected to continue its substantial rise Between 2010 and 2013 wind ca-pacity increased roughly 50 percent from 40 GW across 27 states to 60 GW across 34 states18 By

the end of 2015 the US wind capacity passed 74 GW and installations in 2015 were 77 percent

greater than in 201419 By 2020 capacity is expected to rise to 113 GW in the United States20

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 932

6 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Current state of electric

vehicles in the United States

More elecric vehicles are on he road han ever beore and expers expec

he elecric vehicle marke o coninue o grow Te cos o vehicles is declin-

ing as is he cos o batery manuacuring and batery lie is longer han ever

Meanwhile charging inrasrucure is going up across he counry991252paricularly

in ciies hroughou Caliornia and on he Eas Coas991252which allows drivers o

charge away rom home21

Sales of electric vehicles

Elecric vehicle use is on he rise in he Unied Saes As o Ocober 2015 plug-in

hybrids and batery elecric vehicles oaled roughly 417000 in he Unied Saes

or 3 percen o he vehicle marke22

Many saes are working o deploy more elecric vehicles as a means o clean

up air polluion and miigae climae change In 1990 Caliornia adoped he

Zero Emissions Vehicle or ZEV program esablishing a goal ha manuacur-

ers include ZEVs as 2 percen o he vehicles hey produce or sale23 Caliornia

updaed his goal in 2012 now requiring ZEVs and plug-in hybrids o com-

prise 15 percen o new vehicle sales by 202524 Connecicu Maine Maryland

Massachusets New Jersey New York Oregon hode Island and Vermon have

adoped he Caliornia ZEV program under Secion 177 o he Clean Air Ac o

1970 which allows saes o adop Caliorniarsquos vehicle emissions sandards25

In 2013 governors rom Caliornia Connecicu Massachusets Maryland New

York Oregon hode Island and Vermon signed a memorandum o undersand-

ing ha commited o pu a leas 33 million ZEVs mos commonly batery-elecric vehicles on he road in hese saes by 202526 In his agreemen he saes

commited o he coordinaed effor so hey could achieve he 33 million goal

8182019 Electric Utilities and the Future of Clean Transportation

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7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

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8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2832

25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 9: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 932

6 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Current state of electric

vehicles in the United States

More elecric vehicles are on he road han ever beore and expers expec

he elecric vehicle marke o coninue o grow Te cos o vehicles is declin-

ing as is he cos o batery manuacuring and batery lie is longer han ever

Meanwhile charging inrasrucure is going up across he counry991252paricularly

in ciies hroughou Caliornia and on he Eas Coas991252which allows drivers o

charge away rom home21

Sales of electric vehicles

Elecric vehicle use is on he rise in he Unied Saes As o Ocober 2015 plug-in

hybrids and batery elecric vehicles oaled roughly 417000 in he Unied Saes

or 3 percen o he vehicle marke22

Many saes are working o deploy more elecric vehicles as a means o clean

up air polluion and miigae climae change In 1990 Caliornia adoped he

Zero Emissions Vehicle or ZEV program esablishing a goal ha manuacur-

ers include ZEVs as 2 percen o he vehicles hey produce or sale23 Caliornia

updaed his goal in 2012 now requiring ZEVs and plug-in hybrids o com-

prise 15 percen o new vehicle sales by 202524 Connecicu Maine Maryland

Massachusets New Jersey New York Oregon hode Island and Vermon have

adoped he Caliornia ZEV program under Secion 177 o he Clean Air Ac o

1970 which allows saes o adop Caliorniarsquos vehicle emissions sandards25

In 2013 governors rom Caliornia Connecicu Massachusets Maryland New

York Oregon hode Island and Vermon signed a memorandum o undersand-

ing ha commited o pu a leas 33 million ZEVs mos commonly batery-elecric vehicles on he road in hese saes by 202526 In his agreemen he saes

commited o he coordinaed effor so hey could achieve he 33 million goal

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1032

7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1132

8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

8182019 Electric Utilities and the Future of Clean Transportation

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 10: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1032

7 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Te ederal governmen also is working o encourage consumers o purchase elec-

ric vehicles Te ederal governmen offers a ederal ax credi or elecric vehicle

buyers o up o $7500 Some saes have done even more o encourage elecric

vehicle ownership by offering heir own rebae and ax credi programs27

Battery prices

One acor ha has slowed he deploymen o elecric vehicles is cos much o

which is atribued o he batery Forunaely batery prices are alling Beween

2009 and 2014 he cos o a lihium ion batery991252he batery used in elecric

vehicles991252ell by more han 70 percen while cumulaive elecric vehicle sales

rose o nearly 300000 in five years28 In 2015 alone elecric vehicle sales increased

60 percen and batery prices ell 35 percen29

Batery coss are expeced o coninue o decline and elecric vehicle sales areexpeced o coninue o rise alhough a a slower rae han a presen30 By 2020

elecric vehicles will likely be as affordable as gasoline-powered cars31 More

affordable elecric vehicle models are already emerging in he marke Chevrole

Ford Misubishi Nissan Smar and VW all released elecric vehicle models in

2015 or 2016 ha sell or less han $30000 even beore sae and ederal incen-

ives are applied32 Even esla inroduced is more affordable Model 3 in March

2016 which is priced a $35000 beore governmen incenives abou hal he cur-

ren cos o eslarsquos nex-cheapes model he Model S33

Te prediced boom in elecric vehicle sales has grea implicaions or he oil mar-

ke worldwide According o a recen Bloomberg New Energy Finance repor i

elecric vehicle sales keep growing he way hey have been elecric ransporaion

will displace 2 million barrels o oil each day by 202834

Charging infrastructure

o mee he goal o puting 33 million ZEVs on he road by 2025 he Unied

Saes will need o expand is charging inrasrucure Tere are currenly 12682public charging saions in he Unied Saes abou 9000 o which are locaed in

Caliornia35 Wih more han 53000 elecric vehicles and plug-in hybrids regis-

ered in Caliornia in 2014 here is roughly one public saion available or every

six cars36 New England has is air share o charging saions as well wih 2200 o

he 3211 vehicles regisered in 201437

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1132

8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

8182019 Electric Utilities and the Future of Clean Transportation

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

8182019 Electric Utilities and the Future of Clean Transportation

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1432

11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

8182019 Electric Utilities and the Future of Clean Transportation

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

8182019 Electric Utilities and the Future of Clean Transportation

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 11: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1132

8 Center for American Progress | Electric Utilities and the Future of Clean Transportation

When away rom home drivers can use hese public charging locaions o charge

on he go Drivers o EVs can charge via membership neworks across he counry

like Chargepoin and NG Energyrsquos EVgo charging program In lae 2015 EVgo

solidified is place as he counryrsquos larges public inrasrucure provider or direc

curren or DC as chargers he quickes ype o charging inrasrucure by par-

nering wih BMW Ford and OEV an elecric vehicle rade associaion38

Whilepublic charging is available across he counry i is concenraed mos heavily in

Caliornia and on he Eas Coas Pockes are also prevalen in he middle o he

counry usually clusered around meropolian areas such as Chicago and For

Worh exas39 esla has also buil a nework o so-called superchargers which

are only compaible wih esla vehicles40

Some would-be elecric vehicle drivers cie lack o public charging inrasrucure

as a reason or no purchasing an elecric vehicle Tey have range anxiey ha is

hey worry hey will ge sranded wihou access o a charge A Canadian sudy

examining he EV300 Program which worked wih privae and public organiza-ions o replace some flees wih elecric vehicles ound ha range anxiey is very

real or flee drivers Te evaluaors discovered ha hese ears ranslae ino less

use o he vehiclesrsquo all-elecric capaciy41

o alleviae his anxiey and accommodae 33 million elecric vehicles by 2025

more charging inrasrucure will be needed o atrac new buyers Currenly

charging opions are limied or residens o muliamily buildings ha do no

have insalled chargers and many employers do no provide charging saions

a he workplace 42 In some areas o he counry public charging sies are more

requenly used han ohers and more daa is needed on how o ideniy prime

charging locaions43 Sakeholders such as elecric uiliies can have a role in

promoing charging inrasrucure collecing his necessary daa and increasing

access o charging in low-income markes

Increasing he availabiliy o charging inrasrucure and offering charging solu-

ions or muliamily residences can ease he range anxiey ha would-be EV

owners may ace

8182019 Electric Utilities and the Future of Clean Transportation

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

8182019 Electric Utilities and the Future of Clean Transportation

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

8182019 Electric Utilities and the Future of Clean Transportation

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

8182019 Electric Utilities and the Future of Clean Transportation

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

8182019 Electric Utilities and the Future of Clean Transportation

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

8182019 Electric Utilities and the Future of Clean Transportation

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

8182019 Electric Utilities and the Future of Clean Transportation

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

8182019 Electric Utilities and the Future of Clean Transportation

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

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The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

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can think creatively at thecross-section of traditional

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for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 12: Electric Utilities and the Future of Clean Transportation

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9 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Electric vehicle growth

can benefit electric utilities

As more elecric vehicles hi Americarsquos roads elecric uiliies will enjoy cerain

benefis Firs elecric vehicle charging creaes new elecriciy demand Tis

comes a an imporan ime or uiliies many o which are seeing declining

demand or heir produc Second elecric uiliies can use elecric vehicles as

emporary energy sorage which can help hem balance elecriciy load during

peak-demand imes

Electric vehicles provide a new source of electricity demand

Elecric uiliies are acing significan challenges o heir curren business model

In 2015 oal elecriciy sales ell991252he fifh ime in eigh years ha sales declined

rom he previous year44 Te US Energy Inormaion Adminisraion predics a

relaively fla growh rae or elecriciy use in he nex 25 years oal elecriciy

use is expeced o grow only 08 percen rom 2013 o 204045

Tis rend is due o improvemens in energy efficiency and o he growh o

disribued solar generaion Analysis by he American Council or an Energy-

Efficien Economy or ACEEE shows ha he US economy has become more

energy efficien over he las quarer cenury decreasing energy used per dollar

spen by 50 percen46

Sae and ederal policies encourage uiliy cusomers o use elecriciy more

efficienly and o insall solar panels o generae heir own elecriciy As o January

2016 41 saes plus Washingon DC have rules or ne meering which allows

cusomers wih renewable generaion capaciy like solar panels o sell elecric-

iy back o he local uiliy47

Addiionally he ederal governmen 35 saes andhe Disric o Columbia offer residens or small businesses financial incenives

or conribuing clean generaion o he grid991252including perormance-based

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

8182019 Electric Utilities and the Future of Clean Transportation

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2732

24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2832

25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 13: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

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10 Center for American Progress | Electric Utilities and the Future of Clean Transportation

incenives personal ax credis or deducions propery ax incenives or sales

ax incenives48 As many cusomers ake advanage o hese exising incenives o

se up heir own elecriciy generaion uiliies will see flucuaions and possible

decreases in radiional demand or heir produc

Te power secor is no blind o hese rends In 2012 he Edison ElecricInsiue or EEI noed ha a ldquogrowing number o cusomers are increasingly exer-

cising heir opions o manage elecriciy bills hrough energy efficiency demand

managemen and on-sie generaionrdquo49 EEI warned o a poenial ldquodeah spiralrdquo i

uiliies ailed o adap o hese disrupive echnologies and pracices50

Elecric vehicle deploymen however has he poenial o help sabilize elecric-

iy demand in many markes As more vehicles require elecriciy as uel uiliies

will see an increase in demand or heir produc and can find new ways o use

elecric vehicles o manage heir produc flow One sudy esimaes ha assum-

ing he average car drives 12000 miles per year an elecric vehicle will increase ahouseholdrsquos elecriciy demand by 33 percen and a plug-in hybrid will increase

demand by 37 percen51

In recogniion o he opporuniy presened by elecric vehicles EEI signed a

memorandum o undersanding wih he Deparmen o Energy in June 2015

Te MOU recognizes ldquohe muual ineres in realizing he economic environ-

menal and naional securiy benefis achieved by he growing use o elecriciy

as a ransporaion uelrdquo52 Te goal o he MOU is o allow he DOE and EEI o

ldquopursue key opporuniies or collaboraive acion beween he governmen and

uiliy indusry in order o accelerae plug-in elecric vehicle (PEV) and charging

inrasrucure deploymenrdquo53

Electric vehicles as storage

Elecric vehicles can also provide sorage when hey are plugged ino he grid

soring energy and helping he uiliy manage he demand on he grid during peak

demand imes54 EV owners can connec heir vehicles o he grid hrough home-

charging inrasrucure or a public chargers offering sorage capabiliies o hegrid or a home much like a saionary batery According o a sudy by Navigan

esearch plugged-in vehicles can capure generaion rom renewables when

demand is lower sore i in heir bateries and help offse generaion needs when

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1432

11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1532

12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1632

13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

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Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 14: Electric Utilities and the Future of Clean Transportation

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11 Center for American Progress | Electric Utilities and the Future of Clean Transportation

demand is higher Teoreically his would make elecriciy cheaper and he grid

more flexible and resilien55 A ypical elecric vehicle can sore in is batery as

much power as a home consumes in hree days56 Navigan predics ha world-

wide revenue rom hese vehicle-o-grid services will grow rom $335000 per year

in 2015 o $207 million annually by 202457

Uiliies have a lo o gain rom he growh o elecric vehicles991252a seady source

o demand or elecriciy and a way o manage ha demand o ensure a reliable

flow o elecriciy

8182019 Electric Utilities and the Future of Clean Transportation

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

8182019 Electric Utilities and the Future of Clean Transportation

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

8182019 Electric Utilities and the Future of Clean Transportation

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

8182019 Electric Utilities and the Future of Clean Transportation

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 15: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

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12 Center for American Progress | Electric Utilities and the Future of Clean Transportation

The role of electric utilities in

promoting electric vehicle growth

Because hey provide he uel or elecric vehicles elecric uiliies have a naural

role o play in expanding elecric vehicle ownership and insalling new charging

inrasrucure Uiliies can promoe elecric vehicle growh in wo main ways

incenivizing and supporing elecric vehicle ownership and he charging inra-

srucure and invesing direcly in he deploymen o new charging inrasrucure

in heir service areas Uiliies are also in he unique posiion o be able o expand

charging access o underserved areas no served by he privae secor including

low-income neighborhoods and muliamily residences Some sakeholders haveraised poenial concerns abou uiliiesrsquo direc invesmen in elecric vehicle inra-

srucure and are working acively o proec raepayers and a compeiive marke-

place as more uiliies engage in his space

Incentivize and support electric vehicle ownership and

infrastructure

Tere are wo primary ways elecric uiliies can incenivize cusomers o purchase

elecric vehicles offering ime-o-use raes or charging and invesing direcly in

charging inrasrucure

Time of use rates

One way ha elecric uiliy companies can incenivize elecric vehicle use is by

offering special ime-o-use or OU raes991252alernaive rae srucures or elecric

vehicle owners who are charging vehicles in heir homes Under a OU program

elecric vehicle owners are charged differen raes based on wha ime hey plug in which allows uiliies o incenivize residens o charge heir cars during off-peak

hours such as overnigh when elecriciy demand is lowes

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1632

13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

8182019 Electric Utilities and the Future of Clean Transportation

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

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Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 16: Electric Utilities and the Future of Clean Transportation

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13 Center for American Progress | Electric Utilities and the Future of Clean Transportation

For he uiliy shifing demand o off-peak imes reduces generaion coss and

avoids unnecessary invesmen in generaion ransmission and disribuion58 By

shifing charging imes uiliies gain revenue while uilizing exising capaciy59

Shifing demand rom peak imes is key o grid susainabiliy and helps avoid he

need or carbon-inensive generaion a peak imes60

While gasoline prices can be volaile elecric vehicle owners know wha hey

will pay o charge heir vehicles a any given ime and hey pay lower raes i hey

charge a nigh when here is less demand on he grid A 2014 sudy by Energy

and Environmenal Economics modeled he effecs o iered and OU pricing on

cusomers I ound ha he bills ha elecric vehicle owners pay offse he cos

o he uiliy o deliver he elecriciy Because hese coss would be disribued

among hose who pay elecriciy bills as par o he rae base he cos savings are

passed on o all raepayers including hose who do no own elecric vehicles61

Trough consumer educaion uiliies can demonsrae how a OU charging

program offers hese benefis o all cusomers

Several elecric uiliies already offer special OU raes o elecric vehicle char-

gers including ConEd in New York Dominion Power in Virginia DE Energy

in Michigan Georgia Power in Georgia and Pacific Gas amp Elecric Company and

Souhern Caliornia Edison in Caliornia62

Te main uiliy serving he Sacrameno Caliornia meropolian area991252

Sacrameno Municipal Uiliy Disric or SMUD991252esablished a wo-year pilo

program or OU pricing offering cusomers hree ime-varying opions during

which o charge heir vehicles Te resuls o he pilo indicae ha OU pricing

works SMUD saw a reducion o demand during peak imes by 12 percen63

San Diego Gas amp Elecric offers elecric vehicle owners special raes or hose who

op ino he EV-OU program Te program gives cusomers he opion o charge

during ldquooff-peakrdquo and slighly cheaper ldquosuper off-peakrdquo hours Depending on

when cusomers charge heir vehicles and wheher hey use solar energy hey can

choose rom differen ime-o-use charging models o ge he mos elecriciy or

heir buck egardless o which opion cusomers choose he uiliy benefis rom

having some elecriciy consumpion shifed o imes o lower demand64

Implemening his srucure or elecric vehicle owners is a bi complicaed as i

involves racking elecric vehicle charging use separaely rom general residenial

elecriciy use However his is easible hrough smar-charging echnology which

links chargers direcly o he grid and allows or daa collecion and scheduling o

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

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15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

8182019 Electric Utilities and the Future of Clean Transportation

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

8182019 Electric Utilities and the Future of Clean Transportation

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 17: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

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14 Center for American Progress | Electric Utilities and the Future of Clean Transportation

charging periods65 Similar o smar hermosa programs such as Nes cusom-

ers allow uiliies o conrol when he charge flows o heir plugged-in vehicle so

ha he uiliy can sagger he flow among various households o achieve balanced

demand on he grid over he course o he nigh66

In orono Canada he governmen collaboraed wih smar charging companyCrossChasm echnologies and he elecric company orono Hydro o creae a

pilo program o esablish OU raes or charging Te pilo offers elecric vehicle

owners new Level 2 chargers a logger ha racks batery usage and charging pa-

erns and an app in which paricipans se charging preerences and receive requess

o shif consumpion when elecriciy is in peak demand Te pilo ended a he end

o 2015 and CrossChasm expecs o release an evaluaion in spring 2016 67

Incentives to use renewables for electric vehicle charging

Uiliies can combine he benefis o OU charging and renewable energy by

offering elecriciy ha is generaed by alernaive energy sources during off-peak

imes or elecric vehicle-charging wihou shifing raes Tis pracice is no ye

widespread In Minnesoa or example he energy cooperaive Grea iver Energy

which provides elecriciy o 17 million cusomers across 28 co-ops iniiaed a

program in 2015 called evol Te program allows plug-in vehicle cusomers he

opion o ge elecriciy rom wind energy hrough he co-op a no exra cos While

here is no way o send wind energy direcly o regisered homes he company ses

aside renewable energy credis annually or each paricipan Because elecric vehicle

owners primarily charge a heir residences a nigh when wind is sronges he

connecion creaes a reliable mehod or he uiliy o manage is load and encourage

residens o ake advanage o charging while demand is low overnigh68

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1832

15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1932

16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2032

17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

8182019 Electric Utilities and the Future of Clean Transportation

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

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can think creatively at thecross-section of traditional

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for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

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our ideas aggressively in thenational policy debate

Page 18: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 1832

15 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Invest directly in electric vehicle infrastructure

Uiliies can suppor elecric vehicle charging by invesing direcly in residenial

and public charging locaions meaning hey own insall and mainain elecric

vehicle charging inrasrucure in heir service areas Tis represens a significan

capial invesmen bu i can offer significan poenial benefi higher demand

during off-peak hours when car owners are charging a home According o recen

analysis by Silver Spring Neworks a smar grid soluion provider he benefis o

uiliy ownership ouweigh he coss 183 o 172

Some uiliies have sared invesing in public charging inrasrucure Tese iniial

programs will provide imporan lessons-learned as addiional uiliies across he

counry op in

In 2015 Kansas Ciy Power and Ligh or KCPampL insalled more han 1000

charging saions around he Kansas Ciy Missouri area73

Te uiliy is offer-ing ree charging or he firs wo years o he program KCPL esimaes ha he

charging nework can suppor up o 10000 elecric vehicles74 Te uiliy has ye

o receive approval rom he Missouri Public Service Commission o include he

$20 million cos in is rae base which incorporaes he invesmen in he saions

Types of EV charging

There are currently three types of electric vehicle chargers Level 1 Level 2 and DC Fast Chargers

Level 1 charges the vehicle through a basic 120 Volt plug the kind found in the wall of a house

It requires no special equipment but can take over 20 hours to charge fully this method is often

used in homes where owners can charge their vehicles overnight69

Level 2 charging requires a 240 Volt AC plug and requires additional charging equipment the

same type of hook up as an electric dryer or oven Level 2 chargers can fully charge a battery in

eight hours or less depending on vehicle range and are often found in homes and workplaces

Level 2 chargers are more expensive than Level 1 but they are still a cheaper option than the DC

Fast Chargers that are commonly found at public charging stations 70

DC Fast Chargers offer 480 Volt charging and can fully charge a 60- to 100-mile range battery in

20 minutes These are the most expensive chargers and also require specialized equipment to be

installed in the charging space and in the vehicle itself 71

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

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Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 19: Electric Utilities and the Future of Clean Transportation

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16 Center for American Progress | Electric Utilities and the Future of Clean Transportation

ino he oal value o he uiliyrsquos asses on which he uiliy is allowed o collec

a profi By including he cos o he chargers ino he uiliyrsquos rae-based asses

he uiliy can recoup is invesmen hrough he price i charges cusomers or

elecriciy passing along some o he risk o he invesmen o raepayers While

hos sies are paying or heir own saions he uiliy has made he iniial inves-

men o suppor he inrasrucure and he uiliy hopes o pass hese coss alongo raepayers I denied by he commission KCPampL will finish he pilo bu no

expand according o is CEO erry Bassham75 Te uiliy argues ha building

inrasrucure o suppor elecric vehicles will encourage consumers o purchase

hese vehicles and make Kansas Ciy an elecric vehicle hospo

In Caliornia hree major uiliies are aking iniiaive o sponsor public elec-

ric vehicle charging hrough differen business models In 2014 Pacific Gas

and Elecric or PGampE Souhern Caliornia Edison or SCE and San Diego

Gas amp Elecric or SDGampE filed proposals wih he Caliornia Public Uiliies

Commission or CPUC o inves in elecric vehicle charging around he sae76

In January 2016 he CPUC approved SCErsquos proposal or is Charge eady pilo

projec giving he green ligh or SCE o insall 1500 elecric vehicle charging

saions in is service area which includes pars o souhern coasal and cenral

Caliornia Te pilo will cos $22 million and will expand charging opions or

residens in aparmens low-income areas workplaces and college campuses

Under he SCE pilo model SCE wil l insall and mainain he required elec-

rical inrasrucure o suppor he charging saions which paricipans will

own operae and manage SCE will subsidize some o he cos o insalling he

charging saions a levels ha vary by marke Afer he pilo program has run

is course SCE will seek approval rom CPUC o expand he program o build

30000 charging saions across he service area by 2020 a an esimaed cos o

$355 million Te program also calls or an educaion and oureach program o

increase awareness o elecric vehicles77

In January CPUC also approved SDGampErsquos pilo research iniiaive which was

designed o es marke response o variable raes or elecric vehicle charging Te

vehicle-grid inegraion pilo will insall 3500 charging saions in areas ha lack

exising chargers such as muliamily dwellings and workplaces78

Te dynamicpricing srucure o he program allows or ime-varying raes or charging Te pro-

gram includes a mobile app ha sends cusomers signals on charging raes and les

8182019 Electric Utilities and the Future of Clean Transportation

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

8182019 Electric Utilities and the Future of Clean Transportation

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

8182019 Electric Utilities and the Future of Clean Transportation

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

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Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 20: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

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17 Center for American Progress | Electric Utilities and the Future of Clean Transportation

hem se heir preerences or charging imes79 Tis program iniially will cos $59

million and an esimaed $44 million over he lie o he projec or operaion and

mainenance80 Under his program SDGampE will own he charging inrasrucure

bu hird-pary conracors will consruc operae and mainain he saions81

Iniially PGampE proposed o build 25000 Level 2 charging saions and 100 DCas chargers Te company would have ully owned and operaed he saions

unlike in he proposals o SCE and SDGampE82 In Ocober 2015 he CPUC

rejeced his proposal raising concerns ha he companyrsquos plan could hreaen

air compeiion i direced PGampE o propose a pilo program wih a ransiion

period83 In March 2016 PGampE submited a proposed setlemen o CPUC or a

pilo program called Charge Smar and Save ha would insall 7500 Level 2 char-

gers and 100 DC as-chargers over hree years PGampE submited his proposal

wih several sakeholders ha helped craf i including he Sierra Club Naural

esources Deense Council Greenlining Insiue Caliornia Coaliion o Uiliy

Employees Plug In America General Moors Honda Moors and he Allianceo Auomobile Manuacurers84 In he revised plan he uiliy would own he

inrasrucure bu hire conracors o insall and mainain i Te program would

locae mos o he Level 2 chargers a workplaces and muliamily dwellings wih

he goal o filling criical marke gaps CPUC is expeced o make a decision on

his proposed setlemen agreemen during he summer o 201685

Concerns about direct utility investment

During he debae abou PGampErsquos iniial proposal o add 25000 charging sa-

ions several sakeholders raised concerns abou he uiliyrsquos proposed model or

invesing in an elecric vehicle charging inrasrucure Tese commens provide

imporan lessons or oher uiliies ha may wan o make a significan inves-

men in heir own service areas

o cover he significan upron capial coss o is proposal PGampE would have

passed he coss on o all residenial elecriciy consumers a a cos o abou 70

cens each monh Consumer advocacy group Te Uiliy eorm Nework or

UN raised equiy concerns abou his policy because all raepayers would payhe increased coss regardless o wheher hey owned elecric vehicles UN also

warned ha PGampErsquos iniial proposal could saddle raepayers wih sranded coss i

he inrasrucure is buil bu underuilized86

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

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26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

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Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 21: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2132

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2232

19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

8182019 Electric Utilities and the Future of Clean Transportation

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 22: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

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19 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Expanding electric vehicle access to underserved areas

Uiliy ownership and operaion o he charging inrasrucure could provide

expanded access ino underserved less profiable areas ha privae companies

have no ye reached96

SDGampErsquos proposal or is charging pilo includes insalling 10 percen o is sa-

ions in muliamily residences and workplaces in low-income communiies Tis

proposal has seen a lo o suppor rom a broad coaliion o environmenal par-

ners including he Naural esources Deense Council Environmenal Deense

Fund and he Greenlining Insiue97 Te goal o his iniiaive is o help all

communiies gain access o he benefis o zero-emissions vehicles According o

a 2011 repor by he Greenlining Insiue communiies o color in Caliornia are

more concerned abou air qualiy and polluion han heir whie counerpars so

hey represen a poenial marke base or elecric vehicles Expanding inrasruc-

ure ino hese communiies can increase heir access o hese vehicles98

Te proposals rom SCE and PGampE also include plans o exend he charging

inrasrucure ino underserved areas In is approved pilo SCE commis o si-

ing 10 percen o charging saions or 150 saions in disadvanaged areas99 I

PGampErsquos newes setlemen proposal is approved by he CPUC he company will

insall a leas 15 percen o is charging aciliies in disadvanaged communiies

and aim or an addiional 5 percen o chargers insalled in hese communiies100

Under a 2012 setlemen wih Dynegy991252which was parially owned by NG

a he ime991252NG agreed o insall 200 DC as charging saions hroughou

Caliornia weny percen o hese saions were insalled in low-income areas

he company argeed mixed-income housing locaions as well Te setlemen

was designed o address he lack o a public charging inrasrucure deemed a

major barrier o elecric vehicle expansion in he sae101

Expanding charging ino low-income areas is no sufficien o bring real access

o elecric ransporaion o everyone While i does address he charging needs

o residens in muliamily residences and aparmen buildings building he

inrasrucure or charging does no make he acual elecric vehicles moreaffordable o low-income drivers One way o address his is o lower he price

or vehicles a he poin o sale UN or example recommends using Low

8182019 Electric Utilities and the Future of Clean Transportation

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20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

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21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

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23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

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25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

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27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

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httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 23: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2332

20 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Carbon Fuel Sandard revenue o give low-income drivers a rebae upron on

he purchase or lease o an elecric vehicle Tis could lower he price poin

o an affordable level especially or he purchase o used vehicles which are

cheaper bu no eligible or he $7500 ederal ax credi102

Uiliies can play a significan role in incenivizing cusomers o purchase elecric vehicles and in expanding charging access o under-served areas Tey can offer

special ime-o-use charging raes o make charging more affordable and spread ou

elecriciy demand Some consumer advocacy groups have expressed concern abou

uiliies direcly invesing in charging inrasrucure and uiliies should address

hese concerns hrough sakeholder engagemen and well-designed pilo programs

o collec daa and avoid sifling compeiion rom privae charging providers

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2432

21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

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8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2632

23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

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24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2832

25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 24: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2432

21 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Recommendations

As elecriciy becomes cleaner i will become a common-sense alernaive uel

or vehicles While he elecric vehicle and hybrid vehicle marke has seen growh

in recen years i sill accouns or only 3 percen o vehicles on he road in he

Unied Saes While car manuacurers municipaliies and ederal and sae

governmens have been incenivizing elecric vehicle producion and use elecric

uiliies also have a significan role o play in expanding access o elecric ranspor-

aion as a clean affordable alernaive o gas-powered cars

Given he posiion ha uiliies play in delivering elecriciy o households and

businesses across he counry he Cener or American Progress recommends

ha elecric uiliies

bull Inves in and mainain a public charging inrasrucure in heir service areas

Elecric uiliies ha are ineresed in adding charging saions o heir service area

should prioriize early sakeholder engagemen and i necessary sar wih pilo

programs o evaluae he size and ype o invesmen ha bes mees he needs o

he communiy Uiliies should also demonsrae ha heir invesmen does no

obsruc marke compeiion and innovaion Te goal should be o complemen

no supplan privae secor involvemen in charging inrasrucure

bull Offer elecric vehicle owners in heir service areas special ime-varying raes

o incenivize off-peak charging Tese uiliies also should ideniy ways o

allow elecric vehicle consumers o purchase or use elecriciy generaed rom

renewable or zero-carbon energy sources o maximize he climae benefi o

he elecric vehicles

bull Expand charging o low-income areas and muliamily residences ha areofen negleced by privae charging providers For his o work uiliies also

should encourage sae policymakers o offer poin-o-sale rebaes or resi-

dens in hese areas o purchase new or preowned elecric vehicles o make he

cars a more affordable opion

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2532

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2632

23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2732

24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2832

25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 25: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2532

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2632

23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2732

24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2832

25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 26: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2632

23 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Conclusion

As he Unied Saes works o reduce greenhouse emissions as par o a global

effor o curb global warming and preven he wors impacs o climae change

reducions will need o be made rom muliple secors Te Unied Saes has

made grea srides in implemening policy o reduce emissions rom he power

secor and i mus now urn o he ransporaion secor which accouns or more

han one-ourh o all greenhouse gas emissions in he counry

Puting more elecric vehicles on he road is imporan or achieving hesereducions and elecric uiliies have a criical role o play in he deploymen o

elecric vehicles CAP recommends ha uiliies use heir expansive presence

across he counry o incenivize elecric vehicle ownership and inves direcly

in charging inrasrucure CAP also recommends ha uiliies use hese incen-

ives and invesmens o expand elecric vehicle and charging access o low-

income and underserved areas

Elecric vehicles will play a prominen role in he ransporaion o he uure and

uiliies are well posiioned o encourage and benefi rom his growh

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2732

24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2832

25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 27: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2732

24 Center for American Progress | Electric Utilities and the Future of Clean Transportation

About the authors

Myriam Alexander-Kearns is he esearch Associae or he Energy Policy eam

a he Cener Beore joining he Cener she worked a he Georgeown Climae

Cener ocusing on climae change adapaion and miigaion iniiaives She

previously inerned wih he W hie House Council on Environmenal Qualiy onhe climae adapaion eam

Alison Cassady

is he Direcor o Domesic Energy Policy a he Cener or

American Progress where she ocuses on ederal climae policy and carbon pric-

ing She was previously senior saff or ep Henry Waxman (D-CA) and he US

House o epresenaives Energy and Commerce Commitee

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2832

25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 28: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2832

25 Center for American Progress | Electric Utilities and the Future of Clean Transportation

Endnotes

1 US Environmental Protection Agency Fast Facts USTransportation Sector Greenhouse Gas Emissions 1990-2013 (2015) available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

2 Unless otherwise specified ldquoelectric vehiclerdquo refers toa category of plug-in vehicles that includes BatteryElectric Vehicles or BEVs and Plug-in Hybrid ElectricVehicles or PHEVs BEVs run solely on an electric bat-tery and are charged by plugging them into an electricoutlet or charger PHEVs contain both an electric bat-tery which is charged by plugging them into an outletor charger and an internal combustion engine whichruns on a conventional fossil fuel like petroleum

3 The White House ldquoFact Sheet US Reports its 2025Emissions Target to the UNFCCCrdquo Press release March31 2015 available at httpswwwwhitehousegovthe-press-office20150331fact-sheet-us-reports-its-2025-emissions-target-unfccc

4 Coral Davenport ldquoNations Approve LandmarkClimate Accord in Parisrdquo The New York Times De-cember 12 2015 available at httpwwwnytimescom20151213worldeuropeclimate-change-accord-parishtml_r=0

5 Maria Belenky ldquoAchieving the US 2025 EmissionsMitigation Targetrdquo (Washington Climate Advisors2016) available at httpwwwclimateadviserscomwp-contentuploads201602US-Achieving-2025-Tar-get_Jan-2015-finalpdf

6 OEdenhofer and others ldquoClimate Change 2014 Mitiga-tion of Climate Change Contribution of Working GroupIII to the Fifth Assessment Report of the Intergov-ernmental Panel on Climate Changerdquo p 12 (GenevaIntergovernmental Panel on Climate Change 2014)available at httpswwwipccchpdfassessment-reportar5wg3ipcc_wg3_ar5_fullpdf

7 Environmental Protection Agency ldquoFACT SHEET CleanPower Plan By The Numbersrdquo available at httpswwwepagovcleanpowerplanfact-sheet-clean-power-plan-numbers (last accessed March 2016)

8 Environmental Protection Agency ldquoFast Facts ndash US Transportation Sector Greenhouse Gas Emissions 1990-2013rdquo October 2015 available at httpswwwepagovsitesproductionfiles2016-02documents420f15032pdf

9 Ibid

10 Union of Concerned Scientists ldquoCleaner Cars fromCradle to Grave How Electric Cars Beat Gasoline carson Lifetime Global Warming Emissionsrdquo (2015) p 21available at httpwwwucsusaorgsitesdefaultfilesattach201511Cleaner-Cars-from-Cradle-to-Grave-full-reportpdf

11 Ibid p 11

12 US Environmental Protection Agency ldquoCarbon

Pollution Emission Guidelines for Existing Station-ary Sources Electric Utility Generating Unitsrdquo FederalRegister 79 (34829) (2014) available at httpswwwfederalregistergovarticles201406182014-13726carbon-pollution-emission-guidelines-for-existing-stationary-sources-electric-utility-generating

13 US Environmental Protection Agency ldquoClean PowerPlan ndash Technical Summary for Statesrdquo available athttpswww3epagovairqualitycpptoolboxtechni-cal-summary-for-statespdf (last accessed April 2016)

14 Daniel Cusick ldquoRenewables Boom Expected Thanksto Tax CreditrdquoScientific American December 21 2015available at httpwwwscientificamericancomarticlerenewables-boom-expected-thanks-to-tax-credit

15 Cory Honeyman ldquoUS Residential Solar EconomicOutlook 2016-2020 Grid Parity Rate Design and NetMetering Riskrdquo (Boston GTM Research 2016) availableat httpswwwgreentechmediacomresearchreportus-residential-solar-economic-outlook-2016-2020

16 Ibid

17 Solar Energy Industries Association ldquoSolar MarketInsight 2015 Q3rdquo available at httpwwwseiaorgresearch-resourcessolar-market-insight-2015-q3 (lastaccessed March 2016)

18 US Department of Energy ldquoWind Visionrdquo available athttpenergygovmapsmap-projected-growth-wind-industry-now-until-2050 (last accessed March 2016)

19 American Wind Energy Association ldquoUS Wind IndustryFourth Quarter 2015 Market Reportrdquo (2015) availableat httpaweafilescms-pluscomFileDownloadspdfs4Q201520AWEA20Market20Report20Pub-lic20Versionpdf

20 US Department of Energy ldquoWind Visionrdquo

21 US Department of Energy ldquoElectric Vehicle ChargingStation Locationsrdquo available at httpwwwafdcenergygovfuelselectricity_locationshtml (last accessed April2016)

22 Electric Drive Transportation Association ldquoElectricDrove Sales Dashboardrdquo available at httpelectric-driveorgindexphpht=dspi20952pid20952 (lastaccessed March 2016)

23 California Air Resources Board ldquoZero-Emission VehicleLegal and Regulatory Activities and Backgroundrdquoavailable at httpwwwarbcagovmsprogzevprogzevregszevregshtm (last accessed March 2016)

24 California Air Resources Board ldquoThe Zero EmissionVehicle (ZEV ) regulationrdquo available at httpwwwarbcagovmsprogzevprogfactsheetsgeneral_zev_2_2012pdf (last accessed March 2016)

25 Center for Climate and Energy Solutions ldquoZEV Programrdquoavailable at httpwwwc2esorgus-states-regionspolicy-mapszev-program (last accessed March 2016)

26 Multi-State ZEV Task Force ldquoAbout the ZEV Task Forcerdquoavailable at httpwwwzevstatesus (last accessedMarch 2016)

27 US Department of Energy ldquoState Laws and Incentivesrdquo

available at httpwwwafdcenergygovlawsstate (last accessed March 2016)

28 US Department of Energy ldquoFACT 914 February29 2016 Plug-in vehicle sales climb as battery costsdeclinerdquo available at httpenergygoveerevehiclesfact-914-february-29-2016-plug-vehicle-sales-climb-battery-costs-decline (last accessed March 2016)

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 29: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 2932

26 Center for American Progress | Electric Utilities and the Future of Clean Transportation

29 Tom Randall ldquoHerersquos How Electric Cars Will Causethe Next Oil Crisisrdquo Bloomberg Business February25 2016 available at httpwwwbloombergcomfeatures2016-ev-oil-crisis

30 Ibid

31 International Energy Agency ldquoGlobal EV OutlookUnderstanding the Electric Vehicle Landscape to2020rdquo (Paris Clean Energy Ministerial Electric VehiclesInitiative Intergenerational Energy Agency 2013) p17available at httpwwwieaorgpublicationsgloba-

levoutlook_2013pdf

32 Stephen Edelstein ldquoElectric Car Price Guide Every2015-2016 Plug -In Car With Specs UPDATEDrdquo GreenCar Reports January 27 20 16 available at httpwwwgreencarreportscomnews1080871_electric-car-price-guide-every-2015-2016-plug-in-car-with-specs-updat-ed

33 Andrew Moseman ldquoConfirmed The $35000 TeslaModel 3 Will Be Unveiled in March 2016rdquo PopularMechanics February 11 2016 available at httpwwwpopularmechanicscomcarsa1298335000-tesla-model-iii-coming-in-2017

34 Randall ldquoHerersquos How Electric Cars Will Cause the NextOil Crisisrdquo

35 US Department of Energy ldquoElectric Charging Locations

by Staterdquo

36 Jay Cole ldquoPlug-In Vehicle Adoption State By State AndBy Brand For 2014 In USrdquo Inside EVs October 2015available at httpinsideevscomev-adoption-state-state

37 US Department of Energy ldquoElectric Charging Locationsby Staterdquo Cole ldquoPlug-In Vehicle Adoption State ByState And By Brand For 2014 In USrdquo

38 Excluding Tesla which uses its own charging technol-ogy that is incompatible with DC fast chargers MarkKane ldquoEVgo Announces Three Major Partnerships inOne Big Weekrdquo InsidesEVs November 25 2015 avail-able at httpinsideevscomevgo-announces-three-major-partnerships-one-big-week

39 CarStations ldquoMap of charging stationsrdquo available at

httpcarstationscom (last accessed March 2016)

40 Tesla ldquoSuperchargerrdquo available at httpswwwteslamo-torscomsupercharger (last accessed April 2016)

41 Toronto Atmospheric Fund ldquoFleetwise EV300 FindingsReport on EV Usage in Sixteen GTA Fleetsrdquo (2015) p12available at httptafcawp-contentuploads201409FleetWise-EV300-Findings-Report-16-June-2015pdf

42 Idaho National Laboratory ldquoPlugged In How AmericansCharge Their Electric Vehiclesrdquo (2015) p5 available athttpavtinelgovpdfarraSummaryReportpdf

43 Ibid pp 14-15

44 US Energy Information Administration ldquoTotal electric-ity sales fell in 2015 for 5th time in past 8 yearsrdquo Todayin Energy March 14 2016 available at httpswwweia

govforecastssteoreportrenew_co2cfm

45 US Energy Information Administration ldquoShort-termEnergy and Summer Fuels Outlookrdquo April 12 2016available at httpwwweiagovforecastsaeodatabrowserid=8-AEO2015ampcases=ref2015

46 Steven Nadel ldquo35 years of energy efficiency progress35 more years of energy efficiency opportunityrdquo Ameri-can Council for an Energy-Efficient Economy June 302015 available at httpaceeeorgblog20150635-years-energy-efficiency-progress

47 Database of State Incentives for Renewables amp Ef-ficiency ldquoDetailed Summary Mapsrdquo available at httpwwwdsireusaorgresourcesdetailed-summary-maps (last accessed March 2016)

48 Database of State Incentives for Renewables amp Ef-

ficiency ldquoSummary Tablesrdquo available at httpprogramsdsireusaorgsystemprogramtables (last accessedMarch 2016)

49 Eric Ackerman and Paul De Martini eds ldquoFutureof Retail Rate Designrdquo (Washington Edison ElectricInstitute 2013) p 2 available at httpwwweeiorgis-suesandpolicystateregulationDocumentsFuture20of20Retail20Rate20Design20v42002171320eta20-20pjd2pdf

50 Ibid p 8

51 Scott Shepard ldquoPlug-In Vehicles For Utilities MoreOpportunities than Challengesrdquo Navigant ResearchBlog January 3 2014 available at httpwwwnavigan-tresearchcomblogplug-in-vehicles-for-utilities-more-opportunities-than-challenges

52 Edison Electric Institute ldquoMemorandum of Understand-ing Between the Department of Energy and EdisonElectric Instituterdquo (2015) available at httpwwweeiorgresourcesandmedianewsroomDocumentsMOUpdf

53 Ibid

54 Robert Walton ldquoIHS Electric vehicle charging infra-structure poised to grow globallyrdquo Utility Dive June 162015 available at httpwwwutilitydivecomnewsihs-electric-vehicle-charging-infrastructure-poised-to-grow-globally400792

55 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo Press release March 9 2015 available at httpwwwnavigantresearchcomnewsroomvehicle-grid-integration-services-revenue-is-expected-to-reach-

nearly-21-million-by-2024

56 Brad Berman ldquoElectric Vehicles and the Smart GridrdquoPlugin Cars October 14 2015 available at httpwwwplugincarscomguide-electric-vehicles-and-the-smart-gridhtml

57 Navigant Research ldquoVehicle-Grid Integration ServicesRevenue is Expected to Reach Nearly $21 Million by2024rdquo

58 Energy and Environmental Economics and ICF Interna-tional ldquoCalifornia Transportation Electrification Assess-ment ndash Phase 2 Grid I mpactsrdquo (2014) p 19 available athttpwwwcaletccomwp-contentuploads201410CalETC_TEA_Phase_2_Final_10-23-14pdf

59 Energy Foundation ldquoHow Utilities Can Drive the Futureof Transportrdquo July 22 2015 Energy Foundation Blog

available at httpwwweforghow-utilities-can-drive-the-future-of-transport

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 30: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3032

27 Center for American Progress | Electric Utilities and the Future of Clean Transportation

60 Laurie Guevara-Stone and David Posner ldquoA CaliforniaUtility Explores Time-Sensitive Electricity Pricingrdquo RockyMountain Institute RMI Outlet blog April 21 2015available at httpblogrmiorgblog_2015_04_21_cali-fornia_utility_explores_time_sensitive_electricity_pric-ing

61 Ibid p 17

62 Zach McDonald ldquoWhich Utilities Offer Time-of-UseRates for Plug-insrdquo January 16 2016 FleetCarma avail-able at httpwwwfleetcarmacomutility-time-of-use-

plug-in-vehicles

63 Guevara-Stone and Posner ldquoA California Utility Explores Time-Sensitive Electricity Pricingrdquo

64 San Diego Gas amp Electric ldquoEV Ratesrdquo available at httpwwwsdgecomclean-energyev-rates(last accessedMarch 2016)

65 CrossChasm ldquoCanadarsquos First Residential Smart ChargingPilotrdquo available at httpwwwcrosschasmcomcharge-to (last accessed March 2016)

66 Sunny Trochaniak ldquoIs TOU pricing enough for electricvehicle chargingrdquo November 17 2015 FleetCarmaavailable at httpwwwfleetcarmacomtou-pricing-smart-charging

67 CrossChasm ldquoCanadarsquos First Residential Smart Charging

Pilotrdquo

68 Great River Energy ldquoElectric vehiclesrdquo available at httpgreatriverenergycomwe-use-energy-wiselyenergy-efficiencyelectric-vehicles (last accessed March 2016)

69 US Department of Energy ldquoDeveloping Infrastructureto Charge Plug-In Electric Vehiclesrdquo available at httpwwwafdcenergygovfuelselectricity_infrastructurehtml (last accessed April 2016)

70 Tom Saxton ldquoUnderstanding Electric Vehicle ChargingrdquoJanuary 31 2011 Plug In America In the Driverrsquos Seatblog available at httpwwwpluginamericaorgdrivers-seatunderstanding-electric-vehicle-charging

71 US Department of Energy ldquoEV Everywhere VehicleChargingrdquo available at httpenergygoveereevevery-whereev-everywhere-vehicle-charging (last accessed

March 2016)

72 Silver Spring Networks ldquoThe Dollarsmdashand SensemdashofEV Smart Charging Thinking Through the Options forUtility Integration of Electric Vehiclesrdquo (2010) p 12available httpwwwrmiorgContentFilesDollarsand-Sensepdf

73 Kansas City Power amp Light ldquoKCPampL Clean ChargeNetworkrdquo available at httpwwwkcplcomabout-kcplenvironmental-focusclean-charge-network (lastaccessed March 2016)

74 Ibid

75 Peter Kelly-Detwiler ldquoKCPampL Looking to Make KansasCity An Electric Vehicle HotspotrdquoForbes August 112015 available at httpwwwforbescomsitespeter-detwiler20150811kcpl-looking-to-make-kansas-

city-an-electric-vehicle-hotspot43a806ca60c1

76 Kyle Field ldquoCalifornia Public EV Charging Expan-sion Comes With Growing Painsrdquo CleanTechnicaMarch 25 2016 available at httpcleantechnicacom20160325california-public-ev-charging-expan-sion-comes-growing-pains

77 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress release January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-southland

78 Max Baumhefner ldquoSan Diego Gas amp Electric to UseElectric Cars to Integrate Renewable Energyrdquo NaturalResources Defense Council Expert blog January 28

2016 available at httpswitchboardnrdcorgblogsmbaumhefnersan_diego_gas_electric_to_use_html

79 Robert Walton ldquoHow SDGampE wants to power the elec-tric vehicle marketrdquo Utility Dive October 8 2014 avail-able at httpwwwutilitydivecomnewshow-sdge-wants-to-power-the-electric-vehicle-market315887

80 Ibid

81 California Electric Transportation Coalition and Energyand Environmental Economics ldquoSan Diego Gas amp Elec-tric Vehicle-Grid Integration Pilot Programrdquo available athttpwwweeiorgissuesandpolicyelectrictransporta-tionPEVengagementDocumentsSummary20of20SDGE20Final2pdf (last accessed March 2016)

82 Herman K Trabish ldquoAs regulators pump brakes whatrsquosnext for PGampErsquos EV charging programrdquo Utility Dive

October 7 2015 available at h ttpwwwutilitydivecomnewsas-regulators-pump-brakes-whats-next-for-pges-ev-charging-program406691

83 Ibid George Avalos ldquoCalifornia PUC Rejects Plan forElectric Vehicle Charging Station Networkrdquo GovTechSeptember 8 2015 available at httpwwwgovtechcomfsCalifornia-PUC-Rejects-Plan-for-Electric-Vehicle-Charging-Station-Networkhtml

84 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

85 Ibid

86 Eric Borden Energy Policy Analyst ldquoPrepared Direct Testimony of Eric Borden Regarding Pacific Gas and

Electric Companyrsquos Supplement to Application 15-02-009 for an Electric Vehicle Infrastructure and EducationProgramrdquo Testimony before the Public Utilities Commis-sion of the State of California November 30 2015

87 Ibid

88 Office of Ratepayer Advocates ldquoElectric Vehicles (EVs)SDGampE Infrastructure Programrdquo available at httpwwworacagovSDGEEVPilotaspx(last accessed March2016)

89 Ibid

90 Anne C Mulkern ldquoCalif utility sparks debate proposingto install 25000 charging stations to promote electricvehiclesrdquo EampE News February 10 2015 available athttpwwweenewsnetstories1060013167

91 Ibid

92 George Avalos ldquoPGampE plan to build network of electricvehicle charging stations in northern and centralCalifornia is turned backrdquo The Mercury News September4 2015 available at httpwwwmercurynewscombusinessci_28760989

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 31: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3132

28 Center for American Progress | Electric Utilities and the Future of Clean Transportation

93 Julia Pyper ldquoPGampE Submits a Revised Plan to Build upto 7500 E V Chargersrdquo Greentech Media October 202015 available at httpwwwgreentechmediacomarticlesreadPGE-Submits-a-Revised-Plan-to-Build-Up-

To-7500-EV-Chargers

94 The Utility Reform Network ldquoPGampE Ignores CPUC OrderDemands Excessive Unnecessary Electric VehicleCharging Experimentrdquo Press release March 21 2016available at httpwwwturnorgpress-roompress-re-leasesitem909-pge-demands-excessive-unnecessary-ev-charging-stationshtml

95 Sierra Club ldquoDiverse Coalition Backs Plan for Deploy-ment of Electric Vehicle Charging Stations in Nor thernCaliforniardquo Press release March 21 2016 available athttpcontentsierracluborgpress-releases201603diverse-coalition-backs-plan-deployment-electric-vehicle-charging-stations

96 New York State Energy Research and DevelopmentAuthority ldquoCompilation of Utility Commission InitiativesRelated to Plug-in Electric Vehicles and Electric VehicleSupply Equipmentrdquo (2013) p 25 available at httpswwwnyserdanygov-mediaFilesPublicationsResearchTransportationCompilation-Utility-Commis-sion-Initiatives-Plug-accpdf

97 Application of San Diego Gas amp Electric Company(U902E) for Approval of its Electric Vehicle-Grid Integra-tion Pilot Program available at httpswwwsdge

comsitesdefaultfilesdocumentsregulatoryVGI20Motion20for20Adoption20of20Settlement20FINALPDF (last accessed March 2016)

98 CC Song ldquoElectric Vehicles Whorsquos Left Strandedrdquo(Oakland CA The Greenlining Institute 2011) p 8available at httpgreenliningorgwp-contentup-loads201302ElectricVehiclesReportpdf

99 Edison International ldquoSCE Receives CPUC Approval forlsquoCharge Readyrsquo Pilot Program Will Install As Many As1500 Electric Vehicle Charging Stations in SouthlandrdquoPress releases January 14 2016 available at httpnewsroomedisoncomreleasessce-receives-cpuc-approval-for-charge-ready-pilot-program-will-install-as-many-as-1-500-electric-vehicle-charging-stations-in-

southland

100 Proposed Settlement Agreement to CPUC by PGampEMarch 21 2016 available at httpgreenliningorgwp-contentuploads201603JtMotiontoAdoptSettle-mentAll-03-21-16pdf (last accessed March 2016)

101 California Public Utilities Commission ldquoCPUC FilesSettlement That Will Bring Electric Vehicle ChargingInfrastructure to Californiarsquos Diverse CommunitiesrdquoPress release April 27 2015 available at httpdocscpuccagovPUBLISHEDNEWS_RELEASE165145htm

102 Eric Borden Energy Policy Analyst ldquoPrepared Rebuttal Testimony of Eric Borden Regarding PGampErsquos Application15-02-009 for an Electric Vehicle Infrastructure andEducation Programrdquo Testimony before the Public Utili-ties Commission of the State of California December21 2015

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate

Page 32: Electric Utilities and the Future of Clean Transportation

8182019 Electric Utilities and the Future of Clean Transportation

httpslidepdfcomreaderfullelectric-utilities-and-the-future-of-clean-transportation 3232

Our Mission

The Center for American

Progress is an independent

nonpartisan policy institute

that is dedicated to improving

the lives of all Americans

through bold progressive

ideas as well as strongleadership and concerted

action Our aim is not just to

change the conversation but

to change the country

Our Values

As progressives we believe

America should be a land of

boundless opportunity where

people can climb the ladder

of economic mobility We

believe we owe it to future

generations to protect theplanet and promote peace

and shared global prosperity

And we believe an effective

government can earn the

trust of the American people

champion the common

good over narrow self-interest

and harness the strength ofour diversity

Our Approach

We develop new policy ideas

challenge the media to cover

the issues that truly matter

and shape the national debat

With policy teams in major

issue areas American Progres

can think creatively at thecross-section of traditional

boundaries to develop ideas

for policymakers that lead to

real change By employing an

extensive communications

and outreach effort that we

adapt to a rapidly changing

media landscape we move

our ideas aggressively in thenational policy debate